A coffee shop business is very lucrative and studies have shown that the average Net Profit for a Cafe in Australia is around 10 percent of sales. A recent report shows that in Australia, coffee shops make an average annual revenue of about $215,000 per year by selling about 250 cups of coffee daily. That works out to be about $18,000 in revenue per month. Hence (considering the average month is 30 days long), coffee shops make about $600 per day.
So, if you are interested in this booming industry, you can actually start your own coffee shop business via franchising. Franchising is not a business but rather a way of doing business. It is a unique and highly effective method of distributing all kinds of products, goods, and services. It is also an industry that generates over $2.3 trillion in annual sales.
Franchised businesses demand products and services from other businesses and provide income to their workers and owners, who then spend their income and create still more income for other parties. Franchising has become one of the most popular ways to grow a business in Australia. If you choose to buy a coffee shop franchise in Australia, here are some of the best coffee franchises you can get.
12 Profitable Coffee Shop Franchise Opportunities in Australia and Their Cost
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The Coffee Club was founded in 1989 and they started franchising as far back as 1994. They have more than 300 outlets spread across ten countries that include Australia, New Zealand, China, and Bali. It is one of Australia’s leading franchise businesses, with 25 years experience in delivering high industry standards for their franchisees and customers. Once a franchise partner’s store opens, he will have a personal Franchise Business Coach (FBC) to guide him through his business venture.
- Franchise Fee: $22,000
- Initial investment: $450,000 + GST – $750,000 + GST
- Royalty Fees: 6%
Fibonacci Coffee is a franchise coffee company located in Sydney, that caters to Australian-wide locals and businesses. Founded in 1999 by Boaz Keeda and later joined by his two brothers Noam and Haggai, the three brothers embarked on a journey to change the coffee industry from the inside.
The company started franchising in 2009 and currently, they have over 19 franchise units. With perseverance and passion to succeed and impact Australia, the company has grown into one of the leading Coffee Franchises in Australia.
- Initial investment: From $100,000
- Royalty Fees: N/A
Degani was founded in 1999 and they began franchising in1999. Currently, they have over 55 franchise units. Degani is the award-winning cafe, coffee shop, and restaurant that is bringing Melbourne’s coffee culture to the rest of Australia.
Degani has always been about delighting local customers by becoming a part of each community. Just like their coffee, they know that every customer deserves a tailored experience, so every cafe design and every menu is created so that every customer walks out happier than when they walked in.
- Initial investment: $125,000 – $650,000
- Royalty Fees: 5%
Xpresso Delight was founded in 2003 and they began franchising in 2004. Currently, they have over 200 franchise units. Xpresso Delight is an innovative franchise that places commercial-grade coffee machines into workplaces for free but charges by the cup for the coffee. XD is proud to disrupt the espresso coffee industry with their Coffee-as-a-Service model.
They provide state-of-the-art Swiss made Coffee Machines and a proprietary 100% Arabica coffee bean blend. The company specializes in providing coffee systems and their exclusive proprietary premium blend of coffee to the high-end corporate market in Australia, New Zealand and the United States.
- Initial investment: From $59,900
- Royalty Fees: $0.11 to $0.15 per cup distributed through any machine operating under the Xpresso Delight Marks, based on the volume of Cups Per 4-Week Billing Cycle (“CP4W”) dispensed across all units in service.
Hudsons Coffee was founded in 1998 and they began franchising in 2003 and currently they have 65 franchise units. Over the past 21 years, Hudsons Coffee have established a reputation for providing quality coffee experience consistently across all their stores using their much loved Premium Blend.
Now Hudsons has over 90+ stores across Australia and now globally in Singapore & New Zealand. All Franchise Partners contribute 2% of gross sales to a marketing pool to give Hudsons the best possible marketing avenues to pursue in the view to promote customers to all stores.
- Franchise Fee: $60,000 + gst
- Initial investment: From $350,000
- Royalty Fees: 8%
Cafe2U was founded in 2000 and they began franchising since 2005. Cafe2U is Australia’s first – and now the world’s largest – mobile coffee franchise in the fast growth coffee industry. The company has pioneered the mobile coffee industry, now boasts of more than 240 vans worldwide, including Australia, New Zealand, the UK and South Africa. Cafe2U provides opportunities for small business entrepreneurs who deliver great coffee and food to businesses, events and functions.
- Initial Investment: $109,146 – $154,621
- Net-worth Requirement: $100,000
- Liquid Cash Requirement: $25,000
- Initial Franchise Fee: $25,000
- Ongoing Royalty Fee: $175/wk.
Lava carts was founded in 2008 and they began franchising in 2011 and currently they have 9 franchise units. Lava Carts offer an innovative new concept to retail coffee in the form of kart and kiosk retail systems. Their mission is to position the finest coffee possible to strategic locations delighting customer and retailer in terms of satisfaction and profitability. Before merging to become Lava Coffee in January 2016, the team operated the highly successful Cafe2U mobile coffee business.
- Investment level: From $180,000
- Royalties: $50,000
The Coffee Guy
The Coffee Guy was founded in 2006 and they began franchising in 2013. Currently, they have 22 franchise units. The Coffee Guy is Australia’s newest mobile coffee franchise with low cost set up and running cost. The business model generally operates on a Monday to Friday schedule servicing workplaces within a specific territory.
The primary franchise model is a mobile coffee van delivering quality coffee daily to customers within a set territory. Each van is custom-fitted with the finest Italian espresso hardware and finished in sleek stainless steel. The company’s vans are fully self-sufficient, meaning they can operate without access to power or water.
- Investment level: From $44,000 + GST
- Royalties: $150
Mrs. Fields was founded in 1977 and they started franchising in 1990. Currently, they have over 40 franchise units in operation. Cookies Australia Pty Limited is the Australian Master Franchisee for Mrs. Fields Famous Brands LLC USA. A typical Mrs. Fields Bakery Cafe franchise is located in a busy shopping centre or mass transit location including airports and rail stations.
Mrs. Fields core product range may have originated in the United States, but the company has customized their offer over the years to include premium espresso coffee, roasted and blended by their Master Roaster, at their factory located in Mt Kuring-gai, Sydney and exclusive to Mrs. Fields franchised stores.
- Franchise Fee: $30,000
- Initial investment: $180,000 – $247,000
- Royalties: 6%
Xpresso Mobile Café
Xpresso Mobile Café was founded in 2013 and currently they have over 42 franchise units. Xpresso Mobile Café is a privately owned, 100% Australian family business and a premium mobile coffee cart franchise system that prides itself on upholding traditional values in customer service and quality. Their products range from high-end, hot and cold specialty coffee products, to a full range of cold beverages and food items.
- Initial investment: $122 500 + GST
- Ongoing Royalties: $159 + GST per week from month 6
Known for being Australia’s first premium Italian coffee chain, CIBO Espresso continues to echo the style and passion of Italian life. It was this passion that attracted Retail Zoo Pty Ltd to acquire CIBO Espresso in 2012. Retail Zoo has built the systems and processes that has seen brands such as Boost Juice, and Salsas rise to success.
Retail Zoo and CIBO Espresso have now opened 33 stores across South Australia and New South Wales with large expansion plans underway. In 2016, CIBO Espresso recruited one of the world’s best specialist chefs to implement its most ambitious menu change since its inception. With a refined focus on handmade, artisan products and locally sourced ingredients, the new menu now features over 60 new dishes.
CIBO Espresso aims to deliver a premium, boutique experience consistently in all its stores, making it the nationally-recognised and loved brand that it is. The brand enjoys the same proven growth platform, systems and structures that has seen Boost Juice open over 485 stores in 18 countries.
- Capital Investment: Kiosk $400,000 – $500,000 + GSTShop Model $450,000 – $650,000 + GST
Stellarossa Cafes was founded in 1977 and they started franchising in 1990. Currently they have over 24 franchise units with their head office located in Brisbane, QLD. The Stellarossa Cafe brand was born out of a passion for coffee and service excellence.
Their mission is to provide customers with a premium quality coffee and food experience, each and every time they visit.
- Franchise Fee: 4.5% of turnover
- Agreement Terms: 7 + 7 (Site Dependent)