This morning, I thought of how drive-through coffee shops like Tim Hortons, Starbucks, Wendy's, and similar business models would thrive in Nigeria. Then I remembered that Nescafe had something close with those guys who ride bicycles with coffee at bus stops in Lagos and Abuja. But I am sure that the model was sustainable.
Tim Hortons is a Canadian-based coffee and baked goods chain. It's famous for its coffee, doughnuts, and other treats. Founded in 1964, Tim Hortons has grown to become a beloved Canadian institution, with locations across the country and even in international markets. The chain is known for its friendly atmosphere and iconic red and white cups.
A key obstacle is the high cost of operations. Nigeria's infrastructure challenges, limited access to raw materials, and fluctuating currency rates can significantly inflate overhead costs. This, in turn, can make a simple cup of coffee a luxury item. The appeal of Tim Hortons or Starbucks lies in their affordability and accessibility. They are places where anyone can go for a quick and inexpensive caffeine fix. Making such a concept exclusive to a select few in Nigeria would undermine its core appeal.
As Nigeria is not a major coffee producer, it relies on imports to meet domestic demand. Accrding to Statista "The Coffee market in Nigeria is projected to grow by 10.27% (2024-2029) resulting in a market volume of US$132.60m in 2029". Import duties and taxes imposed on coffee beans and finished products can significantly raise prices for consumers. The Nigerian Naira has been subject to fluctuations in recent years, which can affect the cost of imported goods, including coffee. When the Naira weakens, imported goods become more expensive. While Nigeria has some local coffee production like the Happy Coffee Africa Brand, the costs associated with cultivation, processing, and distribution can also contribute to higher prices for consumers. Factors such as labor costs, fertilizer, and equipment can impact production costs. The distribution channels for coffee in Nigeria may not be as efficient as in other countries, leading to higher costs due to storage, handling, and transportation. Let me just say, the Coffee issue is similar to the the story of a chocolate bar.
In whatever way you look at it, the chances of it surviving in a situation where it is not available and affordable to the mass market are zero. As always, the ideas are not lacking for these things in Nigeria because Nigerians are known to be well-traveled, industrious, and very creative human beings A simple feasibility study or SWOT analysis explains the reality. Ordinarily, things should not be a big deal in Nigeria... Basic things that should be affordable and come easy are, in most cases, the opposite.
While the potential for a successful coffee chain in Nigeria exists, it would require careful consideration of the unique challenges and opportunities presented by the market. Plus, Nigerians can be such pseudo-elitist and classists with these types of things if it ever come to Nigeria. Those that already exist as "coffee shops" are usually in high-brow areas such that it feels like some luxury. Or maybe in hotels.
And that's why you people say things - what many upper middle class and wealthy class Nigerians call "big man" living is just the basic level for many abroad.
Because getting a cup of coffee is so basic. Luxury coffee is another level. That is not my point here. I mean basic coffee and breakfast like walking into the corner store somewhere on the streets of Lagos, Abuja, PH, Kano etc to buy biscuits and sweets.
The bar is so low really and the level of multidimensional poverty is alarming that sometimes it stops you in your tracks. You are so shocked and shocked and shocked. Over and over, that basic things continue to be a luxury for millions of Nigerians. But even in such a state of bottom-barrel squalor, people can't look past their religion and tribe. In their suffering, there is still room for something this shallow even when their allegiance does nothing tangible for them. Many are content.