Starbucks Franchise Cost in India 2025: Investment, Profit, and How to Apply

 Coffee culture is booming in India, and at the heart of it is Starbucks — a brand that needs no introduction.

With its premium offerings and a loyal customer base, Starbucks represents a dream business opportunity for entrepreneurs who want to invest in the food and beverage sector.
If you’re wondering about the Starbucks franchise cost in India and how to get started, this detailed guide will cover everything you need to know.

In this article, we’ll explore:

• About Starbucks
  
  

• Is Starbucks a franchise business in India?
  
  

• Starbucks franchise cost in India
  
  

• Requirements to open a Starbucks outlet
  
  

• Expected profits and ROI
  
  

• Step-by-step application process
  
  

• FAQs about Starbucks franchise in India
  
  

Let’s dive in!

About Starbucks

Founded in 1971 in Seattle, USA, Starbucks has grown into the world’s largest coffeehouse chain, serving millions of customers daily across 80+ countries.
Starbucks is famous for its coffee, but it’s also known for its welcoming store ambiance, premium customer experience, and a diverse menu including beverages, bakery items, and snacks.

In India, Starbucks entered the market through a 50:50 joint venture with Tata Global Beverages, known as Tata Starbucks Private Limited, in 2012.
Since then, Starbucks has expanded to 370+ stores in more than 40 Indian cities and continues to grow rapidly.

Is Starbucks a Franchise Business in India?

Here’s an important point:

Starbucks does not offer direct franchises in India.

All Starbucks stores in India are operated by Tata Starbucks through a joint venture model, not through independent franchising.
So, if you want to open a Starbucks store, you cannot do it individually via traditional franchising like Subway or Domino’s.

However, business collaborations or partnerships (especially for strategic locations like airports, malls, or premium spots) may be considered if you meet their strict requirements.

Starbucks Franchise Cost in India

While Starbucks doesn't franchise traditionally in India, for understanding the investment needed to open a Starbucks-style outlet through partnerships or in case policies change, here’s the typical cost structure:

Investment Category	Approximate Cost
Initial Partnership Fee	₹25 lakh to ₹35 lakh
Store Setup & Interiors	₹1 crore to ₹1.5 crore
Equipment (Coffee Machines, etc)	₹20 lakh to ₹30 lakh
Initial Inventory	₹10 lakh to ₹15 lakh
Staff Hiring and Training	₹5 lakh to ₹8 lakh
Marketing & Promotions	₹5 lakh to ₹10 lakh
Miscellaneous Expenses	₹5 lakh to ₹10 lakh
Total Investment	₹1.7 crore to ₹2.5 crore

Note: These figures are estimations based on Tata Starbucks’ premium brand requirements and high-end setups.

Requirements to Open a Starbucks Store

Opening a Starbucks outlet (through potential partnership models) demands meeting several high standards:

1. Prime Location

• Store area: 1000 to 2000 sq. ft.
  
  

• High footfall areas like airports, luxury malls, premium shopping streets, or business hubs.
  
  

2. Financial Capability

• You should have a minimum investment capacity of ₹2 crore or more.
  
  

• Ability to handle operational costs for at least 12-18 months post-launch.
  
  

3. Business Experience

• Preference for partners with experience in hospitality, food & beverage, or retail sectors.
  
  

4. Quality Assurance

• Starbucks places strong emphasis on quality control, customer service, and store aesthetics.
  
  

• You must maintain their global standards in operations and branding.
  
  

5. Legal and Regulatory Compliance

• All necessary FSSAI licenses, GST registration, and labor law compliances must be adhered to.
  
  

Expected Profit Margin and ROI

Given the premium nature of Starbucks, profits can be attractive — but only with a well-managed store.

Profit Margins

• Gross profit margins: 65% to 70% (on beverages and bakery items).
  
  

• Net profit margins (after rent, salaries, utilities): 15% to 25%.
  
  

Monthly Sales Estimates

• A well-performing Starbucks outlet can generate ₹15 lakh to ₹30 lakh per month depending on the location.
  
  

ROI (Return on Investment)

• You can expect to recover your investment within 4 to 6 years, provided the store is in a strategic location and managed efficiently.
  
  

How to Apply for a Starbucks Store in India

If you believe you have the right resources and are still keen to collaborate with Tata Starbucks, here’s what you can do, keeping in mind the Starbucks franchise cost:

1. Visit Tata Starbucks Official Website
   Go to tatastarbucks.com and find their “Contact Us” section.
   
   

2. Business Proposal Submission
   Prepare a strong business proposal, including:
   
   

• Location details
  
  

• Investment plan
  
  

• Business experience
  
  

• Store format (mall outlet, standalone store, airport lounge, etc.)
  
  

3. Email or Online Submission
   Send your proposal to the official Tata Starbucks corporate contact.
   
   

4. Review Process
   Tata Starbucks will review your proposal and location viability.
   
   

5. Meeting with Starbucks India Team
   If shortlisted, you’ll be called for business meetings and discussions.
   
   

6. Final Approval and Legal Formalities
   On approval, agreements will be signed covering operational terms, quality standards, and financial terms.
   
   

7. Store Setup and Launch
   With guidance from the Tata Starbucks team, you’ll set up the outlet and plan the grand launch!
   
   

Things to Know Before You Apply

• Starbucks is extremely selective with partnerships — only top-tier locations and business profiles are considered.
  
  

• The brand is focused on maintaining exclusivity, so they avoid over-saturating markets.
  
  

• Customer service training is mandatory and handled by Starbucks experts.
  
  

• Sustainability and ethical sourcing are important brand values; partners must align with them.

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FAQs About Starbucks Franchise Cost in India

Q1. Can I open a Starbucks franchise in India?
No. Starbucks operates in India through Tata Starbucks Private Limited, not through independent franchising.

Q2. What is the investment required for a Starbucks outlet in India?
You will need an investment of approximately ₹1.7 crore to ₹2.5 crore to open a Starbucks outlet if accepted through collaboration.

Q3. How much profit does a Starbucks store make in India?
A Starbucks store can achieve a net profit margin of 15% to 25% after expenses.

Q4. How long does it take to recover the Starbucks store investment?
Typically, it takes 4 to 6 years to recover your investment depending on the store’s location and performance.

Q5. What are the location requirements for Starbucks in India?
Preferred locations include luxury malls, airports, premium shopping streets, and business hubs with 1000-2000 sq. ft. space.

Q6. Does Starbucks provide training for store staff?
Yes, Starbucks offers extensive staff training programs to maintain its global service standards.

Q7. Who operates Starbucks in India?
Tata Starbucks Private Limited, a joint venture between Tata Consumer Products and Starbucks Corporation, operates all Starbucks stores in India.

Conclusion

Although opening a Starbucks franchise cost in India is not like a traditional franchise model, partnering with Tata Starbucks still offers an exciting opportunity for qualified investors.
It demands a heavy investment, premium locations, and a deep commitment to operational excellence — but the brand power, customer loyalty, and revenue potential are massive.

If you have the resources, experience, and passion for premium hospitality, collaborating with Starbucks could be your gateway to success in India’s growing coffee market!