 "Cafe Coffee Day Struggles: Outlets Shrink While Vending Machines Surge")
Cafe Coffee Day (CCD) is experiencing a decline in its cafe outlets, dropping to 450 in FY24 from 469 in the previous year, and its presence has reduced to 141 cities, compared to 154 the year before. However, the company has seen significant growth in its vending machine operations, which rose to 52,581. Despite the challenges following the death of its founder, CCD reported a gross revenue increase of 11.16% to Rs 966 crore in FY24. The firm’s total debt has notably decreased to Rs 881 crore, showcasing ongoing efforts to manage finances and scale back operations through asset resolutions and debt reduction strategies.
Title: Cafe Coffee Day Faces Challenges Yet Reports Revenue Growth
In recent news, Cafe Coffee Day (CCD) has reported a decline in its outlets, with only 450 operational cafes in FY24, a drop from the previous year’s 469. The company’s presence across cities also decreased, now reaching just 141 cities compared to 154 in FY23. Despite these setbacks, there has been a notable rise in the number of vending machines, increasing to 52,581 from 48,788 the year before.
According to the latest annual report from Coffee Day Enterprises Ltd (CDEL), which manages the CCD brand, the company experienced a dip in the Value Express kiosks, which now stand at 265. However, the strong performance in vending machine operations has helped stabilize revenue, with gross revenue from CCD’s consolidated coffee business rising to Rs 966 crore in 2023-24, marking an 11.16% growth year-on-year.
The company has faced significant challenges since the passing of its founder, V G Siddhartha, in July 2019. To manage its financial issues, CCD has been focusing on reducing debt through asset sales. As of March 31, 2024, total loans amounted to Rs 1,159 crore, reflecting a positive reduction from Rs 1,524 crore the previous year.
While these developments indicate a need for strategic improvement, the increase in vending operations could signify a shift in consumer preferences and Market opportunities for CCD.
This story highlights both the challenges and the resilience of Cafe Coffee Day as they navigate the evolving landscape of the coffee retail Market.
Tags: Cafe Coffee Day, CCD, Coffee Day Enterprises Ltd, FY24, revenue growth, vending machines, retail challenges
What does it mean that CCD cafe count fell to 450 in FY24?
It means that the number of Cafe Coffee Day locations has decreased to 450 this financial year.
Why did the number of CCD cafes decrease?
The reasons for the decrease could involve business strategies, closing underperforming locations, or changes in customer demand.
How many vending machines does CCD have now?
The article mentions that the number of operational vending machines has increased, but it does not specify the exact number.
Are vending machines a new focus for CCD?
Yes, it seems that CCD is focusing more on expanding their vending machine operations as part of their business strategy.
What can customers expect from CCD with fewer cafes?
Customers can still enjoy CCD beverages from the remaining cafes and from vending machines, which may offer more convenient options.
