Infrastructure challenges to investing in Uganda, such as frequent power outages that can significantly affect your business, unless you offer investment solutions, there are some key PROS and CONS before investing in this sector.
As I highlighted in the article's article, the opportunity to invest in Uganda coffee shop is governed by three main factors: PROS:  1) The growing middle class in Uganda
The middle class is important for any country in a "lifestyle" for a business like a cafe. In Uganda, this class is growing. In 2010 it is estimated to be 32.6% and 28.7% in 2006. Assuming a constant increase in 2013, I will estimate it to 36%.
Business demand is expected to grow further. This is in line with trends in other countries, such as Brazil, where coffee consumption between 2004 and 2012 was above 350% because of the rise in the middle class.
2) Uganda is Africa's third largest coffee maker.
About 6% of the Ugandan population is directly linked to livelihoods and as a result, not including the indirect value chain, including exporters and processors.
I believe the largest export of Uganda should be able to create a coffee culture like Brazil, the world's leading producer and the second largest coffee maker (after the United States)
3) Growth of Internet usage
Café culture a significant part of it is to provide customers free internet via WiFi.
This has been increasingly accessed through the Internet and increased in Uganda in 2006 from only 2.5% to 17% in 2012. The growth of telecom operators offering Internet data packages has contributed to making the Internet access more affordable, this is a key factor in further developing the industry.
1. Public perception.
Ugandan cafes are typically associated with "Muzungu" (white person). This perception can easily be offset by offering test campaigns that tell coffee makers to talk. However, it changes with the dynamics of the Uganda population. 78% of Ugandan population is under 30 years of age. This generation has grown up with TV and movies (including Hollywood films). They are also richer than their parents, and many have come to the world.
I believe, therefore, is a sufficient demand from the Ugandans and not just foreigners. Seasonal Business
This is a seasonal shop, first of all Uganda's dry and rainy seasons, and on different occasions of the day. To prevent this, the investor should take into account the loyalty programs that are placed in a highly disadvantaged position during the lower time, such as lunchtime or hot weather, for rewarding customers
I look forward to the potentially threatening of global franchises, such as Starbucks, Cafe Nero Costa Coffee and the entry into the Ugandan market, leads to the disappearance of local or independent cafes
An investor has the opportunity to consider these brands as a local franchise partner or focus on high degree of differentiation to maintain customer loyalty. 19659005] How profitable is the industry?
From my model I have estimated that ROI in the Uganda coffee shop is as follows:
- SHS. 81 million (A)
- Annual revenue is about Shs. 121.5 million (B)
- Net profit about Shs. 26 Million annually (C)
- Return on Investment (ROI) 3.1 years. (D = A / C)
The Funds To Be Involved Before Investing
1. Organizational Skills The edges of the industry may be quite narrow and therefore excellent organizational skills receive. Initially, you should take into consideration the formal bartender training of the team. In addition, bookkeeping should be carried out on a regular basis.
2nd Marketing. As in the food industry, like many consumer products, it's critical to get your marketing to reward customers. The coffee industry generally follows the 80/20 rule that 80% of your business will reach 20% of your customers. This means that most of its customers are expected to be loyal and repeat customers. That's why you have to invest in customer loyalty.
Coffee culture explodes in Uganda. We expect the number of cafes to grow, not counting the opportunity to enter global franchise markets
In such a competitive market it is important to rise above the competition. In order to create a successful cafe, it is crucial to have excellent management skills.
Source by sbobet