Java House

JAVA HOUSE

Consolidating and internationalising East Africa’s largest coffeehouse chain

J AVA

H O U S E

Having received a new lease of life, East Africa’s most successful coffeehouse chain is set to embark on an exciting new chapter as it turns 20 years old Writer: Jonathan Dyble Project Manager: Lewis Bush

E

ast Africa is a region enrobed with optimism.

Real GDP across its 13 countries rose by an average of 5.7 percent in 2018 according to the World Bank, a trajectory that is expected to remain strong with forecasts of 5.9 percent for 2019 and 6.1 percent for 2020.

Combine this with a population that is expected to double in size and reach 711 million by 2050, overtaking the entirety of Europe in the process, and it’s easy to see why an aura of excitement surrounds the region as it gears up to meet the associated challenges and opportunities.

20 years old this year, Java House Africa is one such business embodying this enthusiasm. With foundations in Kenya, its Java House coffee, 360 Degrees Pizza and Planet Yogurt brands now span 75 restaurants across three countries.

“Our industry, like many others, is on

2

WWW.AFRICAOUTLOOKMAG.COM

the up,” states Steve Carlyon, referring to the thriving food and beverage scene.

“Casual diners have become community hubs, meeting places for friends, families, business meetings, dates, you name it. F&B is about more than just providing great food.

It’s about providing destinations to celebrate social occasions, and the

F

O

O

D

&

D

R

I

N

AFRICA

K

A Tale of

Transformation appetite to be spoilt in a culinary sense is certainly growing.”

Previously heading up Emirates Airlines’ frozen meals production plant in Dubai, Carlyon took a leap into East Africa last year to join Java House, the region’s largest coffee led casual dining restaurant chain, as its Commissary General Manager.

One of the continent’s entrepreneurial success stories, the enterprise has grown exponentially since introducing its gourmet café culture in 1999, described by Carlyon as Java Love, now operating 75 outlets across Kenya, Uganda and Rwanda.

Yet despite this rapid expansion, Java House is only beginning to

dive beneath the surface of its true potential, especially in its commissary food production unit.

“For people like myself who’ve been lucky enough to travel and experience different hospitalities and cuisines, it’s easy to see that we’ve got a fantastic opportunity to influence the whole region,” Carlyon affirms.

WWW.AFRICAOUTLOOKMAG.COM

3

J A V A

H O U S E

Motivated by modernisation

Touching upon Java House’s history with Carlyon, he is quick to reveal that the company has recently been overcoming numerous hurdles, views reiterated by Paul Smith.

LEADERSHIP FOCUS STEVE CARLYON, GENERAL MANAGER Starting out as a graduate of Manufacturing Systems Engineering from the University of Edinburgh and a member of the Institute of Manufacturing Engineers, Carlyon fell into the food and beverage industry after a visit to Edinburgh’s Burton’s Biscuit Factory.

“There was a huge focus on the companies of silicon glen, essentially Scotland’s alternative to Silicon Valley, where we would visit hi-tech manufacturers,” he explains. “Everything I’d seen before was too automated for me to be exciting, there was little human element involved, but watching biscuits being made was fascinating to me.”

“I love the coffee business. It’s an amazing sector to be involved in with its ability to connect people in different ways,” Smith, the CEO, states. “I think Java has always embodied this, despite challenges surrounding its ownership, uncertainty and a lack of adequate modernisation.

“We’ve spent the past two years reenergising the foundations of the business and are now in a good place to begin the next fruitful chapter in the company’s story.”

Sweeping changes have been implemented across the board, from a greater emphasis on brand development with the launch of a revamped logo to expanded digital media campaigns and numerous reimaging projects at many of the firm’s famed restaurants.

“We have also continued opening more stores as well,” Smith adds.

Arguably the most significant changes, however, continue to come from behind the scenes, evidenced by the planned implementation of a stateof-the-art, company-wide enterprise resource planning (ERP) system.

“It’s almost felt like walking into a toy shop as a child and buying all the toys you’ve ever wanted,” muses Carlyon.

“I see myself as a bit of a measurement freak, and that’s exactly what the ERP will allow us to do –

As such, he spent 15 years in the industry in the UK before moving to Dubai to head up Emirates Airlines’ frozen meals production plant, making 176,000 meals per day at its peak for a variety of different customers.

“I loved the freedom, putting forward business cases, saving the business money and finding new commercial opportunities for us to exploit,” Carlyon adds. “It is this that drew me to Java House.”

4

WWW.AFRICAOUTLOOKMAG.COM

PAPERBAGS LTD Packaging solutions partner of choice At Paperbags, we understand the importance of quality packaging for any business and that is why we provide only the best in paper packaging. With over 50 years’ experience we have helped grow businesses in various industries from established corporates to SMEs such as millers, food industries, pharmacies and many others.

Since its inception in 1967, Paperbags Limited has managed to advance with the latest in technology and certification allowing us to cater to the ever growing demand for packaging in the sensitive food market by providing food grade packaging that is safe, biodegradable and eco-friendly.

Paperbags Limited has maintained its vision of providing convenient packaging that is environmentally friendly, easy to use and economical.

Our key driver is that the customer deserves nothing short of the best and that is why we endeavour to be innovative, efficient and reliable in all our processes so that our customers are always satisfied.

What our clients say about us: “Special thanks to Paperbags Ltd for your excellent work in making the best packaging material and for supporting Kenyan enterprises” – Kabuda’s Kitchen “Just wanted to let you know that we are done with our first 2 week medical/ dental service trip. We were able to use the grease proof bags for packed lunches and it was AWESOME! The team loved them, we loved them and we are so excited to have an ecofriendly packaging alternative” – Africa Springs Safaris Ltd

T +254 700 725 725 E sales@paperbagsltd.co.ke

www.paperbagsltd.co.ke

Carrying Kenya for Over 50 years.

FSSC 22000

Tel +254 700 725 725 | sales@paperbagsltd.co.ke | www.paperbagsltd.co.ke

J A V A

H O U S E

LEADERSHIP FOCUS PAUL SMITH, CEO Having spent 19 years with Marks and Spencer in the UK, Smith’s interest in working abroad was stirred up by working with one of the retailer’s franchise partners oversees.

“As a result, I worked for Starbucks in Kuwait for about a year and then got headhunted

by Costa, becoming part of the team that helped to put their brand across 30 countries in nine years,” he explains. “This included living and working in the Middle East, Russia and finally as Costa’s MD for China.”

From here, Smith moved to Bangkok for a year on a consultancy role before moving to Abu Dhabi to help The Coffee Club establish itself in the region, and then worked with the casual dining group in helping it establish the foundations of an early International business.

“I was then approached by a company called Abraaj to help with the due diligence on Java House,” Smith reveals. “When the company was finally purchased, I was asked to stay on and become the CEO and have been so for about two years now.

measure the value and performance of every function of the business, running it with incredible transparency while enabling efficiency optimisations.

“Two years ago, the company would create a product, and it would look okay and taste okay, but underpinning that, nobody actually knew the cost of producing it. We’ve addressed this temporarily using excel spreadsheets and other tools, but the level of data capture and analysis expertise hasn’t been there – something that the ERP will soon address.”

Additionally, this flagship investment will complement Java House’s plans to optimise its central manufacturing facility, currently consisting of seven separate industrial units.

Carlyon continues: “Essentially, we’ll be taking a 3,700-square-metre brownfield site and transforming it into an 8,000-square-metre worldclass consolidated manufacturing facility, boosting our capacity and broadening the potential and reach of our products.”

From ideas to innovation

Process developments are coming thick and fast across all aspects of the business as Java House undergoes what can only be described as a major transformation.

“I stayed on in Africa because I had worked all over the world, and Africa was always a target place to work. I think it’s probably down to my early youth of reading Wilber Smith books and dreaming about living there; and here I am in the middle of Kenya.”

SHEFFIELD AFRICA Mobile, containerised and prefabricated business facilities Sheffield Africa is a trusted partner of Java House for advancing a leading and innovative food and beverage industry in Africa which is evolving with the expansion of the food chain.

Mobile and containerised kitchens are gaining popularity in Africa as a trendy and innovative concept favoured by urbanisation, fast paced lifestyles and the rising demand for quick service restaurants dynamics of convenience. Sheffield Africa is an expert in fabricating innovative business facilities which could be either retrofitted in a container or in a mobile vehicle with fully functional kitchen equipment designed for indoor or outdoor environments. Sheffield has delivered such solutions for several of its customers in trucks, carts, marine containers and prefabricated modules.

And, the Java Express outlets are one of those.

As the industry leader in provision of commercial kitchen, laundry and cold room solutions, Sheffield Africa is a trendsetter in innovative concepts and its proficiency lies in turning these often underused spaces into vibrant, income-generating facilities for the food and beverage industry by offering tailor-made designs.

To lead the industry with ideas Sheffield has invested into showcase examples of such concepts at its main office premises located off Old Mombasa Road in Syokimau. These concepts range from containerised and mobile restaurants, food trucks, grill trailers, beer trailers, coffee trailers, ice cream carts, pasta carts, containerised laundromats and many more.

Driven by quality and customer satisfaction, these facilities can stand the test of time guaranteed by the after sales service provided by Sheffield Africa.

T +254 713 777 111 E info@sheffieldafrica.com

www.sheffieldafrica.com

6

WWW.AFRICAOUTLOOKMAG.COM

F

O

O

D

&

D

R

I

N

K

TURNKEY SOLUTION PROVIDER FOR COMMERCIAL KITCHEN, LAUNDRY & RETAIL FIT-OUTS Sheffield is your trusted partner from CONCEPT to DESIGN, FABRICATION, SUPPLY, INSTALLATION and AFTERSALES SERVICE across Africa.

QUALITY I INNOVATION I EXCELLENCE I CUSTOMER SATISFACTION SHEFFIELD STEEL SYSTEMS LIMITED Off Old Mombasa Road, Opposite Hilton Garden Inn, Before Standard Gauge Railway {SGR} Nairobi, Kenya.

www.sheffieldafrica.com

WWW.AFRICAOUTLOOKMAG.COM

7

J A V A

H O U S E

CHANDARIA INDUSTRIES

C

handaria Industries is the largest company within Chandaria Group, which is owned and managed

by Mr. Mahesh Chandaria; Darshan Chandaria; and Neer Chandaria.

Established on May 1, 1964, the company began as a small tissue converting operation and today is the largest tissue, paper and hygiene products manufacturer in Kenya, East and Central Africa.

The company is the market leader in corporate and hospitality supplies.

Through consistent innovation in hygiene and cost-effective solutions the company has become the natural choice for the largest and most successful hotels, offices, restaurants, hospitals, schools and universities, salons & spas and various other institutions across Kenya and East Africa.

T +254 723 414 172 / 733 872 828 E sales@chandaria.com

www.chandaria.com

Inside one of Java House’s restaurants, venues which have been subject to reimaging projects in recent times

Yet these changes will not only be of benefit to Java House, evidenced by the alternate logistics-driven initiative currently being pursued by the business in partnership with an international logistics partner.

“The board took the decision a year ago to outsource our logistics and distribution function – this involved launching a tender, scoping warehousing, distribution and fleet

8

as the three elements Java required assistance with,” explains Carlyon.

“There were many reasons behind this, including the fact that the trucks that we inherited two years ago were approximately seven years old. When you consider the amount of mileage that these vehicles would have driven, combined with a lack of maintenance, repairs and absence of on-board cooling, for food safety, we recognised

WWW.AFRICAOUTLOOKMAG.COM

that the fleet needed to be replaced.

“This collaboration is exciting,” Carlyon continues, “as it has undoubtedly provided us with a cost saving that we will benefit from.

“However, due to the fact that nobody was currently doing what we were asking them to do – manage our distribution and warehousing – we also identified an opportunity, an opportunity that has taken the form of Foodscape.”

F

O

O

D

&

D

R

I

N

K

PREMIUM DISPENSERS & HYGIENE PRODUCTS Stainless Steel

Jumbo Toilet Tissue Dispenser

Mercury

Single Sheet Hand Paper Towel Dispenser

Liquid Soap Dispenser

Consumables

Foam/Liquid Hand wash

Disinfectant Scented Toilet Balls

Automatic Air Freshener Refills

Outlook Creative Services

Single Sheet Hand Paper Towel Dispenser with Bin

Single Sheet Hand Paper Towels

Jumbo Toilet Tissues

Jumbo Toilet Tissue Dispenser

Single Sheet Toilet Tissue

Single Sheet Hand Paper Towel Dispenser

Velvex Toilet Cleaner

Foam / Liquid Soap Dispensers

Velvex Scented Urinal Mats

Floor & Wall Mounted Trash Bin

Velvex Hand Sanitizing Gel

Barrel Centre Pull Towels

Outlook Publishing’s awardwinning in-house team is now

www.riftenergycorp.com

utilising its extensive production skills to offer a full and bespoke range of editorial, design and marketing services via its new Outlook Creative Services division.

Rift Energy Corp. is a privately owned early stage oil & gas exploration and development company focused on high impact opportunities throughout east and central Africa.

We are committed to maintaining the highest international standards with respect to health, safety and environmental protection in the countries in which we operate.

We aim to conduct our operations responsibly, independently and ethically to ensure the growth and stability of both our business and the development of our host countries and local partners.

F O R M O R E I N F O R M AT I O N V I S I T: www.outlookpublishing.com/creative-services

RIFT ENERGY CORP 1800 - 141 Adelaide Street West Toronto, ON M5H 3L5 Canada Ph. (1) 281-899-0348

WWW.AFRICAOUTLOOKMAG.COM

9

J A V A

H O U S E

Described by the GM as an alliancedriven initiative, Foodscape will see the two companies develop a fleet of co-branded trucks, creating a new business division that will not only handle Java House’s distribution and warehousing requirements, but equally those of third-party businesses.

“Other F&B players can use Foodscape’s warehousing instead of investing in their own facilities and

SOCIALLY RESPONSIBLE “Java House adheres to best practices in terms of environmental health and safety, ensuring our staff are well looked after, and that our suppliers are paid on time, keeping their cash flow healthy,” Smith reveals.

Equal opportunity is also very important – 65 percent of its store managers are female while the average age of its 2,500 staff is 27.

Further, the company also actively engages in traditional CSR practices, working with numerous charities and supporting young people, helping them to find their feet.

leverage our distribution network without having to buy trucks,” Carlyon affirms. “As a result, we’re expecting this to become another firm business value stream over the course of the next five years.”

“What you end up with is a three-way win – the farmers sell their products for a fixed price, the banks know they’ll get a return on their investment, and we’re able to stabilise our own costs by avoiding alternate purchasing channels.”

Supplier power This initiative was motivated at Readily positioning itself as a flagship a supplier conference that Java for industry-wide success through funds, inviting suppliers to come Foodscape, Java House is equally and network with each other, motivating mutual benefit for the brainstorm and find solutions to common pain-points while creating a F&B industry in other ways, namely via the recent transformation of its community between small and large procurement function, as an example, manufacturers alike. now working directly with grassroots “The main backbone of these potato farmers across East Africa. conferences initiated our Supplier Code of Conduct, something that “What we’ve done is agitate the supply chain,” Smith reveals. “The issue we was introduced 18 months ago to encountered in doing so is the fact that help eliminate and reduce the risk these potato farmers work in an environ- of behaviour you would condemn,” ment where the climate constantly plays Smith continues.

“We have also added a whistlearound. As such there is limited continuity in price and they find it difficult to blower line, independently managed secure funding from the banks. by an outside company that is “To overcome this, we went to both active and importantly instils one of our major partner banks, who confidence about the way that we agreed to lend the farmers money want this business to be run – in a on the basis that we guarantee a responsible manner with what we call purchasing price.

Java integrity.”

“We work alongside a number of charities, with an emphasis on orphanages,” Smith reveals.

“We’ve recruited two individuals who were originally from orphanages who are now working in our own local Pizza 360 outlet – Java’s artisan, authentic, high-end Italian pizza brand.

“We do a lot of work with people, supporting SME individuals, mentoring entrepreneurs, and developing young people. We’re now in the process of exploring how we can bring all these great causes that Africa has under one initiative.”

10

WWW.AFRICAOUTLOOKMAG.COM

F

O

O

D

&

D

R

I

N

K

Java House restaurants will be supplied by its new distribution division, named Foodscape

A global outlook

This is not all for Java moving forward, however.

Asked about any major investments alongside the development of a new commissary, ERP system and Foodscape, both Smith and Carlyon point to Kukito – an alternate quick service restaurant brand set to be launched by the firm in the second half of September.

“It was clear that there was space in the Kenyan market for a truly locally grown and African based QSR brand, and after some research we discovered the gap,” says Smith. “At the same time Steve was having some interesting conversations.

“I was on the third hole of golf course with a friend of mine who happened to be the Operations Director of KenChic, one of the biggest chicken players in

Kenya,” reveals Carlyon.

“We were talking about how his plant was capable of more and how we could drive prices down through volume, and as a result the idea of Kukito was born – we saw the opportunity for both our businesses to benefit.

“That’s the thinking behind Kukito – it’s also a brand that’s designed to be internationalised.”

Equally Java House is being approached from numerous countries, be it Dubai, Oman, India, South Africa and China, with entrepreneurs looking to franchise the business.

Having carefully developed an extensive, in-depth franchising management programme, Java House is gearing up for all its brands to take major steps into new global markets – a fourth and final goal of the company.

“I intend to do a lot more fishing,” Smith jests, when asked about his priorities moving forward. “But in all seriousness, with the optimisation of our operations, development of new business opportunities and huge changes taking place alongside the celebrations of our 20th anniversary, we’re more than optimistic.

“I’ve worked all over the world and I have to say that the guys here are making it easy for me – they’re the best talent I’ve ever come across in terms of their thinking, their understanding, their entrepreneurialism, their commercialism.

“They’re great people, and they’re going to be crucial in helping us to achieve great things. I’m proud of them all.”

Java House Tel: +254 790 330 842 lucy.kiarie@javahouseafrica.com www.javahouseafrica.com

WWW.AFRICAOUTLOOKMAG.COM

11

ABC Place, Waiyaki Way, Nairobi, Kenya Tel: +254 790 330 842 lucy.kiarie@javahouseafrica.com www.javahouseafrica.com

www.outlookpublishing.com