Indian coffee is known as the finest coffee that is grown in the shade i.e under the monsoon rainfall conditions and not under direct sunlight giving it the term “Indian Monsooned Coffee.” Two recognised Indian coffee brands that are grown are known as Arabica and Robusta.
Coffee is produced in the South Indian states, wherein Karnataka dominates the coffee production with 71% followed by Kerala and Tamil Nadu producing 12% and 5% respectively. These three states are known as the Traditional Coffee growing states followed by seven other non-traditional regions such as Andhra Pradesh, Orissa, Assam, Manipur, Meghalaya, Mizoram, Tripura, Nagaland and Arunachal Pradesh.
Welcome to the world of Cafe Coffee Day
Cafe Coffee Day also is known as C.C.D is one of India’s finest chain of cafe’s owned by India’s largest coffee conglomerate “Amalgamated Bean Coffee Trading Company Limited (ABCTCL), otherwise known as Coffee Day Enterprises. The cafe serves products such as Coffee, Tea, Sandwiches, Pastries, Smoothies and many more. As a survey conducted in 2018, Coffee Day serves approximately 1.8 billion cups of coffee in about 6 countries every year.
What is CCD’s History?
Cafe Coffee Day’s origination started from the golden soils of Chikmagalur, situated in Bangalore, Karnataka in 1993. Founder Mr V. G. Siddhartha, founder and owner of Coffee Day Limited owned 10,500 acres of coffee plantation farms and estates which yielded them rich coffee beans. With its Headquarters situated on Vittal Mallya Road, Bangalore, CCD is the largest producer of Arabica beans in India, exporting the same to countries like U.S.A, Europe and Japan.
Mr V. G. Siddhartha inaugurated its first every Cafe Coffee Day on July 11,1996, at Brigade Road, Bangalore, Karnataka.
It was in 2000, wherein the company exported more than 27,000 tonnes of coffee valued at US$ 60 million and retained the largest coffee exporter title for the second time in a row.
In 2010, Kohlberg Kravis Roberts, A consortium invested about 140 Million dollars in Coffee Day resorts, a subsidiary owned by the company. The same year the logo was modified to the current logo in which the company showcased their cafes as a place to have a conversation as their tagline say’s “A lot can happen over coffee.”Drastic changes were also made to the store design, cafe’s interiors and lounges were also added to create the perfect ambience for the customers.
By 2011, CCD rapidly expanded to other cities as well. With more than 1000 cafes spread across the country.
As of 2018, Coffee Day have around 1,722 Cafe Coffee Day Cafe’s in over 200 cities in India with approximately 20,000 employees working and making revenue of about US$ 630 million.
CCD has also started operating in cities such as Austria, Czech Republic, Egypt and Nepal as well.
Do you know what is the USP of Cafe Coffee Day?
- CCD has a brand name and brand visibility – CCD has provided with its customer’s affordability combined with comfort making this the major USP of the cafe. You could sit all day at CCD and nobody would ask you to leave. Thereby making CCD’s a highly affordable and excellent brand.
- Affordable products – CCD is known for growing and producing their coffee beans which in turn reduces the entire cost of the final product making it affordable for everyone.
- Ambience and service – CCD has brought drastic changes over the last two decades in their cafe’s to attract more customers. CCD provides its customers with in-house coffee experience along with great ambience and service, which goes hand-in-hand with their vision “Experience beyond a cup of coffee.”
- Various types of cafe’s – CCD has come up with various forms to cafes all over the country. Cafe’s starting from High Street cafes, Garden cafes, Highway cafes, Mall cafes, etc to target audience on a larger scale by offering brand experience environment and other value additions.
What are the benefits of partnering with Cafe Coffee Day in India?
Cafe Coffee Day provides its partners with top-notch marketing and advertisement support so that the cafe attracts more customers daily. This helps the partners to grow in the field.
The biggest benefit provided by CCD is the brand image that is attached to the cafe that is opened in partnership with CCD. Their brand name is well known all over the country which makes things easier for franchise owners in comparison with people who start their own business.
CCD provides a lucrative return on investment because their main ingredient (Coffee) is grown and produced by them which reduces the overall cost of the product thereby making it affordable for both the customers and partners/owners of the said cafe. This proven and tested method ensures a regular flow of income and profit to its owners.
What are the requirements needed to open a CCD Franchise?
Before we get into the details required for opening of CCD outlet, you should know that Cafe Coffee Day does not give out any franchises. They do not work on the franchise model. They are more of a revenue/rental basis model. This means that if you meet the below area and financial specifications you can lease it to CCD to earn a regular income flow.
Area – Cafe Coffee Day offers cafe outlets only to those individuals who own a commercial property or a commercially converted rental space. CCD offers partnership on rental/revenue share basis.
- The total area required to open a CCD outlet is 1000 – 1500 Sq.ft located on the ground floor.
- The cafe also requires a minimum frontage of 25 running feet along with ample parking space.
Skills or experience required – As a partner with CCD, the owner of the said cafe should have the following requirements:
The individual owning the coffee shop needs to be flexible with the changing market to start and maintain the business in a successful way. The owners should possess leadership skills so that the work can be delegated in the right manner to have day-to-day operations run smoothly without any glitch. Be passionate about the coffee shop. This attitude will have positive energy in the cafe which will make the entire coffee experience for the customers a great one.
Should possess the knowledge of hiring skilled staff members to the team. This will not only increase the revenue of the cafe but will also provide customers with a great in-house coffee experience.
Regions of operations – As of 2018, Cafe Coffee Day is operational in over 200 cities across India with over 1800 cafes. Along with operations in India, CCD has also expanded its reach in other foreign countries like Vienna, Czech Republic, Egypt and Nepal.
Training required – Training for CCD outlet partners and the management is provided at the outlet site. Updated hardware and software support is also given by the head office to all its partnered outlet to run a smooth business.
Each outlet is provided with a Cafe Coffee Day head office contact details so that the outlets can reach out to them in case of any queries or issues.
Minimum staff requirement – the minimum number of employees required at a Cafe Coffee Day outlet is 5 to 6 employees including a cashier, waiters, cleaning crew and coffee/food making department.
What are the financial requirements and Outlet Agreement for partnering with CCD?
The total amount of investment that is required to start a CCD outlet is Rs.9 lakhs to 10 lakhs. This amount includes the equipment cost and interior expenses as well (which costs about 3 to 4 lakhs).
Apart from the above-mentioned investment amount, CCD also charges a brand fee of Rs.50,000.
The years of the bond is signed for a period between 3 to 5 years. The agreement can be renewed once the stipulated period comes to end.
Once you have met the specification details mentioned above, there are few other details as well that needs to be sent to Cafe Coffee Day. They are:
- Names of all the owners of the retail space
- Contact information and residential address of the owners
- Postal Address of the commercial retail space
- How much square feet is the retail area
- What is the frontage area of the retail space
- Photographs of the location
- Demographics of the catchment area
Hypothetical example to show profitability in partnering with CCD
Total investment made in X Cafe franchise = Rs.10,00,000
Expenses incurred in a month
- Rent paid for a 1200 Sq.ft area = Rs.2,40,000
- Salaries paid to 6 employees (Rs.10,000*6) = Rs.60,000
- Miscellaneous expenses incurred for the month = Rs.20,000
Total expenses incurred in a month = Rs.3,20,000
Income earned in a month
- The average footfall of customers in a day = 200 customers
- Average amount an individual spends in the cafe = Rs.200
- Total income earned in a day (200*Rs.200) = Rs.40,000
Total income earned in a month (Rs.40,000*30) = Rs.12,00,000
Gross profit for the month
Gross profit for the month (50% of Rs.12,00,000) = Rs.6,00,000
Total profit for the moth
Total profit earned in a month (Rs.6,00,000 – Rs.3,20,000) = Rs.2,80,000
You can get back your entire investment based on the profitability example within 3-4 months.
Conclusion
Since 1996, Cafe Coffee Day is known to provide the perfect ambience and customer service to the people thereby making it one of the best places to spend time with friends. It has become a place where people of every age can unwind and relax with a cup of coffee at affordable prices.
This has been made possible as the most important ingredient COFFEE are sourced from our coffee planters, thereby giving Cafe Coffee day with the UTZ Certification for growing and producing coffee by being socially and environmentally responsible. This certification takes into consideration the entire coffee process I.e from bean to cup otherwise known as “grower to roaster.”
Cafe Coffee Day is not considered as any ordinary Coffee shop, it has become more of a trendsetter and one of the most favourite hangout places for teenagers. CCD’s main focus has always been in marketing their coffee shop as a place to have conversations. As its tagline rightly say’s “A lot can happen over coffee”, CCD has touched hearts of every Indian.
Based on the above article we can be sure of one thing that with its outlets in over 200 cities spread across India, Cafe Coffee Day has become a profitable and excellent brand name which is now encouraging emerging businessmen and individuals to partner with them to have a steady income flow.