HYDERABAD: Cafe chain Chocolate Room is planning to set up 500 outlets by 2020 and is planning to raise about Rs 100 crore to fund its ambitious expansion plans.
The ten-year-old cafe chain has about 235 outlets now and it is focusing on tier-two and tier-three cities to achieve its target of adding another 100 outlets by the end of FY18 and 500 outlets by 2020.
“The food and beverages market has been very encouraging and we are focusing on even tier-two and tier-three cities to expand our brand. Right from metros we have branches even in cities like Nellore and Dhule, which shows that there is huge market for chocolates and cafes across India. We have been self funded till now and after ten years of our journey, we are looking for a funding between Rs 70-100 crore for expanding further,” said Chaitanya Kumar, co-founder and CMD of Chocolate Room.
Chocolate Room, which has mostly relied on franchise model till now wants to focus on company owned and company operated stores from now and therefore it is looking for funding to increase the number of stores.
“Investment requirements will rise if we increase the number of company owned and operated stores. We will be seeking VC funding and by the end of this year we will complete the process,” he added.