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10 questions about a mobile coffee franchise: Cafe2U

Sarah Stowe

Quality and consistency are paramount to the success of the Cafe2U mobile coffee franchiseThe Cafe2U brand began in Australia and has developed an overseas presence. Here we find out what it takes to be a success in the mobile coffee franchise arena.

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

The biggest challenge experienced by the mobile coffee business is the perception that independent cafes serve a better quality coffee than those in the mobile realm. At Cafe2U the focus remains on consistent quality and understanding that success is about what’s in the cup.

Cafe2U has demonstrated that mobility is not synonymous with substandard coffee and in order to fuel Australia’s exceptionally high coffee IQ, the brand’s focus on good product and our multiple award winning blend has led to the company’s success rivalling any main street, fixed location brew.

In the first few months of a new franchise partner taking on a business, speed and confidence in barista skill are the biggest challenges to overcome, however with the Cafe2U training module and extensive support the franchisees can easily overcome these challenges naturally.

2. What are the operating costs and time considerations for a mobile coffee business?

One of the biggest benefits of a mobile coffee business is that two of the largest expenses that traditional, fixed location cafes face are removed. This includes the expense of staff and rent, meaning that operating costs are kept extremely low, which in turn makes it a low complexity business.

The next consideration is time. With the nature of the mobile coffee business, there are no set hours in running a Cafe2U franchise. Typically franchisees start early in the morning and finish early afternoon on their Monday to Friday runs, meaning that flexible working hours ensure the franchisee has great work-life balance. There are additional opportunities for evening and weekend events, however this is optional and up to the Cafe2U business owner.

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

Cafe2U uses mapping technology to create specific territories in the franchisee’s area, which means there is no need to extend beyond the initial territory as there is already an abundance of opportunity.

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

There are several important factors that go into a quality Cafe2U brew. It’s a combination of quality and consistency being at the forefront of our focus in everything we do and offer, along with speed of service and having a diverse offering for our time-stretched customers. It comes down to our van set up, the training, food offering and coffee expertise that we pride ourselves on and that allows us to stand out against the highly competitive Australian coffee market.

5. How can technology improve business operations in the mobile coffee model?

Being able to communicate with customers through social media, EDMs and other platforms are key components to operating in a digital society. Our mapping technology has also significantly contributed to the success of our franchise partners as they navigate their way to improved business operations and location selection by use of this system.

Innovation plays a big part in Cafe2U’s evolving strategy, where over the last couple of years, a point-of-sale system has been introduced for the franchisees to improve business operations. Social media has also formed a huge development and digital opportunity for our franchisees, who are given the chance to create their own localised pages to engage with their customers and utilise the platforms as a tool for local marketing, to drive promotions or new menu offerings.

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?

Cafe2U offers extensive face-to-face training where franchisees are taught everything from the picking process of the beans to texturing milk to suit different coffee types. The key element to this successful strategy is that classroom-style training is transferred into practical operational capabilities, to ensure our baristas are able to build up a core customer base within a month of being on the road.

Our unique four week training and business launch package allows the franchisee to develop their knowledge, skills and confidence whilst under full time supervision from their designated franchisee development manager. Ongoing support is also provided throughout the lifetime of the business, with weekly contact from their franchise development manager including a van visit each quarter, and state / regional conferences also occurring once a quarter.

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

The only contribution required by the franchisees is commitment to listen, take direction and provide a high level of customer service which will naturally make the operation foolproof.

8. How are mobile territories created?

To create a new mobile territory there is a very detailed and scientific mapping process of each region which ensures that every franchisee has a successful chance in the market and can identify customers in their designated area to deliver the product direct to customers.

The mapping technology, combined with advanced demographic data, has the ability to locate hot spots of small to medium sized offices, industrial areas and work sites that are ideal for our franchisees to target and skew their daily coffee run.

The system provides granular detail on every business within any one territory, including the industry classification and number of employees, to assist the franchisee in making an educated decision in the selection of their run.

Therefore, each territory is created using proven, current statistics, evolving the business to boast more than 160 Cafe2U mobile coffee vans in the Australian market.

There are recently new territories available in each state with plenty of opportunities, including twenty plus sites available across the state of Victoria alone.

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

Product development and innovation is an important component of the Cafe2U business model. The brand’s strategy and focus is always to improve franchisee return on investment by providing an improved product range, increasing profit margin on products by leveraging the network of Retail Food Group’s purchasing arrangements, and reviewing the equipment and vehicle layout to gain every possible advantage.

In addition, the Cafe2U team looks to develop new event opportunities and marketing strategies to keep ahead, as it is the only mobile franchise cafe with a well-assorted menu and evolving schedule of consumer promotions that appeal to our customers.

10. How do you promote a mobile coffee business?

The Cafe2U business is promoted via numerous channels such as social media, traditional print channels, online and through Google ad words.