01

Specialty Coffee Brand — Investor Pitch

Shopping Mall Unit, Dubai
AED 500K
Total Investment
15.1%
Net Margin (Year 3)
17 Months
Breakeven
02

Market Opportunity

UAE Coffee Market

  • AED 3.7B market size in 2024
  • 7.2% CAGR forecast to 2030
  • 66% of residents drink coffee daily
  • 2.7 cups per person average
  • Independent cafés outpacing chains (9.2% growth)

The Coffee Brand Advantage

  • Home-grown specialty brand (Est. 2016)
  • 5 outlets + roastery operation
  • AED 28-30 average ticket size
  • Emirati signature drinks
  • Lower franchise fees vs. international chains
03

Competitive Landscape

Brand Initial Franchise Fee Royalty & Marketing Typical CapEx Notes
The Coffee Brand AED 120,000 4% + 1% AED 350K-450K Includes bean supply wholesale -20%
Costa Coffee AED 1.25M-4.0M 7% + 2% AED 800K-1.3M EMRILL license; high build spec
Tim Hortons AED 2.5M-7.0M 4.5-6% + 4% AED 1.1M-1.9M Kiosk or inline options
Starbucks AED 1.16M avg 5-6% AED 900K-2.8M Master licensee only

The Brand's Competitive Advantage

Lower entry ticket and royalty load leave larger capital envelope for equipment and launch marketing within AED 500,000 budget

04

3-Year Financial Projections

AED 2.59M
Year 1 Revenue
AED 3.02M
Year 3 Revenue
75%
Gross Profit Margin
Year Net Sales Gross Profit EBITDA Net Profit GP % Net Margin
1 AED 2,592,000 AED 1,944,000 AED 329,000 AED 263,000 75.0% 10.1%
2 AED 2,799,000 AED 2,099,000 AED 458,000 AED 397,000 75.0% 14.2%
3 AED 3,023,000 AED 2,267,000 AED 523,000 AED 455,900 75.0% 15.1%
05

Capital Expenditure Breakdown

Initial Investment (AED)

Fit-out & Mall-compliant décor 120,000
Espresso machine (2-group) 27,000
Grinders & equipment 12,000
Water filtration & tools 10,000
Display fridge & kitchen kit 35,000
Licensing & approvals 25,000
Franchise fee 120,000
Contingency (10%) 33,000
Total CapEx 382,000

Funding Requirement

AED 500,000 Total Investment

Includes CapEx + Working Capital + Pre-opening Marketing

06

Monthly Operating Costs

Cost Centre Monthly (AED) % of Sales Notes
Mall rent & CAM (50 m² inline) 22,000 12.2% Mall inline rates 1,600-1,900 AED/m²/yr
Coffee beans & F&B COGS 40,000 22.2% Brand wholesale price AED 48-85/kg
Staff salaries (8 FTE inc. manager) 35,000 19.4% Barista AED 3,500, Head Barista 5,000
Utilities & Wi-Fi 3,500 1.9% Power, chiller water
Franchise royalty & marketing 9,000 5.0% 4% royalty + 1% marketing
Insurance, POS SaaS, cleaning 4,500 2.5% -
Total OpEx 114,000 63.3% Gross Operating Margin: 36.7%
07

Year 1 Cash Flow Analysis

Cash Inflows (AED)

Investor equity 500,000
Operating cash-in 2,592,000
Total Inflows 3,092,000

Cash Outflows (AED)

CapEx drawdown 382,000
OpEx (rent, payroll, etc.) 1,368,000
Working-capital build 60,000
Franchise royalty & marketing 108,000
Total Outflows 1,918,000
AED 1.17M
Net Cash Generation Year 1
Month 9
Cash Flow Breakeven
08

Key Success Factors

Operational Excellence

  • Location Economics: Negotiate turnover-linked rent cap at ≤14% of sales
  • Barista Excellence: Leverage the Brand's SCA-certified training campus
  • Menu Engineering: Maintain food cost ≤28% through strategic bundling

Revenue Optimization

  • Digital Ordering: Talabat/Deliveroo integration (18-22% revenue lift)
  • Roastery Partnership: Forward contracts shield against price volatility
  • Local Marketing: Mall events, loyalty app, corporate catering

Revenue Model Breakdown

70%
Walk-in Sales
20%
Delivery Orders
10%
Retail Bean Sales
09

Risk Matrix & Mitigation

Risk Impact Probability Mitigation Strategy
Foot-traffic downturn High Medium Loyalty app, mall events, co-promotions with retailers
Commodity price spikes Medium High Multi-month hedges; diversify origins
Wage inflation Medium Medium Cross-training, retention bonuses tied to upsell rates
New entrant competition High High Emphasise Emirati signature drinks & retail beans

Risk Mitigation Strengths

10

Investment Proposition

Funding Ask

AED 500,000 Equity Investment

For 40% unit stake • 26% IRR over 5 years

Use of Funds

  • CapEx & Equipment: AED 382,000 (76%)
  • Working Capital: AED 68,000 (14%)
  • Pre-opening Marketing: AED 30,000 (6%)
  • Contingency Reserve: AED 20,000 (4%)

Exit Opportunities

  • Dividend model with quarterly distributions
  • Franchisor buy-back clause after Year 3
  • Multi-unit roll-out expansion potential
  • Strategic sale to larger F&B operator

Investment Highlights

17 Months
Payback Period
15.1%
Net Margin (Year 3)
26%
5-Year IRR
11

Ready to Brew Success

Why Invest in the Coffee Brand?

  • Proven local brand with existing market presence
  • Lower franchise costs vs. international competitors
  • Conservative financial projections with upside potential
  • Strong unit economics and clear path to profitability
  • Experienced management team and operational support
  • Prime location in established mall with foot traffic
  • Multiple revenue streams and growth opportunities
  • Clear exit strategies for investor liquidity

Next Steps

Let's discuss how you can be part of Dubai's specialty coffee growth story

Contact via azizsaif.com