Steady as she goes with Muffin Break

Muffin Break is celebrating 20 years in business. Today with more than 200 stores and almost 200 muffin flavours, the cafe franchise offers coffee-loving Australians a freshly-baked sweet treat. Tastes may have changed but the concept remains constant.

Do you remember a time when freshly baked muffins and great coffee were not the standard fare of today? Back in 1989 when instant coffee and pre-cooked sweet treats were acceptable refreshment options the Muffin Break brand broke onto the Australian scene in, perhaps surprisingly, Coolangatta, courtesy of its Canadian founder who understood the muffin market from his home country and introduced a version in Australia.

It didn't take long for word to spread, according to Serge Infanti, now managing director of parent company Foodco but initially an early devotee of the brand as a franchisee. "Muffin Break soon became an anchor for the centre in Coolangatta, people would run and have breakfast at the store. I think in the late 1980s baked fresh produce was so new. And we introduced espresso coffee to the masses."

Shopping centres soon picked up on the trend with the Gandall Group in Victoria, and Westfield, particularly interested. By 1992 there were 18 cafe franchise stores across Australia, and just two years later the first trans-Tasman store opened in Auckland.

Now the brand claims more than 171 muffin franchise stores throughout Australia, with 38 in New Zealand, 28 in the UK and three in Dubai. Yet Infanti believes the concept remains unique and without competitors, thanks in no small part to its on-site baking and coffee options which give its products a home baked feel. “We use real eggs for instance, there is no substitution, and that’s held us in good stead. It’s interesting that people in generation Y are quite fascinated that our food is freshly made and that's helping us penetrate new markets."

Yet today's tastes are considerably more sophisticated than 20 years ago and the average customer's understanding of coffee and blends contributes to the brand's ongoing performance. Testament to changing tastes are the almost 200 different muffin flavours now available including healthier options such as high fibre, gluten-free, WeightWatchers and soy and linseed muffins. The franchise outlets also stock savoury items, cakes and slices, cookies and cold drinks. The gluten free line has proved critical to the stores, introducing new customers previously unable to enjoy a sweet treat with a coffee when out shopping.

Over the past 15 years the Muffin Break brand has undergone three revamps which has positioned the outlets with a homely feel and general appeal. Creating an image which invites custom from baby boomers and seniors yet does not alienate generation Y is like walking a tightrope, says Infanti.

But franchisees have welcomed the changes he adds. The costs for refurbishment are borne entirely by the franchisees, which is a significant investment. Most refurbishment is done on renewal but some franchisees are keen to revamp their stores mid-term.

"We have an extensive program every year and our franchisees are very proactive. We look for people who understand first of all what attracts them to the brand, and most have been excited as customers. We look for people who are motivated, not just financially but by lifestyle and leadership, people with leadership and entrepreneurial skills.

"Our success is due to well defined and managed compliance," adds Infanti. It's about an inclusive attitude with franchisees, he outlines, with franchisees considered an integral part of any marketing plan. Regional meetings occur every six weeks and these, as well as franchise focus groups, are a source for generating marketing and new product ideas. Franchisees are involved in the testing of new products and the training of new franchisees too.

Maintaining a strong point of difference has been key not just to Muffin Break but to its sister brands, the coffee cafe focused Jamaica Blue and gourmet doughnut store Dreamy Donuts.

"We've had not one month of negative same store growth,” Infanti reveals. "And we're still showing substantial same store and total growth."

The annual plan to open 12 Muffin Break outlets, six Dreamy Donut stores, and eight Jamaica Blue cafes doesn't change according to the dips and peaks of the economy. Foodco has always been conservative and focused on flat steady growth, even in the good times Infanti insists. "We have never pushed that much. We have the same plan because we know that if you push too much in the good times you can be left with significant problems in a downturn."

The international market, (Foodco now owns the worldwide rights to the Muffin Break name) will continue to expand says Infanti. A toe was dipped into the US pool with a San Jose outlet opened in 2003; four years later it was closed but there are plans for a US re-emergence in 2010.

While the trio of brands offers some symbiosis in terms of product (good coffee is central to all, he says) there are few instances of cross-brand ownership among franchisees. The Foodco Group’s preference is for single or dual ownership allowing franchisees’ concentrated focus on their chosen brand.

“We’ve been in this business for 20 years and while our stores and some our products may have changed over the years we have always been centred around our core values of being fresh, reliable, home baked and being a safe haven for our customers,” says Infanti.

This article appears courtesy of Franchising Magazine