Cafe Coffee Day pull down its shutters of 280 outlets
By Retail4Growth Team | July 21, 2020
With these closures, the total count of its outlets stood at 1,480 as on June 30, 2020.
Homegrown coffee chain Cafe Coffee Day (CCD) has pulled down shutters of its 280 outlets in the first quarter of the current fiscal year, citing profitability issues, according to the company’s statement. With these closures, the total count of its outlets stood at 1,480 as on June 30, 2020.
The coffee chain also reported a decline in average sales per day (ASPD) to 15,445 during the April-June quarter from 15,739 in the corresponding period of the last fiscal. However, the count of its vending machines went up to 59,115 units in Q1 FY20 from 49,397 in the same quarter a year ago.
"Exports operations have been temporarily stopped due to lower margins and higher working capital requirement and around 280 outlets are closed during the quarter based on various factors including the profitability, future increase in major expenses," the company said.
It further said that the decision "will result in continuing the remaining cafes profitable and adding value to the company as a whole to continue as going concerned".
Cafe Coffee Day is a brand owned by Coffee Day Global, a step-down company of Coffee Day Enterprises Ltd (CDEL).
CDEL in September last year had announced the sale of its Global Village Tech Park in Bengaluru to global investment firm Blackstone and realty firm Salarpuria Sattva at an enterprising value of Rs 2,700 crore.
It has also sold CDEL's stake in IT firm Mindtree to L&T Infotech.
