CDX plans 19 more kiosks in Hyderabad

Coffee Day Xpress (CDX), a retail chain of food and beverage kiosks, plans to increase the allotment of kiosks in Hyderabad from the present 31 to 50 by the end of March 2006.

This apart, it will also be venturing into Visakhapatnam with plans of setting up 10 kiosks in the Port City. While each indoor installation requires an investment of Rs 2.5 lakh, an outdoor one requires Rs 3 lakh.

Speaking to Business Standard, Sandip Mukherjee, president, Coffee Day Xpress, said, "Around 75 per cent of our kiosks are at the IT and ITeS centres across the country. The same is the case with Hyderabad and we are, therefore, planning to increase our presence in this city as well." Coffee Day Xpress also has its presence in theatres and petrol pumps.

"This year, we are planning to install our kiosks in Vizag too and by the end of March 2006, we intend to have at least 10 allotments," he added.

Around 80 per cent of Coffee Day Xpress kiosks are being run under the franchisee model. While Coffee Day Xpress gets the turnover, the franchisees get a commission on sales besides a four per cent interest on the refundable deposit that the latter provide.

Andhra Pradesh (at present only Hyderabad) contributes to 10 per cent of Coffee Day Xpress' sales and 12 per cent in terms of the number of kiosk installations. The food and beverage kiosk major is already in talks with potential franchisees to expand its business in the state.

On a nationwide basis, CDX has more than 300 kiosks and is planning to take this number to 500 by the end of this fiscal.

"Food forms a major chunk (55 per cent ) of our revenues, followed by cold beverages (25 per cent) and hot beverages (20 per cent). We are also looking at another brand extension wherein we will only set up customised kiosks for beverages," Mukherjee said.

"Our intention is to first saturate the Indian market before entering foreign markets and the potential is huge considering various places where such kiosks can be installed. Besides, even at BPO and IT companies' centres, we have our presence only in 10 per cent of the total numbers in India. So there is still a large market that needs to be tapped," he added.