Starbucks India revenue goes past Rs 1,000 Cr in FY23

The global coffee brand Starbucks took more than a decade to cross Rs 1,000 crore in operating revenue in India but its growth engine gained momentum in the last two fiscals (FY22 & FY23) with sound economics and the post-pandemic return of customers.

Starbucks India is a joint venture between Starbucks and Tata and it registered a three-fold spike in its collection which flew to Rs 1087 crore in the fiscal year ending March 2023 as compared to Rs 360 crore in FY21, its financial statement sourced from the Registrar of Companies shows.

For background, Starbucks India’s revenue stood at Rs 636 Crore in FY22.

Financial FY23

FY22 FY23










Amount in ₹ Cr

The sale of coffee and related products formed most of its revenue while the rest of the income came from the loyalty program called My Starbucks Rewards where the customers earn loyalty points (Stars).

As a coffee-selling company, the procurement of coffee beans, and other related products accounted for 28% of the total expenditure. In line with growth in scale, this cost increased 70.8% to Rs 316 crore in FY23.

Its employee benefits also grew 53% to Rs 159 crore in FY23. With over 300 Starbucks stores in India, the cost of rent rose 62% to Rs 81 crore in the last fiscal. Its electricity, maintenance, advertising, and other overheads catalyze the overall expenditure by 48.6% to Rs 1140 crore in FY23 from Rs 767 crore in FY22. Notably, Starbucks’s Indian entity gave a royalty of Rs 77 crore in FY23 to Starbucks corporation which owns the brand.

Check TheKredible for the complete expense breakdown.

Expense Breakdown

Total ₹ 767 Cr
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Total ₹ 1140 Cr
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  • Employee benefit expense
  • Cost of material cosumed
  • Rent
  • Electricity expenses
  • Advertising promotional expenses
  • Royalty
  • Others

The controlled cost mechanism and notable growth in scale helped Starbucks to reduce its losses by 73.6% to Rs 25 crore in FY23 from Rs 95 crore in FY22. Its ROCE and EBITDA margin improved to 3% and 19% respectively. On a unit level, the company spent 1.05 to earn a rupee in FY23.


FY22 FY23
Expense/Rupee of ops revenue ₹1.21 ₹1.05
ROCE -4% 3%
EBITDA Margin 16% 19%

With profitability within knocking distance, Starbucks has reason to be satisfied with the journey so far. Post pandemic, growth was expected to return rapidly, and the firm has duly grown, delivering a good set of numbers. With its high end positioning, the advantage of being a global brand well recognised by its users, Starbucks probably enjoys an advantage over local rivals that is unassailable in terms of controlled promotion costs.

On the other hand, the top locations come with pricey rentals, that will probably continue to weigh much more on the brand as it seeks further expansion. As it grows, Starbucks faces the prospect of becoming a proxy for the rise of the spending classes in India, as more and more customers stop grudging its high premium versus local options.  It has also created a high price ceiling for the same competitors, providing them enough space to create their own experiences  and still make money. Will any of them do well enough to mount a strong challenge? Time will tell, sooner than later.

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