INSUBCONTINENT EXCLUSIVE:
Mumbai: Tata Starbucks, a joint venture between the Tata Group and Starbucks, posted its first positive Ebitda (earnings before interest,
tax, depreciation and amortisation) after sales growth nearly doubled during FY17-18.
Tata Global, in its latest annual report said Tata
Starbucks, improved sales by 28% in FY 2017-18 with robust in-store performance and new stores added during the year
With the JV posting sales of Rs 272 crore in FY16-17, a back-of-the-envelope calculation shows revenue to be about Rs 348 crore during the
year ago period when it mostly focussed on profitability and halted aggressive expansion
However, it added nearly 25 stores last financial year.
The JV narrowed net loss marginally to Rs 30 crore during the year to March 2018
compared to Rs 32 crore a year ago
coffee, snacks and merchandise worth Rs 3 crore
Rs 1,590 crore from 1,722 outlets, or about annual sales of Rs 90 lakh per store
for global coffee chains including Starbucks, consumers are attuned to a takeaway culture, which helps them add margins at very little cost
In India, however, office-goers and students go to cafes to relax and spend hours over coffee and snacks
Real estate costs in India are high, making it important for retailers to realise average price per square foot of space.
Starbucks expanded
Singapore nearly two years ago.
