Why invest in the coffee industry?<\/h3>\n
Worldwide \u2013 including in South Africa \u2013 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.<\/p>\n
Furthermore, the so-called \u201cnew normal\u201d \u2013 created by the Covid-19 pandemic \u2013 now applies in the workplace, with large numbers of corporate employees nowadays routinely working from home.<\/p>\n
In South Africa this new workplace reality created a demand with those who work remotely to also have a workspace nearby \u2013 other than the home office \u2013 from where they can work for shorter periods of time.<\/p>\n
For this a conveniently-located coffee caf\u00e9 which offers laptop workstations, 230 Volt and USB power supply \u2013 also during loadshedding \u2013 as well as free Wi-Fi, is favoured, along with the convenience of being able to order coffee and refreshments.<\/p>\n
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\u2019s coffee caf\u00e9 franchises closed due to the effect of Covid-19 lockdown measures at the time.<\/p>\n
Even more enlightening is the fact that the Group has opened 11 new franchises in 2022, which demonstrates the demand for coffee caf\u00e9 destinations, and the potential for investment growth in this industry.<\/p>\n
The above trends created a shift in the nature of the typical and bygone coffee shop of yesteryear.<\/p>\n
The modern-day coffee caf\u00e9 has become a neighbourhood destination with a vibrant community of people \u2013 a space to meet with family and friends, to discuss and conclude business deals, and to work from remotely.<\/p>\n
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!<\/p>\n
The coffee caf\u00e9 has become an essential resource for the community.<\/p>\n
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.<\/p>\n
Why partner with The Daily Coffee Group?<\/h3>\n
The Daily Coffee Group \u2013 a truly South African coffee franchise business \u2013 is currently the fastest growing coffee shop franchise in South Africa.<\/p>\n
It has more than 40 franchises countrywide, and is set to expand further nationally.<\/p>\n
The collective background of the Group\u2019s 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 caf\u00e9 franchise.<\/p>\n
This is encapsulated in the following unique selling points:<\/p>\n
- \n
- Coffee is our business<\/strong><\/li>\n<\/ul>\n
We know coffee, we know coffee lovers\u2019 requirements, and we make sure they get what they want.<\/p>\n
To do so, we roast our proprietary coffee blend with state-of-the-art coffee roasting equipment to ensure consistency and quality.<\/p>\n
- \n
- We\u2019ve done our homework<\/strong><\/li>\n<\/ul>\n
Thorough research and reasoning went into creating the distinctive look and feel of our coffee caf\u00e9s \u2013 an ambience that captures the essence of caf\u00e9 life prevalent from Cape Town to New York, but packaged in a way that resonates well with South African clientele.<\/p>\n
Part of this is the pleasing and much talked about New-York-meets-Karoo d\u00e9cor of our coffee caf\u00e9s \u2013 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.<\/p>\n
- \n
- A destination for every taste<\/strong><\/li>\n<\/ul>\n
Our coffee caf\u00e9s transform into what individual patrons want them to be.<\/p>\n
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.<\/p>\n
Informal and casual, yet with a corporate elegance and flair.<\/p>\n
- \n
- Spot-on locations<\/strong><\/li>\n<\/ul>\n
We select smaller, accessible and modern boutique-style shopping centres as locations for our coffee caf\u00e9s.<\/p>\n
Not only does the upmarket nature of these facilities complement our trendy surroundings and style, but it especially enables us to be at \u2013 and become \u2013 the nucleus of microeconomic-level activities in the community.<\/p>\n
- \n
- Franchise fees linked to turnover<\/strong><\/li>\n<\/ul>\n
Franchise fees are not fixed, but linked to turnover.<\/p>\n
This greatly assists franchisees in their financial planning and in the cashflow management of their businesses.<\/p>\n
Furthermore, with franchise fees linked to turnover, the franchisor and franchisee both have a vested interest in the success of the business.<\/p>\n
The financials<\/h3>\n
- \n
- How much do I have to invest before I can open my doors?<\/strong><\/li>\n<\/ul>\n
The Daily Coffee Group offers two franchise models:<\/p>\n
- \n
- The Daily Coffee Caf\u00e9:<\/strong> 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 caf\u00e9 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.<\/li>\n
- The Daily Coffee Express:<\/strong> 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.<\/li>\n<\/ol>\n
- \n
- What are the ongoing franchise and marketing fees?<\/strong><\/li>\n<\/ul>\n
Franchise fees amount to 6% of turnover (excluding VAT), and marketing fees 1% of turnover.<\/p>\n
- \n
- What profit margins can I expect?<\/strong><\/li>\n<\/ul>\n
Coffee Caf\u00e9 franchisees can expect a nett profit (before tax) of around 22% of turnover.<\/p>\n
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.<\/p>\n
- \n
- What about ROI?<\/strong><\/li>\n<\/ul>\n
With a forecasted annual return on investment of 38%, new investors should see their initial investments recouped within just three years.<\/p>\n
Franchise locations available!<\/h3>\n
The Daily Coffee Group\u2019s franchise locations are not limited to major centres only.<\/p>\n
Our franchises are equally successful in smaller towns and cities \u2013 from Langebaan, Kathu, Vryburg and Nelspruit in the rural parts of South Africa, right up to the centre of Sandton in Johannesburg.<\/p>\n
We\u2019ve built solid relationships with South Africa\u2019s leading shopping centre developers, and are their preferred coffee caf\u00e9 franchisor when they open new centres, or have to replace existing tenants.<\/p>\n
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.<\/p>\n
Contact us<\/h3>\n
The Daily Coffee Group\u2019s future growth is based on a carefully conceptualized and managed strategy.<\/p>\n
It is, furthermore, driven by our passion for people and an underlying desire to offer The Daily Coffee Caf\u00e9 experience to more and more clientele \u2013 a third place to come home to for social or business reasons, or as a convenient alternative workspace under the \u201cnew normal\u201d.<\/p>\n
Discover your future today in our range of remarkable franchise investment opportunities.<\/p>\n
Visit our website for more information.<\/strong><\/a><\/p>\n
You can also complete our concise online franchise application form here<\/strong><\/a>, or contact Adriaan de Bruyn at adriaan@thedailygroup.africa<\/strong><\/a> or on 082 781 0899<\/strong>.<\/p>\n
- What about ROI?<\/strong><\/li>\n<\/ul>\n
- What profit margins can I expect?<\/strong><\/li>\n<\/ul>\n
- The Daily Coffee Express:<\/strong> 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.<\/li>\n<\/ol>\n
- The Daily Coffee Caf\u00e9:<\/strong> 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 caf\u00e9 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.<\/li>\n
- How much do I have to invest before I can open my doors?<\/strong><\/li>\n<\/ul>\n
- Franchise fees linked to turnover<\/strong><\/li>\n<\/ul>\n
- Spot-on locations<\/strong><\/li>\n<\/ul>\n
- A destination for every taste<\/strong><\/li>\n<\/ul>\n
- We\u2019ve done our homework<\/strong><\/li>\n<\/ul>\n
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