International cafe franchise in Mauritius

Interesting questions .. why do you ask ?

Ukuva wrote:

Interesting questions .. why do you ask ?

Because we intend to do what has not been done yet

Mauritius does not really have a coffee culture. Here it's mainly the fruit juice-coconut water-beer tropical island lifestyle.
Also people prefer tea due to the island having a local tea industry.

People will drink coffee on occasions but definitely not a daily preference.

Opening a coffee chain will be just like most other type of businesses, things can work or go bust. All depends on your strategies, marketing, products offered and the catchment area where you will be operating. And you will have to take into account the habits of locals like I mentioned above. Example, Mauritius is somewhat an all summer destination with only brief stints of winter in some locations.

Moreover, being a foreigner, you will be subjected to some operational conditions like the minimum turnover your business will have to generate in order to maintain the status of your investor permit.
Contrary to locally owned outlets that are not subjected to these terms and conditions.

IMO, a do-able project albeit a challenging one that will warrant a very thorough study and planning.

I have dug deep into the research on the "coffee business" for Mauritius ... it has lots of short term risks ! .. but .. there is a way of doing it !

WinstonH wrote:

Mauritius does not really have a coffee culture. Here it's mainly the fruit juice-coconut water-beer tropical island lifestyle.
Also people prefer tea due to the island having a local tea industry.

People will drink coffee on occasions but definitely not a daily preference.

Opening a coffee chain will be just like most other type of businesses, things can work or go bust. All depends on your strategies, marketing, products offered and the catchment area where you will be operating. And you will have to take into account the habits of locals like I mentioned above. Example, Mauritius is somewhat an all summer destination with only brief stints of winter in some locations.

Moreover, being a foreigner, you will be subjected to some operational conditions like the minimum turnover your business will have to generate in order to maintain the status of your investor permit.
Contrary to locally owned outlets that are not subjected to these terms and conditions.

IMO, a do-able project albeit a challenging one that will warrant a very thorough study and planning.

Thanks for your views Winston, very helpful!

I agree that people don't seem to be very much into the coffee habit, but some might be and then there's expats and tourists. Also, I think that coolers (fruit or coffee flavours) might do good. Most of these international chain menus offer a variety of drinks.

But location seems to be the most important factor strategic factor as of yet - I am trying to contact various malls, but haven't heard back from them. Would you know if prominent and strategic locations are available and if they lease through agencies?

WinstonH wrote:

Mauritius does not really have a coffee culture. Here it's mainly the fruit juice-coconut water-beer tropical island lifestyle.
Also people prefer tea due to the island having a local tea industry.

People will drink coffee on occasions but definitely not a daily preference.

Opening a coffee chain will be just like most other type of businesses, things can work or go bust. All depends on your strategies, marketing, products offered and the catchment area where you will be operating. And you will have to take into account the habits of locals like I mentioned above. Example, Mauritius is somewhat an all summer destination with only brief stints of winter in some locations.

Moreover, being a foreigner, you will be subjected to some operational conditions like the minimum turnover your business will have to generate in order to maintain the status of your investor permit.
Contrary to locally owned outlets that are not subjected to these terms and conditions.

IMO, a do-able project albeit a challenging one that will warrant a very thorough study and planning.

Thanks for your views Winston, very helpful!

I agree that people don't seem to be very much into the coffee habit, but some might be and then there's expats and tourists. Also, I think that coolers (fruit or coffee flavours) might do good. Most of these international chain menus offer a variety of drinks.

But location seems to be the most important factor strategic factor as of yet - I am trying to contact various malls, but haven't heard back from them. Would you know if prominent and strategic locations are available and if they lease through agencies?

Relying on tourists and expats would be really something to avoid.
The challenge here would be to bring in new products while at the same time adapting to local taste and preferences.
As I mentioned above, you will have yearly financial obligations to meet as part of your permit and you will need to come in with strategies to keep your outlet full.

Malls are typically the best places to set up outlets as they draw in large number of people but some charge exorbitant rental fees that might jolt the financial stability of your outlet.
Ultimately, you will have to get in touch with them to know about their rental agreements.

Good advice Winston ... having a "point of difference" that attracts locals is the key to maintaining a consistant turnover ... very tight systems in place for  protecting your GP (rule #1)  ... and a consistant program for increasing turnover via "return visits" for locals (rule #2)... are the only 2 rules for success in the coffee shop business ... value for money is a given. ... ps .. all utilities  inc rent ... have to be no more than 10% of nett turnover.

Good advice Winston ... having a "point of difference" that attracts locals is the key to maintaining a consistant turnover ... very tight systems in place for  protecting your GP (rule #1)  ... and a consistant program for increasing turnover via "return visits" for locals (rule #2)... are the only 2 rules for success in the coffee shop business ... value for money is a given. ... ps .. all utilities  inc rent ... have to be no more than 10% of nett turnover.

WinstonH wrote:

Relying on tourists and expats would be really something to avoid.
The challenge here would be to bring in new products while at the same time adapting to local taste and preferences.
As I mentioned above, you will have yearly financial obligations to meet as part of your permit and you will need to come in with strategies to keep your outlet full.

Malls are typically the best places to set up outlets as they draw in large number of people but some charge exorbitant rental fees that might jolt the financial stability of your outlet.
Ultimately, you will have to get in touch with them to know about their rental agreements.

Many Thanks Winston, that's really very helpful insight!

Ukuva wrote:

Good advice Winston ... having a "point of difference" that attracts locals is the key to maintaining a consistant turnover ... very tight systems in place for  protecting your GP (rule #1)  ... and a consistant program for increasing turnover via "return visits" for locals (rule #2)... are the only 2 rules for success in the coffee shop business ... value for money is a given. ... ps .. all utilities  inc rent ... have to be no more than 10% of nett turnover.

Yes, I agree with that and am in no way not intending to focus on the local customers. What I meant is that an international brand will be instantly recognised by tourists and might draw some from them as well. I'm sorry I couldn't quite decipher 'GP' from your rule#1, could I request you to please share some details.

So now, the hunt for the premium location lease begins!

Thanks guys! Will keep you posted on the outcomes.

GP .. gross profit ... the opposite of FC ..food cost. GP = net item profit ÷ net takings for the item x 100 .... for the business to be successful... you require 75% GP less 2 % for wastage = monthly stocktake GP should never fall below 73%  !! ... as a matter of interest and to simplify... the net food cost x 4.6 will give you the correct retail selling price (if VAT is at 15%)

Rule #1 ... protect GP.