How to Start a Cafe Cofee Day Franchise Outlet ?- CCD Cost, Profit & Investment Details 2024 (Updated)
Beginning of CCD
Cafe Coffee Day, popularly known as CCD is an Indian multinational chain of coffeehouses. The company has its headquarters present in Bangalore, Karnataka. The startup journey of CCD began with the incorporation of its parent company, Coffee Day Global Limited way back in 1996. The founder of this company was V.G. Siddhartha. He is the one who is credited with creating India’s largest coffee empire and people’s perception towards it. The first Cafe Coffee Day outlet was opened on July 11, 1996, at Brigade Road, in Bangalore, Karnataka. It was a very crowded place and became quite famous in no time. V.G. Siddhartha had done Master’s in Economics from Mangalore University. Initially, he started his career by investing heavily in the stock market and worked at JM Financial in Mumbai. By 1985, Siddhartha owned 10,000 acres of coffee farms, leading to the establishment of Amalgamated Bean Coffee Trading Company. Not everybody knows, Siddhartha was highly inspired by Tchibo Espresso brand in Germany. It was how Siddhartha dreamt of introducing rich flavours of coffee to India. This was the vision from the founder which laid to the foundation of Cafe Coffee Day. In a very short span, CCD quickly gained traction and attention from customers all across Bangalore. People started to know the company and was delighted of how they were drinking coffee which was grown in Indian soil. People were highly moved by this and CCD opened up 1000 cafes by 2011. While opening new cafes in India, the company focused on creating a unique coffee experience to customers and revolutionized the coffee-culture in a tea-loving nation.Setback and Recovery of CCD
Despite having huge success in the Indian market, CCD faced lots of challenges and negative reviews from customers and people all across the world. The company faced huge debts over the years. Following the death of V.G. Siddhartha, it was when the company faced lots of challenges, which included a massive debt of Rs 7,000 crore. Despite this huge setback, Malavika Hegde, the wife of Siddhartha, took on to the responsibility of saving the company. She did this not only to save the company but, to honour her late husband’s legacy and what he had created in the past few years. She gave her full commitment to reviving the company as her husband built the company with love. Malavika had the determination to ensure that her late husband’s dream was fulfilled to building a successful coffee business in India. Malavika implemented measures to optimize resources at CCD. She took the decision to not increase the coffee prices but instead focus on streamlining operations by closing unprofitable outlets and removing underperforming coffee vending machines. This simple action taken by her helped reduce costs and improve the company’s financial standing. Malavika then actively sought new investors to inject capital into the company. Through strategic alliances and support , she successfully attracted prominent companies to invest in CCD. Key contributions came from stake sales from Mindtree and a good collaboration with Blackstone, which is a US private equity giant. Interestingly, during the COVID-19 pandemic, Malavika made some good leadership decision. She implemented strict safety measures all across CCD locations, she immediately restored customer confidence in the brand. Despite the actions and difficulties in the COVID-19 situation, CCD thrived under her leadership and guidance.CCD Outlets in India (As of 2024)
Cafe Coffee Day was a thriving business until the tragedy happened with the owner. Yes, the company did have to close down some of the outlets across India but, the later part of that story is going quite amazingly for the owner and franchise owners of those outlets. The number of Cafe Coffee Day outlets as of February 2023 was 1384. The state with the highest number of Cafe Coffee Day locations was in Maharashtra having 259 stores. As of 2024, CCD has a total of 1750 outlets which are running and operating successfully.CCD Franchise Models
Here are the different types of CCD franchise models made available in India:-- CCD Lounge - This is a very attractive franchise model which is designed for locations where customers are looking for more relaxed and upscale their coffee experience. This franchise format of the brand typically offers a more extensive menu, comfortable seating arrangements, and a very cozy ambiance to attract new customers who want to spend some good time at a cafe.
- CCD Square - The square format of their franchise is a very unique one. It is suitable for high-traffic areas such as shopping malls, business districts, or any busy streets. This type of franchise is known for offering quick service and grab-and-go options for customers who are slightly in a hurry.
- CCD Value Express - It is a type of franchise model which is primarily aimed where speed and efficiency are key factors. Value Express outlets are designed to cater to customers who want quality coffee and are not ready to compromise on the taste and quality of the products.
CCD Franchise Cost in Brief
The total investment of starting any CCD franchise in India will depend on the type of franchise model you choose. All the three types of franchise formats offered by the company are highly expensive. But, the average investment that you need to make to open any type of CCD franchise is between Rs 70 lakhs to Rs 1 crore. Here is a complete breakdown of other costs that you need to bear with the franchise business option:-- Franchise fee - Rs 10 lakhs plus GST
- Royalty fees- 5-8% of gross sales
- Liquid capital requirement- Rs 25 lakhs
- Interior decor- Rs 10-20 lakhs
- Machines- Rs 5-10 lakhs
- Furniture- Rs 2-5 lakhs
- Infrastructure cost- Rs 20-35 lakhs
- Area required- 1000-1500 square feet
Eligibility Criteria & Requirements for a CCD Franchise
Here are the eligibility criteria and requirements for a CCD franchise in India:-- You must have a commercial property or commercially converted rental space to start this franchise.
- There is no special requirement for any skill to own or start a CCD franchise.
- The minimum age criteria required to start this franchise is 21 years old and not below that.
- Your franchise outlet must have 5-6 employees who can work in any given time.
- Interested candidate must have the capacity to invest a huge amount to start this business. If taken loan then he or she should have the capability to repay back.
- He or she should be of sound mind and must understand all the training and support provided by the company.
How to Apply for CCD Franchise?
Here is how one can apply for CCD franchise in India:-- Make sure to visit the official website of the company.
- Search for the “Contact Details” options present on their official website.
- Make sure to click on the option and you will get all the contact details of the company, make sure to use them for your intention.
Facts About Cafe Coffee Day Franchise
There are many unknown facts that people who have been visiting the restaurant will not know about. Here we will uncover some facts for you:--
- Siddhartha who was the founder of Cafe Coffee Day was the son-in-law of the former chief minister, SM Krishna
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- Unfortunately, the founder of CCD V.G. Siddhartha died by suicide on 31st July 2019, he was 58 years old at that time
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- The first store from CCD was opened in Brigade Road, Bangalore which served coffee for Rs 100
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- The franchise cost of CCD is between Rs 9-10 lakhs
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- The coffee served by CCD comes from the coffee estates
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- CCD also have a large vending machine network across offices in India
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- When CCD was in the brink of bankruptcy, this company served over 1.6 billion cups of coffee in six different countries
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- The first slogan of CCD was “A big deal can occur over some espresso”
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- CCD is the biggest maker of arabica coffee beans in whole Asia