Presented by The Daily

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

 ·4 Apr 2024

The growing South African coffee industry offers investment opportunities that the serious investor should take note of. One of these is an investment of R1,8 to R2,1 million (excluding VAT) in a profitable The Daily Coffee Café franchise in which investing franchisees can expect a higher-than-average return on investment. This earning power is further enhanced by the fact that the capital needed for franchise set-up costs is considerably lower than that of comparable franchise models in the market. 

Why invest in the coffee industry?

Worldwide – also in South Africa – the coffee industry has become a landscape where the growing number of coffee lovers, as well as society in general, create an increasing demand for branded coffee lifestyle destinations.

Today’s coffee café has become a neighbourhood destination with a vibrant community of people. It is a valuable resource for the community and serves as that important third place that society needs in today’s world – a place not where people work or live, but where they spend time to regenerate, interact with others, even do business while on the move.

This is what people need today. This is the investment landscape to consider!

Why partner with The Daily Coffee Group?

The Daily Coffee Group – a home-grown South African coffee franchise business – is currently one of the fastest growing coffee shop franchises in South Africa. It has more than 38 franchises countrywide, with more in the process to be added.

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 in our own roastery 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 Big Apple urban life, combined with down-to-earth Karoo appeal.

  • 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 style and ambiance, 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 cost of a The Daily Coffee Café franchise, inclusive of the joining fee, is between R1,8 and R2,1 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.

  • What are the ongoing franchise and marketing fees?

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

  • What profit margins can I expect?

The Daily Coffee Café franchisees can expect a nett profit (before tax) of between 18% and 25% 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 has premium locations for new The Daily Coffee Café franchises available in the locations below, and we are actively searching for new franchise partners! Please contact us if of interest to you!

  • Gqeberha (Port Elizabeth), Kariega (Uitenhage), Oudtshoorn, Knysna, George, Stellenbosch, Cape Town, Bronkhorstspruit, Lephalale, and various locations in and around Gauteng.

Apart from the above, please contact us should you be keen to invest in a The Daily Coffee Café franchise elsewhere so that we can investigate options. We, especially, would like to hear about potential franchise sites that are available, and that we may not be aware of.

Contact us

Discover your future today in our remarkable franchise investment opportunities. Visit our website www.thedailycoffeecafe.co.za for more information. You can also complete our concise online franchise application form at this link https://bit.ly/3ITNGNB, or contact Adriaan de Bruyn at [email protected].

The Daily Coffee Café – the place where South Africans meet!

For more info on The Daily Coffee Café click here.

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