The Hindu Business Line : Café Coffee Day plans 50 outlets in Pak, Austria

Mumbai, July 5 The Amalgamated Bean Coffee Trading Company, popularly known as Café Coffee Day, will open 50 outlets in Pakistan and Austria in the next 15 months, said Mr A. Venu Madhav, Operations Head of Café Coffee Day, on the sidelines of the Retail Brand 2007 Summit organized by Confederation of Indian Industry here.

With an investment requirement of Rs 25-30 lakh per outlet, the coffee house is expected to pump in Rs 15 crore for the expansion.

Café Coffee Day currently has two outlets each in Karachi and Vienna.

Besides the overseas expansion, the company is going to take the number of outlets in India from 435 in 82 cities to 700 in 100 cities by the year end.

Mumbai, Delhi and Bangalore will take the bulk of the stores but we are also opening cafes in tier-II and tier-III cities like Amravati and Agartala,” he said.

This is following the trend of retail showing increasing interest in tier-II and tier-III cities in India, mainly due to saturation in the metros.

“The difference in a tier-I and tier-II city is the real estate cost and number of available locations. We wish we had booked more locations beforehand,” he added, to keep the competition at bay.

Along with operating four formats of businesses — Café Coffee Day outlets, Café Express, takeaways and vending machines — the coffee maker is experimenting with different formats. It runs 10 highway outlets; 40 outlets in offices like Wipro, Accenture and Infosys which contribute to high revenues due to less capital requirements; colleges, airports, and service apartments. Besides, Café Coffee Day is within the top three exporters of coffee beans, with exports of up to 10-12,000 tonnes every year.

Open to tie-ups

Declining any possibility of joint ventures with foreign brands, Mr Madhav said the company was open to tie-ups with foreign brands and malls in India.

Café Coffee Day’s turnover last year was Rs 400 crore, which is expected to grow by 40-50 per cent, he said.

More Stories on : Retailing | Overseas Investments | Coffee

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