Directory
Xpresso Delight Franchise Featured
Area: Coffee
Business Established: 2004
Units/Locations: 130+
Initial Investment: $64,400 ex GST in Australia and $69,400 ex GST in New Zealand
Agreement Terms: 5yrs + 5yrs (second term at no extra cost)
Training:
2 day training course in marketing, machine servicing, business & sales; 6 weeks marketing action plan to find a location, at 6 months point another training session
Marketing Support:
Flat fee: $25 per machine per month for national marketing; optional: $25 for new business leads
FCA Member: Yes
Awards: Xpresso Delight has been named in the top “fastest growing franchises by revenue” in BRW’s Fast Franchises rankings for the past three years, Australian Business Award for Enterprise 2008 – Cafes and Restaurants, Top 10 franchise in topfranchise.com.au in 2008
Multi-Unit Ownership Allowed: Yes. There is a cap of 20 systems per franchise but they can buy another franchise with more machines. The coffee & go model can have multiple vans, too.
Average Set up time: There is a compulsory 7 day cooling off period once this has lapsed and training dates have been agreed on they start straight away on their two days in house training and then on to their 6 week marketing action plan.
How many products or services: 4-5 different types of coffee per machine
Ratio of Support staff per franchisee: 2:20-30
Business Model:
The business model is based leveraging time. Franchisees place the machine into a business. The machine works on its own, franchisees only clean & service the machine once a week for 30min. Other tasks include administration, marketing and sourcing new locations.
Main Costs:
Day to day consumables
Main products or services:
coffee
Comparitive store growth: In 2004-05: 26 franchisees, In 2005-06: 42 franchisees, In 2006-07 64 franchisees, In 2007-08: 81 franchisees
Last Surveyed: March-April 2011
Participation Rate: 52%
Description
DescriptionAs an Xpresso Delight franchisee you can grab a share of the huge, untapped market for gourmet coffee in the workplace, and the best thing is you can work one day a week and earn better than the national average wage. Xpresso Delight is an innovative franchise that places commercial-grade coffee machines into workplaces for free but charges by the cup for the coffee. It has granted 125 franchises since the company started in 2004 so it’s little wonder BRW Magazine listed Xpresso Delight as the ‘Second Fastest Growing Franchise System in Australia’ (Jan 2008). A relatively passive income, perfect coffee and guaranteed returns await you. Investment starts from $64,400 ex GST in Australia and $69,400 ex GST in New Zealand.Future Plans
Since starting franchising in 2004 Xpresso Delight has grown to a network of 91 franchises across Australia and New Zealand, selling over five million coffees per year, and plans are afoot to establish another 9 franchises by the end of 2008. It recently introduced a mobile coffee van division, Xpresso Delight coffee&go to capture a new market of customers looking for a perfect cup of coffee, and people looking for a more hands on coffee business with full-time involvement. Our long-term goal is to operate a network of 250 franchises by 2012.
Testimonials
“I had been researching business opportunities over several months when I came across Xpresso Delight. My goal was to get out of my full time job and find a business which would give me the flexibility to work and spend time with my family. The support I have received from the Franchisors has been outstanding and I am earning a return from a business which suits my lifestyle. I enjoy what I do and have full control over the hours I work and returns I make.” Xpresso Delight Bexley - Laila Kennedy
