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Coffee Day Enterprises, which began selling coffee grown at its plantations in Karnataka, has today expanded to a network of 1,700 Café Coffee Day outlets. Photo: Hindustan Times
Coffee Day Enterprises, which began selling coffee grown at its plantations in Karnataka, has today expanded to a network of 1,700 Café Coffee Day outlets. Photo: Hindustan Times

Coffee Day Enterprises unveils new menu for Coffee Day Square cafés

Coffee Day Enterprises also plans to introduce some of the new items in Caf Coffee Day outlets, says Ramchander Raman, the company's head of food and beverages

Bengaluru: Coffee Day Enterprises Ltd has refreshed the menu at its premium Coffee Day Square cafés and plans to introduce some of the new items in its larger network of Café Coffee Day outlets too as it tries to stay a step ahead of competition, a top company executive said.

The new menus covers molecular gastronomy to rum and tequila-flavoured non-alcoholic espresso shots, Ramchander Raman, the company’s head of food and beverages, said in an interview.

“Our audience is very unforgiving. We have to keep them excited because we work on repeat clientele. We will continue to make sure food is a big focus because there is so much more that we can do there," Raman said.

The new menu introduced last week includes categories like freaky shakes, overindulgent milkshakes, smoothies and herbal infusions that use ingredients like pomegranate and sea buckthorn, and even has a mandarin-flavoured non-alcoholic beer.

In terms of food, the company’s new menu is a mix of Indian and international cuisines including Japanese and Korean with a twist.

Coffee Day Enterprises, which began selling coffee grown at its plantations in Karnataka, has today expanded to a network of 1,700 Café Coffee Day outlets. It also sells its coffee through 44,419 vending machines, according to data from its July-September quarterly results report. It has five Coffee Day Squares—two in Delhi and one each in Bengaluru, Chennai and Mumbai.

But while Coffee Day had a headstart in India’s coffee café space—it opened its first café in Bengaluru’s Brigade Road in 1996—competition has since mushroomed.

Coffee themed outlets or cafés alone have grown 13.76% into a Rs2,149 crore market according to data from research firm Euromonitor International. The format is expected to grow at a five-year compounded annual growth rate (CAGR) of 7.1% between 2017 and 2021, Euromonitor predicts.

Indeed, even though it has taken Starbucks Corp. five years to reach the 100th store mark in the country—while it plans to open 500 stores per year in China—the American coffee chain expects India to one day be among its top five markets in the world.

“The landscape is big but the thing is to get the right innovation in food and at a price where customers find value," said Raman. The pricing at Coffee Day’s regular cafés are much more affordable, for instance, than those at Starbucks.

An espresso shot at Cafe Coffee Day costs under Rs100 while a small shot of espresso at Starbucks costs just over Rs200, which can go up to Rs280 depending on the size of the cup.

But Coffee Day’s competition also includes the likes of Tata Global Beverages Ltd (TGBL)’s pilot tea café launched in Bengaluru last month called Tata Cha. Its menu includes snacks such as biscuits, samosas and kababs to main course dishes like butter chicken khichdi and matar kulchas.

According to Euromonitor, Coffee Day holds 49.2% of the specialty coffee shop market. Starbucks, under its venture with Tata Coffee in India, is the second largest in terms of market share but far behind Coffee Day with just a 4.9% share. Devyani Food Industries Pvt. Ltd’s Costa Coffee chain rounds out the top three with a 4.2% market share.

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