S Africa's News Cafe makes India foray, to invest Rs 100 cr

South African premium cocktail-bar chain News Cafe plans to invest up to Rs 100 crore over the next five years to expand operations in India.

South African premium cocktail-bar chain News Cafe plans to invest up to Rs 100 crore over the next five years to expand operations in India.

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The company, which ventured into India last week under a master franchise agreement with Hyderabad-based Numbersonly Hospitality, said it plans to open 20 outlets across India in the next five years.

"We have just opened our first Indian restaurant at Delhi, which also marks our first foray outside the African continent. We will open four more cafes in India in 2010 and our plan is to have a total of 20 restaurants within five years," News Cafe General Manager (Restaurant Division) Alan van der Westhuizen told PTI.

On investment plans for the Indian market, he said: "Our expansion will entail an investment of up to Rs 100 crore over next five years. The first restaurant in Delhi has cost us around Rs 3.6 crore."

Westhuizen said the investment will mostly come from the franchise operator, Numbersonly Hospitality, adding franchise arrangement could be extended for other South Asian countries and Mauritius in the future.

Bullish on the Indian market, he said News Cafe expects a revenue of around Rs 50 lakh per month from each of its cafes.

"Our idea is to promote the cocktail culture in India. However, to suit the Indian market we have indigenised about 30 per cent of our menu," he said.