Café Coffee Day (CCD), is it getting better or bitter?

Grown up in a small town in Gujarat, I was completely unaware of brands such as Café Coffee Day (CCD) till the time I landed up in an Engineering college in Ahmedabad. Through local boys I was introduced to CCD and many such brands which I did not have access prior to that point. Honestly CCD came across to me as a posh brand as paying minimum of Rs 50 for a cup of coffee, was something beyond a small-town guy within me back then. Post management graduation, I came to understand that prices are based on many aspects – starting from easy-to-grasp concepts such as raw material and overhead costs, location cost etc. and going into several intriguing concepts including ambiance, value-added services, style-quotient etc. Many price-conscious consumers like me, especially in India, would not find them selves to be ready to spend highly just for those additional aspects raising the cost of a simple cup of coffee; but I understand that this is a matter of choice for both buyers and sellers. With this understanding I slowly kind of came to terms with this ‘high’ charges for a cup of coffee at such posh joints. Still I always value the real cost the most and in return expect matching quality of end products as well as of service standards delivered to me.

Because of my profession – market/business research – I am aware that CCD brand actually belongs to Amalgamated Bean Coffee Trading Company Limited (ABCTCL); the company have started from Karnataka and following a franchisee model has successfully spread across India now; corporate website tells that the total number of stores under CCD chain is at 923 at the moment and within India the brand’s presence is not only limited to Metro cities but it has also reached to other cities such as Jaipur, Jodhpur, Ahmedabad, Surat, Bhopal, Indore, Lucknow, Vizag and many more. So definitely it feels good that the brand is doing GREAT in terms of business growth.

But my recent encounters with CCD, especially in Hyderabad, have made me doubt on my perception of CCD as a good brand and rather on CCD’s promise to its customers: “come to me not only for coffee but for an experience around it”. In last few days I happened to visit three different CCD stores – at Ashoka Bhoopal Chambers, Lifestyle building and Nagarjuna Circle. Several things which I observed are behind an emergence of negative image of CCD brand.

• Varied experience across various stores – I think even when this is a franchisee-model operation, customer perceives it to be a same brand and hence expects a same experience. Stores at Ashoka Bhoopal and Lifestyle offer normal drinking water without charging where as Nagarjuna Circle store forces you to drink CCD branded bottled water that too at a premium charges as compared to prices out side.
• Poor interiors – especially at Ashoka Bhoopal Chambers based store the rest rooms were in highly unhygienic conditions; the temperature within the store is not maintained properly even in the peak summer time. During my visit to some of the offices in side the building I notice several offices have recently opted to move out and may be because of this attrition of regular customers might have affected the business of CCD store there; but this does not justify bad service standards to me. Even at the store at Nagarjuna Circle, I found at least two of the tables’, right near the entrance, upper surface to be in damaged conditions and upon asking the staff’s answer was far from being satisfactory.
• Unethical practices – Nagarjuna Circle store literally tried cheating me; against my payment, they handed me the rest of the amount with a bigger pack of Orbit chewing gum in stead of five rupees. Initially the staff told me casually that they were short of change but looking at my mood they somehow were able to find the change which a just while ago was in shortage. This is just unacceptable to me; I may choose to tip but can not be forced.
• Stark absence of activities/initiatives – During my early visits I noticed that a store at Somajiguda Circle had a customer comment board decorated with loads of colourful comments. None were found at the rest of three stores I visited recently which again is an indication of lack of interest on owner’s part. This ultimately transforms into demeaning a CCD brand as a whole.

So I am now really doubtful about this brand and its ability to deliver on its promises, at least to me. Hope some body at the core of CCD brand is listening and has the heart to act on these. This is all the more necessary with the global coffee retailers are hot their heels – Costa Coffee (UK), The Coffee Bean & Tea Leaf (USA), Starbucks (USA), Gloria Jean’s (Australia) etc.