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Spencer’s ties up with US eatery

Calcutta, July 15: Spencer’s, the retail arm of RPG Enterprises, is bringing US-based café eatery Au Bon Pain to India.

Spencer’s has teamed up with entrepreneur Varin Narula to form a joint venture company — Noble Confectionery Ltd. The joint venture entity has taken the master franchisee of Au Bon Pain for the domestic market.

The JV, in which Spencer’s has 90 per cent stake, is planning its first 2,000-square-feet flagship store in Bangalore by December. However, Calcutta, where RPG is headquartered, will have to wait more than one-and-a-half years to taste the bread, soups, salads and sandwiches that Au Bon Pain excels in.

The city is expected to have its first eatery in early 2010. “In the next couple of years, 100 standalone stores with an average size of 1,500 square feet will come up in tier I and II cities on a pan-India basis,” Sanjiv Goenka, vice-chairman of RPG Enterprises, said today after announcing the JV.

The chain would be different from the regular outlets of coffee houses such as Barista, Café Coffee Day or Costa Coffee as the focus will be more on the food.

“We are positioning it at as a casual dining and bakery café. People will come to us because of our fresh, nutritious food and beverages, including coffee,” Bernard Platt, senior vice-president of Au Bon Pain, said.

Platt was in town with Narula to announce the deal.

Narula is the director and promoter of Au Bon Pain, Thailand. “We will keep in mind the local palate to create the menu here,” Narula added.

Au Bon Pain will earn a fee income from the franchisee. Au Bon Pain will give intellectual support — from designing the eatery to the selection of menu — to the business. The Spencer’s JV has earmarked Rs 50 crore for the first phase.

Founded 30 years ago, Au Bon Pain runs 226 cafes and had sales of almost $300 million in 2007. It has also ventured into South Korea and Taiwan, apart from Thailand.

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