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 Mugg & Bean is a coffee themed
restaurant chain focused mainly on the shopping market: It is essentially a “shoppers
shop”.
Mugg & Bean provides a high standard of coffee and associated hot beverages in addition
to a great selection of food items, from various breakfast options for early morning
shoppers to muffins and cakes for teatime.
Lunches and dinners are catered for with a superb range of hot and cold foods. So
taken is the public with the chain that Mugg & Bean sales in its Southern African
units exceeded R300 million in 2006.
While no specific profile is targeted, Mugg & Bean enjoys support from the residents
of the areas in which the stores are located. Sociogeographically, most units are
located in areas where there is a distinct density of upper-end customers. Mugg
& Bean falls into a category perhaps best described as “Fast Casual”.
It is neither fast food nor is it casual dining, but a mix of casual diners wanting
quality food quickly and efficiently.
Mugg & Bean dominates this sector in all of its 90 locations.
The South African market is fascinated by brands and has an insatiable appetite
for the new and trendy. Mugg & Bean identified this early on and has, since its
inception, revamped its menu content at least twice a year, providing an interesting
change for some 100,000 registered Mugg & Bean Regulars. The market also embraces
new concepts easily and the company is constantly looking at new food items to add
to menus that will broaden appeal and attract new customers.
Mugg & Bean is generally regarded as a coffee shop, when in fact only 23 percent
of sales are coffee and related items and 65 percent of sales is food.
Mugg & Bean sees a distinct move toward convenience in the retail environment with
the big growth being shown in smaller strip mall environments. The company aims
to continue to dominate this sector and is now regarded as a draw-card for most
malls and is therefore offered real estate preference.
Mugg & Bean also aims to grow to 120 units in the next five years, and to capitalize
on the opportunities that exist for brand extensions. Turnover currently grows at
around 30 percent per annum, where same-store growth is around the 12 percent mark.
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