☕ abCoffee is Here!

Plus: Sprinkle Some Kindness; Strikes and Shutdowns at Blinkit.

Author

Chai Sip
April 18, 2023

ISSUE #053

☕ Good Morning! Sippers,

Do you love specialty coffee but hate the high prices?

You’re not alone! Abhijeet Anand, an entrepreneur from IIT Dhanbad, has launched abCoffee – a chain of tech-enabled outlets offering affordable, grab-and-go specialty-grade coffee.

In today’s Issue 📬 :

  • abCoffee is Here.

  • Sprinkle Some Kindness.

  • Strikes and Shutdowns at Blinkit.

SIP WORTHY

Say Goodbye to Overpriced Coffee – abCoffee is Here!

Specialty-grade coffees have beans that can be traced back to a single farm or plantation, and the cup score is above 80 points (out of 100). abCoffee sources coffee beans from farms in Chikkamagaluru that are graded 85 by certified coffee tasters and licensed graders.

👉 Keeping Prices Affordable: Abhijeet Anand claims that abCoffee offers specialty coffees at one-third the price of coffee available at other specialty coffee chains in India.

The price of a ☕ cappuccino at abCoffee starts at Rs 97 (250 ml), while espresso is priced from Rs 77 (250 ml) onwards. The cold coffee is priced from Rs 107 (250 ml) onwards. AbCoffee uses the QSR model to maintain wastage at less than 1% and keep prices low.

⌨️ Tech-Enabled Ordering System: AbCoffee has put in place a grab-and-go tech-enabled ordering system. Customers can use an NFC touchpoint or scan the QR code to place an order. The startup also uses a tech stack for customers to order on the go via abcoffee.in, Swiggy, and Zomato. Technology is also built into the frothing system to ensure the consistency of the coffee in every cup.

⏱️Quick Turnaround Time: AbCoffee strives to offer a hassle-free coffee takeaway experience built on efficiency and speed. The TAT from order to serving is only 1.5 minutes, maintained by an operational setup inspired by the Japanese lean method and superior barista training.

🛒 Market Opportunities and Traction: The specialty coffee market in India is valued at $0.9 billion and is expected to reach $2.30 billion by 2030.

Players such as Blue Tokai, Starbucks, and Café Coffee Day operate in this space. AbCoffee’s differentiation lies in the fact that it operates a QSR model with a focus on takeaways, while most coffee players are in the café model.

The startup claims to have served over 28,000 cups of coffee in eight months, with a customer retention rate of 69%.

Are you excited to try abCoffee’s specialty-grade coffee at affordable prices? You can visit one of their five coffee decks in Mumbai, or place an order online for a quick grab-and-go experience.

IMPROVEMENT SIP

Sprinkle Some Kindness: Why Complimenting Others is a Win-Win Situation

Complimenting others is a simple yet powerful act of kindness that can make a significant impact on someone’s day. It is an effective way to express appreciation, boost someone’s confidence, and strengthen relationships.

In fact, research shows that receiving compliments can activate the same reward center in the brain as receiving cash.

One study conducted by the National Institute for Physiological Sciences in Japan found that receiving compliments increases activity in the striatum, a part of the brain that processes rewards. The study concluded that “to the brain, receiving a compliment is as much a social reward as being rewarded money.”

Not only does giving compliments make the other person feel good, but it can also have a positive impact on the giver’s mood. According to Dr. David R. Hamilton, a writer, and speaker on the topic of kindness, “When we compliment others, we create a virtuous circle that feeds back into our own happiness.”

Complimenting others can also improve workplace dynamics and boost productivity. A study by Harvard Business Review found that teams that gave more positive feedback to one another were more productive than those that didn’t. Additionally, employees who receive positive feedback are more engaged and committed to their work.

Overall, complimenting others is a simple act of kindness that has unlimited upside. As an entrepreneur and author Gary Vaynerchuk puts it, “I believe that if you’re nice to people, and you give them value, and you compliment them, that’s how you win.” So, take the time to give someone a genuine compliment today and see the positive impact it has on both of you.

HOT SIP

Strikes and Shutdowns at Blinkit Give Quick-Commerce Rivals a Quick Boost

(Photo by Debarchan Chatterjee/NurPhoto via Getty Images)

What’s Sipping? ☕ As delivery workers of Blinkit have been on strike in Gurugram and other parts of Delhi-NCR, quick-commerce rivals such as Swiggy Instamart, Zepto, Dunzo, and BigBasket have seen their order volumes surge up to 40 percent.

This has resulted in marketing costs dropping by as much as Rs 1 crore in the last five days, according to industry insiders.

🛵 Executives at different quick-commerce firms have reported seeing order volumes rise by 25 to 40 percent due to the strikes at Blinkit. They also noted that this has given them access to tens of thousands of new customers’ data, leading to free marketing. However, these new users are unlikely to stick around on the platforms once things return to normal unless Blinkit fails to resolve the issue this week.

💸 According to analysts, the current episode at Blinkit is similar to what food delivery players like Zomato and Swiggy had experienced earlier. As businesses reach a certain scale, they need to focus on profits, so incentives start tapering off.

The hyperlocal delivery sector’s modus operandi is to cut delivery fees paid to riders whenever the volume of orders rises in an area. The companies make a rough calculation such that a delivery worker gets to earn around Rs 15,000 per month in a top metro.

Several people are exiting the quick-commerce industry due to demand pressures, resulting in an oversupply of delivery partners and hence, lower payouts. The payout to a food delivery partner has reduced from Rs 90 to about Rs 57-60 in the last five years, analysts said. Swapnil Potdukhe, assistant vice president at JM Financial, said it’s fair to say that other quick-commerce companies will also follow suit and soon reduce incentives because they need to show profits.

🚚 Delivery model of quick-commerce vs food delivery; Unlike food delivery, the quick-commerce model relies on a group of gig workers being attached to particular dark stores in certain neighborhoods from where deliveries are made.

Blinkit has reduced the fixed payouts per delivery from Rs 25 to Rs 15, leading to protests by its delivery workers.

📈 Blinkit’s revenue and losses; According to BSE filings, Blinkit delivered 3.2 crore orders to earn Rs 301 crore of revenue in the December quarter, while suffering an adjusted EBITDA loss of Rs 227 crore. The company, formerly known as Grofers, was acquired in a Rs 4,447-crore deal by food delivery company Zomato in June last year.

👀 The Future: As the quick-commerce industry in India matures, it is likely that other companies will also reduce incentives to delivery workers in the quest for profitability. However, this may lead to an oversupply of delivery workers and lower payouts, resulting in disgruntled workers and possible strikes.

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