When I heard the $ 15 million bandied about, I thought possible People are forgetting Java also has it’s retail arm whereby they sell ground coffee through Uchumi and Nakumatt so I can see that pulling in $ 1-2 million on its own, then you review its highest grossing locations……two in town in very advantageous spots, both almost always packed……the Yaya and Adams branches also get brisk business and they are only a mile apart……the new Sarit branch is picking up well, even their airport location which is a dump is making a killing……I was just through there on Sunday and was irritated by the fact that travellers on long layovers had virtually camped out there from dawn to dusk so there was zero chance of seating and the place was packed to the rafters. That leaves their Gigiri location, which ironically perhaps gets the least traffic despite being in a very upscale neighborhood.

My take on very rudimentary analysis, Java can easily pull $ 5-10 million gross, if they are hitting $ 15 then wow All the more reason they should go regional, I don’t see stiff competition from the South Africans for their product and model.

Sijui: I will remain skeptical and a loyal customer!!!!! Aluta continua…..and lets aim for $ 50 m GROSS guys!

Where have you been Sijui? You must be very busy running your business.

$50M gross running a coffee shop? How are they going to do that?

Their success is consistent quality, and I have personally got to the point where I have boycotted their rivals Dormans because they just cannot match their quality. Sasini still pales in comparison so for now they are still the undisputed leaders……my aunts told me about the child molestation thing and frankly I was SUSPICIOUS first about the root of the rumours. Whilst they may be guilty as charged, I am EQUALLY cynical that it could be jealous KENYAN business rivals trying to sabotage their success because frankly it took a MZUNGU to come test out the idea, run with it and make a killing……and typical of jealous, envious Kenyans unable to execute the same vision and creativity. After all Dormans existed before Java as a coffee house and it was a DUMP!

Until I see a rigorous prosecution, I will remain skeptical and a loyal customer!!!!! Aluta continua…..and lets aim for $ 50 m GROSS guys!

And I said GROSS sales… including all other stuff they do including bulk sales etc…

I have no reason to doubt JH’s numbers BUT I am not investing… and if I were then I would have my Due Diligence…

The average starbucks grosses about $1 million dollars a year. Do you honestly believe that a coffee shop in kenya can gross the same amount as a starbucks in America?

This is really about gauging the veracity of a financial statement that the CEO of javahouse made on tape. It’s not about lauding his business efforts.

And if they do… well good for them!

Average (per what is claimed) is $1.5mn per store = Kes 120 mn per year. (I would say GROSS sales not profit)

Thus we have 10mn per month per store (average). Java House sells much more than coffee.

A ‘meal’ (food + drink) at JH runs 500/- at minimum thus… they need to sell a lot of stuff but… that equates to 20,000 meals per month.

Many folks just buy coffee/sodas/drinks. JH also sells quite a bit of packaged coffee (whole beans & ground). So I would dial down the meals to 10,000 per month = 333 per day (JH is open 7 days/week except some holidays. So they are open at least 350 days/year).

All in all… I think JH may be close to $15 mn in GROSS SALES especially with the ‘other’ businesses – sale of coffee beans & meals – they have.

Starbucks sells a lot more than coffee. And a good percentage comes from Starbucks coffee beans. Also… the Frappucino sold in stores.

Back to the pertinent point of this topic:

Do you think Java house is grossing $15 million dollars a year?

So, let’s assume the average customers is paying $3 for a cup of coffee.

Let’s also assume that they get about 250 customers for each store, per day.

$3 X 250 (customers) = $750 a day

Let’s say there are 260 workdays in a year (excluding weekends)

$750 X 260 (days) = $195,000 dollars a year (for each store)

$195,000 X 10 (the number of stores) = $1,950,000 of total revenue (not gross for ALL 10 stores, per year)