Starbucks is expanding its technology operations in India while restructuring parts of its retail business in North America, highlighting two different aspects of the coffee chain’s global strategy.
The company has announced plans to establish its first Global Capability Centre (GCC) in India in Chennai, with around 800 technology professionals expected to be hired. Starbucks signed an agreement with the Tamil Nadu government for the centre, which will support the company’s global business and technology operations.
The Chennai centre will operate separately from Starbucks’ retail joint venture with Tata Consumer Products in India. According to Starbucks Chief Technology Officer Anand Varadarajan, the company selected Chennai because of its technology talent pool, strong talent retention, infrastructure and ability to support Starbucks’ long-term technology requirements. Hiring for the new hub is expected to begin in the first quarter of 2027.
The centre will become part of Starbucks’ wider global technology network and is expected to bring some work currently handled by third-party service providers in-house over time. The company has not disclosed the investment value of the Chennai project.
The India expansion comes as Starbucks continues to restructure its operations in North America. According to reporting by The Wall Street Journal, the company is preparing to close around 250 underperforming cafes, with the closures expected to result in about $300 million in restructuring charges.
The latest store closures are part of a broader cost-cutting programme launched under CEO Brian Niccol. The restructuring has also included corporate job reductions and changes to Starbucks’ office network as the company works to improve operational efficiency and profitability.
Starbucks has been reducing parts of its North American retail footprint while looking at other areas for future growth. As of late June, the company operated 11,149 company-owned and company-operated stores across North America, according to the figures cited in the report.
The company has also set a longer-term cost reduction target as it seeks to simplify its operations and improve returns from its retail network.
For India, however, Starbucks is increasing its technology presence. The Chennai GCC will add high-skilled technology roles and become part of the company’s global technology operations, while its retail business in India continues through its existing partnership with Tata Consumer Products.
The contrasting moves show Starbucks investing in technology and global capabilities in India while reviewing store operations and corporate costs in North America as it reshapes its business strategy.
