- Players: Adriaan de Bruyn (left) and Kobie Malan
- Franchise: The Daily Coffee Café
- Established: 2013
- Visit: thedailycoffeecafe.co.za
In 2013, banker Adriaan de Bruyn gave up his job in the risk management department at Capitec Bank and decided to take his friends’ advice literally.
“They always made fun of me saying: ‘You’re sitting in coffee shops all the time, why not buy one so you can have coffee for free?’” he says. Today Adriaan is the Group CEO of The Daily Café Group and has expanded his coffee café franchise faster than he ever dreamed possible.
Entrepreneur sat down with Adriaan to uncover his formula for success. And it goes far beyond The Daily Coffee Café’s exclusive coffee blend and modern-meets-rural atmosphere.
How did the idea of The Daily Coffee Café come about?
I researched why only some coffee shops do well. The answer was what I’ve built the success of The Daily Coffee Café on.
People go to coffee shops to connect — food and drinks are secondary to the experience. I didn’t just want a typical coffee shop.
I wanted an atmosphere that would attract men and women. I told my brand designer I wanted an industrial look, with copper, steel and wood and dubbed it New York meets Karoo.
Related: Coffee Shop Business Plan
Describe The Daily Coffee Café’s growth path
After opening the first store in Paarl in 2013, it immediately took off. I opened another and it also did so well that my third café followed 18 months later. Patrons enjoyed what we offered and their interest in the concept was so overwhelming that I decided in 2015 to franchise the business.
I had my systems in place for profitability and no other coffee chain in South Africa offered this trendy and modern type set-up. They all looked like one another, even serving the same tasting coffee. It was time to introduce something with appeal.
Kobie Malan joined me as my business partner and together we focused on expanding our franchise nationally.
Our objective is to continue growing in all the major locations in South Africa and to bring our franchise concept within reach of all South African franchise investors.
Who is your ideal franchisee?
It’s important that the franchisee relates to and buys into the franchise; someone who’s willing to follow the rules and follow through on our systems.
We know what works and what doesn’t. But as we also encourage independent thinking, franchisees are given 10% leeway in what they want to offer.
Distinctive specialties are allowed in addition to our standard menu. For example, some of our cafés are located close to gyms, so their menus are tailored to the lifestyle and dietary preferences of these patrons.
Why is The Daily Coffee Café a solid franchise investment?
Not only the individual parts, but particularly the combination of what we offer makes investing lucrative and rewarding.
It’s affordable. For a financial outlay from only R900 000, the franchisee gets a stylish turnkey start-up business, operational within 45 days.
Growth is certain. The investment is made in a fast-growing and sustainable café life industry in South Africa where there is increasing demand for good coffee. And it’s made in our established and sought-after brand.
We offer dedicated skills transfer and back-up. Franchise fees are not fixed, but linked to turnover at 5%. It’s therefore just as important for the franchisor as it is for the franchisee that the franchise is successful and profitable.
The bottom line? An average return on investment of 48% is not to be sneered at.
How important is a new menu in the franchise landscape?
We feel good when we continually delight our clientele. We therefore vary our menu three times a year to provide for seasonal adjustments and to offer only the freshest ingredients. We consider what’s trending in the marketplace and, most importantly, we listen to, and implement feedback from our patrons.
Our policy to adjust our menu and our ability to do so with ease is a competitive advantage.
How much does purchasing a Daily Coffee Café franchise cost?
The capital investment is from R900 000 (excluding VAT) for a full turnkey café. A further R80 000 should cover the rental agreement deposit, opening stock and initial working capital.
No joining fees is required. Those who have bought in believed in our business even before committing to it. There is no need to pay to prove that.
What kind of training and support does The Daily Coffee Café offer?
During start-up our full team is involved to prepare the café for opening day. This includes shop fitting, recruitment and skills transfer to all members of staff. We also ensure that they understand and buy into the ethos of the business.
Our executive head office team consists of an operations manager, two corporate chefs, a corporate barista, a brand developer and a content writer, with Kobie and I actively leading the way in supporting our franchisees in matters ranging from managing their businesses through to quality control and refresher training.
Talk us through your expansion plans
Besides our home territory — the Western Cape — our objective is to escalate our expansion in KZN and Gauteng because the market between Cape Town and the main centres in these provinces isn’t that different.
We’ll continue to select smaller and modern boutique style shopping centres as locations for our cafés. Not only does the upmarket nature of these premises complement our stylish character, but it allows us to really showcase The Daily Coffee Café as the ultimate neighbourhood rendezvous where good coffee and pleasant company go hand in hand.
What makes The Daily Coffee Café unique to other coffee shops?
Our coffee is uniquely blended for us and is a special combination of beans that offers a cup above the rest.
Many coffee shops make the mistake of not playing for the crowd anymore. We blend our coffee specifically to go well with milk as 50% of our sales are cappuccinos. We’re not just selling good coffee or food, we offer an emotionally inviting space where patrons enjoy quality time with friends, conduct business discussions or enjoy precious me-time moments.
Besides free WiFi and comfortable chairs, every café has snug couches that add to the homely feel. In fact, interested franchisees often comment on how they felt at home when they first entered our cafés.
What does a franchise cost?
|Establishment cost||R900 000
|Initial stock cost||R30 000|
|Monthly royalty fee||5% of turnover|
|Average store size||150m2 to 200m2|
|Recommended staff||Up to ten, including manager|
|Average time to breakeven||Within three months|
|For more information email: firstname.lastname@example.org or visit www.thedailycoffeecafe.co.za.|