Starbucks is in 42% of the world, while McDonald’s has managed to flip burgers in 61% of it. Yet, both of these global giants have somehow managed to avoid Kenya like it’s a plague.
There was some juicy gossip in 2020 about Starbucks setting up shop in Kenya, especially since they were planning to open a coffee research center here. But, just as we were getting ready to practice saying “venti,” they squashed those dreams, citing Kenya’s tough business environment in favor for Rwanda
Where is Starbucks in Africa?
Starbucks and McDonald’s are like the dynamic duo of global chains, showing up together in every African country that has a McDonald’s.
Now, this makes sense when you think about where McDonald’s is present on the continent. South Africa, Egypt, and Morocco aren’t just rolling in dough—they’re also coastal, which means shipping in supplies by sea is as easy for the global supply chain ease, but hey we also have a coast here!
But here’s the kicker: Egypt and Morocco have a deep-rooted coffee culture thanks to their Arab heritage. So maybe it’s the mix of relative wealth and Western influences that create the perfect storm for Starbucks. It also makes you wonder why Nigeria, Africa’s giant, is left out of the frappuccino fun.
As for where to find a Starbucks in Egypt and Morocco? Bet on the tourist traps. In Rabat(Capital of Morocco), for instance, the only two Starbucks are parked in fancy neighborhoods, serving up lattes to the rich and probably the slightly lost.
Also Read: Why There’s No McDonald’s in Kenya, Yet.
Coffee Culture
Kenya may grow a ton of coffee, but let’s be real: we’re a nation of tea lovers, myself included. Still, that’s no excuse for Starbucks to stay away, especially when you see how urban coffee culture is booming here.
Every mall is practically required to have at least two coffee shops, like Artcaffe and Java House. In Nairobi’s CBD, you can’t turn a corner without bumping into a Java House, which has at least one on every street and avenue. And don’t forget about the smaller spots like Café Deli and Pete’s Café.
Java House alone has seven branches in the CBD, 17 locations in malls, over 25 in neighborhoods and petrol stations, and several more upcountry in towns like Nakuru, Eldoret, Kisumu, and Machakos. That’s around 50 Java House cafés in Nairobi alone. Artcaffe isn’t slacking either, with 31 branches in the city, making it the second-largest coffee chain in Kenya.
And that’s before you even count the gourmet coffee shops like Barista & Co, Connect Coffee, Spring Valley Coffee, and other notable spots like Daily Café. All in all, Nairobi has over 100 coffee shops—a pretty solid number for a country supposedly hooked on tea.
Now, let’s look at South Africa, where Starbucks only has 13 locations spread across major cities. In Morocco, there are just two in the whole country. Unlike McDonald’s, which goes all out with 400 stores in South Africa and 120 in Egypt, Starbucks could start small here. Given how mainstream Starbucks is, I’m pretty sure it would be an instant hit if they ever decided to launch in Kenya.
Also Read: Artcaffè Menu, Locations, and Review
Also Read: Java House Menu+Prices, Review, and Photos
Purchasing Power
You can’t exactly expect to charge $4 equivalent for a cup of coffee in a country where the average income hovers around a few hundred bucks, and people can get okayish coffee for 1/3 of that or next to nothing. Kenya, in that sense, is practically the anti-Starbucks.
But then again, Starbucks isn’t just another coffee shop—it’s a niche, almost a lifestyle brand. So, I don’t see it going head-to-head with our traditional coffee spots like Java House or Artcaffe.
Sure, Starbucks might not end up with as many locations as Java House, which is all over the place. It’s more high-end, so it would probably do best in upscale neighborhoods like Westlands. For most investors, opening a bunch of locations makes financial sense, but testing the waters with one or two wouldn’t hurt.
It’ll definitely be an instant hit when it launches—everyone will want to try the expensive Starbucks experience. But what about the long haul? After the initial excitement dies down, people might just go back to their trusty, more affordable Java or Artcaffe. So, while it could start strong, the long-term feasibility is a different story.
Also Read: Java House vs Artcaffe: Which Cafe is Better?
Business Operations in Kenya
In recent years, running a business in Kenya has been frustrating and full of obstacles. It’s no wonder Starbucks decided to relocate their planned coffee research center from Kenya to Rwanda, where the business environment is a bit more chill.
This tough operating climate is also why we’ve seen an exodus of international companies packing up and leaving Kenya. Eveready, once an iconic brand here, closed shop, and Cadbury followed suit. And let’s not forget Subway—the sandwich chain bailed out, with their old stores rebranding to a local name, Subz.
Even South African retailer The Game struggled to stay in the game here. Companies like Cadbury and Eveready found it cheaper to manufacture in other African countries and then import to Kenya rather than deal with local production costs, taxes, and all that jazz.
So, while Kenya is one of Africa’s biggest economies, it’s also one of the least business-friendly, which makes other international businesses understandably hesitant to set up shop here.
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