Viacom18 to launch MTV-themed cafes

Viacom18 Consumer Products, an arm of media firm Viacom18, today said it is foraying into the food and beverages sector and will launch MTV-themed cafes.
"It is a first of its kind globally. In mid-December, we will be launching our first MTV-themed cafe called FLYP@MTV in Delhi," Viacom18 Group Chief Executive Officer Sudhanshu Vats told reporters here.
Viacom18 Consumer Products has tied up with Funbars Hospitality in a five-year licensing deal, and will open 10 cafes in the next five years, with the next outlets being rolled out in Mumbai and Bangalore.
"Almost 58 per cent of the people who eat out are in the age group of 18-30, which overlaps with our target group.

"Our extensive bouquet of consumer products covers everything from MTV-themed accessories to gadgets, apparel and deodorants and now F&B is the next sector," Viacom 18 Media Senior Vice President (Consumer Products) Saugato Bhowmik said.
The company declined to divulge the investment details.

"MTV team is investing more money than any other project. Funbars Hospitality would be doing the investment in terms of location, the decor and fitouts whereas we will be doing a lot of the in-house designs, gigs, events, concerts, promotion and marketing," Bhowmik said, adding that Funbars Hospitality will pay the company royalty.
According to sources, the first outlet at Connaught Place in Delhi, spread over an area of 10,000 sq ft, has an investment of Rs 8-9 crore.

It is learnt that the company is expecting a revenue of over Rs 300 crore in five years from its 10 outlets.
The food and beverages industry is growing at a CAGR of 23-24 per cent and is expected to touch USD 48 billion this year and USD 58 billion next fiscal.
Viacom 18 is a joint venture between US-based Viacom and Network 18.
Last year, in the biggest ever deal in the Indian media sector, Mukesh Ambani-led Reliance Industries had acquired control in Network 18 Media & Investments, including its subsidiary TV18 Broadcast, for Rs 4,000 crore.