Starbucks narrows losses 19.6% to Rs16.13 crore in FY17
Mumbai: Tata Starbucks Pvt. Ltd, the 50:50 joint venture between Tata Global Beverages Ltd (TGBL) and Seattle-based coffee chain Starbucks Coffee Co., reported it had narrowed its losses 19.6% year-on-year to Rs16.13 crore, as per data from TGBL’s annual report for the fiscal year 2016-17.
Starbucks had made losses of Rs20.07 crore in the last fiscal year on revenues of Rs235 crore. This year, the company did not report its revenues.
“Tata Starbucks Private Limited, India reported an increase in its revenues attributable to improved in-store performance, cost and productivity initiatives coupled with the benefit of additional stores opened during 2016-17,” the annual report said. The coffee chain increased its store count by nine during the year, taking the total to 91.
“The company performed very well in the current year with double-digit growth. Various in-store initiatives were launched to encourage repeat customers,” the report said. Among these initiatives, it lists the Tata Starbucks mobile app to allow customers to pay online for their coffee and the tea range Teavana that it introduced for customers in India.
TGBL also invested Rs12 crore in the joint venture during the financial year, as per the annual report. This came on the back of continuously dropping fresh investment made in the joint venture. In FY15-16, the company had invested Rs28 crore in Starbucks and Rs60 crore in FY14-15.