Coffee chain operator Tata Starbucks Ltd reported revenue growth of 76% to Rs 636 crore for 2021-22 and ‘significantly’ reduced its net loss, due to normalization of operations following the easing of COVID-related restrictions.
Its revenue growth was driven by higher realization of existing stores and new stores added during the financial year ended March 31, 2022, according to Tata Consumer Products Ltd (TCPL).
“Revenue from operations at Rs 636 crore increased by 76% and net loss decreased significantly,” TCPL said while sharing details of its joint venture performance.
However, he did not specify the net loss for FY22.
It “has experienced a strong recovery since reopening following the second wave of the pandemic” and accelerated its store openings during the year with 50 new stores, the highest number of store openings in a single year .
The company now has 268 stores in 26 cities.
Established in 2012, Tata Starbucks is a 50/50 joint venture between Starbucks Corporation and the FMCG arm of the Tata Group, Tata Consumer Products Ltd (TCPL).
“During the 2021-22 financial year, the company invested an amount of Rs 86 crore in equity,” TCPL added.
“As COVID restrictions eased during the year, a strong sequential sales recovery was achieved and added 50 new stores with expansion into eight new cities. New stores are a mix of store openings iconic ones, namely, Golden Temple Complex in Amritsar, Jio World Drive in Bandra Kurla Complex in Mumbai and Brahmaputra Riverfront in Guwahati, and smaller footprint stores,” he said.
Additionally, the membership base of the My Starbucks Rewards loyalty program grew by 21% last year. It has a loyalty base of nearly 1.1 million customers.
“Tata Starbucks has focused on innovation, digital and deep customer relationships to navigate this pandemic and make the Starbucks experience as engaging and personalized as ever,” he added.
Its delivery vertical continues to perform well even after the easing of dining restrictions.
“The business was able to break even at the operating profit before depreciation and amortization (EBITDA) level,” he said.
As COVID restrictions eased over the year, Tata Starbucks saw a strong sequential recovery in sales across the business, and in March the store operating index reached 95%.
“We also saw an increase in average daily transactions on our delivery channel with the restrictions. Levels stabilized higher than pre-COVID levels even as the restrictions eased,” the statement said. society.