Mikel Coffee Company KSA
Mikel Coffee Company KSA
Opportunity details
Type Franchise
Cash Required 90000
Total Investment 790 000 SAR
Native Country Greece
Available locations Saudi Arabia
Total Units (Worldwide) 340
Year Founded 2008

Mikel Coffee Company KSA

Mikel Coffee Company KSA

Join our Mikel family with more than 340 branches globally

ABOUT US

 

The Mikel Coffee Company is an international branded chain of coffee stores. Mikel was established in 2008 in Larissa, Greece, offering a unique experience in high quality new coffee flavors and introducing a comprehensive and innovative customer service experience. Since then, Mikel has witnessed rapid growth which is outlined both in the quality of its products, its excellent customer service, as well as providing a very hospitable atmosphere throughout all its coffee stores worldwide.

Its goals and strategy have evolved over time, but the core principles underpinning the functionality of its global operations along with its International Franchise Development system remain unaltered:

  • Respect for the customer and their absolute satisfaction
  • Commitment to provide the highest quality of the products and services
  • Team spirit, integrity and morality are all core values that characterize all its employees

 

International Presence

  • Greece
  • Cyprus
  • KSA
  • UAE
  • Oman
  • Kuwait
  • Qatar
  • Egypt
  • Jordan
  • Turkey
  • Bulgaria
  • Romania
  • N. Macedonia
  • UK
  • USA
  • Canada
  • Australia
  • Soon to come openings in Iraq, California, Florida, Germany, Spain, India, and China.


KSA’s Master Franchisee

The First Elias Company is a Saudi limited liability company, established in 2018 in Jeddah. It is specialized in serving food, beverages, catering and food supplies. The company aims to enhance its services & products to compete with major brands in the kingdom. In partnership with the famous Greek Mikel Brand with its high-quality products and fine service in luxurious cafés around the world. In 2018 we became the master franchisee of Mikel in the kingdom of Saudi Arabia and subsequently representing its interests in the kingdom.

 

Why Mikel?

We focus on the perfection of our products and services that we offer, through the full control of the entire productions process:

  • Selection of coffee beans via expert master roasters
  • A unique blend of 100% Espresso Arabica coming from the finest harvests of South and Central America, Africa, and India.
  • Extensive range of high-quality machinery
  • Maintaining strict control over the brewing phase
  • High quality staff training

 

Our priority is to provide high quality products and services throughout the globe.”

 

Our Philosophy

“Our whole philosophy lies in…

A cup of colors

A blend of aromas

A warm welcome

A glimpse from the past

A beautiful and exciting tradition”

 

We carry a complete line of espresso based beverages as well as delicious snacks inspired by traditional home-made & international recipes.

Our stores offer a welcoming, cozy place with cross-cultural aesthetics, providing excellent service and comfort.

 

Our Staff

The philosophy, principles, and values of Brand Mikel! Start from our employees, who are the extension of the company’s values to customers. That’s why Mikel! Employees are the ambassadors of the brand in every country there is a Mikel store. Special emphasis is placed on continuing education at specially configured barista training facilities. By following specific training protocols, the Mikel Coffee Company ensures the stability of the educational process both for the trainer and for the trainee.

 

Why Franchise with Mikel?

  • Quality Products & Services
    • Selection of Finest Raw Materials
    • Unique Coffee Blend-100% Arabica Roasted Coffee Beans
    • Superior Quality of Equipment
    • High Standards of Customer Service

 

  • Quality Assurance
    • ISO 22000 Quality and operational standards
    • Quality Control Monitoring through Dedicated Teams
    • NPDs & Continuous upgrading of production processes through in-house R & D department

 

  • Market Dynamics
    • Global Coffee Shop Growth estimated at 10% CAGR by 2021
    • Extended Offering (Hot, Cold Formats) due to Varied Tastes & Preferences
    • Rise in Takeaway Specialty Coffee

 

  • Flexible Business Model
    • 5 Shop formats, flexible set up with ergonomic layout
    • Competitive Staff Requirements
    • Menu Customization according to local consumer preferences & market dynamics
    • Limited Raw Material Supply : Espresso Coffee, Chocolate, Tea & Mikel Merchandise

 

  • Support & Training
    • Initial setup, Store Design, Equipment specifications
    • Initial Training & Retraining
    • Operational Support: manuals, quality assurance monitoring,
    • Marketing Support
    • Product Development Support

 

Mikel Franchise Package

1- Initial Set Up

  • Area Exclusivity
  • Store Location Inspection & Approval
  • Shop Design & Material Specs
  • Equipment Specs & Ordering
  • Construction Guidance
  • 4 weeks Training: Production, Management
  • Operations Manual
  • Menu Adaptation & Pricing

 

2- Operational Support

Opening:

  • Functional Support: ongoing training and support in many areas critical to the success of your business, including unit operations and maintenance, quality assurance, customer-service techniques, HR administration, business management, IT support (POS, PDA)
  • R & D support: NPDs, production efficiency techniques
  • Marketing Support: Strategy implementation, creative materials

 

Franchise Process

1- Application Process

  • Review Mikel’s Company Profile
  • Application Form Submission
  • Mikel Company Visit Day
  • Market Analysis Meeting (including market visit)
  • Commercial Terms Agreement (royalties, entry fees)

2- Development Process

  • Location Approval
  • Shop Architectural Designs , Materials & Equipment
  • Specs, Ex-works Price-list Construction
  • Training of Personnel
  • Opening

 

Franchise Buying Process

Duration of franchise contract: 5 years (Renewable)

 

Available Franchise Opportunities in KSA

Our door is always open with great investment opportunities for those wishing to obtain a franchise for a specific region, city, and any number of Mikel store within Saudi Arabia.

 

Our Concepts

  • Drive Thru: A total area of 10 to 15 sqm in accordance with the availability of locations in the desired area, will cost SAR 90,000 entry fees.
  • Shop in Shop: Locations in collaboration with malls, supermarket chains, airports and other joint venues with space of 50 sqm and above, will cost SAR 180,000 entry fees.
  • Canteen: Total area of 50 sqm including storage area, will cost SAR 180,000 entry fees.
  • Take Away Store: An area of 80 sqm and above, a main area consisting of storage area. Within these area requirements the bathroom area needs to be taken into consideration, will cost SAR 180,000 entry fees.
  • Dine-in Store: An area of 150 sqm and above, a main area consisting of storage area. Within these area requirements the bathroom area needs to be taken into consideration, will cost SAR 180,000 entry fees.

 

 

Our construction (fit-out) cost varies according to many different factors such as size, location, special permits, and the mediation of the community. Furthermore, keep in mind that more factors will have to be taken into account for the estimation of the final construction cost of a store:

  • If the selected unit is in a new project or is in an older building.
  • Whether it is an expensive central spot in the city or in a relatively cheaper yet profitable area.

Mikel Coffee Company KSA does not have in-house contractors that build stores, but we do cooperate and guide contractors/construction companies to aid in the construction of your store successfully, and in accordance to our construction guidelines.

 

Property Development

In the creation of a MIKEL coffee shop, the most important factor to take into account for the success of the store is making the 

«The Right Choice» of the store’s concept. The search for the right store is mediated via Mikel KSA Team in the local area. The location will have to be in a central area with vast footfall of people walking to and from work and their homes. Another factor to consider is the competition, which we always want to exist since it breeds innovation in the area and it subsequently creates a type of «Center» with stores of a similar nature. A point of interest is always stores because they help visually amplify the eye contact customers have with our business.

 

Machinery

Mikel Coffee Company KSA will provide you with a detailed list (model-type-technical specifications-prices) of all machinery that you will need for your Mikel Store. We recommend purchasing these machines from a local supplier within KSA, this is needed so that you will be able to have proper after-sales service.

 

The total amount for all the machinery needed to have your Mikel store operating properly is starting from SAR 240,000, according to store requirements & availability of the equipments.

 

Point of Sale Systems

Mikel Coffee Company KSA will provide the appropriate amount of Point of Sale (POS) systems depending on the initial design and layout of the store laid out in the construction plans. The price for the POS system is around SAR 23,000, with annual renewal fees of SAR 7,000.

 

Furniture Allocation 

 

Furniture allocation will occur after initial architectural designs and layouts of the store by the construction department in Greece are completed. We will be able to know exactly what type of furniture you will need for your Mikel Store and where it will be placed. 

Pricing for furniture starts from SAR 80,000 (subject for confirmation) for a store under 75m2, which fluctuates according to the concept you will choose. Naturally, bigger stores will require more furniture than the smaller size concepts, thus leading to higher furnishing costs. 

 

Store Personnel and Operating Hours:

Mikel stores usually operate between the hours of 07:00 am to 01:00 am, which may vary according to the location.

These operating hours will be adjusted according to the market research along with your input. Knowing that our aim is to maximize the efficiency and profitability of your store.

The average number of Mikel store personnel is about 4-8 in total, but this number may vary depending on the size, type of concept, size, amount of expected customers flow, if the owner will be working in the store or not.

There are 2 shifts during the daily operation of the store, in which staff will be replaced by the next shift of the day. The shifts must comply with labor laws of the kingdom for the working days and hours of the staff. Manpower during the shift will depend on the number of customers the store has at the time.

 

Mikel Provisions, Royalties and Marketing

The coffee beans, tea, syrups, chocolates, bottled water, raw materials, sandwiches, all desserts, packaging materials, merchandise, and gift items will all be exclusively supplied by Mikel Coffee Company KSA. The costs for the key ingredients, packaging, branded / disposable items (Paper cups, lids, plastic cups, lids, straw etc.) will be calculated according to the store’s monthly consumption. A list of local supply items (raw materials, supplementary items etc.) will be provided to you by us and we will assist you on the selection of the appropriate goods to complete your menu.

Mikel Coffee Company KSA will receive 10% Royalty fee of the monthly gross sales turnover. The minimum amount of 2.5% of the store’s monthly revenue must be spent on marketing activities by Mikel Coffee KSA, in order to achieve further visibility in its local area and city which will reinforce Mikel brand worldwide, of which 1.5% of the store’s monthly revenue must be spent on marketing activities by Sub-Franchisee in coordination with and under the supervision of Mikel Coffee KSA preapprovals , such as Bloggers, Influencers etc. and we will provide a guide to help you spend the funds wisely so they can have the best possible consumer outreach. As an example, advertising via Instagram, Facebook, posters, radio… etc. will be held by Mikel KSA team against 1% and the 1.5% to be spent by sub franchise under KSA supervision and approval. e.g. (Bloggers, Promotions. Etc.) An annual enhancement store fee might be required at approximately SAR 15,000 for the store machinery, equipment, or decorations to be updated if need be.

 

Entry Fee

The entry fees will be used for:

  • The architectural designs (including store and 3D plans).
  • Pre-opening support such as site selection and administration costs.
  • Providing training about the Coffee & Food production and handling and overall operations.
  • Training baristas & waiters (if available) for 2-4 weeks before the opening of the store.
  • Providing the supporting team with assistance for finance and POS system (2-4 weeks after the opening of the shop).
  • Marketing Consultancy Support.

The cost for a Master or Area / City Franchisee will be discussed & agreed according to the business and expansion timeline plan provided to Mikel Coffee Company KSA for the specific Area / City by the franchisee. It will then be reviewed by the corresponding department and there will be a proposal set upon the expansion plan provided by the franchisee.