‘Discretionary spending has revived with GST rate cuts’

After nearly five quarters of a decline in same-store sales growth, Tata Starbucks, a joint venture between Starbucks and Tata Consumer Products, posted a low single-digit SSG in the July-September period. This was driven by improved sentiment and out-of-home spending by consumers following the GST and income tax cuts, Sunil D’Souza, MD & CEO, Tata Consumer, told Viveat Susan Pinto in an interview. He also highlighted demand trends in FMCG and the company’s outlook for the second half of FY26. Excerpts:

- SUNIL D'SOUZA, MD & CEO, TATA CONSUMER

Tata Starbucks has reported positive SSG in Q2 after a prolonged slowdown. Will you accelerate store launches in the second half?