Monday, July 19, 2010

Barista To Look At City Franchisee Model For Further Expansion

Mumbai, July 18 (PTI) Barista Coffee Company plans to increase the number of outlets to 300 from the existing 225 by 2012, a senior company official said. Currently, the company has around 225 Barista Lavazza Espresso Bars and Barista Lavazza Cremes in over 30 cities across India.

"We want to increase the number of outlets to 300 by 2012," the company''s Vice-President, Supply Chain Management and Commissary, Sandeep Sharma, told PTI here. However, the growth would be more consolidation-driven than expansion, he added.

The cafe market in India is currently worth over Rs 5,000 crore, in which Caf Coffee Day (CCD) is a major player with a 60 per cent market share, followed by Barista with 30 per cent. "There is a huge potential for the market to grow in the near future.

We want to take advantage of this and make certain corrections in our strategy by adopting the consolidation method. Increasing the number of outlets would also be a part of the consolidation phase," he said.

The company will look at expansion during the 2012-2015 period. "After 2012, once the market picks up, we will take the necessary steps for expansion," Sharma said.

He, however, refrained from commenting on the investment the company was planning to commit. About the company''s plans for exploring the franchisee model in the country, Sharma said, "Currently, we have no franchisees (in India) and all the outlets are owned by us.

However, in the future, we might go in for city franchisees, where a franchiser could open four to five outlets in a city." The company is currently operating international franchisees in Colombo, Dhaka, Dubai and a few other countries, he said.

Tags:International Franchisees, cafe franchise, Barista Franchise, franchise model, barista franchise, cafe coffee day franchise,sandeep sharma,lavazza franchise, lavazza Creme, city franchisees,

Source:Yahoo News, 18 July 2010.

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