What is the biggest challenge for coffee chains? Tanya Kanaris, national franchise development manager, cites continual pressure to innovate – and serve an exceptional cup of coffee.
“This is the result of a surge in independent cafs that offer a unique dining experience. It is dangerous for coffee chains to ignore this.”
Degani is working on a cutting edge loyalty program that will, says Kanaris, “enable a tangible customer and brand interaction that will provide powerful information to franchisees and the franchisor.”
She cites a flexible franchise business model, low royalties and a personalised support structure as key brand attractions for franchisees.
“Consumers appreciate a high quality dining experience as a result of a happy franchisee,” she adds.
20 questions about the businesss
1. How many Australian outlets are there?
There are 77
2. How many franchisees do you have in Australia?
17
3. How long is a franchise term?
The term of the franchise agreement runs concurrently to the term of the lease.
4. How many different business models are there in your system?
There are four.
5. What is the spread of your stores?
Predominantly in Victoria: 92 percent of our stores lie within a 45km radius of Melbourne CBD. This includes our high street locations and shopping centre portfolio.
6. Who finds the location?
As the franchisor, we have locations readily available but also accommodate for locations sourced by our franchise business partners.
7. What is the total cost of a franchise?
It varies depending on model required. Between $250,000 and $750,000 would cover all opportunities.
8. What deposit is required?
$11,000 deposit is required ($10k + GST)
9. Is there financial assistance available to fund the franchisee’s purchase?
Not at this stage.
10. What royalties and marketing fees are there?
Five percent ongoing franchise fee, two percent ongoing marketing fee.
11. What marketing collateral is available to franchisees?
Anything they feel they need to grow their business locally! We make sure that their marketing levy is reinvested into their local marketing plan so they benefit 100 percent.
12. How many hours training do new franchisees need and how many hours do they need to spend each year on training?
The initial training program received by new franchise business partners occurs over four weeks, with three of it being conducted in-store. Our franchise business partners are encouraged to take advantage of the various training courses available to them through our online portal.
13. Where is training conducted?
The majority of training is conducted in Brisbane.
14. Is the franchisor a registered training organisation?
No
15. What barista training is available?
Barista training is currently provided by our coffee roaster in Melbourne to ensure their beans are treated correctly.
16. Does the franchisor source coffee beans from an internal coffee-roaster?
Yes, we contract to our own coffee-roaster in Melbourne.
17. What are the standard opening hours?
It really depends on the store location; 6am to 10pm would cover the network.
18. Is there a customer loyalty program?
Yes
19. Can customers order coffee/food online and pick up?
Not yet – this is in progress
20. How many cups of coffee are served in your network each year?
13.25 million cups of coffee are served at our stores. That’s 110 tonnes of coffee per year!