Cafe Coffee Day to start doorstep Coffee delivery,ties up with Swiggy.
Cafe Coffee Day will now deliver its coffee and snacking items at your doorstep. It has tied up with online food delivery startup Swiggy for the initiative.
Bengaluru | Red Newswire | By TNN | Dec 2, 2015 09:15 PM IST.
Competitors like Starbucks – as also a host of smaller snacking, beverage and dessert ventures including Corner House, Juice Junction, Vasudev Adigas and Goli Vada Pav – already offer home and office delivery. But the scale at which Cafe Coffee Day can do it would probably dwarf everybody, given that it has 1,538 cafes across 219 cities.
For now, the initiative is restricted to Bengaluru, where it has designated 50 cafes from where Swiggy will pick up the orders. Customers need to place their orders through the Swiggy app.
“Delivery for snack time and quick meal was an area where we saw a clear gap,” Coffee Day Enterprises marketing president Bidisha Nagaraj told TOI.
Food ventures like FreshMenu and Mast Kalandar have fairly wide networks, but they mainly serve lunch and dinner, though they too are said to be looking to enter the snacks category.
The move will help Coffee Day increase its customer base and provide snacking food throughout the day. Demand for online food ordering has surged across the country due to a rapid growth of the urban middle class with high disposable incomes and popularity of smartphones. Cafe Coffee Day expects its average orders for delivery to be between Rs 275 and Rs 300.
The company is looking to add “at least 10-15% additional revenue” through this move by the end of the fiscal, Nagaraj said. Swiggy, which counts SAIF Partners and Accel Partners among its investors, will take a 15% commission on every delivery. The company plans to take this partnership to seven other cities, including Mumbai and Delhi NCR, within the next six months, Swiggy co-founder Nandan Reddy said.
Nagaraj said the Bengaluru pilot project will be used to understand customer feedback about menu, and things like whether beverage is being served the correct way. “We will fine tune depending on the feedback,” she said.
Coffee Day Enterprises, promoted by V G Siddhartha, went public in October. The company had a revenue of Rs 2,549 crore last year, with a net loss of Rs 87 crore.