India's cafe culture is thriving, but even global giant Starbucks is feeling the heat. Tata Starbucks, the joint venture between Starbucks and Tata Consumer Products, is slowing down its store expansion due to rising costs and real estate challenges.

Initially planning to open 100 stores this year, the brand will now scale back to 80, but aims to ramp up to 120 next year. Despite this short-term adjustment, Tata Starbucks still has its eyes set on reaching 1,000 stores by 2028. With over 450 outlets, it remains India's largest cafe chain, doubling its presence in just four years.

What's causing the slowdown?

1. Rising Costs – Inflation has led Indian consumers to cut back on spending, making premium coffee a luxury rather than a daily fix.

2. Real Estate Struggles – Finding prime, high-traffic locations is tough, unlike in China, where rapid mall expansion fuels Starbucks’ aggressive growth.

Still, growth is brewing! Tata Starbucks' revenue jumped 12% to ₹12.18 billion ($143.6 million), though net losses widened. But the company sees India's lower cafe density as a big opportunity.

To win over more coffee lovers, Tata Starbucks is:

✔ Introducing smaller, budget-friendly drinks like the ‘Picco’ cup

✔ Offering localized treats like Chai Tea Latte and Elaichi Mawa Croissant

✔ Expanding into smaller cities like Lucknow and Jaipur

Despite the hurdles, Starbucks is here to stay. With smart strategies, India's coffee game is only getting stronger!