Published on Oct 3, 2024Updated on Aug 28, 2026
Starbucks entered the Indian market in 2012 through a joint venture with Tata Consumer Products. Headquartered in Seattle, Washington, Starbucks has made a mark on the coffee lovers of India, with 400+ stores as of March 2024, and is aiming for further growth. Targeting 1,000 stores across India by 2028, Starbucks is all set for expansion.
Known for its signature ambience, Starbucks offers warm lighting, cosy seating, modern décor, and soothing music. It creates a relaxing space for people to socialise, work, or unwind.
If you’re interested in exploring the possibility of starting a Starbucks franchise or a Starbucks-licenced store, this guide will take you through the important considerations you need to keep in mind. We will also cover the estimated Starbucks franchise cost in India and the options available to secure the funding you need.
A franchise model allows an individual or company, called the franchisee, to run a business using the products, trademarks, and name of another company, called the franchisor. The franchisor earns money through an initial fee and ongoing royalties, which benefits both parties.
In this model, the franchisor develops a business concept, product, or service, and creates a business system. The franchisee pays an initial fee to acquire the rights to operate the business and signs a contract agreeing to follow the franchisor’s system. The franchisor provides training, guidance, and ongoing support, while the franchisee manages day-to-day operations and pays royalties, typically a percentage of sales, to the franchisor.
The franchisor ensures that brand standards are met and provides marketing support to help the franchise succeed. This model allows for rapid brand expansion while maintaining consistency and quality across locations.
Starbucks’ business model is a mix of product-based and customer experience-based strategies. Starbucks is not only passionate about coffee but also about the overall customer experience, which includes high-quality coffee beans, in-store ambience, music, excellent customer service, diverse product offerings, strong brand recognition, and a commitment to sustainability.
Starbucks generates revenue through four main components:
Unlike traditional franchises, Starbucks follows a licensed partner model in most markets, allowing select partners to operate stores while maintaining company-owned stores in key markets. Licensed partners pay fees and royalties to operate Starbucks-branded stores, but Starbucks retains control over brand standards, product quality, store design, and consistency across all locations, whether company-owned or licensed.
The coffee industry in India, including Starbucks, is regulated by The Coffee Board of India. The general space requirements for a Tata Starbucks licenced store include:
*It is advisable to engage directly with Tata Starbucks for specific requirements if you are exploring a licensed partnership.
If you wish to know about the potential Starbucks franchise cost in India, it is important to understand that Starbucks does not offer a traditional franchise model, but a licenced partnership. The initial setup costs, which include store design, equipment, and training, typically range from INR 25 to 40 lakhs. Rent for prime urban locations can range from INR 5 lakhs to INR 10 lakhs monthly. Staffing, royalty payments, and obtaining the necessary licences are also crucial parts of the Starbucks franchise price in India.
Below is a general list of documents required to apply for a Starbucks franchise in India:
It is important to note that applicants with a prior background in food and beverage may be preferred.
The procedure to get a franchising license from Starbucks involves the following general steps:
As of March 2024, Starbucks has a stellar presence in India with over 400 stores across cities such as Mumbai, New Delhi, Hyderabad, Chennai, Bengaluru, Pune, Kolkata, Chandigarh, Ahmedabad and Surat. India is forecast to become the world’s third-largest economy by 2030, and Starbucks plans to leverage this booming economy to establish itself further in the country. The Indian market offers a unique advantage to Starbucks as one of the fastest-growing markets.
To achieve its objective of having 1,000 stores by 2028, Starbucks plans to enter Tier-2 and Tier-3 cities, double its workforce, and expand drive-thrus and airport stores.
In the Indian market, Starbucks holds the appeal of a global brand, presenting a compelling opportunity for entrepreneurs.
Given the substantial costs involved – from initial setup and staffing to royalty payments – having a reliable financial partner can significantly support your Starbucks franchise investment.
SMFG India Credit offers business loans to eligible startups that have been in business for 3 years or more. You can apply for unsecured amounts of up to INR 1 crore* at competitive interest rates.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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