The more losses, the more investment! Starbucks Corporation (SBUX.US) has opened more than 500 stores in India, with the CEO stating that expansion takes priority over profit.

Despite continuously widening losses, Starbucks Corporation's Indian subsidiary continues to open new stores and launch new products such as protein foam coffee to expand its influence in the country with the largest population globally. Sandeep Datt, CEO of Tata Starbucks Corporation, a joint venture between Starbucks Corporation and Tata Group, said in an interview that with accelerating investment, the coffee chain with the most stores in India will prioritize expansion over profitability. Datt said, "India's position as a focus market has not become less important, if anything, it has become more so." He noted that the market is among the top five for Starbucks Corporation globally. He added that the subsidiary has achieved positive cash flow but declined to provide a timeline for profitability. Despite tough competition and slowing consumer demand in India, Starbucks Corporation is doubling down on its investments in the country as it seeks new markets to revive growth. The Seattle-based coffee chain is streamlining its US operations while dealing with consumer resistance in the Middle East. Last year, it sold a 60% stake in its China operations. In India, based on data from Tofler, Tata Starbucks Corporation almost doubled its losses to 1.5 billion rupees ($16.5 million) in the year ending March last year, while revenue grew by 4.8%. The company also faces competition from a group of nimble local newcomers attracting coffee drinkers - from abCoffee offering simple basic coffees to specialty coffee roasters like Blue Tokai. Comparable store sales growth is a key industry metric, and partner Tata Consumer Products Limited reported on a conference call last month that the metric remained at 3% for two consecutive quarters, after a previous year-over-year decline. The company also added 12 new stores, bringing its total to 504 stores in 81 cities in India. Drawing from its global experiences, such as offering egg rolls during the Lunar New Year in Singapore, Tata Starbucks Corporation is achieving menu localization through regional flavors. It sells Malabar chicken egg roast and variations with Kima filling in the south, rolls inspired by Mutton Kosha Mangsho dish in Kolkata, and Vada Pao-style buns in Mumbai. Datt noted that young consumers are also driving demand for cold brew coffee and light beverages including plant-based milk. Sugar-free drinks and high-protein food options are among the other initiatives the company is taking to attract health-conscious customers.