Costa Coffee India cuts 22 stores to 198 as FY26 revenue rises 7%
Costa Coffee’s India outlet base declined for the first time in more than five years, falling from 220 to 198 in FY26. Franchisee Devyani International reported revenue of ₹212.5 crore, up 7%, as it prioritised higher revenue per outlet through selective expansion.
What happened
Costa Coffee’s India network fell by 22 stores to 198 in FY26, its first annual decline in over five years, while revenue rose 7% to ₹212.5 crore. Franchisee
Key facts
- 198 India outlets in FY26
- 220 India outlets in FY25
- 22-store net reduction in FY26
- ₹212.5 crore FY26 revenue
- 7% FY26 revenue growth
- ₹198.5 crore FY25 revenue
- 30.76% FY25 revenue growth
- 44 outlets in FY21
- 55 outlets in FY22
- 112 outlets in FY23
- 179 outlets in FY24
Why this matters
Devyani International’s rationalisation signals that mature QSR coffee networks may offer value through underperforming-store turnarounds and disciplined franchise portfolio optimisation rather than rapid outlet rollouts.
What to watch
- Same-store sales growth and revenue-per-outlet trends over the next two reporting periods.
- Whether the outlet base stabilises near 198 or records another net decline.
- Costa segment EBITDA margin, store-level profitability and impairment or closure costs.
- New-store format mix, especially kiosks, travel retail and delivery-focused locations.
- Consumer demand indicators for premium beverages, including ticket size, transactions and discounting intensity.
- Competitive store additions and promotional activity from Starbucks, Tim Hortons, Third Wave Coffee and Café Coffee Day.
- Prioritise renewals only where store-level sales and contribution margins clear tighter thresholds.
- Shift expansion toward compact, high-throughput formats in airports, malls, offices, hospitals and travel hubs.
- Use menu premiumisation, cold beverages, food attach and loyalty offers to raise average ticket and frequency.
- Seek landlord concessions, revenue-share leases or relocations for underperforming high-rent stores.
- Benchmark Costa unit economics against Devyani's other QSR concepts before allocating incremental capital.