The Company has been conceptualized with a ‘simple’ vision in mind
To be the largest, most preferred and most loved destination for dessert lovers
Operating in a market estimated at USD 1.6Bn (2015@15% CAGR), The Company will be a Chain of Exclusive Desserts Parlors Across India, offering Indian and Western Desserts in Buffet Format
Sugar Cup - THE IDEA
In the dessert vertical, gaps exist when it comes to offering choice at affordable pricing to the Indian consumer. Sugar Cup plans to introduce an innovative format for the 1st time in India, catering to the gaps
1. India's 1st Chain of Dessert Parlour offering both Indian and Western desserts
2. Introduce the "Single-Bite" concept in retail format against the existing single-piece concept
3. Introduce the "Buffet Style offering" for desserts in retail format
Sugar Cup - THE MARKET
In India, food accounts for nearly 50% of the consumer spending - the largest share in the market. Within this, the Desserts segment is a niche and rapidly growing segment. The segment is expected to reach a market size of USD 1.6 Bn by 2015
Despite the high-growth opportunity, there is no established chain of desserts in India, serving end-to-end dessert varieties to the Indian consumer. With the rapidly changing face of Indian retail, the time is just right for such an establishment.
Sugar Cup - THE PRODUCT
The uniqueness of the product line at Sugar Cup lies in its simplicity and innovation of delivery
1. Assortment of 15-20 items in each outlet
2. Buffet Selection from assortment
3. Buffet Pricing - INR 199 (USD 4) for 5 pcs; INR 299 (USD 6) for 8 pcs; INR 399 (INR 8) for 12 pcs
4. Sharing allowed
In addition to the desserts, Sugar Cup will offer a standard offering of beverages such as (Hot & Cold) Tea & Coffee.
Sugar Cup - THE TEAM
The team comprises professionals that include an entrepreneur, a seasoned sales professionals, an experienced bakery/pastry chef and a retail business development manager.
Sugar Cup - THE BUSINESS
As a 50-outlet business, Sugar Cup reaches revenues of USD 9Mn by Year 3 (with EBITDA of USD 1.05Mn). The business breaks even in the 40th month, from positive cash flows starting in the 27th month.
Revenue Yr 1: USD 0.25Mn
Revenue Yr 2: USD 2.55Mn
Revenue Yr 3: USD 8.87Mn
EBITDA Yr 1: USD (0.08)Mn
EBITDA Yr 2: USD (0.39)Mn
EBITDA Yr 3: USD 1.05Mn
Project IRR: 39%
Sugar Cup - THE INVESTMENT
Angel funding is required to open 3-5 outlets in the first 12-14 months, followed by 2nd funding round in 12th-18th Month.
Accounting for capital expenditure (kitchen and Outlet work) and operational expenditure for the first 12 months, looking at a total investment size of USD 211,000
Exit Options: Acquisition by existing coffee chains within 2-3 years (they are on expansion plan and have recently made acquisitions internationally) or IPO for larger Indian/International play in 5-7 years.
Investors can contact us on Merar.