India’s Tata faces pressure in Starbucks joint venture as consumers cut back

(Reuters) – India’s Tata Consumer Products “will calibrate” its plans to open Starbucks (NASDAQ:) stores in the near term at a time when fewer customers are walking into its cafes in the world’s most populous country, its top boss said on Monday.

“We will calibrate for the short term … In the near term there will be pressure,” Tata Consumer CEO Sunil D’Souza told Reuters, adding that its Tata Starbucks joint venture is still focused on reaching its 2028 goal.

Separately, D’Souza also said Tata Consumer’s revenue would increase in the double-digit percentage range in the second half of the ongoing financial year, with profit coming under pressure due to higher prices of raw materials, including tea.