Daybreak Can Zepto’s 10-minute coffee dodge the fate of Starbucks and CCD?
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Aug 3, 2025 India's coffee market is vibrant but fraught with challenges, as many brands, including Zepto Cafe, grapple with profitability. Despite its impressive speed and ambitious growth, Zepto's struggles raise critical questions about the sustainability of coffee entrepreneurship in the country. High operational costs and low consumption rates plague the scene, casting doubt on whether any coffee brand can truly thrive. Will anyone successfully brew a profitable cup in this competitive landscape?
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India's Coffee Profit Puzzle
- India's coffee market is flooded with cafes but struggles with profitability.
- Large players like Starbucks and CCD face big losses and closures despite popularity.
Zepto's 10-Min Coffee Journey
- Zepto Cafe tried leveraging its grocery dark store network to deliver coffee in 10 minutes.
- They expanded menu and staff rapidly but eventually faced efficiency and profitability issues.
Structural Coffee Market Challenges
- Coffee sales in India face structural issues like low per capita consumption and high fixed costs.
- Even quick commerce models with infrastructure advantage cannot solve the economics of coffee business.