The Hindu Business Line : Coffee Day Xpress plans to increase kiosks in Kolkata

COFFEE Day Xpress, a division of the Rs 300-crore Bangalore-based Amalgamated Bean Coffee Trading Co. Ltd, after having successfully introduced their Café concept to city customers, on Wednesday announced a new business plan to increase the presence of Xpress kiosks (both indoor and outdoor) in Kolkata through a new business franchise model.

Briefing newspersons here on Wednesday on the business plan, to be driven entirely by franchisee entrepreneurs, Mr Sandip Mukherjee, CEO of the Division, said the concept, which addresses all requirements of convenience food serving, has been recognised by corporates, shopping malls and educational institutions.

Coffee Day's new business franchisee model has been designed to make it easy for people to get into their own business and earn profits from the very first month. The underlying principle, according to the CEO, was the concept of "value for money no-frills take away." He told Business Line that the idea was to enlarge consumption of coffee in a big way in various markets.

Talking about a special tie-up with the large oil companies like HPCL, BPCL and IOC, which are now seriously into non-fuel related businesses, like convenience stores in petrol pumps, Mr Mukherjee said many of these corporates and educational bodies have already entered into strategic tie-ups with Coffee Day Xpress. The existing tie-ups in the city include installations at petrol pumps (Bharat Petroleum), corporates (ITC, Hutch and BOC), shopping malls/plazas (Shopper's Stop and Landmark), educational bodies (IIM, Calcutta) and theatres (Inox Multiplex). He said the division was also in dialogue with NGOs like Sanlaap, who will be offered special facilities to help create employment and also encourage self-reliance among people. The Xpress franchise model, it is pointed out, requires no working capital, needs a minimum investment of Rs 2.5 to Rs 3 lakhs (with a one-year lock-in), pays interest (of 4 per cent) on the security deposit and guarantees profits from the first month. Given the current trend towards convenience eating and shopping, retailing in food and beverages offered one of the most lucrative business opportunities, said Mr Mukherjee.

The company was now in the process of carefully evaluating appropriate locations and franchise partners for establishing a much larger presence in the State of Bengal. The company on Wednesday opened its 10th kiosk in city and 187th in the country.

The plan is to touch 200 kiosks by end October. Describing the new food retailing concept, which addresses the need to provide fast, hygienic and affordable food without having to invest in a large café as unique, he said an Xpress comprises a modular kiosk needing 60 to 80 ft, which can be conveniently placed at any crowded location such as high streets, educational institutions, airports, shopping malls, hospitality areas, petrol stations and can even replace the need to maintain an office kitchen.

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