Tourism and Hospitality Management

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ACKNOWLDGEMENT
I take this opportunity to express my profound gratitude and deep regards to professor, Sir. Muhammad Kamran for his exemplary guidance, monitoring and constant encouragement throughout the course of this report.

EXECUTIVE SUMMARY
In this report, the coffee house culture and its growth in Pakistan have been discussed focusing on the international coffee house chains present in the country. The trend of shifting from chai to coffee. Moreover, how franchising international coffee houses could be beneficial for the local market as well and its popularity among the local coffee drinkers has also been pointed out.

INTRODUCTION
Pakistan is a tea culture. However with time we have seen Pakistan opening its doors to the coffee culture. The coffee house culture has been quite fast in spreading its wings with new coffee outlets opening in Pakistan; be it local or international chains of coffee houses. These coffee shops have played an important role in introducing coffee to the masses in Pakistan While investors maintain a vigilant outlook for the feasibility and local trend shifts, the search for lucrative investment options never comes to a close. Who would have thought that the must-have daily cup of coffee for some could be amid the most promising investments today in urban cities of Pakistan. Coffee has not yet got mass popularity and recognition in Pakistan with distribution, penetration, and sales remaining limited. However, specialty coffee shops have increased in popularity since the past decade and are expected to spread out further to smaller urban cities over the coming years.  According to a survey by Euromonitor, retail coffee volume sales increased by four percent in 2010 in the country. The instant coffee segment led the coffee market in Pakistan with a share of 97.3%. The trend of fancying coffee over the conventional chai (tea) may not be that recent in Pakistan since the first coffee bar to open in Pakistan was in the earlier part of the last decade, but the inclination of socializing over a cup of coffee, holding business meetings and making important plans and decisions is relatively novel. This rising trend, fortunately for the nation, has not escaped the attention of both local and foreign investors and the country has seen a rise in coffee shops, especially international franchises entering Pakistan. Now this culture of spending quality time in a coffee shop has spread like wildfire internationally and many coffee shops and international chains have also opened up their doors in Pakistan.

Coffee Culture in Pakistan
Coffee house culture is relatively new in Pakistan and while in Karachi, coffee shops have been popular even before the millennium, it was local coffee shop Espresso that really made coffee culture come to the vanguard and now, there is a coffee shop in practically every lane of Zamzama; the high street shopping place in Karachi. In Lahore, it started with Coffee, Tea and Company (CTC) and as the culture evolved, responsiveness of coffee houses augmented and foreign investment made way into Pakistan, a franchise of Gloria Jean’s opened up in Lahore and then overnight coffee shops started cropping up on almost every corner. OF FRAPPES AND MOCHACCINOS

From ‘Coffee, Tea & Company’, ‘Gloria Jeans’, ‘Masooms’, ‘Jammin’ Java’, ‘Dunkin’ Donuts’, ‘Espresso’ – and a swarm of other coffee houses (be they international or local), Lahore seems to be standing knee-deep in an assortment of coffee beans – flown in from around the world. And given the current escalation of coffee houses in the recent few years in the city, there still seems to be room for more! Current Situation of Coffee House Business in Pakistan?

Some critics believe that the café business has reached its saturation point but according to others there is still more capacity but only if the café provides quality food and a comfortable...
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