Presented by The Daily Coffee Group

It’s time to invest in the South African coffee industry!

 ·11 Jan 2023

The growing South African coffee industry offers investment opportunities that the serious investor should take note of.

One of these is an investment of R1,78 to R2 million (excluding VAT) in a profitable The Daily Coffee Café franchise in which investors can expect to receive a higher-than-average return on investment.

This earning power is further enhanced by the fact that the capital needed for the set-up costs is considerably lower than that of comparable franchise models in the market.

Why invest in the coffee industry?

Worldwide – including in South Africa – the coffee industry has become a landscape where a modern way of living and a new way of doing business, along with a growing number of coffee enthusiasts, create an increasing demand for good coffee and branded lifestyle coffee destinations.

Furthermore, the so-called “new normal” – created by the Covid-19 pandemic – now applies in the workplace, with large numbers of corporate employees nowadays routinely working from home.

In South Africa this new workplace reality created a demand with those who work remotely to also have a workspace nearby – other than the home office – from where they can work for shorter periods of time.

For this a conveniently-located coffee café which offers laptop workstations, 230 Volt and USB power supply – also during loadshedding – as well as free Wi-Fi, is favoured, along with the convenience of being able to order coffee and refreshments.

The demand for these neighbourhood coffee destinations is aptly illustrated in the fact that, unlike many other businesses in the hospitality industry, none of The Daily Coffee Group’s coffee café franchises closed due to the effect of Covid-19 lockdown measures at the time.

Even more enlightening is the fact that the Group has opened 11 new franchises in 2022, which demonstrates the demand for coffee café destinations, and the potential for investment growth in this industry.

The above trends created a shift in the nature of the typical and bygone coffee shop of yesteryear.

The modern-day coffee café has become a neighbourhood destination with a vibrant community of people – a space to meet with family and friends, to discuss and conclude business deals, and to work from remotely.

This is where the action is at community and micro-society level, where the money is spent, and where an investment in a coffee franchise offers its dividends!

The coffee café has become an essential resource for the community.

It serves as that important third place, not where people work or live, but where they spend time to regenerate, interact with others, and continue to be productive in their work. This is what people need today.

Why partner with The Daily Coffee Group?

The Daily Coffee Group – a truly South African coffee franchise business – is currently the fastest growing coffee shop franchise in South Africa.

It has more than 40 franchises countrywide, and is set to expand further nationally.

The collective background of the Group’s executives comprises qualifications and expertise in the hospitality industry, coffee and coffee roasting, operations, finance, retail, marketing, interior design and corporate governance, as well as a sound understanding of the nature and running of a coffee café franchise.

This is encapsulated in the following unique selling points:

  • Coffee is our business

We know coffee, we know coffee lovers’ requirements, and we make sure they get what they want.

To do so, we roast our proprietary coffee blend with state-of-the-art coffee roasting equipment to ensure consistency and quality.

  • We’ve done our homework

Thorough research and reasoning went into creating the distinctive look and feel of our coffee cafés – an ambience that captures the essence of café life prevalent from Cape Town to New York, but packaged in a way that resonates well with South African clientele.

Part of this is the pleasing and much talked about New-York-meets-Karoo décor of our coffee cafés – a theme which takes patrons on a visual journey where they can expect to encounter hints of upmarket Big Apple urbanism, combined with down-to-earth Karoo appeal.

  • A destination for every taste

Our coffee cafés transform into what individual patrons want them to be.

We offer seclusion to those who yearn for a me-time breather while shopping, a professional setting for business discussions over good coffee, a relaxed environment where people can meet and where friendships are strengthened.

Informal and casual, yet with a corporate elegance and flair.

  • Spot-on locations

We select smaller, accessible and modern boutique-style shopping centres as locations for our coffee cafés.

Not only does the upmarket nature of these facilities complement our trendy surroundings and style, but it especially enables us to be at – and become – the nucleus of microeconomic-level activities in the community.

  • Franchise fees linked to turnover

Franchise fees are not fixed, but linked to turnover.

This greatly assists franchisees in their financial planning and in the cashflow management of their businesses.

Furthermore, with franchise fees linked to turnover, the franchisor and franchisee both have a vested interest in the success of the business.

The financials

  • How much do I have to invest before I can open my doors?

The Daily Coffee Group offers two franchise models:

  1. The Daily Coffee Café: The cost of this franchise model, including the joining fee, is between R1,78 and R2 million (excluding VAT). An additional R60,000 is required as initial working capital. Each coffee café covers on average 160 square meters of floor space, with seating for up to 80 customers. It is offered as a full turnkey, business-in-a-box option, which can be up and running within six weeks.
  2. The Daily Coffee Express: This model has been developed exclusively for fuel retailers and for forecourt convenience shops. Set-up costs vary between R300,000 and R600,000, depending on site preparation and the nature and type of equipment required.
  • What are the ongoing franchise and marketing fees?

Franchise fees amount to 6% of turnover (excluding VAT), and marketing fees 1% of turnover.

  • What profit margins can I expect?

Coffee Café franchisees can expect a nett profit (before tax) of around 22% of turnover.

The amount is determined by several factors, including whether they manage their franchises themselves, or whether they employ a manager to do so. We discuss these factors in detail with potential franchisees.

  • What about ROI?

With a forecasted annual return on investment of 38%, new investors should see their initial investments recouped within just three years.

Franchise locations available!

The Daily Coffee Group’s franchise locations are not limited to major centres only.

Our franchises are equally successful in smaller towns and cities – from Langebaan, Kathu, Vryburg and Nelspruit in the rural parts of South Africa, right up to the centre of Sandton in Johannesburg.

We’ve built solid relationships with South Africa’s leading shopping centre developers, and are their preferred coffee café franchisor when they open new centres, or have to replace existing tenants.

In line with this we currently have prime franchise locations available, and will be welcoming applications from individuals wanting to invest in any of these.

Contact us

The Daily Coffee Group’s future growth is based on a carefully conceptualized and managed strategy.

It is, furthermore, driven by our passion for people and an underlying desire to offer The Daily Coffee Café experience to more and more clientele – a third place to come home to for social or business reasons, or as a convenient alternative workspace under the “new normal”.

Discover your future today in our range of remarkable franchise investment opportunities.

Visit our website for more information.

You can also complete our concise online franchise application form here, or contact Adriaan de Bruyn at [email protected] or on 082 781 0899.

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