DUBAI – QAHWA WORLD

Drinkit, the global café chain operating under a digital-first model and founded in 2016 as part of Dodo Brands, is accelerating its expansion in Dubai following strong year-on-year growth across its network.

According to Katerina Borodich, Chief Executive Officer of Drinkit UAE, the brand is set to double its local network this year. Seven franchise partners were signed last year, with new outlets now launching. Among the most anticipated upcoming locations are Dubai Hills and Creek Harbour. Franchise interest is also increasing, reflecting growing investor confidence in the concept.

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Strong Year-on-Year Growth

In January, network revenue increased 2.5 times compared to the same month last year, while the number of operating locations doubled year-on-year.

Mature stores continue to post solid gains. Marina Gate recorded 60 percent growth, maintaining similar momentum for the third consecutive year. Bay Avenue rose 58 percent compared to January 2025, while EMAAR Square reported 32 percent growth.

Performance varies by micro-location dynamics. Marina Gate and Bay Avenue benefit from additional footfall generated by surrounding residential and retail traffic, while EMAAR Square operates within a business district environment with more structured demand patterns.

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Operational Performance

The EMAAR Square location has on occasion reached daily revenue of 10,000 dirhams, with a peak of 374 transactions in a single day. Despite its compact layout, the team continues to optimize operations to handle high customer volumes efficiently.

Unit Economics and Payback Strategy

Drinkit’s first Marina outlet reached monthly revenue of 72,000 US dollars, delivering a 26 percent store-level earnings margin after royalties. A franchise unit launched in October has already become the third highest-performing outlet in the Dubai network, generating 48,800 US dollars in monthly revenue.

As of November, the average retail payback period stood at 40 months, excluding the Mirdif location. Since then, operational refinements have reduced unit costs by 2 percent. Delivery currently represents 13 percent of total network revenue, with further growth potential identified. The target payback period is 30 months.

Preparing for Seasonal Shifts

With Ramadan approaching, typically a challenging period for retail activity, the focus remains on maintaining profitability while scaling operations sustainably.

Drinkit’s recent performance underscores the continued dynamism of Dubai’s specialty coffee market, as international café concepts pursue disciplined expansion strategies supported by franchise partnerships and operational efficiency.