Grab & go, organic and vegan food, are visible post-Covid-19 trends.
Cuppa Beverages has made a mark for itself in the young crowd of Bengaluru. “When we acquired Cuppa from the previous promoters, we wanted to create a great experience by giving the brand an European touch. We have specified utmost importance to the interiors and the ambience, to bring out the best dine-in experience. We believe that there wouldn’t be any better way to explore our passion for food and make a mark in the industry. It gave us an opportunity to explore and discover food trends with the maximum innovation,” said Visakh Viswambharan, director, and Vijay Sreedhar, executive director, Cuppa Beverages, in an email interaction with Nandita Vijay, while also highlighting the challenges experienced by the company during Covid-19 outbreak. Excerpts:
How would you see the scene for restaurants post-Covid-19?
The restaurant business would not be the same post-Covid-19 pandemic. It will leave a lasting impact on the way we eat, live and work. People will come out of this pandemic with more focus towards healthy and vegetarian food.
People would be more conscious about where and what they eat. Dine-in culture is expected to go down. Similarly, takeaways and home deliveries might become a norm. Also there will be more focus laid on hygiene and social distancing. Sanitisation of the kitchen and temperature checks for our staff and delivery executive along with masks and gloves might as well become compulsory after the pandemic.
What is the response by venture capitalists and private equity players to the restaurant business model?
Right now they are shying away from conventional models. However they are open about new operational models. We are on an innovative path and I’m sure we will get through this situation sooner or later.
What are the challenges faced by the sector?
There are many challenges for the F&B sector right now. Difficulties in procuring the supplies, buying essentials at a higher price and most importantly loss in revenue since people are in lockdown. Restaurants and malls are shut and no one knows when business is coming back to normal. The industry is going through some very challenging times and it will definitely take time to come back to normalcy again.
How would businesses like yours transform in the post-Covid-19 phase?
We are innovating every moment. This is not the time to sit back and think that ‘nothing seems to be working out and let's shut shop’ and so on. We are revamping our modus operandi and we are sure to bounce back. We already have mapped out plans and it should shape up in the coming days.
Another important thing we are doing is reducing our cost of operation to a minimum. Any business which does not do that will bite the dust soon or already would have.
Share its success since 2008.
Our company was established in 2008, and is a well-known brand even before we acquired it in 2018. Explosive expansion in 2015 led to the opening of the 150th café, record breaker in terms of growth!
Previously we had built itself to be a cafe focussed on tea and coffee, and we wanted to create some variations to it to keep up with the trend. We went through a brand overhaul and our new branding was created keeping in mind the minimalist approach of the millennials. Our greatest success has been the way we have redefined our outlets. We have space for art, fashion exhibitors, regular activity nights and events to nurture a connection with the community and make it a place suitable for all.
We have successfully launched two different models so far - Cuppa Redefined, which is our dine-in outlet, with an extensive menu focussed on providing healthy and nutritious food. Here people can enjoy the food and the ambience. And with our ambitious plan to scale the brand we rolled out Cuppa Go, a grab and go model.
We had plans of launching 50 stores in 2020 and now we are evaluating our plans for expansion, and will take it ahead as the situation warrants.
What are the key strengths?
There are two key strengths for us. One being our freshly prepared food and the other being our staff; they are like our own family. To give an example none of them have been left out of the system during this period of pandemic.
Since the time we acquired the company, we have been about providing fresh and healthy food - the kind that you love to indulge in and the way we take care of our people. We have always made sure our staffs are kept happy. For us its employees first and everything else second.
The Covid-19 pandemic has shut all restaurant operations. In the wake of this, revenue would have been impacted. Comment.
Right now, we are experiencing some unpredictable and challenging situations of our times. Cuppa Go, our grab and go outlets are not operational because of the Covid-19 situation. But we are operating our Cuppa Redefined outlet with only the kitchen functioning for online deliveries. We have also started an initiative called Cuppa HOPE (Helping Other People Eat) where we provide free meals to daily wage workers and people living in slums. The food package consists of lentils, rice and a curry. With this initiative, we aim to serve our susceptible community. We want to reach out to the maximum number of people to ensure that nobody sleeps hungry.
Through online delivery apps: Swiggy and Zomato, we are able to retain 40% of our business as compared to before the lockdown.Covid-19 pandemic has put a large dent on our growth plans. We were supposed to open 50 outlets this year. We had four new outlets opened within the mid of February. Although we are frustrated, we are finding ways to tweak the business model to get through this tough time.
What is the menu and which are the fastest growing options?
Staying healthy is a need, not a choice. Moreover, people these days are well aware about what they are eating and they are more into fitness and are health-conscious than ever before, and us being part of the industry, it’s our responsibility to be thoughtful about what we are placing on our customer’s plate. For instance, today an egg is not just an egg anymore. It could be organic, locally grown, cage-free, non-GMO etc.
Our menu is focussed on promoting and delivering healthy food choices to our customers. It is our topmost priority to ensure that the food served is freshly made and we aim to provide the highest quality food without compromising on nutrition. Our menu consists of hot and cold beverages, short bites, burgers & sandwiches, all day breakfast options, rice / salad and pasta bowls. Everything we serve is fresh, healthy and nutritional.
We have made an effort to ensure that the food served should be fresh. Our aim is to offer the best taste while keeping the nutrients intact. We discourage and do not believe in serving frozen food. We also try to keep up with the evolving trends like the grab & go, organic and vegan food, with the intention of serving our customers better.
Most of our customers are well read and know what they are consuming; they look at the attributes related to health and wellness, ethics, and the environment. Consumers want their food to have an increasingly wide range of benefits. They will pay more for food that delivers the benefits it claims.
What age groups frequent your outlets?
We have people coming from different age groups to Cuppa Redefined to dine-in. Our food menu also caters to people of all age groups. But college students and working millennials are the ones that most frequently come to our outlets.
What led you to set up the three brands and has it strengthened the image?
The reason behind setting up three models was that we wanted to offer best to our customers, keeping in mind the ever changing food preferences and trends in the industry. Cuppa Redefined and Cuppa Go are based on different concepts and ideas of food service we want to give to our customers. Cuppa Go is based on the grab and go model and in the coming years, it will be a major trend in the food industry keeping in mind the health as well as the hectic life we are living nowadays. We will also be launching Cuppa Cafe soon.
What are the expansion plans envisaged and do you think this pandemic has dislodged your future efforts?
We intended to expand to across 50 outlets by the end of 2020. However, we might have to re-evaluate some of these plans given the pandemic situation and adapt accordingly. The entire industry is going through difficult times right now. We, however, view this as an opportunity for better evolution and to adapt to changing customer trends.
