Showing posts with label barista. Show all posts
Showing posts with label barista. Show all posts

Sunday, July 25, 2010

Baskin Robbins Franchise Strategy To Penetrate Upto Tier 4 Cities Of India.

Baskin-Robbins turned 65 this month. It is much younger in India. Owned by the US-based Dunkin’ Brands, Baskin-Robbins entered the country 17 years ago in 1993 with a couple of company-run outlets in Mumbai and Delhi. Over the years, it has expanded to 400 franchisee outlets spread across 95 cities and is also available at some 600 hotels and restaurants and at about 600 modern-format retail stores. The chain, which is run by Graviss Foods in India and the SAARC region, says it has always grown close to 25 per cent year on year in India.

Now, Baskin-Robbins wants to penetrate deeper and denser. It’s targeting to grow 30 per cent this year. While it wants to expand the number of outlets in cities it is already present, covering pockets where it is not there, the chain is also planning an aggressive roll out in a large number of Tier II and III cities. Says Baskin-Robbins India Chief Operating Officer Subroto Mukherjee, “In cities we are already there, we want to cover the entire geographical spread. For instance, in Mumbai, we have 92 outlets, but there are pockets where we are not there. In and around Delhi, we have 45 outlets, but I see potential for at least 200 outlets.” The chain is looking at activating 80 to 85 ice cream parlours every year. Besides, it is also targeting aggressive growth from food service (hotels and restaurants) and modern-format retail segments.

As for Tier II and III cities, Mukherjee says, “They are yielding excellent results. We’ve seen some startling trends; for instance, parlours in cities like Nagpur and Guwahati have been our top grosser. These cities have got a lot of money with not many places to spend. They are certainly a key growth driver. While we’ll enter newer markets in Tier II and III cities, we’ll also explore opportunities in Tier IV cities.”

Baskin-Robbins is perceived as a premium brand — a regular scoop costs Rs 45, while a premium one costs Rs 50. It is thus positioned between the mass brands such as Amul, Kwality Walls and Vadilal and the super-premium brands like Häagen-Dazs and Movenpik. It thus faces some competition from both the categories as well as other dessert brands like Café Coffee Day and Barista. Mukherjee says the positioning has actually benefited the brand. “We are a very affordable brand and with brands like Movenpik, which cost Rs 150-plus a scoop, coming up, it has made life easier for us. Baskin-Robbins is perceived as excellent quality at a lesser price.” He adds, “We are slightly more expensive than our nearest competitor; however, we are confident that the value the customer gets out of a superior product along with our healthy portion sizes makes it great value. Today, hygiene and quality are critical to the customer and that is where Baskin-Robbins scores over others.”

Baskin-Robbins plans to support its expansion creating some buzz around the brand. Currently, it’s running a promotion campaign on radio as well as print and outdoors celebrating its 65th anniversary. It will also promote the product through kids’ camps, sampling of product through schools, colleges as well as society campaigns, as it has done in the past.

Tags:Baskin Robbins, Baskin Robbins Franchise, Baskin Robins, graviss foods, Ice Cream Franchise, Amul, Kwality Walls, Vadilal, Haagen Dazs, Movenpik, cafe coffee day, barista, ice cream business, ice cream dealership,

Source:Amit Ranjan Rai / New Delhi July 26, 2010, 0:01IST/Business Standard

This Blog has been posted by Sparkleminds, A Franchise Consulting Company Based At Bangalore, India, Offering Complete Franchise Solutions Nationally and Internationally for more than a decade now.Visit www.sparkleminds.com for more details.

Saturday, June 12, 2010

Cafe Business Opportunities Galore In India.Top Coffee Chains across the world lined up.

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.

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

Monday, March 1, 2010

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.

Friday, January 29, 2010

Gloria Jeans Eyes Franchise Expansion of 100 Units By 2013

Gloria Jean’s eyes expansion

Bullish on the estimated Rs 1,200 crore market in the country, international coffee chain Gloria Jean’s Coffees (Gloria) is readying itself for expansion to make it profitable.

Having entered the Indian market in 2008 through master franchise model, it has only nine outlets in the country. The company currently has spent more than 12 months on reworking and refining its business model and is finally readying itsel for expansion. It is set to open one outlet each in Delhi and Pune in next two months besides setting itself a target of 100 operational outlets by 2013.

With 50 per cent of Rs 1,200 crore market being unorganised and Cafe Coffee Day and Barista taking big chunks of the remaining, Gloria believes there needs to be a concentrated effort in gaining momentum and popularity in the market.

Speaking to Deccan Herald Gloria Jean’s Coffees Regional General Manager Tony White said their emphasis is on training its staff adding Citymax Hospitality, its franchise here, has invested Rs 80 lakh on training alone. Its total investment as on this date is Rs 10 crore.

Coffee varisty

The company has set up ‘coffee university’ –– a mock coffee shop –– where it trains its staff to make coffee and also other essentials like treating the customers et al. Citymax Hospitality President Sundarrajan Rajagopal said besides having to go through rigrous levels of training, the staff will also be monitered by the ‘coffee university’ in Australia (Gloria’s base) and India. There are regional workshops conducted twice a year to further enhance quality of workforce. It also conducts competitions for baristas from across the markets it has presence so that there is an exhange of ideas and exposure to all its staff.

Further, the firm will pump in another Rs 50 crore into the Indian market –– out of which a significant sum will be spent on training –– as it believes that there is enough scope for all existing players and more. It said it will expand its presence to 16 cities from the current four.

With all other players like Barista,Cafe Coffee Day,Mocha,Nescafe,Coffee N U, Java City, Brewers,Cuppa eyeing expansion, Gloria Jeans is all set to have its share of the Pie of the Indian coffee market.

Bangalore: Jan 29, DHNS: