Abhijeet Anand, an IIT Dhanbad entrepreneur, aims to disrupt the perception that speciality coffee in India is a luxury with his chain of tech-enabled outlets called “abCoffee”. The outlets offer affordable grab-and-go options for speciality-grade coffee, countering the notion that a cup of cappuccino or latte costs anywhere between INR 200 and INR 350, and sometimes even more.
Speciality-grade coffees are sourced from a single farm or plantation, and the green coffee beans are meticulously handpicked to ensure uniformity and freedom from defects. These coffees typically score above 80 points (out of 100) on a cupping scale that evaluates key factors like sweetness, acidity, body, flavor, and aftertaste. Qualified graders and experts use a set of criteria defined by the Specialty Coffee Association, an international organization dedicated to monitoring the quality and processes of speciality coffees worldwide, to ascertain the cup score of these coffees.
“abCoffee is solving the issue of the price point of speciality coffee through innovative tech-enabled coffee outlets (we call them coffee decks), serving one of India’s best-rated coffees at honest prices,” says Anand, Founder and CEO of Mumbai-based abCoffee, which was launched in June last year.
According to him, abCoffee provides speciality-grade coffees at a price point that is one-third lower than other speciality coffee chains in the country.
Keeping prices affordable:
At abCoffee, a cappuccino can be enjoyed at a starting price of INR 97 for a 250 ml serving, while espresso starts at INR 77 (250 ml). For those looking for a cold coffee, prices start at INR 107 (250 ml) and upwards.
Anand states that the startup follows the QSR (Quick Service Restaurant) model, which helps them minimize wastage to less than 1% and maintain affordable prices.
“Our QSR decks are small. We focus on speciality-grade coffee and not on food. We bring differentiation in coffee. We also have designed our menu in such a way that many items use the same ingredients,” elaborates the 32-year-old entrepreneur, who had earlier worked in the oil and gas sector.
abCoffee currently operates five coffee decks in Mumbai, and they are set to open five more this month within the city. Their menu features classic coffee options like espresso, flat white, mocha, and cappuccino, as well as a range of cold beverages such as iced Americano, frappuccino, iced latte, and Irish cold coffee.
Tech-backed outlets with focus on quality:
To facilitate faster service, the startup has implemented a tech-enabled grab-and-go ordering system. Customers can simply walk into the QSR setup and place their order by using an NFC (near-field communication) touchpoint or by scanning a QR code.
abCoffee has implemented a tech stack that allows customers to conveniently place their orders on-the-go. Customers can visit the abcoffee.in website, select their preferred location, and place their order, allowing them to quickly grab their coffee as they pass by the outlet. Additionally, orders can be placed via popular delivery apps like Swiggy and Zomato.
According to Anand, the frothing system incorporates technology to guarantee that the coffee’s consistency is uniform in each cup.
“Our automated temperature-control frothing system ensures quality remains consistent every time milk is frothed for each cup. This also helps eliminate or reduce manual errors that happen in frothing,” he says.
Coffee beans procured by abCoffee are sourced from farms located in Chikkamagaluru, which undergo evaluation by certified coffee tasters and licensed graders, receiving a grading of 85 out of 100 on the grading scale.
Anand says abCoffee’s ‘signature roasts’ cater to the Indian palate. “Extensive blend research and roast profiling of green coffee using state-of-art roasting machines have helped us develop signature roasts, which has made us reach and connect with the masses consuming espresso-based coffees and even people who are starting with coffee,” he says.
Quick turnaround time:
The goal of the company is to provide a coffee takeaway experience that is free of complications, emphasizing on swift and efficient service.
“We have optimised technology in our outlets in such a way that our TAT (turnaround time) from order to serving is only 1.5 minutes,” says Anand.
According to the entrepreneur, there are three methods for upholding the TAT.
- A Jikoda-inspired operational setup (a Japanese lean method): The espresso machine, other equipment (like the fridge), and elements such as ice, water, and syrups are placed in such a manner that any unnecessary movements are avoided and beverage preparation is made faster. “Think of it like the McDonald’s way, where there is a sequence of workflow for every order to be prepared,” says Anand.
- Superior barista training: The baristas are trained for fast hand movement, as per Standard Operating Procedure.
- A minimalistic set-up, which makes coffee preparation a quick clutter-free experience
Market opportunities and traction:
In 2022, the Indian specialty coffee market was appraised at $0.9 billion, and it is projected to attain $2.30 billion by 2030, exhibiting a CAGR of 12.5%. Various companies, including Blue Tokai, Starbucks, Third Wave Coffee, Café Coffee Day, and Barista Coffee Company, compete in this sector.
According to abCoffee, its unique selling proposition is its adoption of a QSR model, which prioritizes takeaways, in contrast to the predominant café model employed by other coffee companies.
The startup states that it has provided more than 28,000 cups of coffee within an eight-month period, while maintaining a customer retention rate of 69%. According to Anand, abCoffee’s annual revenue run-rate amounts to INR 1.8 crore, with 80% of the revenue originating from takeaway and delivery services.
While abCoffee does have space for customers to sit and enjoy their coffee, its outlets are smaller than cafés, with around 3-4 tables. “Our outlets are similar to McDonald’s drive-throughs or the Chai Point QSRs in corporate parks,” says Anand.
In December of last year, abCoffee secured $300K in funding from a VC firm and a group of angel investors. Now, the startup has its sights set on further expansion throughout India, and plans to raise another round of funding in the coming months. The goal is to establish more than 100 locations across the country this year, spanning Mumbai, Bengaluru, Delhi, Hyderabad, Gurugram, Pune, Chennai, Lucknow, Leh, Ahmedabad, and Indore.
