Costa Coffee India cuts 22 stores as FY26 revenue rises 7%
Costa Coffee India, operated by Devyani International, reduced its café network from 220 to 198 outlets in FY26 while revenue increased 7% year on year to ₹212.5 crore, signalling a more selective network strategy.
What happened
Costa Coffee India, operated by Devyani International, reduced its outlet network to 198 in FY26 from 220, its first decline in over five years. Revenue
Key facts
- Costa Coffee India store count fell by 22 to 198 in FY26 from 220 in FY25
- FY26 revenue rose 7% year-on-year to ₹212.5 crore
- FY25 revenue rose 30.76% to ₹198.5 crore
- Store network: 44 in FY21, 55 in FY22, 112 in FY23, 179 in FY24, 220 in FY25, 198 in FY26
- India is among Costa Coffee's top 20 markets globally, with an ambition to reach the top five
Why this matters
The selective footprint reset may create opportunities to pursue asset-light expansion, premium-location partnerships and targeted acquisitions that strengthen Costa’s presence without rebuilding a broad low-productivity network.
What to watch
- Like-for-like sales growth and revenue per outlet in the next two reporting periods.
- Costa India's EBITDA or store-level margin trend following the 22-store reduction.
- Further net closures versus announcements of new kiosk, airport, mall or drive-through openings.
- Changes in rent expense, impairment charges, lease exits or exceptional restructuring costs at Devyani International.
- Customer traffic, delivery mix, average order value and loyalty engagement at retained stores.
- Competitive expansion by Starbucks, Third Wave Coffee, Blue Tokai, Tim Hortons and local premium café chains in Costa's core cities.
- Prioritise lease renewals only where store sales, four-wall profitability and delivery demand justify premium rents.
- Redirect capital toward high-throughput formats such as kiosks, travel retail, office parks and premium food-court locations.
- Use menu engineering, coffee subscriptions, loyalty offers and food attachment to raise ticket size and repeat visits at retained cafés.
- Rationalise overlapping nearby locations and improve delivery radii from stronger flagship stores.
- Track whether the portfolio reset produces margin improvement before restarting net store additions.