Food on the go – Xpresso Delight facts & figures

Xpresso Delight Caffeine hit

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 coffee franchise 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.

This article appears courtesy of Franchsing Magazine.