Tata Starbucks to Focus on e-Commerce as an opportunity, to start home-deliveries

Tata Starbucks is planning to launch drive-through outlets and home deliveries as it works on a new business models to mitigate the economic impact of novel coronavirus.

The group termed the ongoing situation as "something their businesses have not experienced in many decades".

A joint venture between Tata Global Beverages and Starbucks, it is also confident of old patrons coming back once the lockdown are over even as it is working on new business model to "thoughtfully expand" into areas with potential customers.

"In the next few weeks, we are looking at announcing our first Drive Thru store in India. This will allow customers to engage with the brand in new and innovative ways," shared Navin Gurnaney, CEO, Tata Starbucks to PTI.

Besides, it is also increasing its focus on digital solutions like digital payments and transacting through mobile app.

The coffee chain is also working on home delivery option to reach consumers' door steps. According to experts, post pandemic people would prefer lesser visits to the crowded places such as stores and QSRs.

"In the current conditions, one of most convenient ways to engage with our customers is through home deliveries, which allows them to enjoy their favourite beverages and food from the safety of their own homes," added Gurnaney.

Tata Starbuck is planning to expand its e-commerce play as part of its omni channel retail strategy. The group is also using e-commerce for their gift cards.

Tata Starbucks presently operates 185 stores across 11 cities in the country.

On the impact of pandemic on the business, Gurnani said "The economic impact of the pandemic is something we cannot escape, and we understand that our customers may also take time to recover from".

The company is confident of its relationships with its loyal customers, who not only come for the coffee but stay for the experience.

The company has also asked its property owners to waive the rentals due to closure of stores and impact on the business.

Tata Starbucks has also announced grants for its partners (employees) and offering benefits to support them and their families in response to COVID-19.

This includes pay and access to medical assistance. Any partners diagnosed with COVID-19 will be granted paid leave until they recover fully and are medically cleared to return to work. Moreover, if partners who need to self-quarantine will be granted an additional 14 days paid leave.