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Q&A with The Coffee Club

Sarah Stowe

The Coffee Club has more than 25 years experience in the hospitality sector and is now part of the Minor DKL Food Group.

1. How many outlets are there in your Australian network?

There are 294.

2. How many franchisees do you have in Australia?

206.

3. How long is a franchise term?

The Coffee Club will initially negotiate a suitable lease and depending of the agreed terms, the franchise agreement will be reflective of lease term.  This is generally between five and 10 years.

4. What is the footprint of your stores?

This varies pending on the model: kiosk, club and café opportunities. The general size is typically 100m2 kiosk, 150m2 for a club and  to 200m2 for the CBR (café-bar-restaurant) model.

5. Who finds the location?

The Coffee Club has a specialist acquisition team to review sites and negotiate the lease terms.

6. What is the total cost of a franchise?

As there are three different models, kiosk, club and café, the price point is typically between $450,000  and $700,000 plus+ working capital ($30,000-$50,000) and a bank guarantee (generally two months of the initial rent)

7. What deposit is required?

The deposit is $22,000 including GST.

8. Is there financial assistance available to fund the franchisee’s purchase?

The Coffee Club is accredited with four financial institutions who will lend up to 60 percent against the business and further with asset backing: Westpac, ANZ, NAB and BOQ.

9. What royalties and marketing fees are there?

Ongoing franchise fee is six percent of sales and marketing contribution is three percent of sales. It is suggested that one percent is put into local marketing.

10. How many hours training do new franchisees need and how many hours do they need to spend each year on training?

The initial training is 240 hours at the Brisbane training stores. The Coffee Club also offers additional training courses for both staff and management development.

11. Where is training conducted?

The initial training is conducted at the Brisbane corporate stores.

12. Is the franchisor a registered training organisation?

Although The Coffee Club is not an RTO, its online training is mapped to the Australian Qualification Framework, and verified by an RTO, to provide employees with a fast and effective way to recognise the valuable experience and they’ve gained in their role. So, employees who complete online training and in-store experience have the opportunity to gain a Certificate III, Certificate IV or Diploma in Hospitality through an RTO in partnership with the franchise.

13. What barista training is available?

The company’s coffee academy includes a suite of barista training including basic training to advanced assessment in troubleshooting, latte art and history. Intermediate level training is written to the competency standards for the unit of competency SITFAB012B – Prepare and Serve Espresso Coffee. All employees are offered the opportunity after completing these online modules, workshop and workplace assessment, to enrol in the unit, and complete the required training to receive the recognised Australian qualification for a barista in a Statement of Attainment.

14. Does the franchisor source coffee beans from an internal coffee-roaster?

Beans are sourced by Douwe Egberts on behalf of The Coffee Club.

15. What are the standard opening hours?

This is subject to lease terms and also the model being operated. Typically the stores will operate between 8am and 5pm.

16. Is there a customer loyalty program?

Yes there is.

17. How many cups of coffee are served in your network each year.

29 million were served last year.