India's Airports Aiding The Growth of Food Franchises with Low Cost Carriers Gaining Momentum

One industry doing well even in the current difficult times is the food and beverage franchise at all domestic airports. With the cost-cutting prevalent today, more travelers are opting for the LCCs (Low Cost Carriers) rather than the full service airlines.

Since food is not part of the ticket price at these airlines, passengers are opting to eat their fill at airports before boarding flights. In the last couple of years, the proportion of flights flown by LCCs has increased from 45:55 to 60:40 at present, and is expected to go up to 70:30 by the end of the year. Especially since all the LCCs including Spicejet, Indigo and Go Air are adding capacity. In these flights, food is available but the options are fairly limited with exorbitant rates sometimes charged.

As a result, the volume of business done by the retail chains and food outlets that have licensed or leased space has increased by over 30%. Cafe chain Barista that has outlets across metro airports in the country says it has seen a significant growth in F&B sales, with their outlets at the Bangalore and Mumbai airports registering 30% growth over the last year. This has also become a source of innovation. For example, BIA’s F&B partner, HMS Host, created a food offering called ‘Grab n fly’. This included a variety of light and easy packaged food products, at prices starting from Rs 50 that a passenger could carry onto the aircraft.

The business offers interesting options in terms of how airports as well as F&B outlets might shape the airport location as a retail destination in future. Pizza Corner for example has a concept called Pizza Corner Express which it offers at malls and has extended the same to its airport franchises as well.

Possibly a combination of retail lounge as well as coffee hangout might be possible in future, or a combination of coffee shop and bookstore as well as wi-fi center as is found in some of the Crossword outlets today. The possibilities are endless and only need initiative.

With airports working on the PPP model now, airport managements will be looking at alternative revenue sources to ensure adequate returns. This might be one of foodcustomers.

Cuppa Franchise

FRANCHISING CUPPA – AN OPPORTUNITY TO BE A PARTNER IN PROFIT
Cuppa, in a bid to revive the Indian Tradition of tea drinking has launched a chain of cafes under the brand name ‘CUPPA’. The flagship Café was launched in February 2009, at J.P.Nagar, Bangalore. Cuppa will soon be inaugurating four more outlets across Bangalore.

THE CUPPA FORMULA
Cuppa will run its cafes through a network of franchise outlets some of which will be company owned and others will be run by ‘partners in profit’. Cuppa is India’s first nationwide chain of cafes, with huge potential for growth as it brings alive old traditions, albeit with the modern twist of innovative blends.
Cuppa is looking at aggressive growth. From the first café that opened in February 2009 in Bangalore, they aim to have 300 cafes, across India by the end of 2011. Café Coffee Day opened just a handful of cafes in the first 5 years of operation.
Cuppa is targeted at the Urban Indian Youth – from the age group of 20 to 35. The attractive interiors and the exciting menu will make it a ‘youth hangout of choice’. The competitive price will bring the cuppa experience within the reach of college students and the young executives who will be attracted by the sheer energy of the place and the wide range of beverages and snacks.

THE CUPPA EXPERIENCE
Cuppa promises
• An innovative range of teas, coffees and cold beverages
• Delectable snacks
• World-class customer experience
• Trained and well informed staff
• Great ambience, décor and comfort
• Open kitchen
• Localisation of menu
• International standards of quality, service and cleanliness
• Cuppa Card – Our loyalty program for loyal customers

THE CUPPA MENU
Cuppa understands the difference between a good cup and a great cup.
They start at the very beginning – at the source. The finest ‘two-leaves-and-a-bud’ and the finest beans are sourced directly from the estates to ensure freshness, superior flavour, consistent quality and a customer who will come back for more.
Only the finest, 100% pure tea from Darjeeling & Assam and coffee from the estates of Chickmangalur, go in to our brews. For those looking for an international flavour, we have teas from China, Srilanka and South Africa. Our dedicated tasters take their job seriously and ensure that our customers enjoy every sip.
The Cuppa menu includes 32 teas and 17 coffees, ranging from the mundane Assam Tea to the Cuppa Signature Brew for the more adventurous.

THE CUPPA FRANCHISE FORMAT
Cuppa will operate through Franchisees across the country. There are three franchisee formats proposed, ranging from the 450-500 sq ft format in shopping malls to the 1000-1200 sq ft format on high streets.
450-500 sq ft area
Franchising Fee Rs 3,00,000
Equipment Rs 5,00,000
Furniture & Fixtures Rs 2,00,000
Interiors Rs 6,50,000
Total Investment Rs 16,50,000

Royalty Fees 8%
Marketing Fees 4%
Space Cost (Deposit) Rs 5,00,000

*The costs can vary as these are approximate costs.

THE CUPPA FRANCHISE FORMAT
750 – 800 sqft area
Franchising Fee Rs 4,00,000
Equipment Rs 5,00,000
Furniture & Fixtures Rs 3,00,000
Interiors Rs 10,40,000
Total Investment Rs 22,40,000

Royalty Fees 8%
Marketing Fees 4%
Space Cost (Deposit) Rs 8,00,000
*The costs can vary as these are approximate costs.

Visit www.sparkleminds.com if you are seeking a cafe franchise and we could help you choose a franchise of your choice.