Team-BHP > Shifting gears
Register New Topics New Posts Top Thanked Team-BHP FAQ


Reply
  Search this Thread
13,802 views
Old 7th October 2019, 09:38   #16
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 70,546
Thanked: 300,788 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

They definitely need to trim the fat. I won't be missing any of their outlets as I've never been a CCD fan. Hate their black coffee. I like McDonald's coffee a lot more & they're pretty much everywhere. Heck, there are McDonalds & Starbucks outlets now on the Mumbai-Nasik highway!
GTO is offline  
Old 7th October 2019, 10:55   #17
Team-BHP Support
 
Eddy's Avatar
 
Join Date: Apr 2007
Location: Delhi
Posts: 9,388
Thanked: 13,303 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

Me and Mrs were regulars at CCD during our dating days in the early-mid 2000s and had developed quite a liking for their spinach + corn sandwich. But haven't been to CCD in nearly a decade. But I hope the brand survives.
Eddy is online now  
Old 8th October 2019, 18:54   #18
AWD
BHPian
 
Join Date: Nov 2009
Location: Drivers seat
Posts: 846
Thanked: 368 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

Quote:
Originally Posted by GTO View Post
Hate their black coffee. I like McDonald's coffee Starbucks
So that particular coffee is a work of art, a regular ill-trained employee can never brew the perfect cup of black. Needs lots of experience, love & passion to brew the right cup. At CCD I usually have to tell them to re-make, if the employee is old & experienced then the first cup makes the cut.
McD coffee is by far the worst I've consumed. though its a matter of personal choice. Cappuccino drinkers can get a fill anywhere. Starbucks is way over-rated & I did not like the coffee or the way they serve. 8 times out 10 I fail to listen to their order ready call due to noisy environments!
AWD is offline  
Old 14th October 2019, 06:33   #19
Team-BHP Support
 
ampere's Avatar
 
Join Date: Sep 2009
Location: Bangalore
Posts: 17,952
Thanked: 12,944 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

The arterial highways I think still have the potential to make good business. And having said that, the ones in malls and CBD areas may not be secure as well.

At least in Bangalore I see quite many new age coffee-roasters coming up who make far-far better coffee than CCD AND charge less.

CCD not just needs to re-think strategy, but should also think how to handle these new-age competition which may be leaving them far behind.

But all said and done, it still is nice to spot those familiar colors when on the highway!
ampere is offline  
Old 14th October 2019, 07:18   #20
Distinguished - BHPian
 
ninjatalli's Avatar
 
Join Date: Jul 2011
Location: Bangalore
Posts: 3,805
Thanked: 15,601 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

Quote:
Originally Posted by ampere View Post
At least in Bangalore I see quite many new age coffee-roasters coming up who make far-far better coffee than CCD AND charge less.

...
But all said and done, it still is nice to spot those familiar colors when on the highway!
This is bound to happen, a very relatable scenario is with Starbucks outlets across the US. Like CCDs in India, they are littered across the length and breadth of the US; and the quality of the coffee is barely okish. Every city has numerous local (and chain) based outlets that provide much better coffee and are quite successful.

But the majority of Starbucks outlets still see a decent amount of footfall, especially from the average consumer who isn't really that picky with regards to his coffee tastes.

Same is the case with CCDs. The popularity is definitely going down but there is enough scope of business for part of the chain to be profitable or at least stay afloat.
ninjatalli is offline  
Old 14th October 2019, 08:44   #21
BHPian
 
Malyaj's Avatar
 
Join Date: Mar 2013
Location: Bangalore
Posts: 235
Thanked: 2,876 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

Being from the restaurant industry myself, I was always baffled by the way CCD was expanding. It takes less than 5 minutes to look at an outlet (based on it's size and location) to figure out their break even sales. There was no way some of these outlets were attaining break even.

I am a filter coffee person person and will not drink any other form of hot coffee. But have to admit that they created an entire industry in India.

Last edited by Malyaj : 14th October 2019 at 08:46. Reason: Added missing word
Malyaj is offline  
Old 14th October 2019, 09:50   #22
Team-BHP Support
 
Samurai's Avatar
 
Join Date: Jan 2005
Location: Bangalore/Udupi
Posts: 25,831
Thanked: 45,598 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

Quote:
Originally Posted by Malyaj View Post
Being from the restaurant industry myself, I was always baffled by the way CCD was expanding. It takes less than 5 minutes to look at an outlet (based on it's size and location) to figure out their break even sales. There was no way some of these outlets were attaining break even.
Because of many hoteliers in close family circles, I too have the same habit. Often, it is mark of a money laundering operation. In fact, I avoid places without customers. It is usually a red flag. A commercial kitchen where the food is not moving fast is not a hygienic one.

Last edited by Samurai : 14th October 2019 at 10:00.
Samurai is offline  
Old 14th October 2019, 12:34   #23
BHPian
 
Join Date: Mar 2018
Location: Bengaluru
Posts: 184
Thanked: 561 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

I was under the impression that CCD outlets are franchises. Apparently I was wrong. Now knowing this I feel the outlets shutting down was inevitable.
Some CCD outlets are just plain ridiculous for a brand that practically started the coffee shop culture. On a recent trip, I decided to take a break at a CCD outlet after before Ambur on the Bangalore - Chennai highway. The place was swarming with insects and mosquitoes! So much so that we had to abandon our coffee and food and leave the place. There was simply no way to sit inside. Upon requesting the staff, they came with a broom and swept the insects on the floor only for the floor to get covered again minutes later.
And at most CCDs you have to be really really careful while ordering to make sure they don't add any extra to your orders. A simple request such as "please make the cappuccino strong" results in them changing the order from single shot to double shot, without telling you!
As for the coffee, it has become mediocre at best. On, all my previous experiences I've felt that the milk they use in their cappuccinos has been diluted with water. The milk and foam both "feel thin". I don't think there is anything wrong with the coffee itself but its more to do with how its prepared. Case in point, their Celesta coffee machines at my workplace makes far better coffee than their outlets.

Its actually saddening to see because CCDs have been part of so many fond memories. I remember going to the CCD outlet in Sarjapur Total mall at my friends insistence during college days just to have the coffee. That is where I fell in love with coffee brewed using freshly ground beans. After college, most of our friend group meetups used to be at CCDs. Most late night highway drives were to CCDs. Even now, the sight of a CCD outlet when on a trip feels 'comforting'.

I really wish CCD turns things around.
Else its going to get even harder for them, especially with the rise of so many other coffee chains like Third Wave and Blue Tokai just to name a few.
arijitkanrar is offline  
Old 14th October 2019, 17:00   #24
Senior - BHPian
 
NiInJa's Avatar
 
Join Date: Sep 2012
Location: Pune
Posts: 1,061
Thanked: 3,725 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

At least in Pune, there has been a spurt in small coffee shops which offer good beverages/snacks which are comparable to CCD. So its obvious that they might not be making much money, but I would personally love to have the brand increase its footprint and improve on its identity as I feel its our Indian answer to biggies like Starbucks and Barista or even McDonald's

I learnt from the posts that they dont franchise, so that makes much sense close the sick ones. Always something to learn here
NiInJa is offline  
Old 14th October 2019, 19:44   #25
Distinguished - BHPian
 
Red Liner's Avatar
 
Join Date: Aug 2006
Location: Bangalore
Posts: 5,209
Thanked: 18,044 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

The CCD of old is finished.

Two instances.

First, on a ride to Orissa, we stopped at a CCD in Andhra and well, the idiot that i was , succumbed to a chocolate cake there. We couldn't even put a spoonful in. It tasted like medicine! (Maybe it was lol). The staff tasted it and said, yes this is what cake tastes like! I grew livid and refused to pay. Lucky me, usually CCD always makes you pay in advance, but as a policy i refuse and pay only after i finish. So i just walked out after giving the manager a earful and threatening to complain with a strong letter.

Second incident was scary. I ordered a cold coffee at the CCD on the NH4, and the girl at the counter said the milk for the cold coffees is not milk! Its powder or some such thing which according to her didnt taste good. Well, if an employee says something you want is not what you should be buying, you listen. So i ordered something else which was twice as expensive, with the hope that it was less processed.

Your local tea shops aren't spared either. A tea distribution racket was raided recently at electronic city Bangalore for supplying tea powder adulterated with stuff like sawdust and whatever else. He was supplying to a whole bunch of chai shops all over the area. And milk adulteration is just crazy. I dont think any of these shop owners really give a damn about what they are supplying you and me.

Really bad times.

And I think i will stick to black coffee as well. Less ingredients to mess with

Last edited by Red Liner : 14th October 2019 at 20:04.
Red Liner is offline  
Old 15th October 2019, 13:13   #26
RGK
Senior - BHPian
 
RGK's Avatar
 
Join Date: Feb 2010
Location: DPM and CHN
Posts: 1,822
Thanked: 1,139 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

I have not seen a crowd in any of CCD outlets except inside a big city. A perception set by CCD, that it is for only rich dating guys had hit them hard. It is the right time to close their loss-making outlets.
RGK is offline  
Old 15th October 2019, 23:32   #27
BHPian
 
Join Date: May 2013
Location: Bangalore
Posts: 134
Thanked: 466 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

Quote:
Originally Posted by speedmiester View Post
It was coming. The debt the company is under is quite high, some drastic measures are required. The company also sold off their Tech park in Mysore road to reduce their debt.

CCD outlets were my first choice of meeting place for any personal or official meetings as they are well spread across the city. Though I don't like their coffee, the other facilities made up for it.

I always considered CCD as a temp workspace where you with buying coffee.
Now Starbucks have taken over some of our meetings, again don't like their coffee either. I prefer filter coffee and nothing else.
Starbucks has the worst coffee and food I have ever had. The food is downright stale and the cold coffee I ordered had nothing but cream and ice in it. They do make up for it with convenient space for working which I have taken advantage of on occasion.
sup? is offline  
Old 16th October 2019, 07:58   #28
Senior - BHPian
 
AMG Power's Avatar
 
Join Date: Mar 2017
Location: BLR
Posts: 1,065
Thanked: 7,037 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

CCD have an outlet in Manyata which is empty most of the time and the coffee and food is bad. In comparison there is a Hatti Kaapi just 4 shops down which does roaring business.

And it's because they have a simple formula - better taste @ 20% of the price of CCD's coffee.

Closing down 385 outlets in a month is going to create more problems - who will repay the loans taken to put them up - banks would have extended loans based on projections of income from these 385+ outlets. CCD is going to find it difficult servicing loans with lower income levels.

In fact part of the reason for CCD closing down was their rampant opening of outlets without a proper assessment of feasibility.

To be fair, folks can get one or two feasibility assessments wrong. But if you've got 385 assessments wrong, then you've been fooling around and know damn all about the business.

It's not anymore a question of whether CCD will close down, but when.
AMG Power is offline  
Old 16th October 2019, 08:18   #29
Distinguished - BHPian
 
Red Liner's Avatar
 
Join Date: Aug 2006
Location: Bangalore
Posts: 5,209
Thanked: 18,044 Times
Re: Cafe Coffee Day shutting down unprofitable outlets

Quote:
Originally Posted by AMG Power View Post

To be fair, folks can get one or two feasibility assessments wrong. But if you've got 385 wrong feasibility assessments, then you've been fooling around and know damn all about the business.

.
Hmm. So here is the thing. Many retail establishments are fundamentally a front to convert black money into white. You pump in cash into an under performing outlet, declare a loss, bring your profits down, and there you go. There's been a lot of news about some senior political leader(s) in Karnataka who have routed money through this way. The ED and CBI are on the sniff.

Par for the course as told to me by a friend in the franchise retail industry...who is unfortunately just discovering these things being a first time entrepreneur.

Lets not just go with what the media puts out. There's tons of muck thats way below the ground.

Your point on the 385 wrong feasibility numbers which indicate fooling around just confirms this line of thought.

No names mentioned. I don't want a defamation law suit

Last edited by Red Liner : 16th October 2019 at 08:20.
Red Liner is offline  
Reply

Most Viewed


Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks