Brazil’s The Coffee Expands to Middle East, Opens First Store in Dubai

Enthused by increased consumption of coffee in the region, investments in coffee production and the growth potential in the Middle East, Brazilian specialty coffee chain “The Coffee” has opened its first store at Dubai Mall in the UAE.

The UAE is the Middle East’s second-largest branded coffee shop market with more than 1,400 coffee outlets, according to World Coffee Portal.

Although flavour profiles differ region to region, Brazilian coffee is known for its low acidity, full body, and dark roast, which makes it most popular for espresso-based drinks. Brazilian beans often have tasting notes of caramel, chocolate, nuts, and spice, and are less on the fruitier side.

Curitiba-based “The Coffee” announced its planned expansion to the Middle East in December 2023 as part of a goal to open 1,500 outlets outside of Brazil by 2028. The small-format store operator will open a second UAE store at the luxury Dubai Hills residential area next month before expanding to Saudi Arabia and Egypt before the end of the year. It also plans to open its first stores in Saudi Arabia and Egypt during the first six months of the same year.

Founded in 2018, “The Coffee” operates more than 200 stores in Brazil and has 43 outlets across eight international markets. The premium coffee chain raised $10 million in October 2023 to accelerate its development in Europe, South America and the Middle East.

“The Coffee” expects European stores to lead its planned international expansion and already operates 12 and 10 stores in Portugal and France respectively. However, the small-format operator also sees significant opportunities in the Middle East. 

World Coffee Portal’s Project Café Middle East 2023 report forecasts the Saudi and Emirati branded coffee shop markets will grow at 8.5% and 4% CAGR respectively to exceed 5,350 and 1,680 outlets by 2027.

Black Sheep Coffee

Meanwhile, the UK-based “Black Sheep Coffee” has reached 100 stores globally with a new outlet at the Yas Mall shopping centre in Abu Dhabi on June 24 this year. 

The “Black Sheep Coffee” chain signed a 30-year franchise agreement with Al Farran Group in May 2023 to open 250 stores across the Middle East within 15 years. The first two outlets of the partnership opened in Dubai in March 2024 at ACT Towers and Boulevard Plaza Towers.

Mohamad Al Farran, MEA Developer, Black Sheep Coffee. Said that they were proud to launch Black Sheep Coffee’s 100th location worldwide in Abu Dhabi, further expanding its footprint in the UAE on their mission to change the traditional coffee chain experience across the globe.

Black Sheep Coffee’s Yas Mall store is its fourth in the UAE and fifth internationally alongside to a single site in Paris, France.

The coffee chain has also identified the US as a key growth market and is poised to make its market debut this month in Dallas, Texas, before opening a second US site in Miami, Florida.

“Black Sheep Coffee” is said to be seeking to raise $18.9 million to support its international growth, which includes a 15 store-expansion plan in the US.