Starbucks India bets on protein foam and local buns despite losses

Starbucks India is accelerating its expansion in the country, a key global market, by adding new stores and innovating its menu with offerings like protein foam coffee and Mumbai's street-style buns. This strategy prioritizes increasing its footprint over immediate profitability, even as the business reported a near doubling of losses to 1.5 billion rupees ($16.5 million) in the year to March. Revenue saw a modest 4.8% rise during the same period.

The coffee giant is doubling down on India despite facing fierce local competition from agile brands and a general slowdown in consumption demand. Globally, Starbucks is navigating challenges including divestment in China and consumer boycotts in the Middle East. Locally, Tata Starbucks aims to retain market share by introducing protein-packed drinks, low-calorie snacks, and regionally inspired dishes such as Malabar egg roast and Vada Pao-style buns.

Recent efforts show signs of traction. Same-store sales growth reached 3% for two consecutive quarters, a turnaround from previous declines. The chain also added 12 new stores, bringing its total to 504 across 81 Indian cities. Younger consumers are driving demand for cold brews and lighter beverages, aligning with Starbucks' focus on zero-sugar and protein options to integrate with fitness-conscious lifestyles.