South Africa has been abuzz with excitement since US coffee giant Starbucks announced that it will set up its first outlet in sub-Saharan Africa in Johannesburg in 2016.
But according to Taste Holdings, the company that owns the Starbucks franchise worldwide, it will not sell its popular mugs of coffee at any cheaper price than what it sells in the US or the in European countries.
Mail & Guardian Africa reported in July that Starbucks was likely to keep its prices in line with what it charges internationally. That’s an average of $2.85 for a small cup of steamy coffee and $3.95 for a large cup.
This is expected to push the price of an average coffee cup in South African coffee houses up from the current range of $1.25 to $2.00.
“People in South Africa aren’t used to paying what they should for great coffee,” Iain Evans, publisher of The Coffee Mag, told the Mail & Guardian. “It’s difficult for someone who uses high-quality imported ingredients to make a profit on the current prices.”
In north African, a Starbucks in a city like Cairo in Egypt will sell a Latte at between $2.00 and $2.50 — the same as a cappuccino. That’s too high compared to the what South African shops offer their consumers currently, even with a 30 percent discount.
Taste forecasts that it will open its first Starbucks store in South Africa in “the first half of 2016” and follow the grand opening with 12 to 15 more stores over the next two years, Business Tech reported.
With a projected growth of 20 outlets annually, Taste expected to have between 150 and 200 Starbucks in South Africa by 2025.
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