June.11, 2010.At least three international coffee chains are preparing to enter India, adding to a crowded market that is set to bulge some more.
The UK's Coffee Republic, Malta's Cafe Jubilee and Australia's Coffee Club Group have given mandates to retail consultancies in India to scout for franchise partners.
"We have identified real growth opportunities in India as (the) cafe culture is taking hold," said Tariq Affara, chief executive, Coffee Republic Trading Ltd. "We have international experience, a very strong brand offer, and we are excited and confident about our prospects in the Indian market."
More than 1,200 cafes have sprung up across India in the past decade, mostly from six organized chains, clocking an average annual growth of around 40 percent. They have made the cafe industry -- currently capped at Rs1,000 crore -- one of the fastest growing organized retail segments.
Chains such as Cafe Coffee Day (CCD) -- which recently acquired Czech label Cafe Emporio -- Barista and Costa Coffee plan on opening hundreds of outlets in major cities over the next two-three years, pinning their hopes on the deep pockets of India's growing class of young professionals and students.
According to industry estimates, there is scope for another 5,000 or so outlets strategically located close to offices, colleges and shopping malls.
That's the space the foreign chains want to tap.
Coffee Republic is working with consultants to identify a partner who can expand its business across India. Affara didn't name the consultant.
Cafe Jubilee and Coffee Club Group are working with New Delhi-based consultancy Franchise India Holdings Ltd for strategizing their entry into the country.
Starbucks Corp., the world's largest coffee retailer, is also eyeing the Indian market, after having dropped the plan a few years ago following some regulatory hurdles.
"At some point in the near future, we will make the right announcement and the right partner in India," chief executive Howard Schultz had told Reuters in April. "We are enthused about India."
The country is a big draw for international cafes, four of the six organized coffee chains in India being foreign players.
"It is important for the global players to drive strategies by making the campaigns more product-centric than the destination, in addition to the given mandates to flourish in India," said Gaurav Marya, president, Franchise India. "This poses a huge challenge to bring the required shift in Indian consumerism."
Their biggest challenge will come from India's largest cafe chain, CCD, which has 917 outlets in 150 cities and towns. It is looking to launch another 200 cafes to add to its presence on highways and inside malls and corporate offices by March.
CCD also plans to open 100 lounges in Mumbai, New Delhi, Chandigarh, Hyderabad and Chennai to add to its single lounge in Bangalore, as well as Coffee Day Squares in major cities.
"With lounges, we hope to address young professionals who grew up on CCD and want to indulge a lot more," said K. Ramakrishnan, president of marketing.
"It's a market that needs to be created. Geographical expansion has huge possibilities. Cities are not saturated yet and the market is not limiting at all," he said.
Barista Coffee Co. Ltd, India's second largest organized cafe chain with 210 outlets, plans to launch 40-45 outlets a year in the next two-three years.
It will be followed closely by Costa Coffee, the UK's largest coffee brand, which entered India in September 2005 through an exclusive franchisee tie-up with Devyani International Ltd.
The company has opened around 50 outlets in northern and western India, and plans to invest Rs250 crore in the next four years to take its store count to 500.
But experts point out the chains are targeting the same locations and clients, with little other than price to differentiate them.
Clients agree. Prakash Chandra, a 25-year-old software engineer, said his loyalties don't lie with any particular chain, as he sat with a couple of friends, sipping from a Barista cup in Noida, a New Delhi suburb. "I go to these coffee chains very often. I go to Barista, I go to Cafe Coffee Day; anything will do for me."
Australian cafe chain Gloria Jean's Coffees, which entered India in 2008 through the Landmark Group's hospitality section, Citymax, positions itself at the upper end of the market.
The chain, which has 12 outlets across India, offers a premium cup of coffee at 10-15 percent more than a cup at Barista, which is priced at around Rs60. It is looking to add another 18 outlets by March. The prices at Costa Coffee are also 10-15 percent above that at CCD, where a regular cup costs Rs40.
"In the cafe business, it is a question of which market and segment one is targeting," said Pinakiranjan Mishra, partner and national leader, retail and consumer product practice, Ernst and Young. "One needs to see if they are offering value for that money. In future, it would become more service-led than price-led differentiation."
Outlet managers also say that with cafe chains vying for the same strategic locations, their sales are being affected. In Noida's Sector 18 market, for instance, there are four Barista outlets competing with five outlets of CCD, two of Costa Coffee and five or six small independent cafes within a radius of half a kilometre.
In Bangalore's Indiranagar locality, there are four cafes on a 1km stretch. "I wish they were not here," said the manager of one of the Indiranagar cafes, requesting anonymity. "Since they opened, we have lost at least 20 percent of our regular customers."
Tags:coffee republic, cafe jubilee, coffee club, franchise partners, retail consultancies, cafe franchise, starbucks, cafe coffee day, Cafe Emporio, barista, Costa Coffee, foreign chains,
Source:Mint,New Delhi,Deepti Chaudhury,Friday June 11,2010.
Showing posts with label Costa Coffee. Show all posts
Showing posts with label Costa Coffee. Show all posts
Saturday, June 12, 2010
Thursday, June 10, 2010
Swensens Ice Cream Franchise Opens Its First Outlet In India at Mantri Square, Bangalore
BANGALORE: American ice cream brand Swensen’s has opened its first outlet in Bangalore, India at what is purportedly the largest mall in India – The Mantri Square. The Swensen’s franchise for South India is held by the Ravi Jaipuria (RJ Group)-owned Devyani International Limited (DIL).
On the anvil over the next few months are a Swensen’s outlet at the international airport in New Delhi, three more outlets in malls and one in a high street in Bangalore. DIL is also scouting for suitable locations at malls and high streets in other major south Indian towns and cities to bring the count to over eighty during the next five years. DIL is targeting revenues of Rs.500 million from the estimated Rs 13 billion and growing organizsd ice cream retail market in India.
DIL’s mass media plans for Swensen’s, once the number of outlets have been increased, include radio and outdoor media that it has already been using for its recently launched Costa Coffee brand.
The RJ group has Indian franchises for global foods and beverages brands such as Pizza Hut, Kentucky Fried Chicken (KFC), Costa Coffee, Pepsi and Disney Artist.
Tags: Swensens,Devyani international, Pizza Hut, kentucky fried chicken, Costa Coffee, disney artist, Ice Cream Franchise,Food Franchise, Dessert Franchise, Gelato Franchise,Mantri Square Mall
Source:Indian Television Com, 10 June, 2010.
On the anvil over the next few months are a Swensen’s outlet at the international airport in New Delhi, three more outlets in malls and one in a high street in Bangalore. DIL is also scouting for suitable locations at malls and high streets in other major south Indian towns and cities to bring the count to over eighty during the next five years. DIL is targeting revenues of Rs.500 million from the estimated Rs 13 billion and growing organizsd ice cream retail market in India.
DIL’s mass media plans for Swensen’s, once the number of outlets have been increased, include radio and outdoor media that it has already been using for its recently launched Costa Coffee brand.
The RJ group has Indian franchises for global foods and beverages brands such as Pizza Hut, Kentucky Fried Chicken (KFC), Costa Coffee, Pepsi and Disney Artist.
Tags: Swensens,Devyani international, Pizza Hut, kentucky fried chicken, Costa Coffee, disney artist, Ice Cream Franchise,Food Franchise, Dessert Franchise, Gelato Franchise,Mantri Square Mall
Source:Indian Television Com, 10 June, 2010.
Monday, June 7, 2010
Cafe Franchise Business, Coffee Franchising In India growing with an increase in franchise brands.
With Barista completing ten years and foreign chains coming in, coffee culture is booming in India
It was the British tax on tea that, by default, increased coffee consumption in India in the late 19th century. However, more than 100 years later, it is the strong branding of Indian coffee and the multiplying coffee chains that has made this beverage popular in this tea drinkers’ nation. This also explains the 10-year reign of Barista. After making its debut in Delhi’s Basant Lok in 2000, this coffee chain now has 225 outlets in India and neighbouring countries.
Bringing about a coffee revolution by altering firmly ingrained tea consumption patterns is by no means an easy task. But when Barista set out to do it 10 years ago, it dented the elitist perception that coffee held. For Barista, luring coffee drinkers with exotic blends and an option of something to munch—outside the trappings of a five-star and within the confines of a warm, informal ambience—worked like magic. It still continues to do so. “People have been drinking tea at home for ages. With coffee came the aspirational value, and most youngsters were willing to experiment. The term ‘coffee date’ came about when we opened our outlets,” says Sanjay Coutinho, COO, Barista Coffee Company Limited. After proliferating the Indian cafe market with franchises as well as company-owned stores, Barista aims to open a new outlet in every street corner and create a coffee culture reminiscent of old Italian coffee houses.
Although Barista was the first big player, it was Cafe Coffee Day that took the coffee-drinking culture to the grassroots level. It opened its first cafe in 1996 on Brigade Road, Bangalore, and today has the largest cafe retail chain in India—with 915 cafes in 135 cities, with a large number of them situated in small towns. With its roots in Chikmagalur, the home to some of the best Indian coffees, it was easy for CCD to get its act together. “With CCD came the option of spending less money on coffee as well as spending time at a cafe all by yourself or with a book, or simply with a bunch of friends,” says lawyer Kiran Kumar, who was a student in Bangalore when the first outlet opened. “Since CCD offered sandwiches and burgers, it is a sought after takeaway joint as well,” he says.
Thanks to the cafe boom, things are looking up for coffee estate owners too. “In the last few years, the price of coffee bean has increased. With blended and single origin coffees being served at most cafes, the turnover will only increase,” says Oliver Rebello, a coffee estate owner in Coorg.
Coffee houses and cafes also reflect the economic and social changes in Indian society. They not only offer a stimulating drink, but a place to meet friends and business partners, catch up on news and access the internet. With both Barista and CCD having found their place in the heart of India’s coffee drinkers, it was only a matter of time before foreign chains like Gloria Jeans, Costa Coffee and Coffee Bean and Tea Leaf came to India.
“As India urbanises further, there is a high potential of increasing the consumer base as well,” says Manish Tondon, President Citymax, who brought Gloria Jeans Coffee to India in 2007. “Since coffee consumption is on a rise in India, it is nice to have cafes of all levels (different price ranges),” he adds. During the late 2000s the business of Barista and CCD was on the rise and the Coffee Bean and Tea Leaf entered the market to take the “sophistication factor” to another level. However, its CEO, Arun Chopra, still believes that India is largely a nation of tea drinkers, and hence they have a balanced menu. “We have 20 varieties of coffee and 22 varieties of tea,” he states.
The increase in the number of foreign chains in various metros, has forced the Indian ones to rethink their strategy. After establishing their presence in metros, Barista and CCD’s are now opening their outlets in non-metros. “We now have cafes in smaller cities like Kochi and Vadodara,” says Coutinho. He believes that there is a marked difference between the consumers in non-metros and metros. “In metros, they look forward to an F&B experience. This led us to launch our outlets Barista Crème.”
With cafes trying their best to revamp the menu every few months, it brings us to the question on how many will actually survive in the long run. “Competition is always fierce. CCD and we have been moving parallelly right from the time we set up our cafes. But then it is the fear of competition that keeps you in the league,” feels Coutinho. Chopra feels that demographically, India is a young nation and the numbers in the 20-25 age group is on the rise. And with higher disposable income and increase in malls and multiplexes the coffee consumption, he feels, is bound to increase.
Tags:Cafe Franchise, Coffee Franchise Business,Barista, Gloria Jeans, Costa Coffee, Coffee Bean, Tea Leaf, starbucks franchise,CCD's, coffee day franchise,coffee chain,cafe market,barista creme
It was the British tax on tea that, by default, increased coffee consumption in India in the late 19th century. However, more than 100 years later, it is the strong branding of Indian coffee and the multiplying coffee chains that has made this beverage popular in this tea drinkers’ nation. This also explains the 10-year reign of Barista. After making its debut in Delhi’s Basant Lok in 2000, this coffee chain now has 225 outlets in India and neighbouring countries.
Bringing about a coffee revolution by altering firmly ingrained tea consumption patterns is by no means an easy task. But when Barista set out to do it 10 years ago, it dented the elitist perception that coffee held. For Barista, luring coffee drinkers with exotic blends and an option of something to munch—outside the trappings of a five-star and within the confines of a warm, informal ambience—worked like magic. It still continues to do so. “People have been drinking tea at home for ages. With coffee came the aspirational value, and most youngsters were willing to experiment. The term ‘coffee date’ came about when we opened our outlets,” says Sanjay Coutinho, COO, Barista Coffee Company Limited. After proliferating the Indian cafe market with franchises as well as company-owned stores, Barista aims to open a new outlet in every street corner and create a coffee culture reminiscent of old Italian coffee houses.
Although Barista was the first big player, it was Cafe Coffee Day that took the coffee-drinking culture to the grassroots level. It opened its first cafe in 1996 on Brigade Road, Bangalore, and today has the largest cafe retail chain in India—with 915 cafes in 135 cities, with a large number of them situated in small towns. With its roots in Chikmagalur, the home to some of the best Indian coffees, it was easy for CCD to get its act together. “With CCD came the option of spending less money on coffee as well as spending time at a cafe all by yourself or with a book, or simply with a bunch of friends,” says lawyer Kiran Kumar, who was a student in Bangalore when the first outlet opened. “Since CCD offered sandwiches and burgers, it is a sought after takeaway joint as well,” he says.
Thanks to the cafe boom, things are looking up for coffee estate owners too. “In the last few years, the price of coffee bean has increased. With blended and single origin coffees being served at most cafes, the turnover will only increase,” says Oliver Rebello, a coffee estate owner in Coorg.
Coffee houses and cafes also reflect the economic and social changes in Indian society. They not only offer a stimulating drink, but a place to meet friends and business partners, catch up on news and access the internet. With both Barista and CCD having found their place in the heart of India’s coffee drinkers, it was only a matter of time before foreign chains like Gloria Jeans, Costa Coffee and Coffee Bean and Tea Leaf came to India.
“As India urbanises further, there is a high potential of increasing the consumer base as well,” says Manish Tondon, President Citymax, who brought Gloria Jeans Coffee to India in 2007. “Since coffee consumption is on a rise in India, it is nice to have cafes of all levels (different price ranges),” he adds. During the late 2000s the business of Barista and CCD was on the rise and the Coffee Bean and Tea Leaf entered the market to take the “sophistication factor” to another level. However, its CEO, Arun Chopra, still believes that India is largely a nation of tea drinkers, and hence they have a balanced menu. “We have 20 varieties of coffee and 22 varieties of tea,” he states.
The increase in the number of foreign chains in various metros, has forced the Indian ones to rethink their strategy. After establishing their presence in metros, Barista and CCD’s are now opening their outlets in non-metros. “We now have cafes in smaller cities like Kochi and Vadodara,” says Coutinho. He believes that there is a marked difference between the consumers in non-metros and metros. “In metros, they look forward to an F&B experience. This led us to launch our outlets Barista Crème.”
With cafes trying their best to revamp the menu every few months, it brings us to the question on how many will actually survive in the long run. “Competition is always fierce. CCD and we have been moving parallelly right from the time we set up our cafes. But then it is the fear of competition that keeps you in the league,” feels Coutinho. Chopra feels that demographically, India is a young nation and the numbers in the 20-25 age group is on the rise. And with higher disposable income and increase in malls and multiplexes the coffee consumption, he feels, is bound to increase.
Tags:Cafe Franchise, Coffee Franchise Business,Barista, Gloria Jeans, Costa Coffee, Coffee Bean, Tea Leaf, starbucks franchise,CCD's, coffee day franchise,coffee chain,cafe market,barista creme
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