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HISTORY
C850 : First known discovery of coffee berries

1600 : Coffee enters to Europe through the port of Venice

1654 : The first coffee house opens in Italy

1750 : One of Europe’s first Coffee house

1822 : Prototype of 1st espresso machine is created in France

1908 : Invention of the world’s 1st drip coffee maker

Feb, 2000: First Barista Lavazza at Basant Lok, New Delhi

At Barista Lavazza our objective is to provide an authentic Italian coffee drinking experience in a warm, friendly,
no pressure environment. We began operations in the year 2000 as we felt the time was right for the Indian
consumer to experience a café that provided a third space, away from work and home, where the guest could
relax and unwind.

Lavazza traces its origins back to 1895, when Luigi Lavazza purchased a little grocery store, Paissa Olivero, in
the old commercial section of Turin for 26,000 Italian Lire, about US$ 20. In the early 1900's, he invented the
concept of the blend - a complex art of mixing together coffee of different origins to obtain a distinctive taste and
harmonious flavour in the cup. Before the turn of the century, the name Lavazza evolved into an international
powerhouse and the unofficial ambassador of Italy, being synonymous with all things Italian - creativity, art,
passion and of course, espresso.
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OUR PHILOSOPHY
At Barista Lavazza, we do all we can to make every guest feel comfortable and welcome. We serve nothing but
the finest Arabica coffees and cuisine at great value prices. We have friendly and efficient brew masters who
believe in service with a smile. And provide a cheerful, interactive ambience that makes guests wish their coffee
breaks lasted just a little bit longer.

To share our cup of joy, we have always stuck to our Italian roots, guarding them zealously to ensure that our
espresso bars reflect the warmth and character of traditional Italian coffee houses. And in the process, make
Barista Lavazza the place ‘where the world meets’.

Our aim is to passionately deliver the highest levels of experiential services. Maintain consistency in serving the
highest quality products and become a globally competitive organization – one that is driven by an insatiable
thirst for excellence.
COFFEE AND MACHINES B2B
Fresh and Honest Café Limited (FHCL) is an ISO 9001:2000 and HACCP certified company, (now a part of the
Luigi Lavazza S.p.A. group of companies) and has been in the coffee vending business for the past thirteen
years in India. Group companies include Barista Coffee Co. Ltd. and various other Lavazza subsidiary
companies across various continents around the globe. FHCL was among the first to introduce imported Swiss
coffee vending machines in the Indian market in 1996 and pioneered the concept of serving coffee out of freshly
brewed coffee beans that are ground and brewed afresh with every serving for every cup. Over the years, FHCL
has expanded to a base of over 3000 machines installed across 16 branches in 22 cities over India and has
arguably become the largest player in the country, both in terms of points of presence and in the volume of
billing generated. These machines are placed int various leading hotels, restaurants and major agglomerations
like railway stations and airports.

FHCL is a one- stop shop for ‘complete hot beverage solutions’ from the bean to the cup. It provides all its
valued customers with solutions that are linked to their daily beverage consumption needs based on a complete
front/back end supply model, ranging from roasted coffee beans and other allied supplies (milk, sugar etc) to the
highly automated and specialized Automatic Vending Machines .

FHCL’s state- of- the-art Automatic Vending Machines (AVMs) are among the world’s best in class technology
Swiss machines that are superior, both in terms of functionality and ease of use. The machines uniqueness is
due to its automated platform of choice offerings of various programmable features for dispensing a variety of
beverages. They primarily function through the use of a microprocessor chip and are capable of dispensing a
wide variety of beverages including Swiss soups, Swiss chocolate and a range of coffees and teas. These
machines are also unique functionally as they are the only ones of their kind in India that provides the facility of
serving fresh milk with freshly roasted coffee beans (and not premixed coffee powder or powdered/cold milk) to
deliver the freshest coffee that any machine can ever deliver and also provide the consumer the option of a
world class serving matched with personalized needs and service. It is and will continue to enthrall its valued
customers with unique personalized offerings.

In order to maintain consistent cup quality, cup after every cup, FHCL is equipped with its own state-of-the-art
coffee roasting facility in Chennai where roasting, blending and quality testing of coffee beans is carried out by
highly qualified Quality Control professionals before the product reaches to the end consumers. FHCL also has a
significant presence in the FMCG food products retail market in major metros with ‘Alive!’, a packaged filter
coffee powder with a 70% coffee and 30% chicory combination and is marketed through the consumer product
retailing model.

For more details,Please logon to our website at www.fresh-honest.com

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Sanjay Coutinho, COO, Barista

Barista that provides authentic coffee drinking experience was recently in news with its expansion
spree. With the introduction of a new menu, ‘coffee with liqueur’, Sanjay Coutinho, COO, Barista
speaks about the new product and business strategies.

Subhro Prakash Ghosh (SPG): What is your retail expansion plan? Other than metros, what
kinds of cities are you planning to penetrate?

Sanjay Coutinho (SC): We are looking at expanding our retail presence by increasing outlet count by
225-230 in the next six months. We are in talks with HPCL (Hindustan Petroleum Corporation Ltd)
and BPCL (Bharat Petroleum Corporation Ltd) for highway cafés, and planning to open 12-15 more
such outlets. This is the kind of move, which is aimed to increase the revenue by 30 per cent.

In June 2009, Lavazza finalised brand integration with Barista. Presently, Barista Lavazza has more
than 200 outlets across 29 cities. We are also planning to enter four to five cities more and expand in
Kerala, Punjab, Rajasthan, Chhattisgarh, Goa and Assam. Within a span of three years, we would
open 300 cafés on the highways to cater to the travellers.

SPG: What kind of investment are you making in the expansion?


SC: We have a plan to invest Rs 12 crore during the second half of the present fiscal year in order to
unveil 25 cafés across the nation.

SPG: Who are your target audiences/customers?

SC: We generally aim to cater to the middle class and upper middle class. Our target audiences
usually fall under the age group of 19-35, the young adults, who have a taste of contemporary
lifestyles and accordingly cherish the brewed espresso in a warm and fascinating milieu.

SPG: How do you ensure that the customers get the experience of a true Italian coffee house?

SC: Our business strategy is to boost the consumers’ likings by improving the service level, altering
the store looks and constantly improving the quality of the products. We always look into the demand
of the consumers with their changing trends and accordingly we introduce new concepts. For
instance, recently we introduced a unique concept ‘coffee with liqueur’ in one of our premium cafés in
Delhi. If this suits the consumer’s taste, then we will launch the similar format in the other cafés also.

SPG: What kind of returns are you expecting from the expansion?

SC: We aim to increase the revenue by Rs 100 crore during this fiscal year; the turnover of Rs 200
crore was recorded in the fiscal year 2009. Overall, we are foreseeing a turnover of Rs 300 crore by
the completion of the present fiscal.

SPG: Do you have any plan to completely change the brand name to Lavazza?

SC: No, we do not have any plan to change the brand name completely to Lavazza, because the
existing brand name has raised so much awareness among the customers that instilling new name
will add no plus point to the branding strategy.

SPG: What is your business strategy to beat the competitors?

SC: We do not chase the numbers or compare with our competitors as we think it is not a number
game. Rather we believe in introducing new concepts, enhancing the preferences of the customers
and improvising at the store level.

SPG: All Barista cafés are company-owned. Do you think franchise business model can help
you expand?

SC: As I said, our aim is not to increase the numbers speedily. Yes, franchising is obviously one of
the best business models, but presently we are not considering it.

Barista that provides authentic coffee drinking experience was recently in news with its expansion
spree. With the introduction of a new menu, ‘coffee with liqueur’, Sanjay Coutinho, COO, Barista
speaks about the new product and business strategies.
Subhro Prakash Ghosh (SPG): What is your retail expansion plan? Other than metros, what
kinds of cities are you planning to penetrate?

Sanjay Coutinho (SC): We are looking at expanding our retail presence by increasing outlet count by
225-230 in the next six months. We are in talks with HPCL (Hindustan Petroleum Corporation Ltd)
and BPCL (Bharat Petroleum Corporation Ltd) for highway cafés, and planning to open 12-15 more
such outlets. This is the kind of move, which is aimed to increase the revenue by 30 per cent.

In June 2009, Lavazza finalised brand integration with Barista. Presently, Barista Lavazza has more
than 200 outlets across 29 cities. We are also planning to enter four to five cities more and expand in
Kerala, Punjab, Rajasthan, Chhattisgarh, Goa and Assam. Within a span of three years, we would
open 300 cafés on the highways to cater to the travellers.

SPG: What kind of investment are you making in the expansion?

SC: We have a plan to invest Rs 12 crore during the second half of the present fiscal year in order to
unveil 25 cafés across the nation.

SPG: Who are your target audiences/customers?

SC: We generally aim to cater to the middle class and upper middle class. Our target audiences
usually fall under the age group of 19-35, the young adults, who have a taste of contemporary
lifestyles and accordingly cherish the brewed espresso in a warm and fascinating milieu.

SPG: How do you ensure that the customers get the experience of a true Italian coffee house?

SC: Our business strategy is to boost the consumers’ likings by improving the service level, altering
the store looks and constantly improving the quality of the products. We always look into the demand
of the consumers with their changing trends and accordingly we introduce new concepts. For
instance, recently we introduced a unique concept ‘coffee with liqueur’ in one of our premium cafés in
Delhi. If this suits the consumer’s taste, then we will launch the similar format in the other cafés also.

SPG: What kind of returns are you expecting from the expansion?

SC: We aim to increase the revenue by Rs 100 crore during this fiscal year; the turnover of Rs 200
crore was recorded in the fiscal year 2009. Overall, we are foreseeing a turnover of Rs 300 crore by
the completion of the present fiscal.

SPG: Do you have any plan to completely change the brand name to Lavazza?

SC: No, we do not have any plan to change the brand name completely to Lavazza, because the
existing brand name has raised so much awareness among the customers that instilling new name
will add no plus point to the branding strategy.

SPG: What is your business strategy to beat the competitors?


SC: We do not chase the numbers or compare with our competitors as we think it is not a number
game. Rather we believe in introducing new concepts, enhancing the preferences of the customers
and improvising at the store level.

SPG: All Barista cafés are company-owned. Do you think franchise business model can help
you expand?

SC: As I said, our aim is not to increase the numbers speedily. Yes, franchising is obviously one of
the best business models, but presently we are not considering it.

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