On social media, a screen grab of an article is going viral with a headline,”Starbucks to exit India due to high costs, bad taste, and mounting losses”. While sharing the image, the users are claiming that Starbucks is going to exit from India.
Moreover, several users shared this video and made similar claims. The link can be seen here and here
Fact Check
During the investigation, DFRAC found the claim to be false. We found multiple media reports regarding the viral image. According to the ‘Hindustan Times’ report published on December 19, 2024, “Tata Consumer Products has denied a report suggesting that the American coffee chain Starbucks could exit India soon due to rising losses and high operating costs. In letters to three major Indian stock exchanges, Tata Consumer Products called the report ‘baseless’.”
Furthermore, we also found a report from ‘Times of India’ published on December 19, 2024, which states, “Rumors circulated about Starbucks exiting the Indian market due to high costs and low profitability. However, Tata Consumer Products, Starbucks’ partner in India, refuted these claims, stating their commitment remains strong. Despite increased sales, Tata Starbucks reported widened losses, prompting discussions about adapting to Indian consumer preferences and pricing.”
Conclusion
It is evident from DFRAC’s fact check that the viral claim about Starbucks exiting India is false. Both Tata Consumer Products and Starbucks have clarified their ongoing commitment to the Indian market despite challenges, and they continue to explore strategies to adapt to local preferences and improve profitability.
