A brew that cheers

Bangalore, with its vibrant youth culture, was one of the first cities to usher in the coffee revolution in a nation that prides itself for the tea it produces. We take a closer look at the city's coffee culture. By Gayatri Vijaykumar

When the Muslim saint Baba Budan dropped seven coffee beans on the Chandragiri Hills (later renamed as Baba Budan Hills), in Chikmagulur district of Karnataka in the 16th century, little did he know that centuries later the beans would see so many takers in a predominantly tea-drinking nation.

Many entrepreneurs saw opportunities in the increasing affluence of the mobile urban youth and decided to capitalise on it. As a result, the coffee revolution kicked off during the late 1990s, primarily taking root in Bangalore. Simran Sablok, general manager (Marketing), Café Coffee Day talks about the emergence of the coffee culture in Bangalore. "Till about the late 1990s, coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five-star coffee shop visitor. Gradually, as the café culture in neighboring international markets grew, the need for a relaxed and fun 'hangout' for the emerging urban youth in the country was clearly seen."

With all the leading coffee brands having their outlets in the city, it is impossible to miss the Café Coffee Days, Baristas, Java Greens and Qwiky's competing on the road side, in addition to the local kaapi (coffee) shops in the background. Bangalore has also seen new entrants into the coffee business like Brew Ha Ha and Café Inch. Says managing partner of Brew Ha Ha, Sreeraman Vaidyanathan, "This is not your typical coffee shop. We see ourselves in the business of selling a fun experience, rather than just food."

Sablok states that the Bangalore market is one of the most inspirational and rapidly evolving markets, with every brand worth its salt, having its presence here. "The cosmopolitan outlook and experimentative attitude of the crowd here is ideal for new concepts," she adds. The prime target group for all the coffee outlets are youngsters aged between 20 and 35 years.

The players

Café Coffee Day, which runs the country's largest chain of outlets, pioneered the café concept in India in 1996, by opening its first café at Brigade Road in Bangalore. Sablok explains, "Recognising the potential that lay ahead, Café Coffee Day embarked on a journey to become a large organised retail café chain with a distinct brand identity. From a handful of cafés in six cites in the first five years, it has become India's largest and premier retail chain of cafes with 470 outlets in 84 cities around the country." Café Coffee Day has plans of increasing this number to 500 across 100 cities by the end of 2007.

Barista, which started its operations in the year 2000, offers customers an authentic Italian coffee drinking experience. Rini Dutta, its vice president (Marketing & Product Development), says that the concept of setting up Barista was to provide a third space, away from work and home, where the customer could relax and unwind. Brew Ha Ha, which started its operations this year plans to bring the concept to all tier I and tier II cities within the next five years.

Signature brews

Café Coffee Day had to invent a whole new menu that would offer an international experience. "We have several products that are unique to our cafes - like the 'Café Frappe' (ice cream-based coffee beverage), our signature 'Kapi Nirvana' (which won a silver medal at the World Barista Championship), and a range of hot coffees. Another favourite is the cappuccino with the creation of the smiley face on the cup," says Sablok. Café Coffee Day's product range includes hot coffees, cold coffees, fruit-based drinks, teas, plus a wide range of snacks to go with the beverages. "Our menu is updated and refreshed every quarter, in order to avoid menu fatigue," adds Sablok.

Meanwhile, 'The Calvin Brew' and 'Arctic Winter Brew' are some of Brew Ha Ha's signature coffees. "Our product range includes an extensive food offering apart from the beverages and most importantly the games, that ensure you have a fun time hanging out," explains Vaidyanathan. "Our signature drinks are the classic 'Cappuccino', 'Latte', Barista cold coffee, Barista Frappe and Barista Smoothies," says Dutta. Barista, too, refreshes its menu every quarter. Its recent launches have been Art of Espresso (winter 2006), Sweet Nothings (spring 2007), The Sandwich & Tart Festival (April 2007) and Thirst Buster (summer 2007).

Emerging brewing trends

Sablok feels that the predominantly tea drinking market is being penetrated by an increasing concentration of coffee consumers. "There are more coffee connoisseurs and people who can tell the difference between a macchiato and an espresso today," she says.

To add to this, an increasing number of people prefer spending more time outside their homes, thus fuelling the need to have a place to 'hang- out'. According to Dutta, over the past few years there has been an increasing demand for coffee, made the Italian way - i.e., freshly brewed espresso with or without milk. She adds that the Bangalore market has been growing steadily over the past few years and has recorded a much higher growth rate than other metros in the last two years.

Business models

However, Brew Ha Ha aims to take a slightly different path. "We are trying to be a place where folks can come to relax with friends and family. We guarantee them a fun time to make sure their unwind time is also a 'funwind' time’, he adds. Thus, it is banking on the stockpile of games on the shelf, apart from its own variety of brews, to attract patrons.

Conventionally, or at least in the case of a brand or two, coffee joints have become a meeting place for people where they decide their next destination over a cup of coffee. This ensures a constant and relatively rapid movement of crowd in and out of these joints. Brew Ha Ha's approach is evidently looking to break this convention and the success of this model would be the start of a new culture within the same space, what Vaidyanathan terms 'funwind'. Though tried earlier by some of the majors, this concept has never been the central focus.

This also is in contrast to the regular model, usually followed by the bigger brands, where the key to success is dependent on the spot at which the joint is located, changing the nature of the competition to being more real estate-oriented.