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Leading cafe chain, Cafe Coffee Day, aims to have a network of around 2,500 stores in the next 7-8 years as part of its expansion plans, a top company official said.
Cafe Coffee Day, popularly known as CCD, would add around 100 stores every year focusing on the metro markets. Besides and also look to tap the opportunities coming out from the tier II and tier III places.
The company, which opened its first store in 1996 in Bengaluru, is presently operating 1,740 CCD stores in around 250 cities.
On being asked about the expansion plan, Cafe Coffee Day Chief Executive Officer Venu Madhav told PTI, "Eventually, we would be looking at 2,500 stores at least in a couple of years coming in ... We need to add about 800 stores. That the eventual target we are looking for."
According to him, as part of the expansion process, some cafes would be closed and new stores would come at new locations.
On being asked about the time frame, Madhav added, "It would take 7-8 years to happen."
"We would plan to add around 100 stores every year and then take it to wherever the opportunity is available," he added.
As part of its expansion, most of the CCD would come in the developed metro market, but the company would explore the opportunities coming from tier II and tier III cities.
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"Most of the new stores would be in tier 1, because the opportunity in tier I is bigger," he said adding "We would also look on tier III places.
Now, the consumption of coffee in India is on the rise and several coffee chains like Starbucks, Costa Coffee are competing in the segment at different price points.
On being asked about competition in the segment, Madhav said that CCD would focus on 'affordability' and 'value-conscious customers'.
"Our target is youth and affordable luxury. We are sticking to our positioning of what we need to do and create offering which are for value-conscious customers. We are not worried about those things," he added.
