Café Coffee Day (CCD), India’s iconic coffeehouse brand founded by V.G. Siddhartha in 1996, transformed Indian café culture. Known for its youth appeal and cozy café ambiance, CCD has been a favorite meeting spot. But before considering ownership, let’s explore the real opportunity: CCD doesn’t follow a conventional franchise model—instead it adopts a partnership-based model where you lease or revenue-share a commercial space.
Partnership Models: Not a Traditional Franchise
CCD operates primarily under a Company-Owned, Company-Operated (COCO) model. While they occasionally partner with property owners for rental or revenue-sharing arrangements, they do not offer Franchise Owned & Franchise Operated (FOFO) model to individuals.
Investment Overview: Space vs. Partnership
If you own or control a suitable retail space, CCD may partner with you:
- Retail Space Requirement: 1,000 – 1,500 sq ft, ground-floor, minimum frontage of 25 ft and parking facility.
- Estimated Setup & Brand Fee:
- Commercial space owners: minimal equipment/interiors, possibly CCD supports fit-out
- Hypothetical franchise operator: ₹10 lakh to ₹70+ lakh depending on model and involvement level.
- Franchise/Post Partner Fee: Brand fee typically ₹50,000; a setup cost of ₹3–5 lakh (small format) to ₹25–35 lakh (larger setup). Cleaning, equipment, décor, initial inventory, licenses, etc.
Other sources estimate total investment for a full outlet at around ₹50–80 lakh, including franchise fee, interiors, working capital, and team.
Estimated Costs & Financials
Here’s a snapshot cost breakdown based on recent reports:
Expense Component | Estimated Range (₹) |
Brand Fee | ~50,000 |
Interiors & Equipment | ₹3 – ₹5 lakh (small) |
Full Setup & Décor | ₹10 – ₹35 lakh |
Working Capital | ₹5 – ₹10 lakh |
Total Estimated Outlay | ₹10 lakh – ₹80 lakh |
Larger lounge-style outlets could require up to ₹70 lakh–₹1 crore overall.
Revenue, Fees & Profit Potential
CCD charges ongoing brand royalty typically between 5% and 8% of gross sales, plus a marketing contribution of 2–3%.
Daily revenue at a mid-sized outlet in a busy location typically ranges from ₹30,000–₹40,000 (₹10–12 lakh a month), with net monthly profit around ₹2–3 lakh.
Assuming ₹12 lakh revenue and ~₹3 lakh profit, the payback period can be 3–4 months in smaller formats, or 18–36 months for full-store models.
Eligibility & Application Process
Eligibility
- Ownership or control of commercial retail space that meets CCD’s specifications.
- Financial readiness: liquid capital of ₹25 lakh+, net worth ₹50 lakh+ (as per CCD estimates).
- Willingness to maintain brand standards and operational compliance.
Application Steps
- Submit space/proposal to bd@cafecoffeeday.com with required property and demographic details.
- CCD conducts evaluation and decides on property partnership or outlet licensing.
- Sign a 3–5 year agreement.
- Setup support includes interiors, training, equipment, and initial launch assistance.
- Launch with CCD branding and ongoing operational support.
✅ Pros & ⚠️ Cons of Partnering with CCD
Pros
- Leverage CCD’s strong brand reputation and youth appeal.
- Operational support in setup, training, supplies, and marketing.
- Steady customer footfall in prime retail areas.
- Rapid return on investment in smaller formats.
Cons
- CCD requires compliance with strict SOPs, supply sources, and promotions—even if you’re leasing space.
- CCD’s corporate struggles—such as ownership transitions and some outlet closures—can affect long-term reliability.
- Coffee retail is competitive; location matters critically, and margins might get squeezed by rent or operating costs.
Final Verdict
A Café Coffee Day partnership in India is possible mostly via property owners entering revenue or rental agreements, rather than traditional franchising. Initial investment varies from ₹10 lakh for small kiosk setups to ₹70 lakh–₹1 crore for full café formats.
Profitability is real—with daily sales of ₹30–40k and monthly net profits around ₹2–3 lakh, payback often happens within months to a few years. That said, ensure your location matches CCD’s brand expectations and analyze operational overheads closely.
For serious investors with access to property and a desire to tap India’s café culture, CCD presents a refined opportunity—but only via formal channel engagement with their BD team.