World of Coffee! Part 2/2

The Caffé Business

There are several reasons why Italian coffee houses are so popular and profitable. While they continue to preserve the authentic coffee drinking culture and experience, most cafes are also working on their market positioning and branding to gain a lion’s share in this competitive business.

Product Diversification: Some of the most popular chains have diversified their products and services to meet the varied needs of modern consumers. From options of espresso, cappuccino, mocha, café latte and decaf to fresh baked items, scrumptious pastries, sandwiches and desserts – customers can now calm their hunger pangs in a quick and most importantly, healthy manner. In fact, one can find healthier meal options in a coffee shop than in a fast food restaurant!

Apart from a delightful range of popular coffees and quick service snacks, many coffee shops also sell whole or ground coffee beans as well as espresso machines, grinders, coffee mugs and accessories. A wider range of products translates to more sales and better profit margins.

Round the Clock Service: A growing number of cafés stay open till very late or even round the clock to cater to their customers. Extended operating hours help them make more money and stand out in competition. As for coffee lovers, satiating midnight cravings for gourmet coffee is not a problem anymore!

Drive-Through Facility: Many coffee chains also offer drive-through facility, freeing their patrons from the hassle of parking their cars, standing in line to pick up their order and getting back to their cars. This added convenience goes a long way in transforming occasional visitors into loyal customers.

Watch Your Brew Being Made: Much like cheese factories and chocolateries, some cafes allow their customers to watch how their order is being prepared by setting up a factory-like environment in the center of the shop and allowing baristas to work their magic!

Coffee for Everyone! Most importantly, coffee shops do not differentiate between customer demographics – they cater to everyone! White collar, blue collar or no collar, young or old – just about anyone can go to a café and enjoy a cup of refreshing brew in a friendly, comfortable and relaxed environment!

Wake Up and Smell the Coffee!

There is a huge demand for Italian brewed coffee all around the world. A coffee shop provides a gross margin of 85%. A number of coffee chains and brands offer franchises to grow their business and have an international footprint; they owe their success in regional markets to a host of factors including strong brand positioning, strategic location, attractive and technology driven shop concept design and local store marketing – all of which is aimed at improving customer experience.

Italian Coffee Shop Franchising in the Middle East

A recent research conducted by Francorp shows that the demand for coffee shop franchises is the highest in Middle Eastern markets. Out of 100 investors who want to put their money in an F&B concept in UAE and Saudi Arabia, almost 70% are looking to buy a coffee shop franchise.

There is an obvious explanation behind the growing demand for profitable coffee franchise concepts in the Middle East. The region is a hot tourist destination and home to millions of expats from all around the world. The truly multi-cultural environment of the region has spurred the demand for good coffee and consequently the need for first-class coffee shops where people can not only enjoy a cup of their favourite brew but also be more ‘social’. A growing number of cafes are remodelling their shop concept design to become the ‘hot spots’ for such social interactions – including business meetings, birthday parties and small gatherings – thereby reaching out to wider customer groups and churning better profits.

Over the last 10 years, DESITA has been helping Italian coffee shop brands to export their franchise concepts to the lucrative markets in Middle East and North Africa (MENA region) as well as facilitating local investors in the region to select the most profitable Italian coffee franchises that guarantee long term capital advantage.

As a leader in F&B shop concept design, franchising and branding services, DESITA helps its clients to set up attractive, profitable and environment-friendly café concepts in the MENA Region, and provides end to end services to make their business work!

If you are planning to export your Italian coffee shop concept to the MENA region, set up a brand new coffee shop, remodel an existing shop concept or invest in a profitable coffee franchise venture, talk to us today!

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