Cafe2U
Serving up: mobile Belaroma coffee and light refreshments
Facts and figures:
Franchise fee: between $104,900+ GST and $107,600 +GST (depending on options available).
Working capital: $7000 minimum, includes stock and supplies
Is this a turnkey operation? Yes
Royalty fee: in the first year a fixed weekly amount $130 + GST; second year a fixed weekly amount of $145 + GST; third year and ongoing a weekly amount of $160 + GST (capped) and CPI linked. The marketing fee is $20.70 per week (CPI linked).
Term: five years and up to two renewals of five years each R
enewal fee: $550 plus GST for a second five years (legal costs), $5500 plus GST for third term
Lease: not applicable.
Operating hours: generally from 7am to 1pm
Average customer spend: $5.50
What does the franchisee get for the royalty and marketing levies? The franchise fee covers management assistance and operational services including maintenance and development of the system, event co-ordination and allocation (half with franchiseeÍs marketing fund), ongoing training and field support, brand support, product development, buying power and strict quality control standards. The marketing levy includes national advertising and media (placement and production), public relations, point of sale material, sales materials/collateral, website maintenance and search engine optimisation (SEO) maximisation and event co-ordination and procurement (half with Cafe2U).
The $1000 plus GST training fee is included in the initial franchise purchase price which allows for three days classroom style training and nine days in-field training. With 75 franchises in the system in Australia and 45 in the UK the target for the calendar year 2009 is 170 — with 105 of those in Australia. How much food preparation is done on site? None. The only food sold is pre-prepared and pre-packaged but hot and cold beverages are prepared under strict guidelines. Many franchisees use a Frequent Fluid loyalty card system but this is up to the discretion of each individual franchisee.
Xpresso Delight – serving up: self-serve coffee machines to offices
Facts and figures:
Franchise fee: $20,000 plus GST
Working capital: none for eight weeks — all consumables supplied.
How much is invested in stock/supplies? $1500 p/m
Is this a turnkey operation? Yes
Royalty fee: $25 p/m including marketing
Term: five years plus another five year option Renewal fee: none but multi-unit franchisees pay 50 per cent for a second unit
Lease: not applicable.
Operating hours: during business hours or to suit clients; usually 10 hours a week
Average customer spend: The average number of coffees per week per system is 150 which equates to about $150. The average franchisee owns 10 machines.
The franchisor advertises a minimum of twice monthly in major newspapers in each state, regularly in industry franchise magazines, online and has taken space in hairdressing publications and a directory of ambulance officers. An external marketing and communications agency is employed for local area publicity for franchisees, corporate publicity in business and franchise media and general editorial support in line with the advertising schedule. The uniform, machines, cups and mobile vans are all branded with the Xpresso Delight logo and corporate colours.
Franchisees can also pay their master agent $25 for new business leads. There are no supplier rebates in the system. New franchisees undergo a two-day fully comprehensive training course in marketing and machine servicing and get help developing business, sales and marketing skills. They receive a six-week marketing action plan to source locations for their machines and master agents guide new franchisees through at least two sales calls and provide them with brochures, business cards and corporate presentation folders to begin location sourcing. This all costs $5000 plus GST.
After the first six weeks every franchisee receives debriefing and further training in select areas. There is a target of 150 franchises for 2009. Is there a customer loyalty scheme? Yes, and franchisees are trained to reward their customers every three months to maintain that relationship