Franchise Talk

Indian coffee chain blends into Pakistan

January 6th, 2007 | Author: Jack

KARACHI (Reuters) – India’s largest coffee chain has opened a cafe in Karachi, the first of 30 planned in Pakistan, its Pakistani franchise partner said on Friday.

Cafe Coffee Day, the popular name for Amalgamated Bean Coffee Trading Company, is breaking new ground for Indian companies in Pakistan by getting into the retail business.

Pakistan, like India, is a tea-drinking nation, but Cafe Coffee Day aims to attract a following among the better-off urban youth. The absence of bars — alcohol is banned for Muslims — could make the market easier to crack.

The first Cafe Coffee Day branch opened in Karachi’s posh Clifton neighbourhood, and Amin Hashwani, a member of one of Pakistan’s leading business families, said there were plans to open 30 cafes in the country’s main cities.

Cafe Coffee Day currently operates around 370 outlets in India with one in Vienna.

“We have kept our prices very reasonable at 50 rupees (44 pence) for a cup of espresso, as other coffee shops in Pakistan are heavily priced,” Hashwani told Reuters.

“Our lounges will be a place for the huge youth population to relax in a nice ambience,” he added.

A cup of chai, the sweet milky tea served in Pakistan’s ubiquitous tea shops, can cost as little as three rupees (just under 5 U.S. cents).

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