Comments on: What Business Are you In – Case Study: Cafe Coffee Day

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Fri, 10 Feb 2012 14:53:02 +0000

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By: viraj patil

viraj patil — Mon, 22 Feb 2010 07:18:14 +0000

u r true but, ccd is an meeting point same as kind of Barista is the hanging place for the youngsters to spend time and money.

By: Ashish

Ashish — Fri, 19 Feb 2010 15:40:57 +0000

Crap.
Is that’s your argument, the professor has completely copied our earlier article – competitive-analysis-substitutes-alternatives

You happened to read his article received thru email forwards before this article. Do you have the balls to tell him?

Cheers,
Ashish

By: avinash

avinash — Fri, 19 Feb 2010 15:12:16 +0000

The starting of the article is copied from a WSJ article “Have breakfast or be a breakfast” by a professor from IIM Bangalor Prof. LR moorthy.

However the CCD example is unique

By: Prasun

Prasun — Wed, 17 Feb 2010 12:27:52 +0000

Even all the Cineplexes are not in the business of showing movies. Rather, it is the F&B that brings in the money, and helps in break-even of the RE at an earlier stage than the conventional 10-15 years model. Hence, the alarmingly high prices of food items and non-allowance of external food inside

By: naman

naman — Fri, 05 Feb 2010 05:55:52 +0000

Reliance web world actually tried to promote itself as a meeting point and gave conference room on hourly rental basis but for some reason that never picked up. Any idea why??? Was there coffee bad or the ambiance too office type.

By: naman

naman — Fri, 05 Feb 2010 05:54:28 +0000

I believe same thing happens in a lot of other businesses. Here the space is provided free and Coffee is pushed as a revenue generator.

Compare this to Bollywood. Actors would do movie for free also (most do it irrespective of the Crore Rs. signing amount we hear about) because appearing in a movie will attract more advertisers and endorsement contracts, where the real big money comes from.

May be blog do the same. We give content for free and push the ads along. Only in this case we can only hope they would click on it.

By: ajay

ajay — Thu, 04 Feb 2010 14:55:29 +0000

The SCOOP …….THE RUMOR ……. is Reliance is coming up with ……..”RELIANCE CAFE” where they will steal out 5ml to 10 ml of coffee from each cup and …. charge for a full cup…… like they do in Reliance mobile billing…… So this is new Business Model

By: Sudeepa

Sudeepa — Thu, 04 Feb 2010 10:37:49 +0000

Good article getting me to think what business are we really in? all the anciliary stuff.

By: Pradeep

Pradeep — Thu, 04 Feb 2010 07:35:05 +0000

Wow.. great insight its really hard to say what business you are in?

By: Shashi

Shashi — Wed, 03 Feb 2010 18:57:35 +0000

Exactly! Their Tag line says it all!

@Ashish Nice Article. Reminds me to think which business am I in?

By: Hitesh

Hitesh — Wed, 03 Feb 2010 17:34:28 +0000

A lot can happen over a coffee
CCD is’nt a place for coffee lovers, it is considered as a meeting/dating place. People pay for using their space

By: Ashish

Ashish — Wed, 03 Feb 2010 16:19:28 +0000

Now that’s some real research

By: jyotirmoy

jyotirmoy — Wed, 03 Feb 2010 13:33:46 +0000

coffee leverages on attractions of opposite sex…. while tea represents office colleagues. Dead meat, in other words.

Does that ring any bells?

By: vivek

vivek — Wed, 03 Feb 2010 13:21:41 +0000

Since Indians consume more tea(assuming), does that mean if Tata Tea comes up with a chain of tea shops, they should do better than CCD. After all better to meet in a place with good chai then coffee. !!!

By: jyotirmoy

jyotirmoy — Wed, 03 Feb 2010 12:57:47 +0000

The best among food chains is dominoes. Their home delivery model ensures minimum commercial rentals and offers really good conversion opportunity for lazy and tired bums from the office-going junta.

By: Pratik Poddar

Pratik Poddar — Wed, 03 Feb 2010 12:48:02 +0000

Gud one Thanx

By: Pratik Poddar

Pratik Poddar — Wed, 03 Feb 2010 12:47:03 +0000

Nice article..

Just making your argument simpler: Clearly define your competitors.
In case of CCD, its not Barista, but its some hotel meeting rooms.
In case of Trains, its airlines and bus services.
In case of companies like Nescafe (I am not able to think of any other coffee company), its chachm, tea and milk

and so on..

– Pratik

By: Radhika

Radhika — Wed, 03 Feb 2010 12:39:11 +0000

I agree with Manish on this. Most of the CCD’s in India are run by franchises and are mostly on rent. CCD probably has just 10%.

Radhika

By: Mayank

Mayank — Wed, 03 Feb 2010 11:50:32 +0000

And, I quote: “We are in the real estate business. The only reason we sell hamburgers is because they are the greatest producer of revenue from which our tenants can pay us rent.” This qyote is attributed to their erstwhile CFO, Harry Sonneborn.

One can read more about this here:
http://money.howstuffworks.com/mcdonalds2.htm

By: Mayank

Mayank — Wed, 03 Feb 2010 11:46:29 +0000

I remember studying in my Business Strategy class that McDonalds(Roy Kroc?) said they’re in the business of Real Estate. I’m sure you are juxtaposing that to CCD.

By: Vipul

Vipul — Wed, 03 Feb 2010 11:10:59 +0000

Nice. Agree with your POV.

By: Manish

Manish — Wed, 03 Feb 2010 11:04:24 +0000

Yes CCD is building real estate business, but only 10% cafe they have, rest 90% is on rent.