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11 questions about a mobile coffee franchise: Xpresso Mobile Cafes

Sarah Stowe

Franchisees working Xpresso Mobile Cafe vans can finish their working day mid afternoonWant to buy a mobile coffee business? Check out this Q&A with franchisor Jonathan Payne.

1. What’s the biggest challenge operating a mobile?  

In the mobile cafŽ game, the biggest challenge is evolving the daily run to ensure the best return on time.  That is, servicing the customers that consistently deliver the numbers rather than the ‘stops’ that are a little more hit and miss. Ultimately the goal is to have a 10-15 stop daily run as opposed to a 20-25 stop daily run. Time is money.

2. What are the operating cost and time considerations for a mobile?

The operating costs for an Xpresso Mobile CafŽ including cost of goods, fuel for the van, a weekly gas bottle, insurance and weekly franchise fee is 33 percent. We can have a new franchisee on the road inside of seven weeks once finance is lined up. 

Franchisees generally start at about 6:30am and knock off around 1pm although we have franchisees earning another $15,000 pa simply by working through to 3pm.

3. How easy is it to extend the business beyond the initial territory?

To date, there has not been a need for this as our territories are large enough to operate multi-unit businesses.  If a franchisee really wanted another territory or moved interstate then yes of course, we have a process in place to ensure a transition to another territory is managed effectively.

Naturally, there is a fee to ensure a smooth re-launch and transition to a new customer-base.

4. What’s more important, the quality of the coffee, the speed of service or the breadth of the menu?

Quality wins every time.  It builds trust. The average Australian’s coffee IQ or knowledge of espresso coffee escalates every year and that is our point of difference.

Our coffee is consistent in quality and price due to our partnership with Di Bella Coffee and its Crop to Cup green bean buying program.  Customers will always wait a little longer if they know the coffee they are paying for is consistently awesome. 

For sure, a large menu offering can slow service however Xpresso franchisees benefit from having access to a flexible menu system that allows them a robust or simple menu. 

Essentially, key menu items coupled with hot and cold beverage items will increase turnover and net profit.  A healthy balance is the answer with the core focus on quality espresso coffee every time. 

5. How can technology improve business operations in each model?

Immensely! Xpresso Mobile CafŽs each have an electronic beacon that signals regular customers of the approach of the van and can push out a message to highlight menu specials of the day/week. It doubles as a customer loyalty system.

It is mandatory for all franchisees to have mobile electronic payment facilities (Eftpos):  it’s an expectation in today’s increasingly cashless society. 

6. What are the main elements of business operation that can be taught in the initial training, and what can only be learned on the job?

There is a science in making a great espresso coffee.  Our initial training involves some Internet based learning modules and then a visit to the Di Bella Coffee training and roasting facility in Brisbane. 

This isn't just texturing milk for two days but rather learning the mechanics and science behind producing awesome espresso coffee every time. 

The on-the-job training focuses on coffee sampling and customer interaction with the ultimate goal of producing the daily run sheet for the new franchisee.

7. What attributes do you need to possess to be a successful mobile coffee franchisee?

Friendliness, friendliness, friendliness, a positive attitude and plenty of energy.  The rest we can teach.

8. How can you handle competition from other brands as a mobile franchisee? 

We don’t see them as competition. The true competition is a coffee machine inside an office. Yes, there are plenty of other coffee vans in the field and from time to time, we cross paths.

Our approach is to work together and cross refer leads. There is always enough business in every territory for another mobile cafŽ. 

Ultimately the customer will decide on which mobile cafŽ to have visit their business.  All players must keep on their toes.

9. How are mobile territories created? Are there still new sites available or are most franchise sales existing businesses?

Xpresso Mobile CafŽ has plenty of new or greenfield sites available nationwide. Virtually all our franchise sales are for new business.  Put simply, there are more coffee drinkers than there are mobile cafŽ’s across all brands to service the demand.

10. How important is product development and innovation in the mobile coffee landscape?

Critically important; it builds relevance and stops a brand stagnating. Today’s mobile coffee industry is chalk and cheese compared to the early 2000s. For Xpresso Mobile CafŽ to remain the industry benchmark, there is an expectation that we continue to develop new products with our supplier partners and customer interaction technology.

11. How do you promote a mobile coffee business?

Spend a whole lot of money on measureable marketing tools; the Internet and Google predominantly.

Whilst this benefits the franchisor, it also helps each individual franchisee get cut through in a competitive market. 

Franchisees are stepped through a detailed marketing kit that fully explains how to promote their business within their territory. Ultimately, it involves targeting customers with a sample of the product.