[00:00:00] Mr Mukesh Ambani is rightly referred to as the destructor of industries and the protector of middle-class pockets.
[00:00:07] After all, we've got to give him credit for geo, free IPL viewing, cheaper groceries with independence and now, cam Pakola.
[00:00:16] Looks like Mr Ambani is going big on food and beverages.
[00:00:20] His next foray is into cafes.
[00:00:23] Yes, Reliance Brands Limited has partnered with the British
[00:00:27] cafe chain, Brett Amalje. The first cafe is already opened at the Bandra Kudla Complex
[00:00:33] in Mumbai. This means drumroll, war with Tata's Starbucks. Let's see what RIL has in mind
[00:00:40] and what it means for Tata. If Amani is entering an industry, you can be sure of one thing.
[00:00:46] The industry has huge potential.
[00:00:49] India's Cafe Chain market is expected to reach 4,540 crore rupees by 2023.
[00:00:56] But why exactly is this space booming?
[00:00:59] First, Gen Z and millennials just can't do without coffee.
[00:01:03] Our coffee consumption rate is now growing by 5%
[00:01:06] since the 2000s.
[00:01:07] The global consumption has only grown by 2%.
[00:01:11] Number two, cafes are no longer just places to chill.
[00:01:15] Cafes in Bengaluru are real life LinkedIn setups,
[00:01:19] networking, interviews and even investor meetings
[00:01:22] are being held in cafes.
[00:01:24] Plus, as our disposable income is now growing, people are choosing to spend on small luxuries
[00:01:30] and experiences.
[00:01:32] Yes, typical YOLO mindset.
[00:01:35] Letting you in on a secret, this is exactly why Starbucks has taken off in India.
[00:01:40] And this is RIL strategy with Brett Emonche. Brett is also positioned as a semi-premium coffee chain.
[00:01:47] It has organic coffee, organic fruits,
[00:01:50] fancy salads and breakfast items,
[00:01:52] all you'd buy for a nice Sunday treat.
[00:01:55] Now, now, while India's cafe space is lucrative,
[00:01:58] it is equally competitive.
[00:02:00] Lots of international chains have tried to crack the market,
[00:02:03] but most have failed to make
[00:02:06] a big dent.
[00:02:07] Like coffee bean and tea leaf, Gloria Jean's coffee never heard of them.
[00:02:12] Exactly.
[00:02:13] The ones that are popular like Third Wave Coffee, Roastree, Blue Tokai, CCD are kinda
[00:02:19] struggling.
[00:02:20] Things were so bad for CCD that it went from being India's favorite cafe to brewing a
[00:02:25] 3535 crore rupee fraud.
[00:02:29] Now, what does RIL have in store to make Pretamol Jai big in India?
[00:02:34] Well, it's not going to be easy.
[00:02:37] First, there's the super strong competition from Starbucks.
[00:02:40] Not only is Starbucks super popular, it also has 268 stores in India already.
[00:02:47] Second, this space has historically been unprofitable.
[00:02:51] Even Starbucks saw losses of 95 crore rupees in FY22.
[00:02:56] Third, running a cafe is no child's play.
[00:02:59] There are many moving parts to this game, finding land for expansion, managing supply
[00:03:04] chain of outlets and what not.
[00:03:07] But but but RIL is kind of like SONPARI.
[00:03:11] It can make MUMKIN KONNA MUMKIN and NA MUMKIN KOM MUMKIN.
[00:03:15] Make what is possible, impossible and what is impossible possible.
[00:03:19] Being one of the biggest conglomerates in India, it has a huge retail chain network. So tackling
[00:03:25] these problems could very well be a cakewalk for Mr Ambani. Plus, the timing could be an
[00:03:31] added benefit for RIL. Apple just opened its first ever Apple owned store in BKC, right
[00:03:38] where Pretamorje is and people are going bonkers to see it. So, Prata Monjay could see increased footfall, but will
[00:03:46] this be enough to ensure RIL success? Will it be able to end Starbucks' supremacy and
[00:03:53] disrupt yet another space? See you in the next episode, Jaya Hind.