Cafe Coffee Day (CCD) is the most sought-after coffee shop chain in India, did you ever feel that way? Like, starting in 1996, it has become one of the most beloved coffee brands in the country. Though, it is not just the coffee that attracts customers. People visit CCD for the warm surroundings, snacks, and a great place to hang out with friends. If you are interested in starting your own business, a CCD franchise could be a great opportunity.
CCD’s brand is strong, which means you get to work with a name people already know and trust, and that’s the best bit about it all. That’s the reason why we are here with a few details like the Cafe Coffee Day (CCD) franchise cost in India, the type of models they offer, and other requirements, just to help you get started. Alright, here we go now.
Types of Cafe Coffee Day Outlets
Did you know that right here in India, Cafe Coffee Day (CCD) has three types of outlets, which are meant for different budget levels and consumer tastes? Here are details about each of them:
- Square Format: This is the upscaled aka premium version of CCD, aimed at those who long for that exclusive coffee experience with top-notch facilities, you know? The interiors are designed for people who are used to fine living, in a spacious environment. The menu is diverse with work-of-art coffee varieties and a plethora of food items. This format will be a hit in locations with high-income earners like business zones or posh neighborhoods where people prefer a sophisticated atmosphere.
- Lounge Format: These outlets are for relaxing with friends or having time in silence. Sure though, the lounges are suitable for both the talkative ones and those who are quiet by nature. The mood is friendly with a mixture of drinks and snacks. This format fits well the places where customers are expected to linger around for a bit and, ultimately, chill out.
- Value Express: These outlets utilize minimal space and are meant for customers who are in a hurry. They are strategically located in areas with high foot traffic, such as malls, office towers, or train terminals. The busy people who would buy coffee where they could get it within five minutes would be the happy customers at these places.
Cost Breakdown for Starting a Cafe Coffee Day Franchise
Alright, so, if you are thinking about starting a CCD franchise then it is very necessary to know about the financial aspects of it, don’t you think? Well, here is a detailed breakdown of just that:
- Franchise Fee: A franchise fee of INR 10 lakh plus GST, is what you need to pay first. Just so you know, by paying this fee, CCD will let you use its brand name and effective systems.
- Interior Setup and Equipment Cost: You know, this is the price for setting up interiors and also for buying equipment the charge will be around INR 15 to 20 lakh. Keep in mind though that factors such as the price of the furniture, lighting, and also coffee machines come under this specific criterion.
- Required Liquid Capital: You will be required to have a minimum amount of INR 25 lakh as an advanced cash reserve (cash or short-term investments). This is just to ensure the proper operation of your business and also to fund any unplanned expenditures.
- Net Worth Requirement: You need at least INR 50 lakh as net worth (your total assets minus any debts) so that you become financially sustainable in your business giving you a better opportunity to run it properly, in the long run, of course.
Calculate all those expenses mentioned above, and you’ll have a total of about INR 70 lakh or INR 1 crore for opening a CCD outlet in terms of an initial investment. Sure, the cost might vary from one outlet type (Square, Lounge, or Value Express) to another and also from one place to another.
Requirements for Opening a CCD Franchise
- Space Requirements: The location you choose is very important as you have to have at least 1000 to 1500 square feet of area and it must be on the ground floor. Not just that though, the place must also have at least 25 feet of the storefront, which means the part of the store that faces the road must be large enough to draw customers in.
- Location Considerations: The outlet should ideally be in a busy area where very many people are passing.
- Lease or Revenue Share: Different from other franchise businesses, CCD is not the franchise you will own. Instead, the retail space for your Cafe Coffee Day outlet will be leased to CCD. This means that you will not fully own the outlet but be a partner with the CCD to share in any profits.