According to BusinessTech, Xpresso Cafe now sells its smallest americano and cappuccino for R14, making it the cheapest takeaway coffee in South Africa based on in-store prices in Gauteng.
The brand launched with a flat R10 price for every menu item and kept that level for roughly five years. In 2021 the price rose to R12 and again in 2024 to the current R14. The founders, Nicolene and Tomer Elhadad, say the goal is to keep coffee affordable for everyone, even if it means low profit margins.
Abantu, founded in 2020 by former Protea cricketer Rassie van der Dussen and manager Chris Cardoso, ranks second in the price comparison. The chain operates movable coffee shops built from shipping containers, allowing it to set up in unconventional spaces and keep costs down.
The coffee market has expanded rapidly. Vida e Caffe, with more than 400 stores, has averaged about 16 new outlets per year since its start 25 years ago. Plato Coffee, founded in 2019, now runs over 140 stores, averaging 20 openings per year. This growth has attracted larger retailers. Woolworths runs WCafe in many of its stores, and Shoprite is pursuing an acquisition of Vida e Caffe, which is awaiting Competition Commission approval.
Implications for small operators and consumers
For small coffee entrepreneurs, the price war highlighted by Xpresso and Abantu shows that low-price models can attract price-sensitive customers, especially in a market where larger chains are expanding. However, maintaining profitability at R14 per cup requires tight cost control, limited menu breadth and high volume.
Consumers benefit from the competition, as the presence of ultra-cheap options forces bigger players to consider price adjustments or value-added offers. The trend also signals that new entrants can succeed by focusing on simplicity and mobility rather than extensive real-estate commitments.
While the cheap-price segment is appealing, the sector’s overall growth suggests that there will still be room for differentiated experiences, such as specialty coffee, premium locations and loyalty programmes. Small owners should watch how Woolworths and Shoprite leverage their scale, as their entry could reshape pricing dynamics and supply chains.
For entrepreneurs weighing a coffee-shop launch, the Xpresso example underscores that a clear pricing promise can be a market entry point, but it also raises questions about long-term sustainability when larger retailers bring economies of scale to the same market.
Read more about retail trends in the Retail & Consumer section.
Globally, an estimated 2.25 billion cups of coffee are consumed each day, placing the drink second only to water in worldwide popularity, a trend that mirrors South Africa’s own enthusiasm where more than 6 million people enjoy coffee regularly. This massive demand underpins the rapid expansion of local chains, creating a market environment where price differentials become a key competitive lever, as demonstrated by Xpresso’s R14 cup representing roughly half the cost of the second-cheapest option, Abantu.
The analysis that identified Xpresso as the cheapest brand focused on the smallest americano and cappuccino sizes offered by each chain, rather than volume-based pricing. By standardising the comparison to the smallest serving, the study ensured a like-for-like assessment across brands, even though the actual millilitre measurements may vary between outlets. This methodology highlights how price leadership can be measured without relying on size-adjusted calculations.
Abantu’s mobile coffee shops, built from shipping containers, allow the brand to occupy unconventional locations and avoid the overheads associated with permanent premises. The founders’ strategy of repurposing “unwanted or open spaces” reduces rental costs and contributes to the ability to price cups at R14, a figure that would be harder to sustain in a traditional brick-and-mortar setting with higher fixed expenses.
Shoprite’s planned acquisition of Vida e Caffe is awaiting clearance from the Competition Commission, a regulator that assesses whether such deals could lessen competition. The approval process typically involves a detailed review of market share, potential anti-competitive effects, and public interest considerations, with the expectation that a decision will be reached before the buyer’s next financial year, allowing the transaction to be finalised in that period.
When the Competition Commission grants approval, the acquiring company must integrate the target’s store network, supply chains and branding within the stipulated timeframe. This integration often includes aligning procurement contracts, consolidating distribution logistics and harmonising pricing strategies across the combined portfolio, steps that can influence market pricing dynamics and consumer choice in the months that follow.
