Cafe Coffee day: 900 new outlets, 500 towns, 3 years

Cafe Coffee Day plans to add 900 outlets, spanning 330 towns in India, over the next three years.

“There is no saturation in big cities. But we are also looking at other cities. We are present in 170 towns now and in the next three years, we should be present in 500 towns, adding 900 new outlets,” Cafe Coffee Day Marketing President K Ramakrishnan said.

A part of Amalgamated Bean Coffee Trading Company (ABCTCL), Cafe Coffee Day (CCD) presently operates 1,100 outlets in 170 cities in three formats – lounges, cafes and kiosks.

[caption id=“attachment_108936” align=“alignleft” width=“380” caption=“Sabarishr/Flickr”] [/caption]Ramakrishnan said the lounge format, its latest outlet model, was launched in response to customer demand. “Most of our customers have been associated with us from their teenage days and as they grew up, they felt the need to have something sophisticated and hence, the lounge format was introduced.”

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The firm currently operates 20 CCD lounges, which will be expanded to 100 in the next two years. However, Ramakrishnan did not divulge investment, revenue or profitability details on the lounges.

CCD is the largest coffee cafe chain in the country, with 1,100 outlets. Its main competitors are the Luigi Lavazza-run Barista Lavazza chain and Whitbread-operated Costa Coffee.

When asked how the company will safeguard its share in the segment, given the buzz about the iconic Starbucks brand’s plans to enter India, Ramakrishnan said, “There is enough room for many more.”

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“The current per capita coffee intake is just 82 grams in the country, while it is 4 kg in the US. There are 5,000 towns in the country and the entire cafe industry put together is present only in 180 towns,” he said.

Asked if CCD will increase prices due to increasing commodity costs, he said, “Commodity prices don’t impact us that much, as all our coffees are self-sourced. However, there is food, milk and sugar that we also use. Typically, we increase our prices once a year, but if it is unbearable, then we will be forced to pass it on to the customers.”

The company last increased its prices in April.

PTI