Coffee chain operator Tata Starbucks Ltd has reported a 76 per cent growth in revenue to ₹636 crore for 2021-22 and "significantly" reduced its net loss, driven by normalisation of operations following easing of Covid-related restrictions.
Its revenue growth was led by higher realisation from existing stores and new stores added during the financial year ended on March 31, 2022, as per the latest annual report of Tata Consumer Products Ltd (TCPL). "Revenue from Operations at ₹636 crore, grew by 76 per cent and net loss declined significantly," TCPL said while sharing details of the performance of its JV. However, it did not specify the net loss for FY22.
It "saw a strong recovery since re-opening 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 so far. The company now has 268 stores across 26 cities.
Formed in 2012, Tata Starbucks is a 50:50 joint venture between Starbucks Corporation and Tata group's FMCG arm Tata Consumer Products Ltd (TCPL). "During the financial year 2021-22, the Company has invested an amount of ₹86 crore towards equity capital," TCPL added.
"As Covid restrictions eased through the year, robust sequential recovery of sales was achieved and added 50 new stores with expansion into 8 new cities. The new stores are a mix of landmark store openings viz Golden Temple complex in Amritsar, Jio World Drive in Bandra Kurla Complex in Mumbai and Brahmaputra Riverfront in Guwahati, and smaller footprint stores," it said.
‘Focus on innovation’
Moreover, loyalty programme My Starbucks Rewards' member base witnessed a growth of 21 per cent last year. It boasts of a loyalty base of close to 1.1 million customers. "Tata Starbucks focused on innovation, digital and deep customer connections to navigate this pandemic and make the Starbucks experience as engaging and personalised as ever," it added.
Its delivery vertical continues to perform well even after the easing of dine-in restrictions. "The business was able to deliver breakeven at the operating profit level before depreciation and amortization (EBITDA)," it said.
As Covid restrictions eased through the year, Tata Starbucks witnessed a robust sequential recovery of sales in the business and by March, the store operation index reached 95 per cent, it said. "We also saw an increase in average daily transactions on our delivery channel with the restrictions, and the levels stabilised higher versus pre-Covid even as the restrictions eased," the company said.