The Chain Coffee Café segment has been burgeoning in India with several domestic and international brands making inroads to the market along with the widening of the café goers. with coffee becoming more of a fashion statement amongst the young and upwardly mobile. Currently, there are approximately 100 café and bakery chain brands with an estimated 3,200 outlets spread across various cities in India. The size of the organized café market is estimated to be 67 billion in 2014 and is projected to grow to 151 billion by 2020 at a CAGR of 15%. The chain café market is approximately 27% of the total organized café market at 18 billion in 201 and is estimated to be 36% of the total organized market by 2020. The chained café market is estimated to grow at a CAGR of 20%.

1. Coffee Café Chains India
Market Understanding

2. Indian Coffee Chain Market Outlook
• Market Overview
• Key Players
• Market Potential by Outlet
• Market Potential by Region

3. 5
18
22
26
32
38
45
54
16
49
55
62
69
77
87
97
21
67
77
88
101
115
132
151
2008 2014 2015P 2016P 2017P 2018P 2019P 2020P
Chained Licensed Standalone Total
Café Market Overview (Rs Billion)
 The size of the organized café market is estimated to be 67 billion in 2014 and is projected to grow to 151 billion
by 2020 at a CAGR of 15%.
 The chain café market is approximately 27% of the total organized café market at 18 billion in 201 and is
estimated to be 36% of the total organized market by 2020. The chained café market is estimated to grow at a
CAGR of 20%.

4. Key Players
46%
5%
3%2%
2%1%
41%
Market Share of Key Chained Brands by Number
of Outlets in Chained Café Market–2014
Café Coffee Day Barista Costa Coffee
Starbucks Dunkin Donuts CBTL
Others
Over the past 5 years the café culture has grown, with
many new cafés being added along with the entry of
some international players.
The café segment has been burgeoning in India with
several domestic and international brands making
inroads to the market along with the widening of the
café goers with coffee becoming more of a fashion
statement amongst the young and upwardly mobile.
Currently, there are approximately 100 café and
bakery chain brands with an estimated 3,200 outlets
spread across various cities in India.
In the chained café market Café Coffee Day is the
largest player in terms of the number of outlets. With
1,472 outlets it has a market share of 46% followed by
Barista at 5%.

5. Brand March
2008
March
2009
March
2010
March
2011
March
2012
March
2013
March
2014
Present
Count of
Outlets
Starbucks - - - - 2 32 40 64
Dunkin
Donuts
- - - - 7 20 29 50
CCD 700 850 1020 1100 1286 1454 1568 1472
Barista 180 205 220 200 160 180 180 169
Costa Coffee 41 48 58 75 96 100 100 82
CBTL 1 2 5 13 17 26 26 26
Market Potential by Outlet
Café Coffee Day has been the pioneer in establishing the coffee culture in the chained café segment and has come a long way
in terms of the number of outlets by opening its first outlet in 1996 and increasing the store count to about 1,472 by
December 2014.
 Barista, the second largest player in terms of outlets, started its operations in 2,000 and presently has around 169 outlets
including 25 franchised outlets.
Barista has expanded through the franchising route whereas Café Coffee Day is operating most of its outlets itself except a
small number of franchisee ones.

6. 33%
74%
27%
52% 49%
38%
22%
9%
36%
22% 24%
17%
45%
17%
28%
17%
27%
38%
0.09 0.09 0.07
Starbucks Dunkin Donuts CCD Barista Costa Coffee CBTL
Geographical spread of Key Brands in
Chained Café Segment by no. of stores,
December 2014
North South West East
 The concentration of these new entries has been
primarily in the metropolitan cities due to the
cosmopolitan culture of these cities and the ease of
back-end integration.
 Geographically, southern part of the country
contributes to 33% of the total number of chained
outlets of all players operating in the café segment.
 Café outlet penetration or spread is low in the eastern
region with Café Coffee Day and Barista having just 9%
of the total outlets.
 Top eight cities of India contribute to 40-45% of the
chain café market.
 This straddling in the café space across segments and
formats is sustained by players with an increasing
presence in new locations like hospitals, college
campuses, highways etc. It is a strategy by the café
sector players to tap into a wider customer base.
Market Potential by Region

7. Presence of key brands in the major cities as of December 2014.
City CCD Starbucks
Coffee
Barista Costa Coffee Dunkin
Donuts
CBTL
Delhi 161 10 18 18 18 4
Gurgaon 40 4 18 5 6 2
Greater Mumbai 192 23 16 18 5 8
Banglore 196 10 14 11 4 3
Chennai 90 1 5 4 - 1
Hyderabad 73 3 5 - - -
Kolkata 80 - 12 - - 2
Pune 71 6 5 4 1 1
Brandwise % of
stores in top 8 cities
61% 89% 55% 73% 68% 81%
 The players in the Indian market are aggressively trying to gain a bigger pie of the market share in the growing
café market in India.
 Café Coffee Day has been very aggressive in expanding and has around four times the number of stores as
compared to the next top four brands put together as on December 31, 2014.

8. Coffee Consumption Trends
• Per Capita Consumption and Domestic Coffee Consumption
• Product Sales & SKU Mix of Key Café Brands
• Cafe Sales Mix - Dine in vs. non-Dine in
• Cafe Sales Mix - Peak Business Hours

9. 8000 grams per year
110 grams per year
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
Developed Countries
India
Per Capita Coffee Consumption (grams per year)
India being primarily a tea-drinking nation, had witnessed a low
consumption of coffee (with an exception of the Southern part of
the country), both in terms of frequency and quantity.
60 64 68 70 75 80 85 90 94
102108
115
122
129
137
Domestic Coffee Consumption
(000MT)
The size of the retail coffee market in India stood at `30 billion in 2014
and is expected to grow to `51 billion by 2020.
Domestic consumption of coffee is growing at 5-6% a year, while
production is stagnating. Consumption in India is estimated at 0.125
million MT/ year against a production of 0.315 million MT.
Southern part of the country accounts for nearly 80% of the total coffee
consumption in India. However, there is more potential in the other
regions outside South India, where the occasional consumers are high in
number. Occasional drinkers contribute to 52% of the total coffee
consumers, which essentially means that people have started
experiencing this beverage. This presents an opportunity for growth and
could be advantageously used to increase the consumption of coffee in
the country by converting them to regular coffee drinkers.

10. Brand Avg. Food
Sale
Contribution
Avg.
Beverage Sale
Contribution
Avg Sales per
Day (ASPD)
Avg. Store
Size
Avg.
cost/person
% % Rs ‘000 Sq. ft. Rs
Starbucks 47% 53% 60-65 1700-2000 175-200
Dunkin Donuts 72% 28% 45-50 1200-1500 150-175
CCD 39% 61% 15-20 1000-1200 125-150
Barista 32% 68% 15-20 800-1000 150-175
Costa Coffee 35% 65% 2-25 1200-1500 170-190
CBTL 33% 67% 45-50 1700-2000 175-200
Product Sales & SKU Mix of Key Café Brands
In the overall café market, beverages dominate the Stock Keeping Unit (“SKU”) and sales mix primarily due to the nature of the
coffee retail space. In the SKU mix, beverages hold over 50% and contribute to approximately 54% of café sales. This is
followed by food and desserts.
However, a variation can be seen at lounges; where food gains increased focus as it is a premium format with a variety of meal
offerings. Food constitutes approximately 42% of the SKU mix with approximately 35% contribution to the sales mix.
Across other coffee formats, beverages are mainstay in the mix with the popularity of hot beverages over cold beverages.
Desserts contribution is small in the overall pie across SKU and sales mix due to the dominance of beverages and food.

11. 92% 81% 19%
8%
18%
80%
1% 1%
Lounge Cafe Express
Café Sales Mix- 2014
Dine-in Take Away Delivery
65%
34.7%
0.3%
Total Café Sales Mix
Dine-in Take Away Delivery
Sales Mix - Dine in vs. non-Dine in
The café culture has permeated the streets of India with majority of sales, over 80% coming from dine in across various formats
followed by takeaway sales.
In contrast, closely 80% of express sales come from take-away due to the very nature of the format –limited seating option and
location mostly in office complexes and high footfall zones.

12. 2%
12%
25%
34%
24%
4%
3%
14%
25%
36% 20%
2%
12%
10%
39%
22% 15% 2%
0700-1100 1100-1300 1300-1600 1600-1900 1900-2200 2200-0000
Lounge Café Express
Café Sales Mix: Peak Business Hours
Cafés by their very nature are places to
hang out, and the evening hours are the
peak time, 1600-1900 hours. As for express
formats which are located mostly in office
complexes and offer takeaway and delivery
services, afternoon time (1300-1600
hours) gets maximum customer traffic due
to working professionals working in and
around office complexes.

13. Global Market trends and Developments
• Pricing of Cafés in India
• Organized Café Market- A Global Comparison
• Per Capita Spend in Food Services- Global Trends

14. Brand Cappuccino Expresso Hot Chocolate Brownie Veg. Sandwich
Starbucks Coffee 120 100 135 160 170
Café Coffee Day 79 69 101 75 89
Barista 90 70 140 130 130
Costa Coffee 110 90 110 200 180
Coffee Bean And
Tea Leaf
120 100 140 125 175
Dunkin Donuts 90 50 105 59 120
Pricing of Cafés in India
 Café Coffee Day with the highest number of outlets and competitive pricing has attained better consumer penetration and
strong connection with the young consumers.
 Starbucks has emerged as an aspirational brand and has the biggest ticket size only second to Coffee Bean & Tea Leaf.
 Barista recently witnessed a change in ownership and is revamping its market strategies.

15. Country Café Market Size (US $
million)
No. of Café No. of Cafe per million People
India 1070 19990 16
China 10746 27608 20
UK 9347 14292 223
USA 19014 23357 74
Germany 3114 31844 385
France 3994 19431 294
Brazil 3305 24324 119
Italy 9440 65571 1046
Malaysia 1555 4138 139
Thailand 416 4039 60
Indonesia 665 3136 12
Organized Café Market- A Global Comparison
 India, as compared to the other markets detailed below, exhibits a definite potential for growth for the number of
outlets in the café.
 Italy has the maximum density of cafés per million people in the organized café market followed by Germany and
France.

16. Country Per Capita transactions
No./person/year
Per Capita Spend-Food Services (US$)/Year
India 72 32
China 103 375
UK 78 1311
USA 180 1558
Germany 51 559
France 63 845
Brazil 111 569
Italy 138 1463
Malaysia 46 278
Thailand 143 328
Indonesia 24 123
Per Capita Spend in Food Services- Global Trends
 The per capita spend of India is the lowest as compared to the other countries as listed below. This is primarily
due to higher rural population and preference of eating at home. This is due to less eating out options in the
smaller cities and towns, compared to other countries like the USA, Italy and the UK.
 Per capita number of transactions in India as compared to the USA, Thailand, Italy and Brazil is low is expected to
grow over the next few years based on the growth of eating out culture.

17. Consumer Behaviour
• Aggressive expansion by established brands,
• Entry of new players in the space,
• increased consumer purchasing power,
• High café exposure and
• Acceptability of the segment by the time-pressed consumer

18. Format Branding Offerings Target segment Footprint
Café Network Café Coffee
Day outlet
Café Coffee
Day
a mix of coffees,
teas and other
beverages and food
options
value-conscious youth
segment
1,423 outlets across 209
cities in India and 16
international outlets
across Austria, Czech
Republic and Malaysia
Café Coffee
Day
The Lounge
outlet
The Lounge a mix of exotic
coffees, teas,
cocktails and
international
cuisines options
trendy and affluent
customers with a
higher disposable
income
42 outlets across seven
cities in India
Café Coffee
Day The Square
outlet
The Square specialty coffees
and teas and fine
dining options
coffee connoisseurs
who seek the theatre of
coffee
seven outlets across four
cities in India
In Home Vending
business
Coffee Day
Beverages
a variety of coffees
and teas; coffee is
freshly brewed
corporate and
institutional clients
28,777 vending
machines across India
Fresh & Ground
outlet
Coffee Day
Fresh &
Ground
22 exclusive
varieties of freshly
brewed coffee
powder
residential households
consumption and a
large number of
restaurants and eateries
across South India
424 outlets across seven
states in India
Out of Home Coffee Day
Xpress kiosks
Coffee Day
Xpress
basic offerings of
coffees and teas
and light snack
options
caters to ‘Coffee onthe-
go’ consumers
590 kiosks across 12
cities in India
Production,
Processing &
Exports
Coffee Day
Exports
green coffee beans large roaster and coffee
traders
one of the largest
exporters of Indian
coffee beans, primarily
to Europe, Japan and the
Middle East
Format of Coffee Business wherein CCD Operates

19. Thank You.
Dessence Hospitality Advisory Services PVT Ltd
303, Aar Pee Centre,
11th Road, MIDC, Andheri East
Mumbai
www.dessencehospitality.com
chandni@dessenceconsulting.com
+91-22-28228142
+91-9820075332