Zarraffa's Coffees Kenton Campbell on drive throughs, the Carbon tax and growth targets

Zaraffas's Coffee is well known in QLD, they are now taking their brand to other states. Find out more in this interview with their CEO Kenton Campbell.

QSR Media:  What makes Zarraffa's Coffee unique in its category?

Kenton: We remain unique by constantly evolving our systems and our practices to meet the expectations of customers and our franchisees. We stay true to our brand and products but always look within to make the service and operational experience better.

QSR Media: Tell us a bit about your "drive through" locations, what does it do for your business, is drive through the way of the future?

Kenton: The introduction of the drive thru store model has had a significant impact on the business, delivering heightened convenience and a superior coffee menu to time poor customers.

The operational aspects of the Zarraffa’s drive thru store are world class and a considerable amount of time was spent researching beyond the the coffee industry to incorporate best practices, to ensure smooth operation and most importantly, customer satisfaction.

The evolution of our business model has moved Zarraffa’s Coffee stores from traditional shopping centre sites to more suburban convenience locations, increasing the access for customers and raising their expectations in terms of service across the industry, while also positioning quality specialty coffee alongside more traditional takeaway businesses.

For our company, drive thrus are the way of the future and a unique opportunity for us to grow the brand throughout Australia.

QSR Media: Zarraffa's Coffee is concentrated in QLD, any plans to extend to other parts of Australia?

Kenton: The company has experienced rapid growth in the past two years with a strong population of Zarraffa’s Coffee stores in south-east Queensland and an emergence in other regional Queensland centres such as Toowoomba, Hervey Bay and Rockhampton.

We are concentrating on building the business in a steady and financially responsibly way with an eye to interstate expansion across the Eastern seaboard in 2012. Locations in and around Melbourne, the greater Sydney area and northern New South Wales are all on the cards.

QSR Media: You were recently critical of the carbon tax what kind of impact do you think it will have on the industry?

Kenton: As both a conservationist and a realist I don’t see the sense in the Carbon Tax. It adds insult to injury, by not delivering a long term solution to the carbon issue and indiscriminately weakening businesses across all industries that will not be able to carry increased costs on top of other recent hikes in levies and taxes.

With our level of resources and wealth, Australia needs to lead the world in providing a long term workable solution to the issue of carbon emissions. A carbon tax is not the answer.

Whether you believe or disbelieve in the larger carbon issue, it only takes a trip to places like China and some of the world’s major cities to witness first-hand the smog that these people deal with day to day – to understand that carbon emissions and pollution in general can’t be good.

In terms of business, the passing on of costs from suppliers, for rent, electricity and other outgoings will negate many businesses profits.

For our businesses, who average $1million per year in turn over with a net profit of $200,000, a simple increase of 0.3% in food costs alone will be enough to negate their efforts. It’s simple maths. And the Federal Government’s company tax concessions are a token at best.

A change in the levels of electricity we consume, combined with a change in the type of energy required to power our lifestyles is essential. These are the types of tools and solutions that the government should be supplying us with, not another tax.

QSR Media: What are some of your goals for the next 12 months?

Kenton: We have been consolidating and fine tuning our brand for over a year now. Our plan will be to finalise these efforts and take what we have learnt from the past 13 years in business and move forward.

We are setting up the business to be self sustaining; without the need for it to be dependent on any one person for direction and momentum.

But a key goal and real thrill will be taking the brand to new territories and sharing our coffee that has been roasted, made and served the Zarraffa’s way and winning over new customers – one cup at a time.