Cafesserie, the Italian coffee and French bakery house is opening its second Ugandan outlet at Village Mall Bugoloobi, CEO East Africa, has reliably learnt.
Ironically the premises it is occupying, was formerly occupied by a Java House eatery and another locations by Planet Yoghurt- a dessert shop.
Java House is part of the out of Nairobi Java House Africa with restaurants all over East Africa, while Cafesserie itself is out an out of Mombasa, Kenya, where they have one outlet.
The Village Mall outlet should be their second store in Uganda and a third one in East Africa.
“We can officially confirm that we are coming to Village Mall,” Eve Njoroge, the Cafesserie Uganda Manager confirmed to this reporter on the phone, adding: “If everything goes to plan, we hope to open this October.”
Yesterday, a press release by Knight Frank Uganda, the Village Mall property managers, said that both Java House and Planet Yoghurt “would be permanently closed on 19th May 2019, as part of the initiative to redevelop the mall.”
Marc Du Toit, the Knight Frank Head of Retail said that the redevelopment is a “move to improve our tenant mix and customers’ shopping experience.”
We have not yet established whether Java House closed their outlet due to some downsizing of sorts or were paid a handsome goodwill to vacate the premises. However, a source very familiar with the transaction said that- “once the Java House space became available, Planet Yoghurt which is adjacent to Java House was made an irresistible offer.”
The closure of Java House’s Bugoloobi Branch may be an indicator of the intense competition they are facing from mainly Café Java’s (now CJ’s). Late last year, when CJ’s opened their 10th Ugandan store at Lugogo, many social media commentators said the nearby Java House at Shell Lugogo would fall.
The fall of Village Mall therefore does not come as a surprise.
Javahouse has also been subject to frequent social media criticisms over alleged bad service.
Java House’s troubles could also be linked to an unstable ownership regime following a number of changes in ownership.
Java House (formerly Nairobi Java House) was founded in 1999 by a Kevin Ashley who in 2012 sold a 90% stake to Africa-focused but Washington-based private equity firm, Emerging Capital Partners (ECP).
ECP themselves sold East Africa’s largest coffee house to Abraaj Holdings — a Dubai private equity firm for a reported $100 million, late 2017.
This January, the Competition Authority of Kenya (CAK) gave a node to UK-based private equity fund Actis, to acquire 90% stake in Java House from Abraaj, following months of a takeover rumors.
Java House has had 6 outlets in Kampala and Entebbe.
CJ’s recently took the fight to Java House’s heartland with two signature openings on Koinange Street and Village Market and is said to be opening a third outlet this year- following phenomenal success in Java House’s backyard.
In January 2019, Java House announce they would infuse a further $10 million in the region to upgrade the Java House experience and open new outlets- a stitch in time, if you ask me.