Starbucks, the global coffee powerhouse, boasts over 38,000 outlets across 88 countries. In India, the brand entered in 2012 through a 50:50 joint venture with Tata Global Beverages, forming Tata Starbucks Private Limited.
As of March 2025, Tata Starbucks operates 479 stores across 80 Indian cities, making it the country’s largest organized café chain.
Indians remain keen to open franchises, drawn by Starbucks’ global appeal, local menu adaptations (e.g., Masala Chai, Tandoori Paneer Sandwiches), its premium café atmosphere, and strong revenue performance. In FY25, Tata Starbucks saw its revenue grow approximately 5% to ₹1,277 crore, though net losses rose sharply to ₹135.7 crore (a 65% increase over FY24).
Despite moderated store expansion—58 new outlets opened in FY25, including entry into 19 new cities—Tata Starbucks has reaffirmed its target to reach 1,000 stores by 2028, expanding into Tier 2/3 cities, drive-thrus, airports, and 24-hour formats.
In this blog we will explore about Starbucks Franchise Cost in India.
Starbucks Franchise Overview
The history of Starbucks began in 1971 in Seattle’s Pike Place Market by Jerry Baldwin, Zev Siegl, and Gordon Bowker. Originally a retailer of roasted coffee beans, tea, and spices, the company’s purpose was rechanneled in 1982 when Howard Schultz joined and, after being exposed to the coffeehouse lifestyle in Milan, rechanneled the company into selling espresso beverages. This rechanneling saw the company expand from a few stores to a global chain of tens of thousands of outlets.
In modern days, Starbucks has an international menu of handcrafted coffee and espresso beverages, Frappuccinos, tea, pastries, and snacks. Starbucks also sells packaged coffee beans and merchandise. Global access for Starbucks is a testament to the thriving business model and its determination to provide its customers with a standard, quality “third place” between work and home. As the brand gaining popularity it could be the best franchise in India to start.
| Attribute | Details |
| Established | 1971 |
| Sector | Coffeehouse chain |
| Headquarters | Seattle, Washington, USA |
| Global Reach | Present in 80+ countries with over 30,000 outlets |
| Customer Experience | Provides a premium café ambiance with personalized beverages and distinctive flavors |
| Operations in India | Operated by Tata Starbucks Private Limited, a 50:50 partnership between Starbucks Coffee Company and Tata Global Beverages |
| India Entry Year | 2012 |
| Current Footprint in India | 300+ outlets across major metropolitan cities |
| Popular Indian Menu Items | Masala Chai, Tandoori Paneer Sandwich, and regionally inspired options |
| Market Standing in India | Recognized as the top premium coffeehouse chain, maintaining global quality benchmarks |
Can You Get a Starbucks Franchise in India?
Unfortunately, there isn’t any standard franchise model to be found in India. The business has all its stores running under a joint venture with Tata Consumer Products in the form of Tata Starbucks Private Limited. The most significant difference between a franchise model and a licensed partnership is something essential to learn.
- Franchise Model: Within this model, an individual or firm (franchisee) is offered the right to conduct business with the name of a brand, products, and operating system by the franchisor in return for a one-time payment and regular royalties. The franchisee is provided with some level of autonomy over operations but has to follow brand standards.
- Licensed Partnership: This is the model Starbucks operates under in India. Tata Starbucks Pvt. Ltd. owns and operates all stores outright. It is in charge of everything from store design and menu to employee training and supply chain management. This enables Starbucks to have strict quality control and brand consistency across all of its locations, an essential pillar of its global strategy.
Starbucks Franchise Cost and Requirements in India
Even though you can’t get a run-of-the-mill Starbucks franchise in India, that of a “licensed partnership” does remain and is what people are typically asking when they search for Starbucks franchise cost. To be eligible to apply for it, you would normally need to be a company or an established businessman, as it is expensive to invest and the requirements are stringent.
Starbucks Franchise Cost in India
| Expense Category | Approximate Cost (INR) | Details |
| Franchise Fee | ₹30–50 lakhs | Covers licensing and brand usage rights |
| Property Lease/Purchase | ₹50 lakhs – ₹1 crore | Securing prime locations such as malls, airports, or commercial hubs |
| Store Setup & Interiors | ₹50 lakhs | Includes coffee machines, kitchen utilities, and interior décor |
| Recruitment & Training | ₹10–20 lakhs | Hiring skilled baristas and staff training for service excellence |
| Marketing & Advertising | ₹10–15 lakhs | Promotional activities and brand launch campaigns |
| Overall Investment | ₹1.5 – ₹2.5 crores | Total estimated cost to establish a Starbucks outlet |
The real cost of a Starbucks franchise is not clear since it is a licensed business rather than a franchise. The amount of money required to begin a Starbucks store can be considerable based on industry figures and other similar ventures. The costs include:
- Estimated Investment: Total investment in starting a licensed Starbucks shop may range from ₹1.5 crore to ₹2.5 crore.
- Initial Setup: Much of the investment goes into the setup at the beginning, including installing high-end coffee machines and other kitchen equipment, a high-tech interior, and furniture that conforms to Starbucks’ standards. This alone could run from ₹50 lakh to ₹1 crore.
- Property Costs: The cost of leasing a good location in a popular city, airport, or high street is expensive and can range from ₹50 lakh to ₹1 crore per year or higher.
- Other Miscellaneous Expenses: This also forms a part of the Starbucks franchise cost for hiring labor and training, advertisement, and technology needed for business, and that can be another ₹10 lakh to ₹20 lakh.
Starbucks Franchise Requirements
Eligibility to pursue the opportunity for licensing is very selective. Although not official rules, these requirements are the norm for such a setup in other countries.
- Financial Stability: Prospective partners must have a decent financial record with sufficient capital to invest in the substantial upfront Starbucks franchise cost and operational expenses. The setup alone costs between ₹1.5 crore and ₹2.5 crore. This ensures that the partner will be able to afford investing in a substantial amount for setting up an upscale store, along with sustaining business operations without financial pressure.
- Business Experience: Candidates must have a history of running a successful business, particularly in the food and beverage industry. Previous experience validates one’s acquaintance with the intricacies of operating a business, customer service needs, and supply chain functions crucial in a successful cafe business.
- Location and Real Estate: Only in a place within a vibrant setting with heavy traffic is Starbucks able to establish its operation. The Indian franchise outlet must have an area between 1,000 and 1,500 square feet. A prime-site location must be in a high-end area and must position itself in proximity to shopping centers or business districts near airports to gain people’s attention. The price of the Starbucks franchise varies based on the premium nature of the location, which is one key source of customer traffic.
Starbucks Franchise Profitability in India
While there are no precise profit margins for individual licensed Starbucks stores, overall profitability is reputed to be high. These include:
- Gross Margin: An average Starbucks store maintains a substantial gross margin that usually ranges between 65% to 75% on its food and beverages due to its premium pricing strategy.
- Revenue per Store: According to a report, an average Starbucks store in India can complete one month of business anywhere between ₹7 lakhs to ₹12 lakhs, with stores in metro cities performing better.
- Company-Wide Profitability: Though the stores are individually profitable, Tata Starbucks Private Limited has incurred a net loss of ₹135.7 crore for FY25 because of expansion on a mass scale and very high investment in new stores and infrastructure.
- Investment Phase: The current losses are a temporary outcome of the company’s “investment stage” as it works towards achieving its target of 1,000 stores in 2028. Long-term prospects are encouraging.
How Indians Can Apply for a Starbucks Franchise
As seen, Starbucks does not have traditional franchises. Nonetheless, all their partnerships are controlled by Tata Starbucks Pvt. Ltd. The sequential process of a prospective licensing deal is as follows:
- Direct Contact: The persons or organizations who could be interested in pursuing a licensed partnership with Tata Starbucks Pvt. Ltd. need to get into direct contact with them via an e-mail. This is the first step, being an official expression of intent, and you should be prepared to present an initial business plan or a detailed company profile demonstrating your financial and operational competence.
- Review Process: Once contacted, the Tata Starbucks team will review the proposal along with the background of the applicant to ascertain if they qualify. This is a highly sensitive phase in which your history, financial position, and business acumen, particularly in the food and beverages industry, are carefully scrutinized to ascertain whether you are up to the brand’s high standards.
- Negotiation: If a partnership is determined to be possible, careful negotiations will then follow to formulate the terms, including the level of investment and operating arrangements. Each side will, at this point, negotiate the partnership terms, for example, location, store format, and the funding structure that constitutes a key element of the Starbucks franchise fee.
- Agreement: A legal contract is signed, which indicates the terms of the two parties. This comprehensive legal document outlines everything from operating rules and quality control practices to royalty payments and marketing obligations.
- Training and Launch: Once the agreement is signed, the partner is offered complete support and training by Tata Starbucks to launch and operate the outlet. The support varies from store design help to access to the supply chain, and comprehensive training for staff to deliver a consistent, high-quality customer experience that is well known to the world as part of the Starbucks brand.
Starbucks Franchise Contact Information
In the event of any inquiry regarding a licensed partnership with Starbucks in India, the official and suggested way to contact is through the corporate company.
Official Contact
One can contact Tata Starbucks Private Limited by email at contact@tatastarbucks.com with all questions about franchises. They are also available on Facebook, and one is invited to leave their comments on the official site.
Customer Care
For general inquiries, customers may call 18602660010. They may also email customercare@tatastarbucks.com, and the company will reply at its earliest convenience. These are the general customer service number and email, but also lead to the proper department for business enquiries.
Alternatives to the Starbucks Franchise in India
As they have a steep franchise cost and do not offer traditional franchises, most entrepreneurs look for other coffee shop franchises in India. The Indian coffee industry is flourishing, and there are several strong local and international brands with strong franchise offers. Below are a few of the major alternatives that can provide a significant pathway for potential cafe owners.
Café Coffee Day
Café Coffee Day (CCD) is a popular Indian brand and India’s biggest coffee house chain, thus an inviting option for potential franchisees. The franchise is revenue-sharing or rental-based with a successful venture to offer business organizations. The investment in opening an outlet of CCD is around ₹10 lakh to ₹20 lakh with a possible return on investment (ROI) of almost 45%. This model has the assurance of providing a short payback period, most appropriately within the range of 1-6 months, which is financially viable as opposed to the quite costly Starbucks franchise fee.
Barista
Barista is another Indian coffee chain that has a high degree of popularity with premium coffee and cozy ambiance. The company offers a franchise with an overall investment that could be between ₹30 lakh to ₹50 lakh, including the franchise fee, equipment, and other installation costs. The Barista franchise’s ROI is estimated to be between 22% and 27% with an estimated payback period of 2 to 2.5 years. The company provides end-to-end support in the form of training, supply chain management, and marketing assistance to assist new franchisees in establishing themselves in the market.
Third Wave Coffee
Third Wave Coffee is a rapidly growing company that has a dedicated fan base among coffee lovers for its specialty, fair-trade coffee beans. The company is growing and does provide franchising, though some financial details are not usually disclosed. Considering market trends and similar cafe business, an investment in a Third Wave Coffee shop would naturally be on the higher side, between ₹40 lakh to ₹80 lakh. While a successful model, the returns have typically been location-based, brand-loyal, and specialty coffee high-margin based.
Dunkin
While popularly known for its donuts, Dunkin’s has a decent coffee business and loyal customer base in India. It is a high-investment franchise since it is a well-established global brand with universal operational standards. To start a Dunkin outlet, an initial investment of ₹2 crore to ₹5 crore is required, including initial stock, setting up the store, and franchise fee. The company assures profitability through its diverse menu, successful marketing initiatives, and tried business model that yields steady revenue streams.
Conclusion
Though the desire to have a Starbucks franchise in India is common, it must be observed that the traditional franchise model is beyond reach. Starbucks has its operations under the control of a strictly licensed partnership with Tata. The Starbucks franchise price, though not a typical fee, is an outcome of the premium position of the brand and the heavy operational requirements.
However, for those who want to meet the criteria, a tie-up with Tata Starbucks provides a special chance to be associated with a globally known brand and access India’s growing coffee market. But for most budding entrepreneurs, venturing into other major coffee chains in India is a more affordable way to own a prosperous coffee company.
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FAQs
1. What is the estimated Starbucks franchise cost in India?
There is no typical Starbucks franchise cost because the firm has a model of licensed partnership. The investment required to set up an outlet can range from ₹1.5 crore to ₹2.5 crore.
2. Is it profitable to have a Starbucks in India?
Yes, even though definite profit amounts are not available, Starbucks is highly profitable in India due to its high brand recall, high price points, and rising customer base.
3. What are the key requirements for a Starbucks franchise?
Key requirements are a good financial history, a good past performance in the food and beverages industry, and experience in buying and selling properties.
4. Does Starbucks have any franchises outside of other countries?
Yes, in specific international markets, Starbucks does have a traditional franchise model, but not in India.
5. Is it possible to get a loan to fund the price of a Starbucks franchise?
Getting a loan for a licensed partnership is feasible, but is a highly complex process and will depend on the bank’s criteria and the applicant’s financial position.