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Di Bella, Australian coffee chain to put US$ 10 million into expansion

Economic Times:  August 08, 2016

New Delhi: Di Bella, an Australian coffee chain that operates 11 outlets in Mumbai, plans to invest $10 million, or about Rs 67 crore, on expansion that will include entering Delhi and Bengaluru next year.

Rahul Leekha, director of Electel that holds Di Bella Coffee licence for India, Middle East, Africa, European Union and the UK, said the company is working on a 3,000 sq ft flagship store at Linking Road, Mumbai and will target opening around 20 stores in the city by next year besides entering Delhi and Bangalore in 2017.

Leekha and Ashish Akleker founded Electel in 2014 for holding Di Bella coffee licence. The company will also look at the Middle Eastern market subsequently through a joint venture partnership there, Leekha said.

The company said it takes approximately Rs 1.5 crore to set up an outlet, including fitments, rent, etc.

Di Bella's business model revolves around running a profitable operation. It targets achieving operational level break even from month one of operations.

Most of its rental agreements are on a revenue-share basis. Officials said it is close to a 20-25 per cent EBITA positive mark. Di Bella does not consider itself a competitor to top coffee chain Cafe Coffee Day that targets 16-20 year old customers.

"We are not a Cafe Coffee Day and never want to be one. We also don't want to scale like Starbucks has," Leekha told ET.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.