Dirt Coffee eyes 100 sites on low-investment strategy

The former Triple Two Coffee founder is leading the brand's growth.

The former owner of the Triple Two Coffee chain is banking on their lower investment costs and good relationships with many UK landlords to support the growth of his new coffee franchise business to 100 sites.

David Hodgetts, Founder of DMH Brands, has announced that he will open three Dirt Coffee sites in London within the next couple of months, with the intention of reaching 10 as soon as possible.

“We are targeting much lower total investments for our franchise partners, selecting locations that generally incur much lower overheads, so that they are not suppressed by high rents from day one,” Hodgetts told QSR Media in an email.

Dirt Coffee is a speciality coffee franchise that offers 90% Arabica and 10% Robusta. Its food menu will have a mix of fresh-to-order and grab-and-go, depending on the location.

According to Hodgetts, some coffee franchises ask franchisees to invest up to £500k to open a site and pay rents of over £100k per annum.

“This is not viable, and these brands may have a footprint where the perception is all rosy, but from a franchisee's point of view, it is not viable for them to make a return. It's a shame,” Hodgetts said.

Dirt Coffee Co has a minimum investment of £75k, according to Franchise UK.

Hodgetts explained another differentiator is that they have an in house property team, design team, and project management team. They can also provide extensive course training, operational and marketing support, which he said most franchise brands do not offer.

In a previous interview, Hodgetts said the company had raised close to eight figures in private investment at a £100m valuation.