The State-run Coffee
Board is planning to revive and expand India Coffee
Houses (ICHs) along with private players. The Board aims to open atleast 75 full-service ICHs over the next three years, to take on the organised chains in the Rs 18.64 billion market.
This is one of the initiatives taken by the Board to increase domestic consumption in India, says the Board.
outlets have been popular across the country for more than eight decades now, for the pure coffee
and snacks they offer.
Its first attempt at setting up branded outlets was in the 1940s, with India Coffee
House, but this had to be shut down within a decade as the concept of stepping out of the home for coffee
was limited to a few sections of society in a handful of cities. In 1957, the India Coffee
Board Workers Cooperative Society revived the franchise under a new name: Indian Coffee
House and set up a store in New Delhi. The Coffee
Board is currently operating 12 India Coffee
Houses across the country.
Now the Board plans to to expand the full-service format ICHs by partnering with private sector operators. Each ICH
would occupy 1,000-1,500 sq ft carpet area. The Board has called for a pre-bid consultation meeting towards this end.
"Towards leveraging the brand to achieve rapid and sustained growth in domestic coffee
consumption, the Board intends to expand this chain of outlets by implementing a franchiser-owned franchisee-operated Model," the Coffee
Since most high potential public locations have hitherto remained untapped due to accessibility and other challenges, the Coffee
Board will liaise with various establishments to offer such spaces to select entities that are identified through a bidding process. Along with enabling access to high footfall locations, the Coffee
Board will also promote the initiative by building awareness through a broadbased, countrywide ‘India coffee’ campaign that would also highlight the positioning and offerings of the “India Coffee
The campaign would include development of a strong brand identity and logos among other things, through traditional media and digital/social media campaigns. These would be fully rolled out by the first quarter of 2018.
Quoting an NRAI Food Service Report
2016, the Board said that about 2,864 cafes actively operate in a market whose size is estimated at Rs 18.64 billion. Cafés or coffee
houses can play a pivotal role in driving in home coffee
consumption and can trigger a change in consumer behaviour towards coffee.
The cafés have witnessed a compounded average growth rate (CAGR) of 6.9 per cent during the period 2013-16 and are expected to have a growth rate of nine per cent in 2016-21. While the cafés and coffee
houses could have grown at a faster rate, high real estate costs have constrained their performance.