Executive Summary

Opportunity

Problem

Every day, thousands of South Africans stop for an

espresso-based coffee drink. People who would not have
dreamed of spending more than 50 cents for a cup of
coffee a few years ago now gladly pay R15 to R30 for their
cappuccino, mocha latte or vanilla ice blended drink.

The specialty-coffee business is growing at a healthy

pace. During the past 20 years, there has not been a
single year, despite war and recession, in which specialty
coffee sales have not grown. In many years the increase
has been in double digits. In addition, no coffeehouse
chains have failed during this time, although the list of
casualties in other industries is quite long.

Solution

A hole exists that has yet to be filled for a high-

volume, upscale, quality-driven coffeehouse with a warm,
inviting atmosphere. Koffee-Koffee meets this need and
fills this hole. We offer high-quality products in an upscale
environment. Furthermore, our high-profile location
in Cape Town provides a mixed customer base that will
maintain high levels of business in every season, at all
times of the day, every day of the week.

Market

Despite economic downturns in recent years the specialty

coffee business has been a bright spot. While literally
hundreds of businesses in many categories are facing
poor sales, negative balance sheets and even bankruptcy,
coffee chains continue to show strong growth.

It’s clear that South Africans love for good coffee

continues during good times and bad.

Cape Town: The Perfect Launch Market

By launching Koffee-Koffee in the Cape Town market we
maximize our potential for success due to several factors:

 The highly affluent local population

 Year-round tourist activity

 Ever-changing upscale student population

 Excellent auto and pedestrian traffic by our location

 High number of local special events

 Prime site location

Koffee-Koffee is located at what is arguably one of the

best locations for a coffeehouse in Cape Town in the heart
of the tourist and business district, adjacent to the
wonderful view of Table

Koffee-Koffee has all the ingredients necessary for

immediate success.

Description of business

Our goal is to become well-known in South Africa but we

have first have to become well-known locally.

Koffee-Koffee is majority-owned by Arthur Gwala and

James Polk. Mr. Gwala holds a Bachelor’s Degree in
Business Administration from the University of Cape Town
He’s worked for several years as an independent business
consultant. Previously, he owned a Travel Agency, which
he profitably sold four years ago. Mr. Gwala has extensive
business contacts in Oregon that he will leverage to help
his new venture succeed. Mr. Polk has a Bachelor’s
Degree in Psychology from the Durban University. For the
last five years he has worked as a manager of DEF Spiga,
a successful Italian restaurant in Durban, OR. Under Mr.
Polk’s management, the restaurant has consistently
increased sales while maintaining a lower than average
level of operating expenses.

Investors will not be involved into the daily management

decisions at Koffee-Koffee. They will hire a professional
manager who will oversee all the coffee bar operations.
Three full-time baristas will be in charge of coffee
preparation. They will hire two more part-time employees
to fulfill the staffing needs. In the second and third year of
operation will add additional employees if and when
needed.

SWOT analysis

Strengths

High service levels

Highly motivated staff

High quality products

Weaknesses

No company app

Static website

Opportunities
Introduce company app

Move to a franchise model

Develop a customer relationship culture

Threats

limited profit levels

increase in supplier costs

poor ratings on review websites

Competition

Starbucks (6,300 stores). Started the specialty coffee

chain phenomena in America in 1982. 99% are company
owned. Revenues exceeded $6 billion in 2002. Average
store gross revenue is $805,000. Now in 30 countries.
Same store sales increased by 10% in 2002

KOFFEE-KOFFEE
MR A.GWALA and James Polk

Email.agwala073@outlook.com

Address 28 Thorn St. Newlands, Cape Town