Local Ladurée: Within the next three years, CK Lifestyle LLP, a subsidiary of the CK Israni Group, which was also responsible for introducing the upscale French pastry chain Ladurée to India, plans to add roughly 20 new locations to the range. The managing director of the CK Israni Group and co-founder Chandni Nath Israni told Mint that the company that purchased the master franchise rights of the over 150-year-old luxury brand in India will be investing ₹50–60 crore to expand its stores.
The company currently operates four locations, three of which are in Delhi-NCR. It anticipates that Mumbai, Kolkata, Bengaluru, and Pune will drive its next phase of growth. It will soon open an outlet in Mumbai at Jio World Plaza.
The company established a central kitchen, or “lab,” and brought the master franchise to India in 2020. It holds pop-up events in a few cities to see if there is a demand for the goods. “The company will own and run every one of our stores. To ensure that the French brand remains loyal to its original name, we will not be engaging in any more franchising. We plan to open our fourth location in Jio World Plaza towards the end of this month,” Israni stated.
According to her, the company spends close to ₹12,000 per square foot for rentals at any location. The luxurious French brand has been around for well over a century, but it only began expanding globally in 2005, with the opening of its first store in London. Before partnering with Israni, Ladurée had been looking to enter the Indian market for about nine years. So far, the companies have signed a multi-year agreement.
“A concept like this works when we achieve scale and have more stores since a large part of investment goes into training our teams and the primary investment in a lab,” she went on to say. Israni anticipates profitability in five years. It plans to increase its operations by 50% year on year.
However, India’s luxury food and beverage market is still in its infancy. A decade ago, there were only a few customers at Cavalli Caffe in Delhi’s Emporio mall. The cafe, which was supported by iconic Italian designer Roberto Cavalli, opened and closed in the country about a decade ago. Only a few international restaurant chains thrive in India today, and only in a few locations.
However, Israni does not see this as a deterrent. Today, every global luxury brand is looking to India for future growth. They are aware that HNI Indians who travel abroad spend a lot of money. Even from a decade ago to today, there is a discernible shift in the way Indians shop for luxury in India. On weekends, there is always a line at international luxury brands in Delhi’s Emporio, which should tell us something, she added.
