AbCoffee: Delivering Fast and Affordable Specialty Coffee

Abhijeet Anand, an entrepreneur hailing from IIT Dhanbad, is on a mission to revolutionize the perception of specialty coffee in India. With his venture, abCoffee, he aims to make specialty-grade coffee affordable and accessible through a chain of tech-enabled outlets.

Specialty-grade coffees are characterized by their traceable origins, handpicked green coffee beans that are uniform and defect-free, and a cup score exceeding 80 points, assessed by expert graders based on criteria like sweetness, acidity, body, flavor, and aftertaste, as defined by the Specialty Coffee Association.

Launched in June of the previous year, abCoffee is headquartered in Mumbai and is designed to offer specialty-grade coffee at a fraction of the cost compared to other specialty coffee chains in India. Anand claims that abCoffee provides speciality coffee at one-third the price of competitors.

To keep prices affordable, abCoffee employs a Quick Service Restaurant (QSR) model, which helps minimize wastage to less than 1% and ensures competitive pricing. Their outlets are compact and focus primarily on speciality-grade coffee, with minimal emphasis on food items. The menu is designed to share ingredients across multiple offerings, optimizing resource utilization.

AbCoffee currently operates five coffee decks in Mumbai and has plans to open an additional five in the city shortly. They offer a variety of specialty coffee options, including espresso, flat white, mocha, cappuccino, iced Americano, frappuccino, iced latte, and Irish cold coffee.

One of abCoffee's distinctive features is its tech-enabled ordering system. Customers can visit the outlet and use an NFC touchpoint or scan a QR code to place their orders. Alternatively, they can place orders on the go through the abCoffee website, specifying their location and preferences. Orders can also be made through third-party delivery apps like Swiggy and Zomato.

Technology plays a pivotal role in ensuring the quality and consistency of coffee at abCoffee. An automated temperature-control frothing system guarantees consistent quality in every cup, reducing the risk of manual errors. AbCoffee sources its coffee beans from farms in Chikkamagaluru, known for their high-grade coffee beans graded at 85 on a 100-point scale by certified tasters and graders.

Efficiency and speed are central to abCoffee's operational model, aiming for a turnaround time (TAT) of just 1.5 minutes from order to serving. This quick service is achieved through a Japanese lean operational setup, barista training focused on swift hand movements, and a minimalistic coffee preparation setup.

The specialty coffee market in India is on the rise, with a valuation of $0.9 billion in 2022 and a projected growth to $2.30 billion by 2030 at a CAGR of 12.5%. Notable players in this space include Blue Tokai, Starbucks, Third Wave Coffee, Café Coffee Day, and Barista Coffee Company. AbCoffee distinguishes itself through its QSR model with an emphasis on takeaways, setting it apart from traditional café-focused competitors.

AbCoffee has already served over 28,000 cups of coffee in just eight months, boasting a customer retention rate of 69%. The startup reports an annualized revenue run-rate of Rs 1.8 crore, with 80% of revenue originating from takeaways and deliveries.

Having secured $300,000 in funding from a group of angel investors and a venture capital firm in December of the previous year, abCoffee is poised for expansion. The startup plans to raise another round of funding in the coming months to facilitate rapid growth across India. Their ambitious goal is to establish more than 100 coffee decks in various cities, including Mumbai, Bengaluru, Delhi, Hyderabad, Gurugram, Pune, Chennai, Lucknow, Leh, Ahmedabad, and Indore, within the year.