Starbucks to debut in towns and suburbs; to half the size of the new stores.

Starbucks' new stores in India will be less than half the average size of its existing cafes as the world's largest coffee chain plans to expand into Indian towns and city suburbs while maintaining its profitability.

Tata Starbucks, a 50-50 joint venture between US cafe chain Starbucks Coffee Company and Tata Global Beverages, will open outlets of 1,000-1,200 sq ft compared to its existing cafes that measures over 2,500 sq ft on an average, said an official who requested not to be named.

'Footfalls in smaller towns and suburbs may not be as high as prime locations and we have to maintain profitability too by keeping rentals in check,' the person said.

While the company didn't comment on expansion details, a Tata Starbucks spokesperson said it has followed a thoughtful and disciplined approach to grow in the market. 'Establishing a successful business takes time, and the parent companies are delighted with how the brand has been received in this market, in terms of expansion.'

ET