New Delhi: Homegrown coffee chain Cafe Coffee Day (CCD)has closed down around 280 outlets in the first quarter of the current fiscal year, citing profitability issues and likely future increase in expenses, a company statement said.
With these closures, the total count of its outlets stood at 1,480 as on June 30, 2020.
Cafe Coffee Day is a brand owned by Coffee Day Global, a step-down company of Coffee Day Enterprises Ltd (CDEL).
The coffee chain also reported a decline in average sales per day (ASPD) per cafe to Rs 15,445 during the April-June quarter from Rs 15,739 in the corresponding period of the last fiscal.
However, the count of its vending machines went up to 59,115 units in Q1 FY20 from 49,397 in the same quarter a year ago.
"Exports operations have been temporarily stopped due to lower margins and higher working capital requirement and around 280 outlets are closed during the quarter based on various factors including the profitability, future increase in major expenses," the company said.