In 2016, South African entrepreneurs Nicolene and Tomer Elhadad launched Xpresso Café, a takeaway coffee chain built on a novel idea: every item on the menu – whether a cup of coffee, a pastry, a pie, or a sandwich – cost just 10 South African rand (approximately 50 US cents at the time).
This price, nearly a third of what major coffee chains charged, stemmed from a moment of reflection while the couple, already seasoned business owners, sat in a coffee shop. They realised how high prices turned a daily coffee into an unaffordable luxury for many. “For me, coffee is something that you should be able to enjoy every day,” Nicolene says. “It shouldn’t be something you spoil yourself with once a week.”
Nicolene and Tomer envisioned a business that made quality coffee and food accessible to everyone, every day. Their pricing model was designed to be a “no-brainer,” removing hesitation from the purchasing decision. “The vision that we had was for an entire family to come in, and with 100 rand, five people can each get two things, which was unheard of,” Nicolene explains.
“We wanted people to be able to come back every day. And I think for any small business, if you could have a product that you can sell or a service that requires people to come back all the time, that’s a winning formula, which is not always easy to find,” she adds.
Today, the chain has 65 stores across South Africa and sells over 50,000 cups of coffee daily. While the price per item has increased to 14 rand, it remains well below competitors’ rates, staying true to the founders’ commitment to affordability.
Watch our full in-depth interview with Nicolene Elhadad – South Africa: 10 rand (50 US cents) coffee idea grows to 65 stores
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