Artcaffe takes aim at rivals with plans to open four branches

“We are planning to open the four branches in Nairobi this December,” said ArtCaffé’s head of communications Nikki Hartley told the Business Daily yesterday.

“In total, by end of 2021, we will have 39 ArtCaffé’s all within Nairobi. This does not include our other brands, just ArtCaffé.”

Ms Hartley said the first branch to be opened today would be at Shell Petrol station on the Northern bypass.

The new branches will serve walk-in customers as well those working at nearby offices. The four branches will seat a maximum of 214 people.

She did not disclose the cost of their investment or the source of funding for the expansion.

The new outlets are coming at a time Kenya has seen an increase in branch expansion by local coffee chains such as Java House.

Restaurant businesses have been on expansion and capital raising plans in the race to tap Kenya’s emerging coffee drinking culture and the demand for snacks and meals.

The increased visits to coffee shops are fuelled by Kenya’s expanding middle class with higher disposable incomes to spend on luxury items.

Increased activity in this segment of the market has also coincided with the rise in the construction of new malls in Nairobi offering retailers a concentration of well-heeled shoppers.

In Kenya, ArtCaffé competes with global brands, including KFC and Subway, as well as Big Square, which has also been on an expansion spree fuelled by private equity investors.

The ArtCaffé Group was acquired by ECP for Sh3.5 billion.

The transaction was a re-entry of ECP into the restaurant business after it sold its stake in Java two years ago.

The acquisition gave ECP control over ArtCaffé’s business that consists of bakeries, coffee houses, and eatery brands such as Dormans, Tapas Ceviche Bar, Urban Gourmet Burgers and Oh Cha Noodle Bar.

The group also operates a central bakery, kitchen, and logistics centre that prepares and distributes artisanal baked goods, food, and drink shipments to its restaurants.

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