The Coffee Club franchise sees overseas boost

Coffee shop franchise business, The Coffee Club , is forecasting major growth in the overseas franchising market with two stores already trading well in Bangkok under Asian fast-food giant and leading hotel operator Minor International.

Minor bought a 50 percent share of The Coffee Club in 2007 for more than $23 million. The acquisition was followed by the opening of The Coffee Club Turtles Village and more recently a store at the Royal Garden Plaza Pattaya, 150 kms south east of Bangkok.

Director and group chairman Emmanuel Drivas said business was brisk for the company’s two Thailand stores with the outlook for 2009 strong, despite talk of a receding global economy.

Drivas said Minor was in the process of establishing a third store in Thailand and looked set to expand the cafe franchise into China and Dubai.

“This is the start of a major growth phase for The Coffee Club which could see many franchises developed throughout Asia and the West,” Drivas said.

“Minor has offices in Dubai and China and if things go well for them in Thailand which they currently are, I wouldn’t be surprised if they take on the master franchise for those regions as well. If this happens the company’s international growth will escalate substantially.”

The Coffee Club entered the New Zealand market in November 2005 and now has 25 coffee shop franchise stores and Drivas is expecting the same level of growth in Asia.

Drivas said the cafe franchise was still experiencing growth despite the downturn. The group’s franchisees, he said also were optimistic about the future.

“In the last quarter, we achieved 3.2 per cent growth so it is clear that our organisation is defying global financial trends,” he said. “By mobilising our marketing resources and motivating franchisees to drive sales at a local level, business confidence and positivity has increased."

During the past three months, the company has employed additional staff to join its property, financial, marketing and legal teams and directors said they did not anticipate a slowdown in the immediate future.

This article appears courtesy of 5 Minute Franchising Newsletter