Born out of the vision of four school friends to offer high-quality and affordable coffee experience, Nothing Before Coffee (NBC) identified a gap in the market in Jaipur for a mass-premium brand that combined quick service with authentic brewed coffee. Today, NBC boasts over 65 outlets across India, supported by a successful franchise model and even making international inroads with its first store opening in Portugal.
NBC’s Co-founder Anand Jain believes that urbanisation and lifestyle changes have transformed coffee shops into trendy spaces for work and socialisation. “As global exposure increases, so does the interest in diverse coffee experiences. Additionally, coffee is perceived as a healthier alternative to sugary drinks, while social media has played a crucial role in elevating the beverage’s status,” he adds.
Adapting to a Dynamic Market
NBC capitalised on trends such as premiumisation and handcrafted coffee options which has aided it to challenge heavyweights such as Cafe Coffee Day and Barista. Traditional chains have often relied on standardised offering and practices, but NBC differentiates itself with unique coffee experiences that appeal to the younger, trend-conscious consumer. Through its modern cafe designs and a strong social media strategy, NBC has a built a personal connection with its customers.
NBC’s growth has been driven by more than just a trendy cafe design. Jain emphasises that the success lies in maintaining a strong and innovative product offering as well as maintaining strong relationship with both customers and franchise partners. It plans to open 80 more stores by 2025. On the international front, it plans to open 100 outlets across Europe.
Despite the capital-intensive nature of expanding retail operations, NBC remains bootstrapped and has adopted a Franchise Invested, Company Operated (FICO) model. This allows the company to leverage franchise investments while maintaining operational control, offering a balance between growth and quality.
“Our revenue model for scaling globally includes a mix of company-owned and franchise-operated outlets, which allows us to balance direct control with local expertise. This hybrid model helps manage operational costs while accelerating market penetration. Additionally, we focus on efficient supply chain management and leveraging economies of scale to optimise costs and enhance profitability,” says Jain.
Innovating Beyond Café Expansion
Looking beyond the traditional brick-and-mortar café model, NBC is exploring various other avenues to scale up. The brand is building a robust e-commerce platform and offering subscription services, which help reach customers beyond physical locations. NBC is also looking at forming partnerships with brands, food delivery services, and co-working spaces to enhance visibility and tap into new markets.
Additionally, the brand is considering retail distribution through supermarkets and online retailers as another channel for expansion. To stay relevant, NBC is innovating with new products, such as ready-to-drink beverages and eco-friendly packaging. Experiential marketing, like pop-up shops and coffee tastings, helps generate excitement and deepen connections with its audience.
As part of its growth strategy, NBC is not only focusing on international expansion but also looking at India’s Tier II and Tier III cities. These markets present significant growth potential, and NBC plans to take a phased approach, starting with detailed market research to tailor its offerings to local preferences. By leveraging its franchise model, the company aims to partner with local entrepreneurs who can effectively manage these new outlets.
The Road to Profitability
NBC’s performance over the past year has been exceptional, with a 100 per cent increase in revenue across its outlets. A significant 90 per cent of its revenue comes from dine-in, with beverages accounting for 80 per cent of the total income. The NBC app has been instrumental in driving sales, contributing to a large and engaged customer base. While the brand is yet to reach profitability, Jain says that it is on a positive trajectory and expects to hit this milestone in the coming year.
The Future of Coffee in India
When asked to predict the future of the coffee sector, Jain believes that the next five years will see three major transformations. First, sustainability and ethical sourcing will become increasingly important as consumers demand transparency and eco-friendly practices. Brands will need to adopt biodegradable packaging and ensure fair trade practices to stay relevant.
Secondly, he says that digital and tech-driven experiences will become more prevalent. “From AI-driven personalisation to smart coffee machines, technology will play a crucial role in enhancing customer convenience. Virtual coffee tastings, educational content, and interactive digital platforms will offer new ways for consumers to engage with their favourite brands,” he adds.
Lastly, NBC sees health-conscious and functional coffee products to be on the rise. It believes that consumers are increasingly looking for beverages with added health benefits, such as enhanced nutrients or reduced caffeine. This trend will drive innovation and create new opportunities for brands catering to the growing market of wellness-oriented coffee drinkers.
Looking ahead Jain sees the influx of startups and innovative brands entering the market and intensifying the competition. “These startups are not only capitalising on the growing interest in coffee but are also driving market dynamics with unique offerings, modern café concepts, and effective digital engagement. This competitive environment pushes established players to adapt and innovate, further fuelling market growth,” says Jain.
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