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Dec, 02 2015

How hot is cafe business?

International brands are all set to tap the white space opportunity that is waiting to be explored in Indian café market.

In the Indian F&B industry, food overrules and cafés are sidelined. Barista, Gloria Jeans Coffee, Costa Coffee and Coffee Bean Tea Leaf have been the predecessors in Indian café market. From food to Café: McCafé, the brand extension of McDonald's forayed into café business in India in 2013.

Cup of opportunity

International brands are conducting extensive research in terms of brand positioning, menu offering, supply chain support, the retail design and fit-out specifications. India has emerged as a destination satisfying the basic parameters set by international brands.

Hailing from the UAE, FiLLi Café is looking at launching its first unit in India. Apart from setting in Indian market, it is currently operational in the UAE, and recently entered into a franchise agreement for the Qatari market. It has ongoing negotiations to enter into two separate area development agreements in the UK as well.

US-based brand, Green Beans Coffee is also positive on signing a Master Franchise deal in India soon. The brand is known for serving 20,000 cups of coffee every day all over the world. It has a presence across the United States, the Middle East, West Asia, East Africa and Japan.

From beans to benefits in this business

These new entrants are robust on strengthening ties with India. Brian Laliberte, COO, Green Beans Coffee Company said, “Green Beans Coffee Company is looking forward to opening a minimum of two to three outlets by late 2016, ideally in a large metropolitan city like Delhi or Mumbai. Our long-term target is to open 300 stores in the next 10 years pan-India.”

Sharing a word on the growth plans for Indian market, Rafih FiLLi, Founder, FiLLi Café said, “We are currently in the midst of finalising the specific franchising plan for India.  We would be announcing the plans soon. Our target for the launch of the first unit in India is around the first quarter of 2016.”

Retail Food Group (RFG) is actively looking at recruiting master franchise partners for Gloria Jean's Coffee and other brands under its umbrella like Cafe2U, Crust Gourmet Baker, Michel's Patisserie and Donut King among others. Andre Nell, CEO, RFG said, “India's franchising industry continues to thrive, driven by a growing appetite for internationally branded products and an emerging café culture, providing a great deal of opportunity for brands systems like Gloria Jean's Coffee.”

Few brands re-invade India, why?

After ending ties with India, Australian café chain, Di Bella re-entered Indian market last year. Nell of RFG quipped, “With opportunity for at least seven licenses across India, we are confident that our business model will be a point of difference for potential partners. The country's retail and F&B sectors have evolved over the last decade, leading to a high level of consumer interest in specialty and gourmet brands in particular. Reports show that market is expected to value around $35 billion by 2020.”



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