Starting a Cafe Coffee Day Franchise in India: CCD Franchise Cost, Cost, Requirements, and Benefits
India grows high-quality coffee in areas that receive monsoon rainfall, and the two most popular coffee varieties are Arabica and Robusta. The largest coffee producers in India are the southern states of Karnataka, followed by Kerala and Tamil Nadu. While these three states are considered traditional coffee-growing regions, other areas also produce top-quality coffee.
Starting a cafe business in India can be a good investment, given the popularity of Cafe Coffee Day franchises across the country. This article provides detailed information and tips on how to start a Cafe Coffee Day franchise, including the franchise cost and requirements.
History Of Cafe Coffee Day:
Coffee Day Enterprises Limited, commonly known as Cafe Coffee Day, is an Indian coffeehouse chain. It was founded in 1996 by VG Siddhartha in Bangalore, India. The company began as a single cafe and has since expanded to over 1,700 cafes in over 200 cities in India, as well as presence in Vienna, Austria.
Cafe Coffee Day became a hit with young people and professionals for its relaxed environment to hang out, have coffee, snacks, light meals, and desserts. It made history by being the first Indian coffee chain to go public in October 2015. In July 2019, the company suffered financial difficulties, which tragically led to the founder VG Siddhartha’s death. Despite these challenges, Cafe Coffee Day remains a significant and well-known coffee chain in India. It continues to expand its menu offerings and increase its presence both locally and globally, providing excellent coffee and a cozy atmosphere for its customers.
Cafe Coffee Day has had a significant impact on the Indian coffee industry, popularizing coffee culture in the country and bringing it more in line with international coffee trends. The chain’s emphasis on providing a relaxed and comfortable atmosphere for its customers, combined with its commitment to quality coffee and food, has helped it become a go-to destination for coffee lovers in India.
In addition to its physical cafes, Cafe Coffee Day has also expanded into other areas, such as vending machine services, retail coffee sales, and exports. The company offers a range of coffee beans, grounds, and instant coffee, making its coffee products available to customers both in India and abroad. The chain has also made a commitment to sustainability, using eco-friendly packaging and sourcing its coffee beans from sustainable sources. Additionally, Cafe Coffee Day has been involved in various social initiatives, including programs aimed at helping farmers and promoting education.
Despite its challenges, Cafe Coffee Day remains a leading player in the Indian coffee industry, offering a unique and memorable coffee experience to its customers. With its focus on quality, comfort, and sustainability, the company is well-positioned for continued growth and success in the future.
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Why To Choose Cafe Coffee Day franchise ?
There are several reasons why starting a Cafe Coffee Day franchise can be a good business opportunity.
- Cafe Coffee Day is one of the most well-known and established coffee chains in India, which provide quality coffee, comfortable atmosphere, and good food.
- The company provides a proper training, support, marketing, and operational assistance.
- Cafe Coffee Day has a diverse product range that includes coffee, tea, snacks, and light meals. This variety of offerings can attract a broader customer base, resulting in increased sales.
- The company is committed to sustainability, utilizing eco-friendly packaging and sourcing coffee beans from sustainable sources. This focus on sustainability can appeal to environmentally conscious customers and differentiate your franchise from others.
- The coffee industry in India is growing, with more and more people turning to coffee shops for a comfortable place to relax and socialize. This growing market can provide a significant opportunity for growth for your Cafe Coffee Day franchise.
Criteria and Requirements for Cafe Coffee Day franchise:
To become a Cafe Coffee Day franchisee, you will need to meet the following criteria and requirements:
- You must have a proper financial resources to start a Cafe Coffee Day franchise. This will include the cost of the franchise fee, as well as the cost of setting up and running the business.
- You must have an experience in the food and beverage industry.
- You have to search a suitable location for your Cafe Coffee Day franchise which should be in high-traffic area with good visibility and easy accessibility.
- You and your staff will need to complete a proper training program which includes running a cafe, including food preparation, customer service, and operational procedures.
- You must have an idea about the marketing and promotion which helps to create and implement local marketing strategies.
- And last one is you will need to be fully committed to the success of your business.
Cafe Coffee Day Menu:
Cafe Coffee Day serves a diverse selection of coffee drinks, tea, light meals, retail coffee products, and vending machine services. They use top-quality Arabica and Robusta beans for their coffee and prioritize sustainability. Their menu includes everything from espresso to sandwiches, providing customers with a complete dining experience.
Cafe Coffee Day’s dedication to quality and diverse product range make it a popular spot for coffee enthusiasts.
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Cafe Coffee Day franchise Cost:
If you want to take a franchise of Cafe Coffee Day, then the investment can vary depending on many things like location, size of the cafe and cost of equipment. But you However, I have mentioned some approximate cost of CCD franchise below:
- Franchise fee: The franchise fee is a one-time fee paid to the company to obtain the right to use its brand and business model. The franchise fee for a Cafe Coffee Day franchise is not publicly disclosed, but it is generally higher for prime locations.
- Equipment and supplies: The cost of equipment and supplies, such as coffee machines, refrigerators, furniture, and signage, can range from a few lakhs to tens of lakhs of rupees, depending on the size of the cafe.
- Rent: The cost of rent for your cafe location will depend on the size and location of the space. Rent costs in prime locations can be higher.
- Marketing and advertising: You will need to budget for marketing and advertising costs to promote your Cafe Coffee Day franchise and attract customers. These costs can range from a few thousand to several lakhs of rupees, depending on the scope of the marketing campaign.
- Staffing: You will need to budget for staffing costs, including salaries, benefits, and training. The number of employees required will depend on the size of your cafe.
- Inventory: You will need to purchase initial inventory, including coffee beans, tea, food, and supplies, to start your cafe. This cost will vary depending on the size of your cafe and the number of products you offer.
The above information regarding CCD Franchise cost in India may vary depending on the location and many things. So, before starting a Cafe Coffee Day franchise, we always recommend to contact to the company to get accurate and detailed information about the franchise cost and the investment.
Space Requirement For Cafe Coffee Day franchise
The space requirement for a Cafe Coffee Day franchise varies depending on the type of franchise model and the location. For a retail cafe franchise, a minimum of 300 to 500 square feet of space is required, with a seating capacity of 30 to 40 customers. The space should have good visibility and accessibility for customers and must be located in a high-traffic area. For a kiosk or counter model franchise, a minimum of 50 to 100 square feet of space is required, with a limited seating area.
This model is suitable for high-traffic areas, such as shopping malls or food courts. The space requirement for a Cafe Coffee Day vending machine franchise is minimal as the machines can be installed in office buildings, schools, and other locations. It is important to note that these space requirements are just an estimate and can vary depending on the specific franchise model and location. Before starting a Cafe Coffee Day franchise, it is recommended to get a detailed space requirement estimate from the company and to consult with a real estate professional.
Documents & License Required:
Starting a Cafe Coffee Day franchise involves obtaining several licenses and permits from the government. Here is a list of the typical documents and licenses required to start a Cafe Coffee Day franchise:
- PAN card
- GST registration
- FSSAI license
- Trade license
- Fire department clearance
- Health department clearance
- Shops and Establishments Act registration:
- Cafe Coffee Day franchise agreement
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Cafe Coffee Day Franchise Profits Margin:
The profit margins for a Cafe Coffee Day franchise may vary depending on many factors, such as location, size, and expenditures required in running the outlet. But, I’ve provided an estimate of the profit margins for a franchise of Cafe Coffee Day below:
- Gross profit margin for Cafe coffee day franchise is estimated between 60-70% of the total sales. This margin is after subtracting all the cost of goods sold (COGS), such as raw materials and labor costs.
- And Operating margin is estimated between 15 and 20% of the total sales, after subtracting all operating costs, such as rent, utilities, and marketing expenses.
- And the net profit margin for a CCD franchise is estimated between 5 and 10% of the total sales, after subtracting all expenses, including taxes and interest charges.
Cafe Coffee Day Franchise support:
Cafe Coffee Day provides a comprehensive support system to its franchise partners to help them run their cafes successfully. The support includes the following:
- Site selection: Cafe Coffee Day provides support in selecting the right location for the franchise based on factors such as footfall, visibility, and accessibility.
- Supply chain management: Cafe Coffee Day has a well-established supply chain network, which helps ensure the availability of quality raw materials and supplies for the franchise.
- Technical support: Cafe Coffee Day provides ongoing technical support to help franchise partners with the maintenance and repair of equipment and systems, such as the coffee brewing machines and POS systems.
- Business development support: Cafe Coffee Day provides regular business development support to franchise partners, including financial and operational guidance to help them grow and expand their business.
Steps to apply for a CCD franchise
The process of applying for a Cafe Coffee Day (CCD) franchise involves the following steps:
- Requirements Check: Ensure that you meet all the necessary requirements, including financial stability, business experience, and the ability to manage a cafe.
- Contact Head Office: Contact the CCD head office by sending an email to firstname.lastname@example.org with the following information:
a. Name(s) of one or all the owners of the retail space.
b. Postal Residential Address, Contact Numbers and email id of the owner/owners
c. Postal Address of the Retail Space
d. Retail Space Area (square feet)
e. Frontage of the Retail Space
f. Photographs of your location
g. Demographics of the catchment area
- Agreement Signing: If your application is approved, you will be required to sign a franchise agreement with CCD for a period of 3 or 5 years. The agreement can be renewed after the stipulated period ends.
But unfortunately, according to the official website of Cafe Coffee Day, currently they do not offer any franchising opportunities. However, they are open to partnerships with individuals who own retail spaces that meet certain specifications, which include an area of 1000-1500 sqft, a minimum frontage of 25 running feet, and ample parking space. They only expanding their existing (Company owned or company operated) cafes.
If you are interested to take CCD Franchise and also have proper retail space in prime location, then contact the company directly. However, if you are interested in franchising in the food and beverage industry in India, then there are many other brands that offer franchising opportunities.
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Cafe Coffee Day Franchise Contact Details
If you have any query related CCD franchise then you may contact to the company via given details as I’ve mentioned below:
Address: Cafe Coffee Day, The Coffee Day Square, S.P. Road, Basavanagudi Bangalore 560004, India.
FAQ(Frequently Asked Question):
Q. What is Cafe Coffee Day ?
Ans: Cafe Coffee Day (CCD) is a popular coffee chain in India, offering a range of beverages, snacks, and desserts. It was started in 1996 by V.G. Siddhartha and currently has over 1500 outlets across India.
Q. How to get Cafe Coffee Day franchise in India ?
Ans: To become a Cafe Coffee Day franchisee in India, you need to visit the official website of Cafe Coffee Day and fill out the contact form. Or you can mail to the company on email@example.com . But currently company do not offer any franchising opportunities in India. If you have any space in the prime location then you can rent your space to the company.
Q. What are the eligibility criteria to take CCD franchisee in India ?
Ans: The eligibility criteria to become a Cafe Coffee Day franchisee in India include having a minimum area of 1500-2000 sq. ft. for the cafe, and the ability to invest between Rs. 10 lakhs to Rs. 25 lakhs, depending on the location.
Q. What is the Cafe Coffee Day Franchise cost in India ?
Ans: The franchise fee for Cafe Coffee Day in India ranges from Rs. 10 lakhs to Rs. 25 lakhs, depending on the location and the type of outlet.
Q. How to search CCD Franchise Near me ?
Ans: To search CCD Franchise near you. You can visit this website Click Here to search nearby CCD franchise store in your location.
Q. What kind of support does Cafe Coffee Day provide to its franchisees ?
Ans: Cafe Coffee Day provides its franchisees with support in site selection, training, marketing, and advertising. They also provide ongoing operational support and assistance with procurement and inventory management.
Q. How long is the franchise tenure ?
Ans: The franchise tenure for Cafe Coffee Day in India is usually for 5 years, with an option to renew it at the end of the term.
Q. Can I open a Cafe Coffee Day outlet in a residential area ?
Ans: No, Cafe Coffee Day outlets cannot be opened in residential areas. The location of the outlet must be in a commercial or retail area with high foot traffic.
Q. How much revenue can anyone expect from a Cafe Coffee Day franchise in India ?
Ans: The revenue of a Cafe Coffee Day franchise in India depends on may factors, such as the location, the size of the outlet, the number of customers, and the products sold. However, on average, a Cafe Coffee Day franchise can generate a monthly revenue of Rs. 8-12 lakhs if you store is in high footfall area.
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