Key takeaways
- Costa Coffee India ended FY26 with 198 stores, down 22 from 220.
- Revenue still rose 7%, showing that fewer shops did not mean lower sales.
- The numbers point to a tighter store network, not a retreat from India.
- Store quality, rent and customer spending now matter as much as store count.
Costa Coffee India had 198 stores at the end of FY26, 22 fewer than a year earlier. Yet its revenue rose 7%. Costa Coffee India is the Indian store network of the British coffee brand, selling drinks and food through cafes. The figures show a chain can shrink its map while still earning more.
Why did Costa Coffee India reduce its store count?
The reported count fell from 220 stores to 198 in one financial year. That is a 10% drop in shops. FY26 means the financial year ending in 2026. In India, financial years usually run from April to March.
The available figures do not spell out why each of the 22 stores left the network. A cafe may close because rent is high, sales are weak, or a better site opens nearby. A company can also end a partner deal. So, store closures alone do not tell the whole story.
What matters is whether the remaining cafes serve more people or make more money per visit. This report gives one clear clue: revenue moved up even as the network became smaller. Revenue means the money a business takes in from sales before it pays all its costs.
Costa Coffee India: FY25 compared with FY26Store count220Stores in FY26198Revenue indexFY25 = 100100107
What does Costa Coffee India revenue growth show?
A 7% rise in revenue suggests the business collected more money from its remaining cafes. That can happen if each shop gets busier. It can also happen when customers choose pricier drinks, food, or add-ons.
Think of two lemonade stalls. One has 220 stalls and the other has 198. If the smaller group sells enough extra lemonade, its total cash can still rise. That is the broad pattern in Costa Coffee India’s FY26 numbers.
The result does not prove that profit rose. Profit is the money left after a company pays rent, wages, ingredients and other bills. A cafe chain can lift revenue but still face costly milk, coffee beans, packaging or staff.
| Measure | Earlier level | FY26 level | Change |
|---|---|---|---|
| Store count | 220 | 198 | Down 22 stores |
| Store network | 100% | 90% | About 10% smaller |
| Revenue | Base level | Higher | Up 7% |
Why can fewer cafes sometimes be a smart move?
More stores do not always mean a stronger business. Two cafes on the same street may compete for the same customers. Closing the weaker one can send some of those buyers to the better shop.
A smaller chain may also spend less on rent, power and local managers. That can help profits, but only if customers stay loyal. The next set of results will show whether Costa Coffee India can keep growing sales from its leaner base.
Location remains a big part of the coffee business. A busy mall, airport, office area or college zone can bring steady footfall. Footfall means the number of people walking past or into a store. A quiet location can drain cash quickly.
What should coffee buyers and rivals watch next?
Customers may not see a major change if their nearby shop remains open. But some places may have fewer Costa choices. The useful signs to watch are new store openings, menu prices and how crowded cafes are at peak hours.
Rivals will watch the same signals. India’s branded cafe market has room to grow, but it is crowded. Chains must balance fast expansion with the cost of keeping each outlet attractive and well staffed.
Costa Coffee India is owned globally by The Coca-Cola Company, which bought Costa in 2019. Readers can review the owner’s annual filings for its wider business picture. Local company records are also handled through India’s Ministry of Corporate Affairs.
Fewer Costa stores, paired with 7% revenue growth, suggest the chain is trying to get more from the cafes it keeps rather than simply adding locations.
FAQs
How many Costa Coffee India stores were open in FY26?
The chain had 198 stores at the end of FY26. That was 22 fewer than the prior count of 220.
What does the 7% revenue rise mean?
It means Costa Coffee India took in 7% more sales money during FY26. It does not, by itself, show a 7% rise in profit.
Why would a coffee chain close stores while revenue grows?
It may close weaker sites and focus on busier ones. Higher spending per shop can offset the sales lost from closed cafes.
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