Cafe Coffee Day is a famous cafe offering lip-smacking coffee beverages and food products as well. In this SWOT analysis of Cafe Coffee Day in 2024 in detail.
About Cafe Coffee Day
Cafe Coffee Day is one of the biggest coffee changes in India. The brand was established in 1996 and it offers a very relaxed space for working as well as socializing. CCD has a big network of outlets across semi-urban and urban areas playing a major role in the growth of the coffee culture of India.
Cafe Coffee Day at a Glance
| Founder | V. G. Siddhartha |
| Key People | R Ram Mohan – Chief Financial Officer
Malavika Hegde – CEO and Whole-Time Director S. V. Ranganath – Interim Chairman |
| Year of Establishment | 1996 |
| Annual Revenue (as of FY23) | Rs 9,588 Mn |
| Total assets (as of FY23) | Rs 55 Bn |
| Origin | Bengaluru, Karnataka, India |
| Total no. of employees | Approx. 15000 |
SWOT Analysis of Cafe Coffee Day
SWOT analysis helps in diagnosing the faults, strengths, threats, and opportunities of the company.
Let’s now see the SWOT analysis of Cafe Coffee Day in 2024.
Strengths of Cafe Coffee Day
CCD holds a number of strengths out of which the main are –
Unique taste & food
The menu of Cafe Coffee Day is very popular and people love the shakes of the brand. It also has some unique sandwiches as well as tidbits which have been a huge hit with customers.
Youth’s brand
Cafe Coffee Day is a youth-oriented brand and it attracts a lot of the latest statistics that approximately 50% of the people who enjoy Cafe Coffee Day are young.
Affordability and comfort
The brand offers great comfort and you can sit the whole day in the Cafe and no one will ask you when you are leaving. This is the major selling point of CCD. Moreover, it has a very affordable menu so that youngsters can afford it.
Weaknesses of Cafe Coffee Day
CCD has the following weaknesses –
Losing the bright side
CCD has lost the bright side it had in the beginning as it is not investing in appropriate promotions. Moreover, the entry of Starbucks as well as different competition has affected the brand image to a greater extent.
Poor ambiance
A lot of Cafe Coffee Day outlets have a very shabby ambiance as well as decor. The stores are not well maintained and it is impacting the brand image. There are a number of stores that are opened with poor interiors. This is exactly what the brand should take care of.
Choosing the wrong site
The selection of sites has not been so good for Cafe Coffee Day which is hurting the brand’s reputation. Since it is a retail establishment, it can affect turnover as well as the brand name.
Opportunities for Cafe Coffee Day
CCD has the following opportunities to make growth –
Varied items
Starbucks, which is one of the leading competitors of CCD, is offering a number of benefits to its customers. It has a diverse menu along with the coffee. Likely, Cafe Coffee Day should also have a diversified portfolio.
Enhanced ambiance
CCD is required to maintain the interior standards of every outlet it has. A lot of the brand’s interiors are shabby, reflecting the bad impact on the quality and consistency of the brand.
Informal meetings
CCD can market itself as a casual gathering point like McDonald’s. This can increase the engagement level of customers. It will eventually bring high revenue to the brand.
Threats to Cafe Coffee Day
CCD faces major threats including –
Intense competition
Cafe Coffee Day has a lot of competition with other cafes including Starbucks Costa Coffee Barista and much more. These competitors are taking the market share of Cafe Coffee Day and are resulting in reduced margins.
Indirect competitors
A number of hookah parlors are getting a lot of attention from youngsters. This is preferred by this kind of generation to hang around and is attracting the huge market share gained by CCD.
Top Competitors of Cafe Coffee Day
Here are the top 5 competitors of Cafe Coffee Day –
1. Starbucks: It is a globally recognized coffeehouse chain competing with Cafe Coffee Day. It offers different types of beverages and premium customer services for a high-end coffee experience.
2. Barista: It is also a strong competitor of Cafe Coffee Day and offers a different range of snacks, coffee beverages, and cafe experiences.
3. Costa Coffee: It is a UK-based Coffee House chain offering premium coffee and is a stronger competitor of CCD.
4. McCafe: The brand offers coffeehouse-style beverages and food and it is owned by McDonald’s.
5. Blue Tokai Coffee Roasters: It is a developing competitor of CCD that offers innovative coffee and special brews along with the best brand positioning.
Conclusion
Cafe Coffee Day is a famous coffee chain in India having a strong presence and a broad network of outlets. It has various strengths including strategic locations, product range, etc. It also faces challenges like intense competition and the requirement for consistent innovation. The company’s opportunities lie in expanding its digital presence and searching for new markets. In order to maintain leadership, Cafe Coffee Day should address operational faults and should also adapt to fluctuating customer preferences.