The Coffee Club sees the GCC and North Africa as potential growth markets and has chalked out an aggressive expansion plans to strengthen its presence in the region, its top official says.
Australia's largest homegrown café restaurant chain, which forayed into the UAE market in December 2014, plans to have 50 outlets in GCC states in the next five years to establish the brand in the region.
"We are planning to set up 25 outlets in the UAE and introduce similar number of branches in the GCC region by 2020," Paul Smith, chief executive officer of The Coffee Club, told Khaleej Times in an interview.
The Australian brand, which is well-known for its famous all-day breakfast service, launched its fourth branch in the UAE and second in Abu Dhabi on the grounds of the Sheikh Zayed Grand Mosque last month. It considers the UAE as an ideal strategical hub to expand the brand's presence in the region.
"The UAE is the tourist hub for the region. Operationally it is the logistic network hub for all other countries in the GCC. It made sense to set up the supply chain in the UAE first," Smith said.
To a question about customers' feedback on the cafe group's first year of operations in the UAE, he said the brand has been received "very favourably" by Emiratis and the diversified expat community.
"We have already developed a reputation as having one of the best coffees and breakfasts in town."
Since opening its doors in Brisbane in 1989, the company has been serving more than 40 million cups of coffee to its approximately 30 million customers annually. The brand has more than 360 cafes in nine countries including Thailand, the Maldives and Egypt.
The company is owned by Minor DKL Food Group, a leading Australian retail food brand franchisor with a combined 410 restaurants in 11 countries.
All-weather drink
Smith is convinced that there is enough demand for coffee varieties and products despite the extreme hot weather in the region.
"Coffee is a product that is now enjoyed hot and cold. We have a varied menu that offers great alternatives in the summer months and a traditional espresso based menu for the winter," he said.
To a question about The Coffee Club's specialty and source of coffee material, he said the brand's UTZ-certified coffee beans are sourced from the growing regions of Brazil, Columbia and India, but are however imported fully-roasted from Australia.
"Our coffee has a strong, smooth flavour profile. But for us it is not just about the taste of the coffee - it is the entire experience. The ambience, the service, the option to have a meal," he said.
"We aim to be a lifestyle brand that allows consumers to choose how and when they will experience The Coffee Club."
About the competition in the UAE with other international brands like Starbucks, Tim Horton's, Caribou and Costa Coffee, he said the brand has competitive a advantage because of its various food options including salads, sandwiches, light meals and pastas. "What sets us apart from this competition is our food offer. About 60 per cent of our turnover is related to food. As competition increases we see this as our competitive advantage," he said.
To a question about the brand's performance in its home market this year, he said the group sustained a steady growth despite a challenging environment in the Australian domestic market.
"Whilst the 2015 domestic Australian café and food service landscape has proved particularly challengingly during 2015 due to increased competitor advertising around the coffee category, The Coffee Club brand has continued to achieve total sales growth in excess of six per cent. The brand also achieved total sales growth during 2013 and 2014," Smith said.
Elaborating, he said growth territories within Australia during 2015 include Western Australia, South Australia and Victorian markets, with New Zealand also experiencing strong network sales.
"Our mission and philosophy is simple. At The Coffee Club, we provide good food, great service and excellent coffee, a welcoming relaxed meeting place enriching contemporary lifestyles and the answer to 'Where will I meet you?'," Smith concluded.
Congratulation!