Archives: Franchises

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:-

1. 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.
2. 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.
3. 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

• • Unfortunately, the founder of CCD V.G. Siddhartha died by suicide on 31st July 2019, he was 58 years old at that time

• • The first store from CCD was opened in Brigade Road, Bangalore which served coffee for Rs 100

• • The franchise cost of CCD is between Rs 9-10 lakhs

• • The coffee served by CCD comes from the coffee estates

• • CCD also have a large vending machine network across offices in India

• • When CCD was in the brink of bankruptcy, this company served over 1.6 billion cups of coffee in six different countries

• • The first slogan of CCD was “A big deal can occur over some espresso”

• • CCD is the biggest maker of arabica coffee beans in whole Asia

CCD Franchise Supports & Training 

Proper support and training are always offered by such a reputable business. On-site and off-site support are offered by this company. Additionally, if you are having any trouble leasing your land or are stuck for some reason the customer service is 24/7 available for the solution you are looking for. Software and hardware training are also provided by the officials.

About Xero Degrees Franchise

You must have noticed Xero Degrees Franchise outlet, specially if you are in NCR Region, Gurgaon, Noida, Delhi etc. Xero Degrees is a Delhi-based start-up cafe that was founded back in the year 2018.

Founded by Kashish Aneja and Shivam Kakkar in the year 2018, Xero Degrees have now started offering its franchise. Interested franchisees should know some of the crucial details about how they should apply for this well-known cafe franchise. Some basic requirements need to be dealt with before the company grants its franchise to you.

What Are Requirements for Xero Degrees Franchise? 

Here are the requirements for Xero Degrees franchise:-

• Area Requirement – The minimum area required to start a Xero Degrees franchise is between 1000 to 2000 square feet. Within this area, you must fit in all the necessary machines and equipment that your fast-food franchise will require. 
• The minimum age criteria to apply for the franchise is 21 and not below that. 
• Interestingly, no marketing fee is charged from the owners of their franchise but a minimal amount of royalty and franchise fees are charged. 
• Documents required- Here are the documents required to start a Xero Degrees franchise in India:-

1. Aadhar card
2. PAN Card 
3. Bank details 
4. GST registration and certificate 
5. Fire license 
6. Food license 
7. Valid personal details like phone number, address, and other details 
8. Lease agreement paper
9. Rent agreement 
10. Franchise agreement paper

Investment Required for a Xero Degrees Franchise

To invest in a Xero Degrees franchise, one would typically need to consider various fees and costs involved. Here is a breakdown of some of them:-

• Franchise Fee – The official website of the brand reveals that they do charge a franchise fee but, it’s minimal. 
• Infrastructure Investment – The total infrastructure investment required for Xero Degrees franchise is between Rs 30-50 lakhs. This incudes the cost of setting up store in physical location, equipment, machines, and others. 
• Royalty & Franchise fees- The brand has revealed that they charge very low royalty fees from franchises and has not officially revealed yet. 
• Training fees – Xero Degrees does not take any training fees from its franchise-seekers. 
• Marketing fee – There is a 0% marketing fee charged by this brand.

How To Start Xero Degrees Franchise?

Xero Degrees franchise can be started by aspiring entreprenures willing to achieve success as franchise partner of Xero Degrees until and unless they are eligible and have the required funds for it. The official website of the company does reveal all the relevant information about franchising that one can view and apply from.

However, it is also quite crucial for interested people to know all details before applying to open a Xero Degrees franchise.

Starting a Xero Degrees franchise should be easy and simple because most things happen online these days. Therefore, it is important to look and go through the official website of the company for any kind of latest information. Right from submitting the online application to the authorization of the franchise most things would be done completely online based.

How to Apply for Xero Degrees Franchise?

Applying for Xero Degrees Franchise is completely online. The first thing to do is submit the online application only if you are ready to invest in the company and open up your franchise. It is important to visit the official website of the company to keep updated about the latest information. However, let us have a look at the steps of opening up a Xero Degrees franchise.

1. Visit the official website of the company and go to the ‘Franchise Application’ page.
2. Once you have visited the page you would have to fill in all the details that have been asked and submit them.
3. Once you have submitted the form there is a process that your application would go through
4. After applying then it would be in the approval process, then location scouting, constructing/designing, store opening, on-job training, and ongoing support.The process may take up some time and therefore it is suggested to have some patience.

The process is quite simple but interested store owners who wish to open a franchise should be very proactive. They should not miss out on an opportunity to grow their outlet in terms of customers. This is because of the simple rule ‘More customers means more revenues.

Xero Degrees Franchise Terms /Conditions

Just like any other company Xero Degrees have got its terms and conditions as well. People who are eligible and want to open up its franchise should know and be familiar with certain terms and conditions of the company.

The official website of the company where people can visit and apply for their franchise will provide all the details regarding terms and conditions.

However, let us have a look at some of the key highlights of terms and conditions pointed out by the company to open a Xero Degrees franchise.

1. Must have 1000-2000 sq feet area space
2. A property lease of 5 years
3. Must have a capital of 60 lakhs for setting up
4. Kitchen space is compulsory
5. Sitting area compulsory
6. Air conditioner compulsory
7. CCTV is compulsory to be installed
8. Active internet connectivity is a must

Is Xero Degrees Franchise Really Profitable?

Xero Degrees is known for offering a healthy profit margin to franchise-owners. Although, the profit margin of the brand directly depends on the sales so, the more sales you make the more profit you earn. On average, a franchise can easily earn a profit of 20-30% in this business. 

So, to have a constant healthy profit margin, you are required to open the franchise in a prime location. It must be a place where people can easily see your brand and can visit your outlet for a quick snack.

It was reported that the startup company was offering a profit margin of 17% for a sale of 6 Lakh. The company has grown not only financially but has grown its goodwill in the market as well. It would be justified to say that the company has a strong future in the upcoming years only if it can keep up with its marketing.

However, if the location where you decide to open up a Xero Degrees franchise is ideal then you may earn more revenue. Various factors would determine the profit earned by a franchise owner. Since there is no headache of marketing and other such kinds of things franchise owners can feel relieved that they do not have to spend any extra.

Xero Degrees Company Facts & Figures in 2024

Here are some facts and figures of Xero Degrees company in 2024 that you should know of:-

• In June 2024, the Xero Degrees franchise successfully completed 6 years in the fast-food business. 
• In addition to domestic expansion, Xero Degrees is planning to expand internationally as well. The brand is planning to target markets in Canada, Australia, the Middle East, and other places. 
• Currently, this brand has opened up more than 100 outlets across India, with 60 operational and 50 in the pipeline. 
• Unique Selling Proposition- This brand is often referred to as the ‘most Instagrammable and pocket-friendly’ cafe in India. 
• Menu innovation- Xero Degrees is known for offering great innovation in their menu and that automatically attracts lots of customers.

Xero Degrees Menu 

Here are the amazing menu options offered by Xero Degrees to customers:-

Appetizers

• Veg Pizza Pocket
• Mini Veg and Cheese Roll 
• Mexican Nachos 

Basked pasta

• Pink Sauce Spaghetti pasta 
• Mama Mia Penne Pasta 
• Arabiata Penne pasta 

Buckets 

• The Veg Cracker 
• The Chicken Cracker 

Burgers 

• Butter chicken burger
• Tandoori Chicken burger 
• X-non veg burger 
• XD Signature Chicken Burger

Xero Degrees Franchise Benefits

Several benefits come as a package when a businessman goes for a franchise option. The same thing goes when it comes to opening a Xero Degrees franchise as well. Let us have a look at some of the best advantages of opening a Xero Degrees franchise.

• Less effort and cost on marketing
• A cheap option to start a business rather than opening a new one
• The customer base is already strong
• Profits start within a short period unlike a new startup
• Lower risk of loss and other financial crisis
• Franchise owners can be their bosses as they would be the owner of the whole store.

The above-mentioned ones are some of the most beneficial points while opening a Xero Degrees franchise. There may be other advantageous points depending on various factors like the area/geographical location of the franchise store.