Costa Coffee India trims 22 stores as FY26 revenue rises 7%
Costa Coffee India’s network fell to 198 outlets in FY26 from 220 a year earlier—its first contraction in more than five years—while revenue increased 7% to ₹212.5 crore. Franchisee Devyani International is shifting to more selective expansion.
What happened
Costa Coffee India reduced its network by 22 stores to 198 in FY26, its first decline in over five years, while revenue rose 7% to ₹212.5 crore. Franchisee
Key facts
- 198 outlets in FY26
- 220 outlets in FY25
- 22 net cafe closures year-on-year
- FY26 revenue of ₹212.5 crore
- 7% FY26 revenue growth
- FY25 revenue of ₹198.5 crore
- 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’s shift toward selective café expansion makes Costa a more focused franchise-platform asset, with future value tied to high-return locations rather than headline store-count growth.
What to watch
- Like-for-like sales growth and revenue per outlet after the 22-store reduction.
- Further disclosure on EBITDA, store-level profitability, rent costs and impairment charges.
- Net store openings or closures in FY27, especially in metros versus tier-2 cities.
- Devyani International commentary on Costa capex allocation relative to KFC, Pizza Hut and other businesses.
- Competitive store additions, discounting and loyalty activity from coffee-chain rivals.
- Evidence that growth is volume-led rather than primarily price and menu-mix driven.
- Prioritise lease renegotiations, relocations and closures in weaker high-street catchments.
- Shift capex toward high-throughput stores, travel retail, kiosks and delivery-friendly formats.
- Use menu premiumisation, food attachment and loyalty offers to raise average ticket and frequency.
- Slow franchise-led unit growth until mature-store sales and store-level margins meet tighter thresholds.
- Reallocate local marketing toward retained flagship locations and digital ordering channels.