Java casts net wider after new out­let at USIU

Cof­fee chain to open shop in Ki­ambu, Thika, Meru and Athi River towns

Business Daily (Kenya) - - FRONT PAGE - An­nie Njanja an­janja@ke.na­tion­media.com The cof­fee chain has also in­di­cated it will open more out­lets in Nairobi es­tates

Lo­cal cof­fee chain Java House plans to open ad­di­tional out­lets out­side Nairobi after open­ing its irst branch in a learn­ing in­sti­tu­tion at the United States In­ter­na­tional Univer­sity-africa (Usiu africa) premises last month.

Lo­cal cof­fee chain Java House plans to open ad­di­tional out­lets out­side Nairobi after open­ing its first branch in a learn­ing in­sti­tu­tion at the United States In­ter­na­tional Univer­sity-africa (Usiu-africa) premises last month.

The chain has con­tin­ued its ex­pan­sion with Meru, Thika, Athi River and Ki­ambu towns now in the pipe­line.

The Crys­tal Rivers Mall and Res­i­dences in Athi River, as well as Ki­ambu Mall branches, are set to open be­fore the fes­tive sea­son kicks in. The cof­fee chain has also in­di­cated it will open more out­lets in Nairobi es­tates.

Early last month, Java opened its 62nd out­let in USIU-A, Nairobi, sig­nalling plans to di­ver­sify its lo­ca­tions.

Java’s change in tack is in line with the firm’s strat­egy of “set­ting up a restau­rant where the cus­tomer is” and part­ner­ing with in­sti­tu­tions in­clud­ing hos­pi­tals that “de­sire qual­ity cof­fee and food of­fer­ings.”

Java in­vests Sh50 mil­lion to set up a new branch, but cap­i­tal in­jected into ex­press branches are much lower.

“Java house in­vests an av­er­age of Sh50 mil­lion per branch. The USIU-A branch is a Java Ex­press which has a lower in­vest­ment

level and a pri­mary fo­cus on cof­fee and grab-and-go items,” said Java House chief ex­ec­u­tive Ken Kuguru.

“Java House will con­tinue to part­ner with in­no­va­tive and lead­ing in­sti­tu­tions look­ing to de­liver world-class of­fer­ings on cof­fee and food ser­vices.”

The USIU-A out­let, which has been op­er­a­tional since Oc­to­ber 11, will of­fi­cially open next month. The restau­rant’s op­er­a­tions will also be aligned with the univer­sity’s aca­demic cal­en­dar.

In­vest­ment in new shops is a strat­egy that Java’s new own­ers have com­mit­ted to pur­sue fur­ther, with plans to take the brand to new African coun­tries in the medium-term.

Dubai-based pri­vate eq­uity firm Abraaj Group re­cently fully ac­quired the cof­fee chain, buy­ing stakes held by its founder Kevin Ash­ley and Wash­ing­ton-based Emerg­ing Cap­i­tal Part­ners in a multi­bil­lion shilling trans­ac­tion.

FILE

COF­FEE BREAK Java House out­let on Ki­mathi Street in Nairobi.

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