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Café Coffee Day


Submitted by:

Akhil Bhardwaj PDM05002

Harsh Raj PDM05018

Raja Babu PDM05035


Yash kumar PDM05058









Café Coffee Day is the India’s largest coffee retailer in India and owns 11,000 acres of coffee
plantation in hills of Chikmagluru, Karnataka, India. The plantation is famous for its Arabica
coffee and has been a major exporter of coffee beans under the name Amalgamated Beans
Coffee Trading Company Limited (ABCTCL). ABCTCL started its retail business first in 1994
by the name of `Fresh n Ground’, serving coffee through their retail outlets. After two-year
company’s chairman Mr V.G Sidharttha started Café Coffee Day as a first retail outlet chain
serving coffee with fine experience. Its first retail outlet was opened in Brigade road,
Bengaluru. At CCD the coffee that they serve comes directly from their own plantations. Thus
CCD is a subsidiary of Amalgamated Beans Coffee Trading Company Limited (ABCTCL).
ABCTCL as an exporter covers market in USA, Japan and Europe.And utilising its network
CCD has also expanded globally. In India CCD currently has about 1785 outlets serving world
class coffee.
The coffee was predominantly in culture in southern part of India till early 1990s.This led the
CCD to start from the Bengaluru first and expand in the southern part of the country. Now the
coffee has made its presence in every part of the country and so has the stores of the CCD.

Coffee drinking habits in India encompass it to a rich experience and that is what CCD has
tried to capture. CCD just not serve coffee but also provide a great place to hang out and have
good coffee served over small discussion and chats. India has largest number of youth in the
world, this is an added advantage that CCD looks to tap in for their growth. Initially CCD saw
a sluggish response from the market but by the company’s effort to improve and mend its
product and services according to their customer desires lead the company to bag “the most
popular hangout joint amongst youth" by 3rd Global Youth Marketing Forum. And also bagged
"India's most popular coffee joint" in 2011 by the Indian Hospitality Excellence Awards.
Awards and Accolades

 Café Coffee Day was accorded with “Food Services Retailer of the Year” and “Exclusive
Brand Retailer” of the year at 1st ICICI Bank Retail Excellence Awards function in 2005.
 CCD rated the No. 3 food services brand in Business World and Brand Equity surveys in
 Café Coffee Day was ranked as the 3rd best` Retail F & B chain’ in the ‘Brand Equity
Survey’ in 2004.
 Mr. V. G. Siddhartha, Chairman (Amalgamated Bean Coffee Trading Company Limited)
received the “ Economic Times – Entrepreneur of the year 2003” award.
 CCD has had its third consecutive victory in the India Barista Championship. Its
representative has gone on to represent India at World Barit Championships, winning silver
medal in 2002 and 5th place in 2004 for the country.
 Café Coffee Day won the Indian Hospitality Excellence Award under the category of
“India’s Most Popular Coffee Joint: 2010.”
 Promoter, Mr. V G Siddhartha was awarded with ‘ET Retail Hall of Fame’ for his
contribution to the growth in retail sector in 2014

Café coffee Day started its operations as a coffee retail chain in 1996 from Bengaluru. Prior to
this its ancestor Amalgamated Beans Coffee Trading Company Limited was mainly into the
coffee exporting business. ABCTCL owned India’s most rich coffee plantation in the beautiful
place of Chikmagluru. When it started its operations it didn’t saw a major growth as the
industry didn’t had much customer base and recognition. It also took time for the culture of
café going to seep into the habits of the Indian customers.

CCD took its time before expanding into new cities and tried to figure out the right product and
services mix first. The other competitors in market like Barista, Costa Coffee, which also
included international retail chains started expanding into the whole country at much faster rate
than CCD. AS CCD was first to start of the business in retail coffee shops and were last among
the major players to go national in end of 2001. The trends of low growth started to change
slowly around 2002-2003 and the market was still untapped. The main cause for this change
were probably the increase in spending power among unban youth and the increasing exposure
to global trends. The company operates from its head quarter in Chikmagluru, from where all
the major corporate decision pertaining to product design and company’s expansion takes
place. For further managing its processes well, the company has divided its operations in four
divisions for the entire country.

North- New Delhi

South- Bengaluru

East- Mumbai
West- Kolkata


Delhi Kolkata Bengaluru Mumbai

Zonal Zonal Zonal

Warehouse warehouse Warehouse


Each division has further distributed its processes and operation to different zonal ware houses
and central kitchens. From there onwards the central kitchens are connected to the outlets for
their daily needs and inventories. The outlets are managed by a store manager who heads a
team responsible of providing the products and services.

Process Layout

The Café Coffee Day in Patna has 6 outlets of which we visited three. One in P&M mall and
other in Alpana Market and Boring road. Following is the process layout design of the P&M
mall Patna outlet and all the figures and facts now onwards are of this store only.
The CCD outlet at P&M mall had a capacity of about 40 people in its sitting area. The ambience
in the store is well maintained in sync with its targeted customers. The outlet has a serving
counter which also had order placement and cash counter. The menu and all other products are
placed such that they are all easily visible for the costumers to order from. After the placement
of the order a Kitchen Order Ticket is generated which then passed to the concerned kitchen
station. Cold section is for the cold beverages, cake and pastries, hot section is for the hot
beverages and sandwiches and there is also a third station is brewery station which is there for
crushing coffee and brewing the coffee beans. Each station has one person for its processes and
also there is member on the cash counter. The kitchen has got is inventory inside which is
distributed in dry and perishable items. There is a back exist door for the employees and to
stock in the inventories.

CCD works on following strategy

Product Differentiation

Responding to customers’ need

Strong backend support

CCD today is the market leaders and this has been obtained by the company’s continuous run
for excellence in its products and also services. CCD’s strategy has always been on the product
differentiation. Even in the initial stage of the company’s inception CCD has focused on
improving upon the quality its service. The CCD is not competing with its opponents on the
basis of the cost as it does its costing more on the basis of the target customer and the cost they
bear in delivering the quality service.

Location Strategy

CCD chooses its outlet location very much carefully on the basis of the `Third Place’ basis. As
the customer target for CCD is youth, college going students and youth employed falling in the
20-35 age group. Catering to this section of customer CCD identifies `Third Place’ for their
outlet location. CCD consider home as the first place and office or colleges as the second place.
Hence the CCD goes for the third place where college or office going youth can come together
with their friends and colleagues to enjoy coffee over chats. The same is reflected in the tag
line of the CCD `A lot can happen over coffee’.

Apart from the outlets, the strategy for the warehouses or central kitchen location is done
meticulously in such a way that the perishable raw materials and the products like cakes,
pastries are made available to all the outlets in time and without hampering the quality of the
materials. There is also a backward link that is considered as all these raw materials are being
transported form the division head quarter. In case of the Patna’s outlet the central kitchen and
the ware house is situated in Ranchi and the outlet lies in the East Zone of the company having
its headquarter in Kolkata.

“People are hired for what they know but fired for how they behave”. This is the motto with
which the CCD goes with its employee. Services are thus considered as the soul of the CCD as
the company focusses a lot on its services thus they choose the employees very carefully
looking for the passion and creativity in its employees.

Human resource department is present at the Division level. Thus for the Patna it is present in
Kolkata. The recruitment of the employees till the outlet manager is done by the Division head
quarter and the recruitment of the team of the outlet the outlet manager is majorly responsible.

Also for deciding the number of employees at an outlet store, CCD follows a method of slabs.
The slabs are created on the basis of the sales per day that are being generated from the outlet.
Like in the case of the outlet in P&M mall, Patna there were 4+1 employees. This is can be
breakdown as 4 team members and 1 manager. This employee strength has been decided on
the basis of sales revenue generated on an average from the outlet. In P&M mall case it was
generating Rs.15000-20000 per day. This slab requires 4+1 = 5 employees in the outlet. By
this procedure the CCD maintains the labour productivity constant.

Labour productivity = Rs 17500/5

=3500 Rs/man/day

Internal promotions are done on the basis of the store performance. And proper training of the
employees is also done on the regular basis so as to keep the employees on the edge of their
service delivery. The company also follows a policy of job rotation in which the members at
the outlets are being rotated on to the different stations so as to make member aware of all the
processes and thus can disburse any duty in the outlet with equal competency. And this also
ensures not complete dependency of the team one members.

The house keeping staff of the outlets are being recruited through the tender that is being
opened from the divisions. Like in the case of Patna the house cleaning staff comes from a
outsourced vendor which is selected through a tender procedure initiated from Kolkata head

CCD follows a strict quality measures to ensure there is no discrepancy or inconsistency in

their products and services. For maintaining and ensuring the quality of the products and
services the company follows three different quality segments.

Product quality management

Service delivery management

Ambience management

The essence of the CCD are its own produced coffee beans from the lands of Karnataka. This
gives CCD a strong edge for maintaining their quality. For product quality management CCD
gives a proper training programmes for its employees in the preparations of the products. Apart
from the training the company is also focusing on the standardisation of its product by making
pre-mix sachets, and ready-to make mixes so as to reduce the time taken in preparations and
also to bring the consistency in the products prepared.

To maintain the quality of the service delivery the CCD relies on proper training of its
employees from the perspective of training its employees on the basis of customer relationship
and hospitability. There are strict SOPs (Standard Operating Procedures) that are been prepared
for conduct of team members in the outlet and to maintain the café culture.

To maintain the quality of the ambience and the space at the outlets, the outlets are designed
by professional designers so as to appeal to it customer segment. And to maintain the newness
and remove the monotonicity of the outlets. There are visits by the Division level managers to
ensure the products displayed are properly placed and the overall ambience is well taken care

For the smooth running of the business activities every organisation needs inventory. It acts as
bridge between distribution and production process. The main objective of inventory
management is to ensure availability of raw materials, sufficient for carrying out production
process. The various forms of inventory can be finished goods, goods in process and raw

At CCD Patna, P&M mall all the raw materials like beverages based mix, syrup, coffee powder
directly comes from centralised kitchen in Ranchi which is sub-zonal area. Others items like
merchandised products, cleaning material comes from Kolkata which zonal head of this area.
The important thing is that they are not depended on only one vendor for the supply of the
materials. In Kolkata there are more than 10 vendors for the smooth supply and without
hindering the production process of the stores located in Patna.

Mainly the materials are classified into categories on the basis of perishability that means the
product which have high degree of perishability are stored in less number. Some products
which have life of 1 year are stored in more numbers.

We would like to thank CCD manager, P&M mall, Patna for providing information for our
project without this we unable to make project.

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