New Delhi, July 26, 2026 (Yes Punjab News)
British coffee chain Costa Coffee recorded a decline in its India store network for the first time in more than five years, with the number of outlets falling to 198 at the end of financial year 2025-26.
According to the latest annual report of its exclusive India franchise partner Devyani International Limited (DIL), Costa Coffee operated 198 cafes in FY26, down from 220 outlets a year earlier. The closure of 22 stores marks a shift from the brand’s consistent expansion trajectory since FY21.
Despite the reduction in outlets, Costa Coffee’s revenue from operations in India increased by 7 per cent year-on-year to Rs 212.5 crore in FY26, compared with Rs 198.5 crore in FY25.
The company had witnessed strong expansion in previous years, with its store count rising from 44 outlets in FY21 to 55 in FY22, 112 in FY23, 179 in FY24 and 220 in FY25.
DIL did not provide specific reasons for the store closures but said it adopted “a more disciplined and selective approach to expansion” across its portfolio during the year.
The company reaffirmed its commitment to growing Costa Coffee in India, identifying the brand as one of its key growth drivers along with its quick-service restaurant businesses operated under Yum! Brands, including Pizza Hut and KFC.
Costa Coffee continues to focus on India’s premium out-of-home coffee market, targeting younger consumers, including Gen-Z customers and millennials. The company said its youth-focused positioning and new menu offerings have helped strengthen its appeal among students and young professionals seeking social spaces.
Costa Coffee Global CEO Philippe Schaillee had earlier described India as one of the company’s top 20 markets globally and said the country could become one of its top five markets in the coming years.
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