INDIA – Café Coffee Day, a leading coffee chain in India plans to have a network of 2,500 stores in a period of seven to eight years as part of its expansion plans, reports ET Retail.
The café chain owned by Coffee Day Global Limited, a subsidiary of Coffee Day Enterprises Limited, would add around 100 stores every year focusing on the metro markets.
The firm is looking to leverage its operations in the wake of opportunities presented by tier II and tier III places.
“Eventually, we would be looking at 2,500 stores at least in a couple of years coming in … We need to add about 800 stores.
That the eventual target we are looking for,” said Café Coffee Day Chief Executive Officer Venu Madhav.
“We would plan to add around 100 stores every year and then take it to wherever the opportunity is available.”
“Most of the new stores would be in tier 1, because the opportunity in tier I is bigger,” he said.
“We would also look on tier III places.”
According to him, as part of the expansion process, some cafes would be closed and new stores would come at new locations.
Most of the CCD would come in the developed metro market, but the company would explore the opportunities coming from tier II and tier III cities, he noted.
Major competitors in the segment include Starbucks, Costa Coffee who are selling their coffee at different price points.
“Our target is youth and affordable luxury.
We are sticking to our positioning of what we need to do and create offering which are for value-conscious customers. We are not worried about those things,” he added.
Coffee consumption in India is significantly increasing, threatening to replace tea as the unofficial national beverage.
A research by Mintel shows India among the world’s fastest-growing markets for packaged coffee, ranking third after Indonesia and Turkey.