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Companies

Java to inject Sh1bn into expansion drive

A Java House outlet on Kimathi Street in Nairobi. file PHOTO | NMG
A Java House outlet on Kimathi Street in Nairobi. file PHOTO | NMG 

Java Group will inject up to Sh1 billion in expansion drive this year cementing its place as the number one restaurant chain in the region.

Chief executive Ken Kuguru said the firm would open new outlets in emerging towns and within major cities in the country to grow its branch count and create new revenue streams.

The firm will also simultaneously explore new markets in the East African region but most of the new investments are expected to be in Kenya.

Java Group is the biggest restaurant chain in the region with 64 branches, followed by fast-food brand Kentucky Fried Chicken (KFC), Art Caffe restaurant and Subway.

The KFC has 31 branches in the region, 17 of them in Kenya, nine in Uganda and five in Tanzania. Art Caffe has 12 branches in Kenya.

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America fast food chain Subway has 12 branches in the region — eight in Kenya, three in Tanzania and one in Uganda.

Mr Kuguru told the Business Daily that 80 per cent of the firm’s expansion drive over the next five years will focus on opening more outlets within the Kenyan borders.
The five-year strategy is estimated to cost the firm up to Sh5 billion.

Java Group runs coffee outlets under Java House, owns 360 Degrees Pizza and Planet Yoghurt brand. The 64 branches under the label include 56 coffee outlets. The firm is looking to open at least two outlets of its brands every month.

“Java House will invest between Sh500 million to Sh1 billion in new branches as well as advancements in a state-of-the-art central kitchen and commissary facilities,” said Mr Kuguru.

Java Group is keen on Meru and Machakos counties, where it will open its first branches of the year. The expansion drive indicates a shift to the counties after the devolved governments were established in 2013.

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