After seeing the coffee culture around the world, V. G. Siddhartha decided to open Cafe Coffee Day by starting the first branch of this chain in 2016 in Bangalore. With the quirky and refreshing tagline, ‘A lot can happen over a cup of coffee, Cafe Coffee Day touched the hearts of millions of Indians. It became the favorite hangout for the youngsters. This place was filled with the aroma of coffee and love, and a few moments turned into beautiful memories.
But when the news of the death by suicide of V G Siddhartha, the founder of Cafe Coffee Day, surfaced, it was a shocker for all. In his typewritten suicide note, Siddhartha seemed to be apologizing for “failing to create the right profitable business model,” and he addressed himself as a ‘failed entrepreneur’. The debt crisis and the harassment following it had pushed him to this decision.
Rise of the New CEO of Cafe Coffee Day
When many speculated that the company would fall after the demise of its founder, Cafe Coffee Day founder Malavika Hegde, wife of Siddhartha, came like a knight in shining armor. While many believed the company would not recover, she took over the reins, shattered all those at a crucial juncture, and scripted an amazing saga of resurrection.
Who is Malavika Hegde?
Malavika Hegde is the daughter of former Karnataka Chief Minister SM Krishna. She was born and brought up in Bengaluru, where she completed her education at Bengaluru University. She married Siddhartha in 1991 and has two sons.
She used to serve as a non-board member for Coffee Day Enterprises Limited and is now out of the shadows. She took charge as the CEO of Cafe Coffee Day!
Recovery of CCD
During the lockdown, before she took over the firm, she wrote a letter to her employees and assured them that Cafe Coffee Day was “worth preserving”. She also promised a commitment to the future of the company.
Amid the COVID pandemic, when all the businesses were going downhill, Cafe Coffee Day continued to rise. She did all this by building new relationships with investors and building trust that the company was worth preserving.
After Malavika’s takeover, Cafe Coffee Day’s burden was reduced considerably from Rs 7200 crore in 2019 to Rs 3100 crore in 2020. It further dropped to Rs. 1731 crore in 2021. This reduction is an achievement, as it took place when the entire world was reeling from the economic crisis due to the coronavirus-led pandemic and successive lockdowns.
Currently, Cafe Coffee Day (CCD) owns 572 cafes across the country, along with 333 CCD Value Express kiosks. It is a huge business with over 36,000 vending machines serving coffee to CCD customers, and it resumes to be the hub of urban culture.
Malavika Hegde: – The phoenix, the inspiration
It’s common to see businessmen fleeing the country when their businesses fail. But this woman stood her ground and saved the ship from sinking. Not all superwomen wear capes. Some save a billion-dollar empire from adversity too. When everyone thought Cafe Coffee Day wouldn’t survive, Malavika Hegde proved otherwise.
If one follows the current trends, it is clear that the new CEO will be able to maintain the brand name in the Indian market with her able leadership.