Starbucks CEO Brian Niccol says India is one of its fastest-growing markets, will double down on growth plans

Starbucks global CEO Brian Niccol says India has moved to the centre of the coffee giant’s international strategy, calling it one of the company’s fastest-growing markets as it prepares to open its 500th store.

In an exclusive conversation with CNBC-TV18’s Shereen Bhan, Niccol outlines why the Tata partnership remains core to Starbucks’ India bet, why tariffs won’t disrupt its local sourcing model, and how the company is doubling down on premium formats, farmer support and "right store, right place" expansion as it builds India into a long-term growth engine.

What is your outlook for India—particularly regarding growth, store expansion, and potential partnerships?

India is one of our fastest-growing international markets, and we remain committed to growing our portfolio here. In fact, we are soon opening our 500th coffeehouse in India which will offer our second Starbucks Reserve® coffee experience in the market, catering to India’s growing community of coffee enthusiasts.

Over time, we will look at expanding our Reserve® and coffeehouse formats to cater to India’s growing community of coffee enthusiasts. For us to succeed, every coffeehouse we operate has to deliver great experience for our customers and our partners. So, as we continue to grow, we’re focused on opening the right coffeehouses, in the right places, with the highest quality coffee and customer experiences only Starbucks can offer.

What has your partnership with Tata in India been like? Are there any learnings from the JV that you can share?

We are proud of our partnership with Tata and the success we have seen in India. This is a key partnership for us, and for over a decade, we have closely worked with Tata to expand and elevate India’s coffee industry and build a strong coffee culture. Tata’s rich coffee history spanning over ten decades, coffee cultivation experience and knowhow, coupled with a strong understanding of the Indian market, and the evolving consumer needs, paired with our global expertise and coffee craft has helped us become India’s leading coffee brand. As we continue to grow together, our focus will be to continue to create a differentiated and elevated coffee first experience for our customers.

How have the revised US tariffs affected your sourcing from India?

There is no impact on sourcing from India. Coffee in India is sourced and roasted in India. And India is a localized supply chain with most ingredients sourced from India.

What is India’s role and significance in Starbucks overall global strategy?

India is a key part of our global Back to Starbucks plan. We’re here to invest, share, and grow with India, building India’s coffee culture for the long term. As part of this strategy, we are reaffirming our long-term commitment to the market--to the farmers, our customers, the coffee culture, and to India’s future.

The Farmer Support Partnership, which we are announcing in partnership with Tata reaffirms our long-term commitment to India. By investing in India’s coffee value chain, we want to strengthen India’s coffee ecosystem, by not only supporting farmers but by also helping to build a stronger, more resilient coffee market that benefits everyone--from the grower to the customer. Through this partnership, we are combining Tata Starbucks deep local knowledge, and our global agronomy know-how to train 10,000 Indian farmers to build capability that strengthens India’s entire coffee value chain--from bean to cup.

Starbucks announced a JV with Boyu Capital in China: Starbucks retains 40%, Boyu up to 60%. What convinced you that handing majority control in your second-largest market was the right move, rather than staying full control and trying to fix it internally?

The China JV is about accelerating growth and not fixing it. The team in China continues to drive demand in a competitive marketplace, delivering consecutive quarters of positive comps and continued store growth. We see significant value in the Starbucks brand and team and remain confident in the long-term growth potential in the region.

Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions. While we maintain meaningful stake in the joint venture, we’ve found a partner who shares our commitment to a great partner experience and world class customer service. Together we will write the next chapter of Starbucks storied history in China.

In markets like India, China and other growth geographies, what is your playbook for Starbucks’ store-format innovation, localization of menu and premiumization?

For us to succeed, in each market, we must show up with our global scale and local relevancy, ensuring that every coffeehouse we operate delivers a great experience for our customers and our partners. So, as we continue to grow, we’re focused on opening the right coffeehouses, in the right places, with the highest quality coffee, locally relevant products and experiences, and unmatched value only Starbucks can offer.