The Mug, a Nairobi coffee shop, is facing auction of its assets over Sh4.3 million rent arrears.
The landlord has given the Kaunda street-located outlet a 14-day notice to pay the arrears and an auctioneers’ fee of Sh780,000.
The troubles The Mug is facing may signal some challenges in the industry at a time when other visible peers seem to be thriving. Within the CBD, Uganda-based coffee chain Café Javas opened in April and then expanded its branches to include one at the Village Market.
In September, Charlie’s Bistro took over Nakumatt’s location on Wabera Street shortly after National Environment Management Authority (Nema) demolished its premises at Lang’ata Road’s South End mall.
Java House will focus about 80 per cent of its Sh5 billion on expansion. It opened a branch last December on Monrovia Street opposite Nakumatt Lifestyle’s former location to add to its locations on Mama Ngina Street, Kimathi Street and Mokta Daddar Street.
It was also a victim of the Nema demolitions at its Kileleshwa location but has this month opened a branch in Lavington. Global food chains such as Kentucky Fried Chicken (KFC) continues to open branches in Nairobi, including two last week in Lavington and at the Village Market.