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

In Episode 3 of Magazine St. Kitchen Presents: Speak Greasy with Gauri Devidayal, we sit down with Sushant Dash, CEO of TATA Starbucks, to explore the coffee giant’s journey in India. With over 24 years in the TATA system, Sushant brings a wealth of experience in marketing and branding, detailing how Starbucks has managed to craft a unique space for itself in a predominantly tea-drinking nation.While tea dominates Indian households with a staggering 90% penetration, coffee is still niche, with just 12% market penetration. Despite this, Starbucks entered the market not merely to compete but to create a new category centred around connection. Sushant emphasises that Starbucks is more than just a place to grab coffee—it is a "third place" between home and work, where people can relax, connect, and feel a sense of belonging. Customers aren’t just a number in a queue, and the personalised service, like calling out a customer’s name, is part of what keeps people coming back.Sushant and Gauri delve into how Starbucks adapted to the Indian market, where food is an essential accompaniment to beverages. The menu now includes tea options, such as masala chai, and locally-inspired food offerings, all while retaining the global Starbucks signature. Despite this, Starbucks in India is still seen as a premium, aspirational brand, with visits often treated as an indulgence in cities outside the major metros.The conversation also highlights Starbucks' expansion strategy in India. Now present in 65 cities, with a new store opening every four days, Starbucks has successfully penetrated not just metropolitan areas but smaller towns, where it enjoys first-mover advantage. Sushant points out that there is significant aspirational value in these smaller markets, with consumers eager to experience the brand.The episode also touches on Starbucks' commitment to its employees, known as "partners". Tata Starbucks offers a 5-day work week, comprehensive health insurance, and supports education for employees and their families—values deeply embedded in both the TATA and Starbucks ethos. Sushant also shares insights into the success of Starbucks' all-female stores and their dedication to inclusivity.Wrapping up with a rapid-fire round, Sushant chats about latte art, marathons, and more, making this episode a must-listen for anyone interested in branding, hospitality, and the future of coffee culture in India.