Cafe Coffee Day to go regional

Cafe Coffee Day (CCD), owned by Bangalore-based Amalgamated Bean Coffee Trading Company, would increase its total outlets to 1,100 by the end of March next year. The number would touch 2,000 in three-four years.

Each outlet would need an investment of Rs 10-15 lakh implying a total investment of over Rs 100 crore, according to its president (marketing) K Ramakrishnan.

“Some of the capital needed for the expansion would come from PE funds,” he said.

Speaking to the media here on Thursday, he said CCD was looking at new formats of outlets including lounges, which are bigger in size. Among others, it would increase its presence along the highways. It now has about 50 outlets on the national highways, some in the premises of fuel stations and some standalone. It is also hoping to increase the revenues from the food segment, which is now about 30 per cent, by bringing in regional food items.

“Regional food items would be about 20 per cent of the product offering,” he said adding that in some outlets it was also allowing customers a coffee brewing experience and do-it-yourself menus.

The company would focus on various verticals — transport, corporate, high street, malls and others — for expansion as the footfalls in these areas are more. On an average, each outlet sees about 500 footfalls everyday, he said.

Ramakrishnan said they would set up a lounge in Secunderabad in a month.

The company increased the prices of coffee by 6 per cent in April across its 972 cafes. “The prices of coffee (arabica) is increasing but we will not increase the price now,” he said, adding the company sourced coffee from its own estates, which sprawl over 7,400 acre. It also manages another 2,500 acre estates.

CCD opened its 50th outlet here at Charminar today.