Coffee Day Xpress In Expansion Mode
Jyoti Koul - New Delhi
In a bid to transform itself into an Indian multinational company, Coffee Day Xpress has charted out an ambitious expansion plan. The company is targeting the opening of 700 kiosks in the country by end of fiscal year 2007. To achieve this target the company is planning to take the franchise route to ensure the brand’s presence in almost every city in the country including Kochi, Vishakhapatnam and Mysore.
In an exclusive with Express Hotelier & Caterer, Sandeep Mukherjee, president, Coffee Day Xpress said “Our target is to have 1000 kiosks in the country before 2008. Currently, we have 300 such outlets in the various parts of the country. Apart from penetrating some new markets we would be establishing our brand in the four metros and four emerging metros. However, in places like Jaipur and Lucknow, we would be located on the high streets to ensure that we generate good business. We are currently targeting the BPO segment, shopping malls, multiplexes, movie theatres etc.”
Coffee Day Xpress, a division of Amalgamated Bean Coffee Trading Company was one of the pioneers of the ‘café’ concept in India with Café Coffee Day and is now planning on going international. “We are looking at venturing overseas, although we are currently concentrating on the domestic market. Only once we reach our target will we focus on our overseas projects,” he informed.
The company claims to be the only player in the coffee segment to have a presence across the all corporate segments. In two years of its operations it has opened 300 kiosks across 13 cities that include corporate and high street areas.
While elaborating on the brand, Mukherjee said that Coffee Day Express is a fast service convenience café offering quality hot and cold beverages and a variety of ready to eat food while ensuring high quality and hygiene standards.
While speaking about the business model, Mukherjee concluded saying, “The business model of Coffee Day Xpress is based on high number of transactions at relatively low transaction value, rendering the suitability inclined towards locations that support ‘high people traffic’. It is a ‘plug and play’ model having an onsite requirement of 8.5 KVA (kilo vat ampere) and space of 70 square feet for the indoor kiosk and 90 square feet for the outdoor kiosk. Coffee Day Xpress kiosks are strategically located in convenient locations, which offer people on the move a quick and reliable service.”