Coffee Day Holdings, the Bangalore-based Rs 800 crore coffee exporters and retailer, is eyeing a bigger share of your wallet through a full service meal outlet chain under the brand Hungry Food.
Coffee Day Holdings, which runs India’s largest chain of coffee bars — Café Coffee Day, has been experimenting with a range of options to increase spending of a customer by offering snacks and munching options along with its range of coffee. The company also offers quick meals at some select outlets.
Coffee Day Holdings has been constantly diversifying its range of offerings starting from coffee to cookies to pastries and with this step to start a new brand for a complete meal is in a way being considered as an attempt to compete with McDonalds in India. “It’s still a long way. But this attempt is a move towards that positioning,” sources in the company noted. While company officials were not available for comments, sources indicate that the launch of these outlets is expected this month.
Even as the company is planning this diversification, it is also planning to expand the number of its cafes to around 1,000 from the present mark of 800. The chain also has presence in the United States, Vienna and in Pakistan, and is planning to dot more global locations.
Industry sources further indicate that at a corporate level, the company is preparing to raise around Rs 400 crore through the private equity route, partly to replace the $150 million debt it raised from Deutsche Bank and Darby Investments, a private equity arm of Franklin Templeton. Coffee Day raised the debt in two tranches during 2007-end and early 2008. The company will also be using these funds to expand its chain of coffee bars and also to expand its fledgling hospitality business.
Source: Business Standard