Cafe2U targets 25% growth in Australia
And a whopping 50% in New Zealand.
In an interview with QSR Media, Managing Director Derek Black said the proudly Australian-owned brand is expanding aggressively both locally and overseas with a target of “25% growth in Australia and 50 % in New Zealand with a focus on continued growth in new markets of North America, Germany and South Africa.”
Black said Cafe2U has assembled a capable staff to ensure this rapid expansion plan goes off without a hitch.
“We have a very talented and experienced team dedicated to international expansion who enable us to smoothly and successfully oversee the growth of the Cafe2U business. The team is absolutely vital at Cafe2U,” he said.
Launched back in 2000, Cafe2U was one of the first to release the mobile café concept with its first van appearing in Sydney. The current owners acquired it in 2004, and since then it has adopted a franchise model and has become the world’s largest mobile coffee franchise with over 200 vehicles mobilized worldwide and 130 in Australia alone, according to Black.
During the first couple of years after its acquisition, Cafe2U focused on rolling out franchises in Australia. Then in 2006 it launched its first international franchise in the United Kingdom, which was followed by others in South Africa, Germany, New Zealand and the United States.
Black also said Cafe2U has maintained its leadership position through a number of well-developed systems.
For one, Cafe2U has hired experienced head office support teams who assist franchisees to success. This is on top of its acclaimed “Acceleration Package” launch programme, which is a one-month new Franchise Partner training programme. Under the program, franchisees can send staff for one-week training at the Cafe2U Academy to become a professional barista. There is also training in food safety for franchise businesses to become HAACP accredited.
Cafe2U has also solidified supplier partnership arrangements which ensure product consistency, Black added.
These meticulous franchisee assistance programs seem to be quite effective in making each Cafe2U franchise quickly profitable. Black said franchisees are seeing a minimum of 70% return on investment or ROI in the first year, “although most new Franchise Partners will achieve an ROI of 100%.”
Still, the current franchise environment is not without its challenges. Black said the QSR industry is facing difficulties in franchisee financing, tenancy and discount-driven offerings. Other brands looking to emulate Cafe2U’s aggressive expansion strategy need to be prepared before going international.
“Make sure you do your homework and make sure you have the right team in place.”
