It’s the way- is CCD on right way?

 

In News: Florista comes with CCD in Shop-in-Shop partnership. 

CCD (Café Coffee Day) -India’s home-grown coffee has gone for a strategic tie-up with Florista, one of India’s flower retailers. Under this agreement, CCD will allow shop-in-shop flowers kiosk in their outlets. CCD, which started the chain in 1996 have around 500+ store presence in prominent locations across the nation,  While Florista have a presence at online and physical stores in more than 100 cities of India.  

In the last 10 months, this is the third tie-up of CCD for shop-in-shop. The earlier was with LBC (London  Bubble Co.) and Wow! Momo. All tie-up was similar with some differences like in LBC, CCD can’t cater the menu which will compete with LBC’s one. And with earlier two will have presence within the CCD stores  while Florista will at outside of the outlets.  

So, the question arises, in spite of being in the food business why the CCD has allowed another food chain within its store? Or does CCD have enough space to allow other businesses to grow under its roof? 

As per one of news agency, CCD which is India’s favourite hangout place is possibly at the verge of bankruptcy and  have huge debt of 280 crores. And ongoing pandemic pushed it to shut down many of its stores across regions. So, the  recent strategic partnerships which is on revenue share model will allow to generate some of the extra revenue. It is well  said, any company or organisation would like to add on its revenue side without adding much or less in expense side of its  balance sheet. 

So, is getting the revenue share is the only reason? 

The tie up with LBC and Wow Momo can completes the meal so there will be customer exchange among them. And  consumers who buy flowers for gifting purpose falls in the segment of these food chains, ultimately brings some extra  footfall for CCD. The coffee chain needs a revival, it can use this opportunity by using different promotions and  marketing techniques for the consumers. 

Apart from this what other things can CCD to come again on track? 

We would love to hear from you on this in comment section!!

Author Details:

Name: Omkar Nath

Batch: 2020 – 2022

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