About Cafe Coffee Day
For the people of India, Café Coffee Day is more than just a coffee shop. It is more of a cult choice that people make with affection. A peaceful atmosphere coupled with pretty good amenities, CCD is one of the fondest and most favourite places of hangout for teenagers and youngsters alike. The first Café Coffee Day outlet came to existence on July 11, 1996 at Bangalore. And, the tagline was ‘A lot can happen over a cup of coffee’. The Coffee shop was met with a great response and soon after its launch it expanded its reach to many other cities in India and by the end of 2018, Café Coffee Day had almost 2100 cafes across the country.
About the Founder of Café Coffee Day
Café Coffee Day is the brainchild of businessman V.G. Siddhartha who hails Chikmangaluru district of Karnataka. Siddhartha was born in a family which had been involved in the business of planting coffee for almost 140 years, so he had coffee in his blood. Siddhartha completed his master’s degree in economics from the university of Mangalore, Karnataka. He always had the qualities of an entrepreneur along with a mysterious ability to snatch a good deal from any situation.
The family of Siddhartha owned 350 acres of Coffee estate and if he would have wanted, he could have easily led a comfortable life. However, his ambitions were just not limited to managing his family, rather he was destined for something extraordinary. He was determined to start a business of his own and for the same purpose his father gave him 5 lakh Rs. He utilized the money to buy land for 3 lakh Rs and the remaining 2 lakh, he decided to save for future.
How V.G. Siddhartha Learned the Nuances of Retail Business
After a brief time, Siddhartha went to Mumbai and met JM Financial’s Mahendra Kampani. When he reached the office, he saw an elevator for the first time and not knowing how the machine works, he climbed 6 floors to meet Mahendra Kampani. Siddhartha had gate-crashed into the chamber of into Vice Chairman Kampani who asked him to provide a letter of introduction. So, that is how the journey of Siddhartha started.
It was while working at the JM Financial, that Siddhartha went on to learn the nuances of trade as he is working closely with the Kampani. After spending two years working with JM Financial and then he decided to move back to Bangalore to start his own venture.
Now in Bangalore, Siddhartha decided to open his own financial firm with the ₹2 lakh that he had saved. It was during that time the stock market had crashed when the and he was scouting for newer opportunities to invest his money. so, he simply bought a stock market card worth ₹30,000 and took over the company Sivan Securities.
The seed of Café Coffee Day
During the time when Siddhartha was operating his investment firm, he was also looking after the family business. At one instance, he had an inspirational conversation with the owners of German coffee chain Tchibo. The owners of Tchibo gave Siddhartha a completely different insight into building a billion-dollar business empire. Initially, he went on to start a Coffee trading company in the name of ‘’Amalgamated Bean Coffee’’ which would export coffee across the world. And, in the short span of two years, ‘ABC’ achieved the status of largest coffee exporter in the country.
The export business was going smoothly, however for long-term survival and market dominance, Siddhartha thought of coming with ground outlets for the brand that would result in creating a business model which is undissolvable. He was told by many people that the idea lacked vision and would lead to waste of time and money. However, Siddhartha had other plans and with his ability to turn situations to his benefit, he took the step and went ahead with it. So, in the year 1994, Siddhartha set up some set up 20-25 coffee stores across the Bangalore and 20 stores across Chennai they only sold coffee powder.
The Beginning of a Movement – Café Coffee Day
The profit margin in Coffee powder business was little and he was of the opinion that they require a better option to survive in the market. In 1995, the Café culture picked up and Siddhartha was pretty much prepared to tap on the opportunities at hand. He discussed the same with the management team and took the decision of opening cafes across the country.
With the business model, he decided to go one step further and make the Cyber Café with Coffee as well as the facility of internet. The idea seemed quite fair as in those days the internet was no less than a luxury and was accessible only to affluent people.
So, finally in 1996, Café Coffee Day’s first outlet was set-up in Bangalore. The fact that Internet Café served Coffee made people notice Café Coffee Day and soon it went viral. And as a result, Café Coffee day became the first choice of hangout for the youngsters.