Looking for opportunities to make your mark in the Food and Beverage industry? Well, what better way than opting for a franchise model of one of the most known chains. When India thinks about coffee, it immediately takes them to the thought of Cafe Coffee Day.
It is one of the favorite coffee outlets in India. Moreover, CCD is owned by the country’s largest coffee conglomerate, Coffee Day Enterprises. Notably, Cafe Coffee Day has consistently maintained the taste and quality of its offerings. Statistics suggest that the chain sells approximately 1.8 billion coffee cups annually across six countries.
Now, that certainly gives you an idea about CCD’s business reach. So, if you are considering joining the bandwagon by opening a CCD franchise, you will need to figure out some basic details. So, let us start with the reasons for choosing a Cafe Coffee Day franchise.
Benefits Of Cafe Coffee Day Franchise
Going back, CCD’s first outlet was established in 1196 in Bengaluru. Over the years, the brand has progressed tremendously. Today, it is present in 290+ cities with around 1700 outlets in the country. Furthermore, the brand name and service of CCD possess an unbeatable reputation in the country. Secondly, Cafe Coffee Day offers a great food menu at an affordable cost, another attraction point for customers.
As you might already be aware, CCD has established brand awareness in India. To add to it, they partner with leading advertising and marketing agencies. Therefore, you wouldn’t have to worry about your Franchise’s popularity.
Furthermore, reduced costs and affordability are significant benefits of opening a Cafe Coffee Day franchise. The company has established an entire chain to grow and produce coffee beans. Hence, no significant sourcing costs are involved, and the savings are passed down to customers.
The brand offers a holistic experience with various setups such as high street cafes, garden cafes, highway cafes, and mall cafes. This allows Cafe Coffee Day to target different kinds of customers across varying key points.
Now, each business decision boils down to the requirement for financials. So, let’s unravel the information and get into the details.
Requirements To Open A Cafe Coffee Day Franchise
- Area: Cafe Coffee Day partners its coffee outlets with owners of commercial spaces or commercially converted properties. The same is executed in the rental share or revenue partnership model. Therefore, one needs an area of 1000-1500 sq ft for a CCD franchise. To clarify, 25 sq ft is the minimum frontage requirement, and the space should preferably be located on the ground floor.
- Training: The Cafe Coffee Day outlet requires training for the franchise owners. In addition, the head office also provides software and hardware support for the smooth functioning of the business.
- Staff Requirements: A team of 5 to 6 employees is required to run a Cafe Coffee Day franchise. The same includes a cashier, waiters, coffee and food planning department, and the cleaning crew.
- Financial Requirements:
- The total investment required for the Cafe Coffee Day franchise comes to around Rs 9-10 lakhs. Firstly, CCD requires a franchise fee of Rs. 50,000.
- Secondly, one must incur the equipment and interior expense. The same comes to around Rs. 3-4 lakhs. Although, it may vary depending on the size of the store.
- To sum it up, the total cost (excluding the investment for the space) comes to around ten lakhs. Also, Rs. 50,000 is billed as a new charge. The company signs a bond for 4-5 years. Upon mutual agreement, the same can be renewed after the tenure.
- The total investment required for the Cafe Coffee Day franchise comes to around Rs 9-10 lakhs. Firstly, CCD requires a franchise fee of Rs. 50,000.
You may like to read: How To Get A Franchise of McDonald’s? Required Investment, Store Space, and ROI
Now, to kickstart the process, let us check out the detailed steps to apply for a CCD franchise.
If you meet all the necessary details for an applicant, one must share the following information with the CCD head office. The same needs to be sent to [email protected]
To clarify, the details include:
- Retail space owner’s name
- Owner’s residential address and contact information
- Postal address of the commercial space
- Square feet space details
- Frontage space area
- Photograph of the location
- Catchment area demographics
Find Cafe Coffee Day Outlets in India: Cafe Coffee Day Store Locator
Now, if you are wondering how the franchise investment will benefit you, let us talk about How much profit earn from CCD franchise?
Return On Investment
Firstly, let us look at the approximate costs incurred for obtaining a Cafe Coffee Day franchise. First, the fixed investments and brand fees come to a total of Rs. 10,50,000. Secondly, the recurring expenses include salary and rent costs, totaling approximately Rs. 3,00,000.
Now, let us do a revenue check based on the experiences of current franchise owners. First, the total monthly income for a CCD franchise owner comes to approximately Rs. 12,00,00. Secondly, the Gross Profit stands at Rs. 6,00,000. Therefore, finally, the monthly net profit comes to Rs. 3,30,000.
To sum it all up, let’s do a roundup of all the information. Since 1996, Cafe Coffee Day has maintained a consistent position in the Indian market. It has become a go-to place for people of all kinds and ages.
Furthermore, CCD is not just another Coffee shop. The brand has been a trendsetter in the beverage industry in India. Having a Cafe Coffee Day franchise is a lucrative, profitable business option. It can allow one to enjoy a steady flow of income.
Looking at the investment and ROI figures, it is evident that one can recollect the initial investment in a period of 3 to 4 months. The rest of the amount is the franchise owners’ profit. As the sales gradually keep on increasing, the earning opportunities also see an upward graph.
Lastly, franchise owners should choose a location that is situated in busier areas or public places such as malls. Secondly, one can also leverage benefits from personal marketing practices along with the support from Cafe Coffee Day. Overall, joining the company’s largest Coffee conglomerate can benefit you as a viable business option.
