In tie-up with EL&N, Reliance to bring 'Instagrammable' cafes to India

Reliance announces exclusive partnership with EL&N after opening first Pret A Manger store

Reliance Brands has entered into an exclusive partnership with UK-based boutique café group EL&N -- which claims to run the “most Instagrammable” café in the world -- to open its gorgeously designed outlets in India. One of Britain’s best-known coffee chains, Pret A Manger, just a couple of days ago opened its first shop in India (in Mumbai), in partnership with Reliance Brands.

“During the quarter, we entered into an exclusive partnership with EL&N Café for the F&B (food and beverages) space,” Dinesh Taluja, CFO and corporate development at Reliance Retail, said in its briefing after announcing the January-March quarter results on Friday.

EL&N opened its first coffee shop in August 2017 in the UK and started expanding outside of the country in 2021 with a store in Doha (Qatar). It is now present in France, Italy, and countries in West Asia.

EL&N (which stands for Eat, Live, and Nourish) is known for having interiors in all shades of pink and is also famous for being the most instagrammable cafe in the world. It's not only the decor but the food and drinks are also created to be visually appealing so customers can always capture a picture perfect moment at the cafe. 

Both tie-ups (Pret A Manger and EL&N) brings it directly in competition with Tata’s Starbucks, which entered the Indian market in 2012 and now has over 300 stores in the country with a presence in 38 cities.

The café culture in India started in 1996 with Café Coffee Day opening its first outlet but not many witnessed success. According to experts, the market has huge potential but it comes down to picking the right location to expand and understanding evolving customer needs, such as newer flavours and ambiance.

“A customer pays Rs 300 for a cup of coffee because of the service provided. You will find new brands will keep coming up and trying new concepts,” said Prashant Agarwal, co-founder and joint managing director, Wazir Advisors.

He further explained that a coffee shop near a college is likely to witness greater footfall than one near a mall and hence “location becomes very important”.

Devangshu Dutta, chief executive officer, Third Eyesight, a consultancy firm, said: “The restaurant business in any form will go through changes whether it is a café or a restaurant. There is a novelty factor that plays out for an eating joint, but the theme needs to be refreshed to keep it interesting. Even the ones that become a staple have to go for a refreshed look and feel."

He added that as a business, every site has to work and the business has to be scaled up appropriately.

According to IMARC Group, the India pub, bar, café and lounge (PBCL) market, is expected to witness a compound annual growth rate (CAGR) of 13.3 per cent during 2023-2028.

The report also said that India’s PBCL market has been witnessing healthy growth due to people’ s increasing need to socialise and get together with their peers in eateries offering unique ambiance, entertainment, and a variety of food and beverages.

“The primary factor driving the India pub, bar, café and lounge market is the growing disposable incomes across the country… Moreover, brands are increasingly focusing on factors such as varied food offerings, ambiance, and customer engagement to ensure the longevity and strength of their businesses and create a niche for this segment,” the report said.

RIL enters JV to make toys

Reliance Retail, which owns iconic British toy brand Hamleys and home-grown toy brand Rowan, has entered into a joint venture with a Haryana-based Circle E Retail for local manufacturing to meet the growing demand. The firm is working on a strategy of integrating processes from design to shelf, according to industry sources.

Under this, Reliance Retail would have control over the entire aspects of the toy ecosystem, right from designing and manufacturing to retailing of the product. This will also help Reliance reduce dependency on third-party manufacturers in phases. 

This new venture will cater for both the toys brands - Hamleys and Rowan, which Reliance Retail owns, the sources added.
 

- PTI