The RP-Sanjiv Goenka Group on Monday said it would invest Rs 70 crore to expand its café chain, Au Bon Pain, across major metros such as Delhi, Kolkata and Bangalore. The investment will be spread over the next year to set up 42 outlets.
The group has 80 per cent stake in Au Bon Pain Café India Ltd, which runs the eponymous café chain. The Goenkas own the chain through Spencer’s Retail — a wholly-owned subsidiary of the group’s flagship CESC Ltd.
“Over the next year, we plan to launch 18 outlets in Kolkata, 10 in Bangalore and 14 in Delhi,” Chairman Sanjiv Goenka said at launch of its second outlet in the city.
The outlet is located at Park Street, a popular location in the city. Spread across 4,000 sq ft with a seating capacity for 140 people, it is the largest Au Bon Pain café in the country.
The urban cafe chain from the US was brought here in 2009. The first outlet was in Bangalore. Currently, it has 31 outlets, 29 in Bangalore and two in Kolkata.
According to Goenka, the new stores would be a mix of large format, smaller ones of 500 sq ft and kiosks. Bangalore outlets, he said, are already breaking even.
The café chain, targeting the youth, would look at airports, IT-campuses and such areas to attract footfalls.
In Bangalore, the outlets are said to have average revenue of Rs 600 per sq ft a month, but operate primarily out of IT-campuses, educational institutions, apart from high street and mall formats. In Kolkata, the company would require around Rs 1,000 per sq ft of revenue a month to break even.
Goenka expects the new store to break even in another 18 months.
CESC shares on Monday closed at Rs 436.55, down by 0.23 per cent, at the BSE.
abhishek.l@thehindu.co.in