Mobile coffee service Cappuccino Xpress has found a niche in the competitive coffee industry, evolving from a successful small business to a national franchise since its establishment in 2003.
The Perth-based company, which serves espresso coffee from purpose-built vans at workplaces and functions, granted its first franchise in July 2004 and has since developed 17 franchises in Western Australia, with regional businesses in Bunbury and Busselton.
Owner George Bartell initiated the interstate expansion in August this year by recruiting a master franchisee in Victoria, and has now signed six franchises in Melbourne, with two vehicles due on the road by Christmas and the other four in January.
Franchising consultancy Australian Franchising Systems director, Alan Franks, said his client had capitalised on the opportunities still available in the coffee industry, with the decision to franchise the business an obvious move based on the company’s first year in business.
“It was based on the success in WA that the company decided to expand beyond WA. Once you do that, there’s no sense in not going Australia wide,” he said.
The success of the business, according to Mr Franks, can largely be attributed to the novelty of the coffee industry.
“Being involved in coffee is seen as more exciting than a physical, labour-oriented business; it’s a bit of a popular business to be in and attracts more interest because mobile coffee is a new thing, a bit different,” he said.
Mr Franks said the business attracted a specific demographic of franchisees, with the majority of franchise owners being women aged 30 to 50.
Another advantage was the ability to grant franchises quickly, given the location of the company and its success in the local market.
“The advantage is the head office is here in Perth. It’s quite normal that where the head office is, the greatest number of franchises are,” Mr Franks said.
He was confident the eastern states market had the capacity to accommodate Cappuccino Xpress.
“We feel that the market in the coffee business generally has so much growth left in it that being in the market with a major competitor [would] not do any harm,” he said.
“The business plan is based on one new master franchise per year. However, there is some likelihood that we may increase the pace of development.
