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Food and Beverage 2009-10-06

Aroma of success

Whether sizzling hot or chillingly cold, the aroma of coffee tempts everyone. Would not you love to own and operate a coffee shop amid the aroma of freshly brewed coffee. Sure the idea is tempting and offers a great business opportunity. Read to know mor

By Abha Garyali Sub Editor

With the increase in disposable income and affluence beaming on faces ostensibly, the market crowds are humming over eating joints, snacks counters and ice-cream parlours. And in the same breath is brewing the coffee culture with its popularity growing rapidly amongst younger generation, who constitute a larger part of the population. For all the tourists who visit India, coffee is a pleasant reminder of home, as most of the foreigners are coffee-centric. Another factor for the rising coffee culture in cities is the growing trend among the youth to sit together and catch up with the latest gossip. While some rely on a cup of coffee to begin the day, others spend hours relaxing and ordering coffee and snacks in the outlet. With all these factors backing up the coffee culture, there is a lot of opportunity and scope in this sector. According to A.G Puttaraj, President, Coffee Day Xpress, “Coffee franchising has helped in the growth in terms of number of outlet generation as well as overall sales and profits.” So, getting interested in this franchise? The advantage of running a coffee franchise business is that it almost remains unaffected by the economic slowdown. As also, the coffee intake can increase under pressures or tensions leading to better business of your outlet! Coffee franchise is a low investment and high profit business as the franchise stores have fewer overhead expenses as compared to a restaurant which requires a large amount of money for cooking and storing expensive frozen foods etc. Building a business is tough, and even starting a franchised outlet needs time to build its own reputation but it is comparatively easier for a coffee franchise to make a name in the market, provided one’s services and quality is not compromised. As a result it reaps quicker profits. There are loads of options for the coffee franchise that simply do not exist for other franchises. Coffee is a business that can be done in a small space or one may go in for a larger space depending upon one’s financial resources and preferences. One may add snacks to the coffee menu. If you are looking for a perfect franchise business but are scared of investing a large sum of money, then you can opt for a kiosk model, which can be the best option for you. It requires a low start-up capital with small operational costs, while profits are quite high. There is another option – ‘walk-in-coffee shop’, which requires a hefty investment, where you need a proper outlet with adequate staff. More and more coffee outlets are emerging around us every day due to its alluring benefits. Some of the major players who have expanded through the franchise route are Coffee Day Xpress, Coffee Beanz, Barnie’s Coffee, Barista, Café Desire etc. They are still on the expansion spree as their popularity among the youth is ever increasing. Puttaraj informs, “Franchising has greatly helped in our development, and thereby, today, we are able to stand at a 900+ kiosks, out of which around 600 are run by the franchisees.” However, to become a successful franchisee, the entrepreneur should have some important prerequisites. Puttaraj says, “The franchisee should be well read, willing to learn and grow, should be actively involved in running the outlet and should have the minimum investment required.” Above mentioned requisites are mandatory for taking a franchise but there are several other considerations as well. Location being the most essential, your kiosk or coffee outlet should be in a high foot-fall area to get the maximum benefits. Owning and running a coffee shop is a rewarding business with great profit potential. Doing it through franchise helps you set up the business in a quickest and easiest way.

Comment
rajat 05, Nov 2014 at 06:00 AM
Very helpful write-up for restaurateurs and entrepreneurs in the segment. I think if one follows these good suggestions by the experts, they will see customers coming back to their restaurant.
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