Setting up a New Coffee Shop in South Africa

Introduction

The purpose of this report is to analyze whether South Africa can be considered as a location for the expansion of a coffee shop franchise.

Findings

First of all, there is a large percentage of people in South Africa who regularly drink coffee — drinking up to 2–3 cups a day. Therefore, making it a largely potential market for us to expand into. Second, South Africa is known for the variety of coffee beans available locally. Thus, reducing the cost of shipping coffee beans drastically. Lastly, South Africans tend to like their coffee customized to their tastes instead of the standard coffee flavours, which may make it more difficult to penetrate this new market.

Recommendations

It is suggested that we look into their coffee-drinking habits and create a versatile coffee menu with a provision for customizing for coffee preferences.

Conclusion

Even though South Africa is a fully developed market, it is still felt that South Africa would fulfill most of our key requirements.