Speak Greasy with Gauri Devidayal & Sushant Dash | Ep 3.3 | How TATA Starbucks Won Over Indian Chai

What this episode covers

Welcome to Episode 3 of Magazine St. Kitchen Presents: Speak Greasy with Gauri Devidayal. In this episode, Gauri is joined by Sushant Dash, CEO of TATA Starbucks, who shares fascinating insights into how Starbucks has navigated the complexities of the Indian market and established itself as a beloved brand in a tea-dominant country. Sushant begins by explaining Starbucks’ unique positioning. While people may initially visit Starbucks for its coffee, they stay for the sense of connection it offers. Starbucks is not just a coffee shop; it is a "third place"—a space where people can relax, socialise, or work, without feeling like just another number in a queue. The human touch is central to Starbucks' brand identity, from calling out customers by name to warmly assisting with their orders. India presents a unique challenge for any coffee brand, as tea is the drink of choice for 90% of the population, while coffee holds only a 12% share of the beverage market. Despite this, Starbucks entered India not to chase market share, but to create an entirely new category. When the first Starbucks store opened in Mumbai in 2012, the coffee landscape was largely undeveloped, and competitors like Barista and Café Coffee Day were struggling. Starbucks, however, offered something distinct—a premium, aspirational experience, underpinned by the promise of consistency and quality. Today, Starbucks operates over 360 stores in 65 cities across India and is opening a new outlet every four days. The brand’s expansion into smaller cities highlights the aspirational value it holds, particularly in towns where options for high-end cafés are limited. Sushant emphasises that understanding local tastes has been key to this growth. Starbucks has adapted its menu in India to include local favourites like masala chai and elaichi tea, along with a range of snacks that cater to the Indian habit of pairing beverages with food. Gauri and Sushant also discuss how Starbucks and The Table—Gauri’s own restaurant—have both successfully built a niche in India’s competitive F&B sector. Both brands have prioritised consistency and quality over gimmicks, which has been crucial in developing customer loyalty. The conversation then shifts to the importance of location in F&B businesses. Starbucks meticulously analyses data to decide where to open new stores, often entering markets earlier than expected when they anticipate growth. In Bandra, a Mumbai neighbourhood, Starbucks has six stores, all of which perform well, demonstrating the brand's ability to flourish even in highly saturated areas. Sushant also sheds light on Starbucks’ employee-centric culture, a value shared with the TATA Group. Tata Starbucks offers its "partners" (employees) a 5-day work week, health insurance that covers dependents, and educational support. Starbucks has also taken notable steps toward gender diversity, with over 30 all-female stores in India. The company’s employee-first policies contribute to low staff turnover and create a loyal workforce—qualities that are increasingly rare in the F&B sector. As the conversation moves towards branding and marketing, Sushant reflects on how Starbucks differentiates itself from competitors. While coffee was once an occasional indulgence for most Indians, it is now becoming a more habitual choice, especially in major metros like Mumbai and Delhi. The brand has achieved this by focusing on consistency, quality, and customer service—elements that smaller competitors often struggle to maintain. Meanwhile, in smaller towns, Starbucks remains a more indulgent experience, with blended shakes and signature milkshakes being particularly popular. The discussion also covers the closure of competing brands like Barista and Café Coffee Day, highlighting how Starbucks has succeeded by offering more than just a product—it offers an experience. The Starbucks Rewards loyalty programme has been a major part of this success, with over 4 million members in India. The programme isn’t just about free coffee; it’s about creating a sense of belonging and recognition within a premium, aspirational space. As the episode draws to a close, Gauri and Sushant touch on the role of technology and AI in the F&B industry, and the growing importance of packaging innovation for delivery. In the final segment, Sushant participates in a fun rapid-fire round, sharing his views on latte art, marathons, and more. This episode provides a comprehensive look at Starbucks' journey in India, its strategies for growth, and the importance of connection, both with its customers and its employees. It’s a must-watch for anyone interested in the business of coffee, branding, or the future of the F&B industry in India.

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