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.
For entrepreneurs weighing a coffee-shop launch, the Xpresso example shows 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.
