Café Coffee Day: India's First Popular Café Chain [Cafe Coffee Day Case Study]

Café Coffee Day, popularly known as CCD, isn't only a coffeehouse for the individuals of India today. CCD has become India’s favourite hangout for coffee and conversations. Coffee Day serves 1.6 billion cups of coffee annually in six countries. The first Café Coffee Day outlet was set up by CCD owner V. G. Siddhartha on July 11, 1996, at Bangalore, Karnataka with the slogan 'A great deal can occur over some espresso'.

Due to a serene climate with not too heavy enhancement, CCD has become one of the most loved hangout spots for young people. It quickly extended through incalculable urban areas in India including new stores with more than 2000 bistros open the nation over by 2016. Internationally, CCDs are present in Austria, Czech Republic, Malaysia, Nepal and Egypt.  In a range of 20 years, CCD has blended its approach to progress, in fame and cherish it has reaped.

Cafe Coffee Day - History
How CCD Started the Journey?
Cafe Coffee Day Business Plan And Marketing
The Ultimate Growth of CCD
Achievements of CCD
Latest Updates On Cafe Coffee Day

Cafe Coffee Day - History

In this section of Cafe coffe Day Case Study, history of CCD is discussed. Café Coffee Day Global Limited Company is a Chikkamagaluru-based business which produces coffee in its very own land of 20,000 acres. It is the biggest maker of arabica beans in Asia, sending out to different nations including the U.S., Europe and Japan.

ccd near me - Cafe Coffee Day Case Study
A Café Coffee Day outlet

V. G. Siddhartha began the Café chain in 1993 when he joined Coffee Day Global, which is the parent of the Coffee Day chain. The first outlet was opened on July 11, 1996, Bangalore, Karnataka.

CCD quickly extended to different urban cities in India, with more than 1000 bistros open the country over by 2011. In 2010, it was declared that a consortium driven by Kohlberg Kravis Roberts would invest ₹10 billion in Coffee Day Resorts which are owned by CCD. That year, the logo was changed to the present logo that is used by the company to feature the chain as a spot or place to talk.

This was finished with real changes in the format of the stores, including the expansion of parlors and a complete redo of the interiors and above all, its slogan “A lot can happen over coffee.”  The organization is vertically incorporated to cut expenses: from owning the plantations to becoming the coffee, making the espresso machines and making the furniture for the outlets.

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ccd owner - Cafe Coffee Day Case Study
CCD Founder - V. G. Siddhartha

How CCD Started the Journey?

Back to 1996, when Café Coffee Day's history started and made a beeline for such a bewildering development. V.G. Siddhartha, founder of Café Coffee Day, was a virtuoso and businessman; he joined innovation and Coffee Day Global to begin first Café Coffee Day in Bangalore in 1996. Siddhartha was a masters in economics from the Mangalore university and had an enthusiasm for innovation. He had also worked for JM Financial and Investment Consultancy before he started the coffee business.

He likewise had acquired Coffee homesteads spread over an enormous region of 10,000 sections of land. He came back to Bangalore to take care of privately-run company. He was not delighted with the extent of their target. He wanted to make it extremely gigantic. He even looked to connect individuals and make drinking coffee an earth shattering background in average people groups' lives.

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He was inspired by the proprietors of "driving espresso brand in Germany – Tchibo". This motivation gave Siddhartha a dream of an alternate world generally speaking and opened his eyes. It likewise gave him a heavenly idea. With that thought; cup by cup he made his Billion dollar domain. Journery of CCD is discussed in this part of Cafe Coffee Day Case Study.

ccd menu - Cafe Coffee Day Case Study
CCD First Outlet opened in Bangalore in 1996

Cafe Coffee Day Business Plan And Marketing

CCD had adopted  a very effective business strategy is discussed in this section of Cafe Coffee Day Case Study, which is compartmentalized below:

Advantage Of Competitive Ambience

The huge scope of sustenance and refreshments, deliberately found outlets, decrease in costs, wandering out into level 2 urban communities of India and remote grounds is a portion of the triumphant techniques which encouraged CCD to be in front of its rivals like Starbucks, Barista, etc.

Its different auxiliaries like Coffee Day Fresh 'n' Ground, Coffee Day Square, Coffee Day Resorts, Coffee Day Beverages and so forth has helped the organization to oblige client developing needs and be intensely ahead simultaneously.

Adoptation Of BCG Matrix

Café Coffee Day lead outlets are the question mark because of the way that competitors like Starbucks, Barista and Costa-Coffee are playing hard to catch the market. Additionally, moderately other player contributions are prudent then CCD.

And because of its wrongly found outlets in a portion of the metros cities, CCD is experiencing overwhelming misfortune. Its other idea outlets like Coffee Day Fresh 'n' Ground, Coffee Day Square, Coffee Day Beverages and so on are likewise the question mark as these outlets are not ready to pull in focused clients.

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Strategy Of Distribution

As of March 2020, there are 1,752 CCD outlets crosswise over 29 states of India. Café Coffee Day has likewise extended outside India with its outlets in Austria (Vienna), Czech Republic, Dubai, Malaysia and Cairo, Egypt. The Indian sorted out division has a potential for around 5,000 bistros yet less than 1,000 bistros exist as of now.

Cafe Coffee Day Business Model - Cafe Coffee Day Case Study
Cafe Coffee Day Business Model

Difference In Concoction

  • Past nourishment, the emphasis is on getting the experience right. CCD propelled its application in February this year to follow shopper conduct, customize offers and advancements, empower cashless exchanges through implicit wallets and fabricate unwaveringness.
  • The application is right now accessible just in Bengaluru, and once going all out, can likewise be utilized to preorder nourishment and drinks. After Bengaluru, it will be propelled in Maharashtra and Gujarat, trailed by a national rollout.
  • It likewise as of late attached up with Freecharge to empower cashless exchanges at the outlets. Clients can utilize their portable numbers to pay and finish the exchange with an in a hurry stick apparently in under 10 seconds. Be that as it may, Harminder Sahni, author and MD, Wazir Advisors, considers these as strategic contributions. "Today, it is application and home conveyance; tomorrow, it will be something different.
  • The test for players in this space is to not just adjust to the changing requests of shoppers yet additionally to not digress a lot from their center guarantee. Also, that for nourishment retail is comfort, quality and cost."
  • Siddharth Singh, partner educator of advertising, Indian School of Business, is of the view that CCD is in good shape if the need of its objective client fragment is served better by offering conveyance benefits and advancing the utilization of the application.  
  • To further lift involvement, CCD hailed Café Concerts in February this year with an attention on live gigs in Mumbai, Delhi, Pune and Bengaluru. CafeConcerts are additionally a stage for youthful and up and coming ability to grandstand their aptitudes before a live crowd. CCD plans to take Café Concerts to more metros and smaller than usual metros in the coming couple of months.

Analysis Of Marketplace

Coffee market in India is growing at 6% per annum compared to the global 2% plus. In India, it is found that per capita expenditure of coffee is around 85 grams while it is six kgs. While, in the US., Coffee bars have 5% penetration in India which itself portrays the opportunity lying ahead.

The 3As Strategy

The chief components influencing rivalry in the espresso retail area include evaluating, item/administration quality, brand recognition, taste and item assortment.

To separate itself from rivalry, CCD has manufactured its retail procedure on 3As: 'Reasonableness' to oblige the worth understanding youth fragment; 'Openness' to guarantee bistros are at an arm's range for high-footfalls and 'Worthiness' to depict it as a non-meddling, non-judgmental spot where buyers can hang out for extended periods of time — a third place after home and office.

Also, CCD’s more profound impression on computerized stages, for example, Twitter, Facebook and Instagram further adds to client commitment. It recently made its first computerized substance property with a character, Beano, to connect with purchasers.

Toward the day's end, with in excess of 1,500 outlets, CCD is in additional in the matter of land — the greatest expense in the Café business. "In India, we see a total crisscross in the costs of product and the cost of land that this product really involves. CCD should focus on augmenting the estimation of its land.

The Ultimate Growth of CCD

CafeCoffee Day owner VG Siddhartha was looking for a valuation of between Rs 8,000 crore and Rs 10,000 crore from Coca-Cola for the espresso tie he set up more than two decades prior, as indicated by individuals legitimately mindful of the advancement, while likewise planning to hold a controlling stake in the business. The US drinks producer is in converses with Siddhartha for a cut of value in the espresso retailing business headquartered in Bengaluru.

The gathering's espresso business hopes to close the year closure March 2020 with offers of about Rs 2,250 crore, as indicated by a senior organization official. The business, which incorporates a few fares of the bean, had income of Rs 1,777 crore and Rs 1,814 crore in financial year 2018 and 2019, individually, as per administrative filings. CCD, set up in August 1996, has developed to incorporate 1,750 stores crosswise over India with 60,000 candy machines. It has outlets crosswise over Europe just as in Malaysia, Nepal.

After all these success and growth, Coffee Day Global, the owner of  Cafe Coffee Day and the coffee retail business, is on Rs 1,097 crore debt, out of which Rs 88 crore is unsecured and Rs 1009 crore is secured loans.

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Achievements of CCD

  • 2007 -CafeCoffee Day won the Times Food Award under the classification of "Best Coffee Bar" from Times of India.
  • 2008 - Cafe Coffee Day won the Burrper's Choice Award for being casted a ballot as the "Coolest Café" by clients of burrp.com.
  • 2009 -Espresso Day Global won the honor for "Retailer of the Year" under the classification of Food& Beverages (cooking administrations) by Asia Retail Congress.
  • 2010 - Cafe Coffee Day won the Indian Hospitality Excellence Award under the classification of "India's Most Popular Coffee Joint: 2010."
  • 2012 - Cafe Coffee Day was positioned as 26th Most Trusted Service Brand in India and as second Most Exciting Brand under the classification of "Nourishment Services" in India under a study done by Brand Equity (EconomicTimes).
  • 2012 - Cafe Coffee Day won the Best Coffee Bar Award from mouthshut.com.
  • 2013 - Cafe Coffee Day was positioned as 26th Most Trusted Service Brand in India under a study done by Brand Equity (Economic Times).
  • 2013 - Cafe Coffee Day was granted "The NCPEDP – Shell Helen Keller Award 2013" by National Center for Promotion of Employment for Disabled People for being a good example organization in creating work open doors for individual with inabilities.
  • 2013 -Espresso Day Global was granted as the Best Retailer under the class of "Best Customer Service in Café Restaurant" by Star Retailer Awards.
  • 2013 -CafeCoffee Day won the Brand Excellence Award in retail part from ABP news.
  • 2012-2013 -Espresso Day Global was granted bronze prize by the Coffee Board of India for being the third best exporter of green espresso.
  • 2014 -Espresso Day Global was granted "Retailer of the Year" (Organization Food and Grocery) for retail greatness by ABP News.
  • 2014 -Espresso Day Global was granted 'Retailer of the Year' for brand greatness by ABP News.
  • 2014 - Cafe Coffee Day was positioned as 22nd Most Trusted Service Brand in India, as 27th Most Exciting Brand in India and as second Most Exciting Brand under the class of "Nourishment Services" in India, under an overview done by Brand Equity (Economic Times).
  • 2014 - Our Promoter, Mr. V G Siddhartha was granted with 'ET Retail Hall of Fame' for his commitment to the development in retail part.
	ccd growth and revenue - Cafe Coffee Day Case Study
CCD Revenue or Business Growth

On 29 July 2019, Siddhartha disappeared and his body was found in the Nethravathi river backwaters two days later on July 31,2019. A letter, thought to be composed by Siddhartha tending to the top managerial staff and staff, was made open in which he assumes liability for not creating a profitable business model and also blamed severe extraneous pressures from PE firms, lenders as well as the tax department.

Siddhartha was in the news for selling his entire stake in midsize IT firm Mindtree to L&T. He was the largest shareholder in Mindtree and exited the company after remaining invested for close to two decades. In September 2019, the organization named reviewing firm Ernst and Young to examine their books of records. They also demonstrated the inspector to investigate conditions of the last letter composed by the Siddhartha and the focuses he made in it.

Latest Updates On Cafe Coffee Day

Cafe coffee day chain is all over debt and also being pressurized by the lenders after the death of founder V.G. Siddhartha. Sical Logisticsis the parent company of Cafe Coffe Day, to clear their debt has decided to sell the entire stake in the company.

As soon this news spread over the internet, the share price of sical logistics and also share price of coffee day enterprise jumped to the highest and locked upon the upper circuit of the day. According to reports Coffee Day Enterprises has also hired ICICI Securities as an adviser for the potential transaction.

Frequently Asked Questions On Cafe Coffee Day

Is Cafe Coffee Day in debt?

After all these success and growth, Coffee Day Global, the owner of  Cafe Coffee Day and the coffee retail business, is on Rs 1,097 crore debt, out of which Rs 88 crore is unsecured and Rs 1009 crore is secured loans.

Is Cafe Coffee Day shutting down?

Almost 500 cafe outlets of coffee chain Cafe Coffee Day have been closed down since This year in April, as the company looks to arrest the falling profitability of its coffee business and readies for divestment of the business. CCD had to close  these outlets as it readies for divestment.

What happened with Cafe Coffee Day?

Coffee Day Enterprises Limited reported that at least ₹2,000 crore ($270 million) is missing from its accounts, soon after the death of founder V.G. Siddhartha which led to an investigation initiated by thier board.

What is CCD Slogan?

"A lot can happen over coffee", is the slogan of Cafe Coffee Day.

Who are competitors of Case Coffee Day?

Few cafe coffee day competitors are:  Starbucks, Costa Coffee, Barista, Gloria's.

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About Varad Kitey

  • Pune
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