"In the first phase, we will open 100 stores across India, of which most would come up in southern India within the next 18 months. The total investment for setting up this café chain would be around Rs.500 million ($12 million)," the promoting company RPG Enterprises' vice-chairman Sanjiv Goenka told a press conference on Tuesday.
"Presently we are focusing on the southern part of India, mainly in Bangalore, Hyderabad and Chennai, to open this bakery café chain. Later, the company would go for expansion in the northern parts of the country, followed by the eastern and western states," Goenka said, adding, 'most of the stores will have interior space of around 1,200-1,500 square feet'.
The venture, in which Spencer's holds 90 percent, will set up 100 cafes over the next 18 months in India. The cafes will also be located in the retail unit's hypermarkets.
About 65 percent of Spencer's hypermarket sale is from food and groceries and the rest from non-food items like consumer durables, but this will be equalised into food and non-food over the next 18-24 months to boost profits, says Vice President –Marketing, Samar Sheikhawat.
The coffee café market is controlled by Barista and Café Coffee Day with the popular US chain Starbucks shifting its stand. The second largest coffee retailer Caribou is also trying to make an entry but nothing concrete has been heard from them. There had been speculation that RPG might be in talks with them for a collaborative effort. |