Sriram A.N
In the heart of India’s burgeoning coffee culture, Kaappi Ready has emerged as the undisputed leader in filter coffee, captivating the taste buds of enthusiasts across the nation. With a reputation built on delivering an unparalleled coffee experience, this trailblazing chain has secured exclusive tie-ups with the Central Government, further cementing its status as the preferred choice for coffee aficionados. As Kaappi Ready ambitiously plans to establish 2000 outlets nationwide, it is on a mission to redefine the coffee landscape, blending tradition with innovation, and setting new standards of excellence and authenticity. Here, Kaappi Ready’s COO & Director K.S. Kishore, shares more inputs about their plans for our readers.
Q1. Can you tell us about the journey of Kaappi Ready and how it has become India’s number-one filter coffee chain?
Ans. After COVID, we started our own two, or three shops to run ourselves. And then we started this brand. Eventually – customers liked the coffee we were serving. It is after almost six months of R&D to get into this blend. Eventually, we started receiving offers asking for the franchises and that is how we started selling the franchises. Initially, we didn’t have a big plan, but, the customer support and penetration of the franchise network changed our paths and made us here where we are now. This is how the brand started elevating.
Q2. What inspired the founding of Kaappi Ready and how has the vision evolved over time?
Ans. As far as filter coffee is concerned, there are many brands locally, which will be available only in that particular area. But when you see the gap between the coffee, you will see coffee prices for Rs. 10 or maybe Rs. 15 in a bakery. Or maybe you will see a coffee on Coffee Day or something like that, nationally. The price range difference too, there is a big gap. And one more, the next price range is Rs. 200 or Rs. 300 coffees. So, there is a very big gap. There are a lot of opportunities to do business in coffee. And also, if you see Tea brand, there are more than 15, 20 tea brands available nationally. So, for coffee, no one is actually available to sell coffee between Rs. 30, and Rs. 40 across the nation in the same quality. That was the concept in the first place.
Q3. Kaappi Ready has secured exclusive tie-ups with the Central Government. How have these partnerships contributed to your growth and brand positioning?
Ans. Petrol pumps require basic necessary facilities of the air, toilet, hygiene, drinking water etc. which is lacking in Indian petrol pumps except a few like Shell. So, for the travellers, there is no refreshment in the petrol pump. Normally, when you travel along with the family to some other city by car or maybe a two-wheeler, when you stop in between, you need some break and refreshment. So, this was the concept behind it. We opened outlets in Chennai and Coimbatore. Because of this, the petrol pump sales also increased marginally as customers know at which petrol pump they can get a coffee.
HPCL was noticing all these things very carefully. Because, nowadays batteries cars, EV-charging vehicles, and ethanol vehicles are increasing. So, even they don’t want to give up the petrol business. That is a very big opportunity for them also. They want to provide a service to customers. And if you see, there are a lot of petrol pumps, and ATMs that have gone outside because of the UPA. There are a lot of empty spaces available. Even they want to utilize it and maybe they want to get additional revenue from the petrol pump. So, it is vice versa, right? This is how the concept started. Because of us, they have had a good increase in footfalls. Because of them, we even got the opportunity to increase business and market penetration. So, it has now become two way Win-win situation for both of us.
Q4. With the goal of establishing 2000 outlets nationwide, what strategies are you employing to achieve this ambitious target?
Ans. A person for example who is having capital of 8 to 10 lakhs may doesn’t know what to do if he is going to do business. Also, he doesn’t know whether it is going to be a success or not. So, they are our customers. We will help them to set up a business so that they can run their shop. To get this kind of customer client, we have various sources. We will be getting that. And the second thing, as a company, we are investing and we are expanding also.
Q5. What challenges have you faced in expanding Kaappi Ready, and how have you overcome them?
Ans. Challenges are a lot actually. It is not so easy to run 50 or 60 coffee shops. Challenges like the need for manpower, raw materials, supply chain, getting investors are there. It is everything equally means the problems are equally contributing. For example, if we set up a store in Hyderabad, we need to source the manpower locally. Now, we are tied up with a couple of brands who supply the manpower. Likewise, raw materials also are all handled appropriately as we need to give a consistent taste to the customer across all outlets. We cannot tell the Hyderabad store to buy coffee powder there. They need to procure all from our central warehouse where only we will do the transfers.
Q6. Your brand promises an unparalleled coffee experience. Can you share what makes Kaappi Ready’s coffee unique?
Ans. One is, that our coffee beans are procured from a single estate. We don’t change. There are no chemicals used to grow the beans and are pesticide-free. The second thing is the blending. It is an exclusive blending not given to others. That is our exclusivity. Throughout the year, the consistency will happen. This makes our branding unique. Even though we will be having many exclusive items coffee is a main face for us.
Q7. As you expand internationally, what steps are you taking to adapt your offerings to different markets while maintaining the essence of Kaappi Ready?
Ans. Lot of discussions are going on to start our business in UAE, Qatar, and Oman also, and even in Singapore & Malaysia as well. In Singapore and Malaysia, yes, the market is pretty open there.
Q8. Franchising is a significant part of your growth strategy. What can potential franchisees expect when partnering with Kaappi Ready?
Ans. We guide them on what kind of offers we need to put. What kind of marketing we should do? What kind of menu we should plan locally? We will help them to do the local analysis. We help them in corporate tie-ups. Our trainers go to the outlets weekly and will do the pieces of training there. Not only help them to maintain consistency in business, but in case of any legal issues, landlord issues maybe some local municipality or some issues, our area managers are available to support them.
Q9. Consistency is a growing concern in the F&B industry. What initiatives has Kaappi Ready implemented to address this?
Ans. When you open a coffee shop, getting the space for rentals is the first challenge. The second thing is the consistency of the owners. Keeping a landlord as an example, if you open a coffee shop with some X, Y, or Z person, maybe after a year or two years, once the business increases, he may demand additional rental. So, here with us, to be consistent, we have a central government tie-up. We are using the central government premises. There are no locals involved there. Your rentals are consistent. Your premises are secure and safe. You have all the premises and genset back up to security. Everything is available in the petrol pump. So, your premises are secure and when you see legally, your documents are secured, there is no worry. You do not have to go outside to search for a customer as they are coming inside the petrol pump. Only you have to utilize those and have to maintain the quality.
As Kaappi Ready continues to expand its footprint both nationally and internationally, the future looks promising for this pioneering filter coffee chain. By offering franchise opportunities and embracing sustainability, the brand is poised to leave a lasting impact on the global coffee industry. In the years to come, Kaappi Ready aims to transform into a multinational sensation, bringing the rich heritage of Indian filter coffee to the world.