Understanding the Cost of Cafe Coffee Day Franchise In India

July 15, 2024

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Are you someone who can’t imagine starting their day without a cup of coffee? What if you could turn your love for coffee into a successful business? According to Statista, in 2022, India consumed 1.21 million 60-kilogram bags of coffee. That’s a lot of coffee lovers!

The Café Coffee Day (CCD) franchise presents an incredible opportunity for coffee enthusiasts like you. Imagine opening a Café Coffee Day outlet, a brand that the entire country adores. 

With the growing café culture and CCD’s strong market presence, this is an opportunity you wouldn’t want to miss. If starting your own CCD franchise sounds appealing (and why wouldn’t it?), we’re here to guide you through every step of the process.

In this article, we'll explain everything you need to know about starting a Café Coffee Day franchise cost in India.

About Cafe Coffee Day

CCD's story began in 1996 when it was the brainchild of the Amalgamated Bean Coffee Trading Company Limited. Fast-forward to today, and it's a nationwide phenomenon, serving a whopping 1.8 billion cups of coffee a year! CCD offers a wide variety of coffees alongside tempting snacks and light bites, making it a popular hangout for all ages.

CCD isn't just about serving incredible coffee (though its brews are legendary). It provides a diverse range of other beverages and delicious food options as well, making it a one-stop shop for a quick bite or a relaxed hangout.  Their seriousness for their craft is visible as they roast and grind their beans in-house, ensuring consistent quality and freshness in every cup.  This dedication to detail is a key reason why coffee connoisseurs and casual sippers alike keep coming back for more.

Now, what kind of CCD outlet suits you? They have three main formats: Square, Lounge, and Value Express. 

Square

These are premium outlets designed to offer a gourmet coffee experience. Square outlets feature sophisticated interiors, an extensive menu including specialty coffees and high-end food options, and a cozy ambiance perfect for relaxed conversations or business meetings. The aim is to provide an upscale café experience for discerning customers who seek quality and exclusivity.

Lounge

Lounge outlets focus on providing a comfortable and inviting space for socializing. These cafés have a relaxed atmosphere, making them ideal for spending time with friends, working remotely, or enjoying a quiet cup of coffee. Lounges offer a balanced menu of beverages and snacks, catering to those who want a leisurely café experience.

Value Express

Value Express outlets are compact and efficient, designed for customers on the go. These cafés are usually located in high-traffic areas like malls, office complexes, and transportation hubs. They offer quick service and a limited menu of popular beverages and snacks, making them perfect for people looking for a quick coffee fix.

Advantages of CCD's In-House Coffee Production

One of the standout advantages of Cafe Coffee Day is its in-house coffee production. This integrated approach ensures consistent quality and supply chain efficiency, setting CCD apart from many of its competitors. Here's a detailed look at how CCD's in-house production benefits the brand:

Consistent Quality

CCD can maintain excellent quality standards across all of its outlets because it controls the entire production process from bean to cup. This consistency is crucial in building and retaining customer trust and loyalty. Customers can expect the same great taste & quality whether they are visiting a CCD outlet in Mumbai or Bangalore.

Supply Chain Efficiency

CCD's in-house production capabilities allow for better supply chain management. This control helps reduce dependency on third-party suppliers, mitigate risks associated with supply chain disruptions, and ensure timely delivery of fresh coffee beans to all outlets.

Cost Management 

Internally managing the production process helps CCD control costs more effectively. By eliminating middlemen and negotiating directly with suppliers, CCD can achieve better margins, which can be reinvested in other areas of the business, such as enhancing customer experience or expanding the outlet network.

Innovation and Customization

In-house production gives CCD the flexibility to innovate and introduce new products tailored to customer preferences. Whether developing a new blend or launching limited-edition flavors, CCD can swiftly adapt to market trends and consumer demands.

Sustainability Practices

Controlling the production process allows CCD to implement and monitor sustainable practices more efficiently. These include responsibly sourcing coffee beans, reducing carbon footprint, and ensuring ethical labor practices. These efforts not only enhance brand reputation but also appeal to environmentally conscious consumers.

Features of Café Coffee Day Brand

Café Coffee Day (CCD) is India's leading coffee chain, owned by Amalgamated Bean Coffee Trading Company Limited, also known as Coffee Day Enterprise. Here’s a closer look at what makes CCD stand out:

  • Varied Menu: CCD serves a wide range of items, including coffee, tea, pastries, sandwiches, and smoothies.
  • Roots and History: The brand traces its origins to Chikmagalur, near Bangalore, where founder V. G. Siddhartha owned extensive coffee plantations. The company’s headquarters are located on Vittal Mallya Road, Bangalore.
  • Largest Arabica Producer: CCD is India's largest producer of Arabica beans, exporting to Europe, the USA, and Japan.
  • First Outlet and Growth: The first CCD outlet opened in 1996 on Brigade Road in Bangalore. By 2018, CCD had nearly 1,722 outlets across more than 200 cities in India, employing over 20,000 people and generating significant revenue.
  • International Presence: CCD has expanded internationally to countries like the Czech Republic, Austria, Nepal, and Egypt.

Benefits of a CCD Franchise

Choosing to partner with CCD comes with several advantages:

  • Strong Brand Recognition: CCD is a well-known and loved brand in India, especially among the youth. Its chic ambiance and high-quality coffee attract a loyal customer base.
  • Cost Efficiency: CCD controls the entire coffee production chain, which helps reduce costs and offer affordable prices to customers.
  • Great Ambiance and Service: CCD offers a comfortable and inviting atmosphere where customers can spend hours without being rushed, enhancing the overall café experience.
  • Diverse Outlets: CCD can attract a wide range of customers with various formats, such as high street cafes, highway cafes, garden cafes, and mall cafes.
  • Marketing Support: CCD provides extensive advertising and marketing support to its partners, helping to drive immediate revenue and business growth.
  • Lucrative Returns: The brand’s strong market presence and cost efficiencies translate into attractive returns for franchise partners. CCD’s established business model ensures a steady income flow, making the investment highly profitable.

Partnering with CCD means joining a trusted brand with a proven track record of success, support, and a loyal customer base. 

Also read: 10 Best Coffee And Cafe Franchise Opportunities In India

Franchise Models Explained

There are two ways to partner with CCD:

Franchise Model

This is the more traditional route, where you operate a CCD outlet under their brand name and established systems. Here, you'll have different outlet types to choose from, each with its investment requirement.

Partnership Basis

This option involves setting up a co-branded store, where you'll have your brand alongside CCDs. While offering some brand recognition, this route requires a separate investment plan and may involve more operational independence.

As the market grows, collaborating with a well-rounded service provider like Kouzina can give aspiring entrepreneurs a competitive advantage. Their cloud kitchen franchise model provides a unique and economical entry into the thriving food business.

Investment Breakdown for a Café Coffee Day Franchise Cost 

Cafe Coffee Day (CCD) is the largest coffee chain in India, and Coffee Day Enterprises owns it. Investing in a CCD outlet is a strategic choice due to its reasonable cost structure and strong brand recognition.

Investment Cost for CCD Outlets

The capital investment varies depending on the type of outlet and its location. Here’s a detailed breakdown:



CCD Outlet Type

Capital Investment

Square

INR 11,00,000

Lounge 

INR 10,50,000

Value Express

INR 10,00,000

CCD’s Franchise Model

It's important to note that CCD does not offer traditional franchise opportunities. Instead, they partner with individuals who own commercial spaces or retail locations on a rental or revenue-sharing basis. To qualify, your store should meet the following criteria:

  • Minimum Frontage: 25 feet
  • Area: 1000 to 1500 square feet of ground-floor retail space
  • Parking: Sufficient parking space for customers

Detailed Cost Breakdown

Here is a summary of the expenses involved in running a successful CCD outlet:

  • Franchise Fee: INR 50,000
  • Equipment and Interior Setup: INR 3 to 5 lakhs

Kouzina is another leading franchise responsible for providing delivery-focused kitchens, which provide an affordable substitute for conventional brick-and-mortar cafes. Their single cloud kitchen can accommodate multiple virtual brands, allowing franchisees to experiment with diverse cuisines and menus without having to open separate physical sites. This enables them to test the market and cater to various customer preferences.

Recurring Expenses and Revenue Model

  • Recurring Costs: Operating a CCD franchise involves several ongoing expenses, which include:some text
    • Monthly Rent: The rent varies depending on the location and size of the outlet. Prime locations tend to have higher rents.
    • Utilities: Monthly expenses for electricity, water, and other utilities.
    • Employee Salaries: Salaries for staff members vary based on the number of employees and their roles.
    • Inventory Restocking: Regular replenishment of coffee beans, food items, and other supplies.
  • Revenue Model: The revenue model for a CCD franchise is primarily based on sales volume. Here’s how it works:

  • Beverage Sales: A significant portion of the revenue comes from selling various coffee and tea beverages.
  • Food Sales: Additional revenue is generated from selling snacks, pastries, sandwiches, and other food items.
  • Special Events and Catering: Some outlets may also offer catering services for events, which can contribute to the overall revenue.

Also Read: Top Food And Beverage Franchise Opportunities In Gujarat

How to Start a CCD Franchise in India?

If you’re considering starting a Café Coffee Day (CCD) franchise, there are a few steps and requirements you need to be aware of. Here’s a detailed guide to help you get started:

Contacting CCD

To begin, you need to contact CCD with the necessary details. You can send your application to bd@cafecoffeeday.com.  Make sure to include the following information:

  • Owner Details: Names of the individuals who will act as owners, along with their contact numbers, residential addresses, and email addresses.
  • Retail Space Information: The postal address, area (in sq ft), and frontage of the retail space where you plan to open the CCD outlet.
  • Photographs: Include photographs of the retail space from various angles.
  • Demographic Specifications: Details about the demographics of the intended area.

CCD’s regional personnel will review your pitch and guide you through the next steps.

Documents Required for the Franchising Process

To complete the franchising process, you will need the following documents:

  • Provide proof of identity and address for the franchise applicants.
  • Detailed business plan, including financial projections.
  • Property documents to verify ownership or lease of the retail space.
  • Photographs of the proposed location.
  • Demographic analysis of the intended location.

Requirements for Opening a CCD Franchise

  • Area: A space of 1000 to 1500 sq ft with a minimum frontage of 25 sq ft is essential. Adequate parking is also necessary.
  • Skills: Knowledge of market trends and business management. Leadership skills are crucial for delegating tasks and running the franchise smoothly.
  • Location: CCD franchises can be opened anywhere in India, provided there isn’t an existing outlet nearby.
  • Training and Staffing: CCD provides the necessary hardware, software, and on-site training to ensure you’re familiar with their operational guidelines.

Cost Breakdown

Fixed Investment

Cost Head

Amount (INR)

 

Equipment and Interior

5,00,000

 

Other Expenses

5,00,000

 

Brand Fees

50,000

 

Total

10,50,000

 

 

Recurring Expenses





Revenue Source

Amount (INR)

Avg income earned in a day

40,000

Total revenue for a month

12,00,000

Gross profit

6,00,000

Net profit per month

3,30,000

Contract and Profitability

CCD typically signs a franchise bond for 4-5 years, after which you can renew the contract. Despite the high initial investment, the brand's strong image and popularity can help you recover the investment in 3 to 4 months. Given the high demand for coffee and CCD's established reputation, starting a franchise can be a lucrative business opportunity.

Starting a Café Coffee Day franchise is an exciting business with the potential for high returns, provided you meet the requirements. You are prepared for the initial investment & ongoing expenses. With the right location and management, your CCD outlet can become a thriving business.

Advantages and Challenges

There's no denying the advantages of being a CCD franchisee. You benefit from their established brand recognition, marketing muscle, and loyal customer base. They also provide ongoing support to help you navigate the business and ensure smooth operations.

However, there are challenges, too. Competition in the café industry is fierce, and the success of your outlet will depend heavily on location and your ability to attract and retain customers. Additionally, there's always the risk of brand dilution if you don't maintain CCD's high standards.

Wrapping It Up

Cafe Coffee Day is synonymous with coffee culture in India, boasting over 1,700 outlets nationwide. Partnering with this established brand means instant recognition and a loyal customer base. 

Owning a CCD franchise offers more than just brand recognition. CCD provides a comprehensive support system to its franchise partners, including initial training, ongoing operational support, and marketing assistance. This ensures you have the tools and guidance needed to manage your cafe effectively and stay competitive in the local market.

With the backing of a trusted brand, a supportive network, and a thriving market, you'll have all the ingredients to turn your entrepreneurial dream into reality. 

If you're thinking about starting a café franchise but are overwhelmed by the possibilities and operational issues, keep in mind that support structures like Kouzina are available. They specialize in delivering comprehensive solutions that simplify the process of establishing and administering a franchise, allowing prospective entrepreneurs to make their mark.

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