FRANCHISEE INFORMATION
REASONS TO
INVEST IN A
THE DAILY
FRANCHISE
The booming South African coffee industry presents attractive investment opportunities for serious investors. One of these is an investment of R2,2 million (excluding VAT) in a profitable The Daily Coffee Café franchise in which investing franchisees can expect exceptional returns. This opportunity is even more appealing given that the setup costs for this franchise are significantly lower than those of comparable franchise models in the industry.
Why invest in the coffee industry?
Globally, including in South Africa, the coffee industry is evolving to match modern living and the shift towards working outside traditional office settings. This change is driving a growing demand for branded lifestyle coffee destinations that fit with today’s work and social trends.
Today’s coffee café has become a lively neighbourhood hub which fosters a vibrant community. It serves as an essential third place in modern society—a destination that isn’t home or work, but a welcoming space where people can unwind, socialise, and conduct business on the go.
This is what people need today. This is the unbeatable investment opportunity to consider!
Why partner with The Daily Coffee Group?
The Group’s executives bring a wealth of experience and qualifications across various fields, including the hospitality industry, coffee and coffee roasting, operations, finance, retail, marketing, interior design, and corporate governance. Their deep understanding of running a coffee café franchise is reflected in the following distinctive strategic and operational strengths:
Coffee is our business
We understand coffee, we know what coffee lovers desire, and we make sure they get what they want. To do so, we train our baristas well, and we roast our proprietary coffee blend in our own roastery, using state-of-the-art equipment to ensure quality and consistency.
We’ve done our homework
Thorough research and reasoning went into creating the distinctive look and feel of our coffee cafés – an ambiance 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 choose smaller, accessible, and modern boutique-style shopping centres as locations for our coffee cafés. The upscale nature of these properties complements The Daily’s trendy style and ambiance, it places the franchise at the heart of vibrant local microeconomic activity, and is ideal for what The Daily has become renowned for – the place where locals meet!
Franchise fees linked to turnover
Franchise fees are not set, but tied to turnover, which significantly assists franchisees in financial planning and cash flow management. Furthermore, this turnover-based fee structure aligns the interests of both the franchisor and franchisee, as both parties benefit from the success of the business.
The financials
How much do I have to invest before I can open my doors?
The total investment for a The Daily Coffee Café franchise, including the joining fee, is R2.2 million (excluding VAT), with an additional R150,000 needed for initial working capital. Each coffee café typically covers 160 square meters and accommodates up to 80 customers. Offered as a complete turnkey, business-in-a-box solution, the franchise can be operational within six weeks.
What are the ongoing franchise and marketing fees?
Franchise fees are set at 6% of turnover (excluding VAT), with an additional 1% allocated for marketing fees.
What profit margins can I expect?
The Daily Coffee Café franchisees can anticipate a nett profit (before tax) ranging from 18% to 25% of turnover. This profitability is influenced by factors such as whether they manage the franchise themselves or employ a manager. We thoroughly discuss these variables with potential franchisees to provide a clear understanding.
What about ROI?
With a projected annual return on investment of 38%, new investors can expect to recover their initial investment within just three years.
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Discover your future today in our remarkable franchise investment opportunities. Apply today!
