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Tag: coffee day

  • India’s Cafe Coffee Day shuts 280 stores

    India’s Cafe Coffee Day shuts 280 stores

    Indian coffee chain Cafe Coffee Day shuttered 280 outlets between April and June due to low profitability and potentially rising costs.

    The firm, which now operates 1480 outlets, has also reported a decline in average daily sales from 15,739 cups to 15,445 cups during the period. This was counterbalanced by an uptick in Coffee Day’s vending machine count from 49,397 to 59,115 units year on year.

    “Export operations have been temporarily stopped due to lower margins and higher working capital requirement and around 280 outlets are closed during the quarter based on various factors including the profitability, future increase in major expenses,” said a spokesperson for the firm.

    The firm has struggled since the apparent suicide of founder VG Siddhartha a year ago. Siddhartha founded Coffee Day Enterprises in the late 1990s, years before Starbucks made its Indian debut, building a network of 1700 outlets – 10 times the size of Starbucks.

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  • Coffee Day enters Joint Venture with Japanese retailer

    Coffee Day enters Joint Venture with Japanese retailer

    Indian cafe chain Coffee Day has partnered with Japanese sales-floor support-service business Impact HD to grow its retail network in India.

    The joint venture plans to rapidly build market share in the region’s neighborhood retailing sector, launching a minimum of 450 Coffee Day Essentials branded stores in quick succession.

    Coffee Day Group holds a 51 percent controlling share in the joint venture.

    “With about three times the population of Japan in the same standard of living as the Japanese, the multi-retail market environment in which food and daily necessities are purchased on a daily basis remains unexplored,” read a statement released by Impact HD. “In India, kirana stores account for 98 percent of the total, and the remaining 2 percent are hypermarkets and supermarkets that incorporate foreign capital and know-how.”

    The joint venture will convert lagging Cafe Coffee Day cafes into Coffee Day Essentials neighborhood convenience stores.

    The Impact HD JV was among the last major decisions made by Coffee Day Group founder and chairman VG Siddhartha before he took his own life in July.

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  • Coffee Day India Q2 net profit plunges

    Coffee Day India Q2 net profit plunges

    Coffee Day Enterprises Ltd Wednesday reported a 59.78 percent fall in consolidated net profit at Rs 23.83 crore for the September quarter due to higher expenses. The company had reported a net profit of Rs 59.26 crore in the corresponding period of the previous fiscal.

    According to a report, Its total income grew to Rs 1,015.13 crore during the quarter under review, up 12.42 per cent, as against Rs 902.9 crore in the corresponding quarter of the year-ago period, Coffee Day Enterprises said in a BSE filing.

    Expenses during the quarter stood at Rs 1,014.99 crore, up 13.83 per cent, as against Rs 891.6 crore a year ago.

    The company said board of directors, at its meeting held on 14 November 2018, discussed the potential restructuring of the company’s business to segregate its coffee business and its subsidiaries from their non-coffee businesses (including integrated multi-nodal logistics, financial services, development and management of commercial space, hospitality services and investment operation).

    “No decision to undertake any restructuring has been taken by the board at this stage,” it added.

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