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Cafe coffee in the office: Xpresso Delight Q&A

Sarah Stowe

A coffee business with a difference, Xpresso Delight is essentially a business-to-business model that allows franchisees some flexibility in their working lives.

What’s your business all about?

We transplant the cafe experience from the outside into the work place directly, by providing free fully automatic coffee machines using our Arabica gourmet coffee beans and only charging a per coffee rate.

What distinguishes you from your competition at consumer level?

That our customers do get a cafe quality coffee each and every single time using fresh milk and our franchisees come around every week to service the machine so it is always working at its optimum level. We also provide cups, sugar and even the chocolate sprinkle for that perfect cappuccino!

How is your franchise offer distinct?

Our business is all about leveraging and not trading time for dollars. The machines do the work rather than having to labour six days a week, 10 hours a day as many others have to. Most of our franchisees use Xpresso Delight to supplement other income coming into the family home without having to sacrifice all their time doing it.

How do you benchmark your franchisees’ performance?

We have an online reporting system that accurately shows the top 20 percent and communicate this to franchisees so they can benchmark themselves on actual references. We have specified goals and milestone mapping individually tailored to each franchisee, based on the pace they want to grow their business.

What do you think are the biggest two challenges facing your business over the next five years?

Firstly identifying and putting on enough franchisees for the demand we have for our product and service, we have only scratched the surface of marketing to businesses that want our machines.

The second challenge is the availability of finance being readily available for prospective franchisees wanting to come into our franchise system. More often than not they make use of the equity they may have in their homes and the banks are taking significantly longer or just rejecting refinance applications because of their strict lending policies.

The franchise offer

  • Established eight years
  • 173 franchisees
  • Five year term plus five year option
  • Turnkey cost of franchise is A$69,900 + GST, NZ$64,900 + GST
  • Franchisees have to pay a fixed monthly fee of $125 for the initial five coffee systems. And as they grow, $25 for each additional system.