Demand for the perfect blend brews success for coffee entrepreneurs

The rush of roast-coffee addicts in search of the perfect blend has kept business bubbling away for the coffee industry despite the economic downturn and one of the most bullish groups of all is office coffee machine franchise Xpresso Delight .

The Sydney-based coffee franchise started in 2003 by co-founders Stephen Spitz and Paul Crabtree is looking forward to healthy growth despite consumer uncertainty after posting a 73 percent increase in turnover to $5.9 million in the 2007/08 financial year.

The Xpresso Delight concept works by placing fully automated, commercial grade, gourmet espresso coffee machines into workplaces free of charge, costing just $1 per cup. The coffee machine business services more than 800 businesses and Stephen said strong consumer demand for coffee had been crucial to the franchise’s swift success.

“Coffee is not a luxury anymore, it’s a necessity,” he said. “About 60 percent of Australians drink coffee and cappuccino is the third most popular drink in Australia today behind water and carbonated drinks so we don’t see any real ongoing affect to our business.

“The downturn has been a boom time for budget-friendly coffee solutions and at $1 per cup our café-quality coffees are a fraction of the price people pay in retail outlets. We have actually seen an increase in demand for our in-house coffee machines as businesses realise the cost savings they can achieve.”

Xpresso Delight was named the 5th fastest growing franchise by revenue at BRW’s Fast Franchises 2009 and Stephen and Paul are not planning to slow down anytime soon. The business is pushing ahead with expansion plans to add another 50 franchisees to its network this year bringing its total up to 148 franchisees in Australia and New Zealand.

“We have a very clear plan in place to add at least 50 franchisees by the end of 2009, the majority in Australia followed by New Zealand to service this demand. We will also be looking internationally to find the best locations for our franchises.

“In 2008 we introduced our mobile coffee van division Xpresso Delight coffee&go to capitalise on growing demand for a coffee franchise with full-time involvement. We have a number of vans in the field but we’re also looking to significantly grow this division throughout 2009.”

Paul said the economic crisis and rising unemployment rate would not present a hurdle to future growth.

“Many people have been retrenched or seen their overtime cut back so there is a larger number of people out there looking for a secure income through business ownership,” Paul said.

“We have a unique business model based on maximising the time to money ratio so it’s possible to have a full-time job and operate an Xpresso Delight franchise on the side. It’s also a great option for families looking for a second income but also the flexibility to look after the children.

“Once they are installed the machines are serviced once a week which means franchisees can earn better than the national average wage for working under 10 hours per week.

“We also promise our franchisees will make a minimum 40 percent revenue return on capital investment within the first six months or their franchise fee is refunded which reduces some of the risk of going into business.”