Qwiky’s to go for shop-in-shop, co-location

Padmaja Shastri in Chennai

Qwiky's — the coffee chain brand of Chimayo Chains Pvt Ltd, master franchisee of Qwiky Corporation, USA—is now further developing a host of new retail formats - shop-in-shop, co-location, co-branding and joint development, apart from taking the traditional franchise route.

This will help meet its expansion targets of 70 coffee pubs/islands and 120 coffee kiosks by April 2002. The coffee-chain currently has six stand-alone coffee pubs — four in Chennai, one each in Hyderabad and Delhi, 12 coffee islands inside large retail stores and 15 kiosks at petrol bunks of BPCL (Bharat Petroleum).

Close on the heels of its alliances with Music World, Expressions, Bharat Petroleum and Pizza Corner, the coffee chain has now tied-up with Cadburys. But interestingly, Qwiky’s is also looking at developing a co-branded coffee using Cadbury’s products, according to Mr Ashok Balakrishnan, senior manager operations, Qwikys.

It is also exploring the possibilities of similar alliances with Sify’s ‘iways’, leather brand Hi-design, Kodak and ‘Cofitos’ of Alpenliebe.
Cadburys will now be present in all the Qwiky’s pubs and islands, according to the agreement, especially showcasing its latest popular brand ‘Temptations’.

Also, things like music and chocolates are impulse buying categories and will go well in our outlets, he added. About 30 to 40 per cent of the chain’s revenues come from merchandise and non-coffee items.
The coffee-chain currently has a shop-in-shop arrangement with retail majors Lifestyle (in Chennai, Bangalore and Hyderabad), Ebony (in Chennai and Delhi), Casablanca (in Pondicherry) and Snow Bowling in Chennai. With Music World (Ahmedabad, Hyderabad and Chennai) and Pizza Corner (two outlets in Bangalore), it has an agreement of co-location - that is they will be present in each other’s stores, wherever possible.

Six more ‘islands’ in Music World, two more in Lifestyle, two to three in Ebony and two in Pizza Corner are in the pipeline, according to Mr Balakrishnan. The agreement with BPCL allows them to be present in 120 of its petrol bunks in the first phase. As for Expressions, Cadbury’s and Chennai-based upmarket bakery Cake Walk - they will have a display corner in Qwiky’s for a share in the sales. The coffee-chain is looking for similar alliances with i-ways - the Internet browsing centres of Satyam Infoway, Hi-design, Kodak and Alpenliebe. It is also likely to get into retailing a variety of coffee-blends in powder forms across price segments.

The coffee-chain is also looking at the franchisee route for expansion in the pub segment, especially in Mumbai and Delhi. “We have received 1,400 serious enquiries from across the country and abroad, which we are scrutinising now”, said Mr Balakrishnan.

The chain has the financial capability to invest around Rs 40 lakh. At present, all its outlets are owned and it plans to have at least 15 own outlets across the country.