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10 Profitable Cafe Shops / Coffee Franchises in Australia
In Australia, the Aussies have a wide obsession with coffee. With an insatiable appetite for this drink, they consume about 2.8 cups of coffee per day.
In fact, the relationship with Australians and their coffee feels like a love affair. Apart from the soulful taste, the caffeine that keeps us energetic, and the pleasant flavours that make us yearn for a cup every morning, a cup of coffee is an Australian culture that allows one, two, or three Aussies to gather for a discussion or just chit chat over the football game.
As a business-oriented individual and, of course, a lover of coffee willing to venture into a small business or a family business, a cafe franchise is the best and easiest option to start with, ensuring a quick return on your investment.
But the challenge is, which franchise coffee club can you join?
If this is you, I must commend you for landing on this page.
As specialist franchise accountants in Australia, we will guide your decision-making process through this updated list of the top 10 profitable coffee franchise systems or coffee franchise businesses in Australia.
Once you’re done reading this article, you will be confident in making a decision on the franchise option that suits your taste.
Why choose a coffee franchise?
Before we get to the list, let’s see why it’s quite beneficial to join a franchise in the coffee niche.
The appeal of the coffee franchise model
A franchise model offers a structured business opportunity, providing entrepreneurs with a tried-and-tested system. These franchises offer comprehensive training and support, reducing the risks associated with starting a new business. Franchise owners benefit from the brand recognition and customer loyalty already built by the franchise.
Benefits of joining a coffee franchise
Joining a coffee franchise means stepping into a business with a proven track record. So many franchises have established a reputation for consistently providing a quality coffee experience across their outlets. This reputation for quality attracts a steady stream of customers, ensuring profitability.
Additionally, franchises often have established supply chains, ensuring that franchisees receive premium coffee products and equipment necessary to deliver the finest coffee possible to strategic locations.
Fortunately, your love for coffee will simply make your pocket fat just by picking a franchise and getting registered. So without wasting your time, my friend, let’s go right into the franchise opportunities you can work with.
Top coffee franchise opportunities in Australia
McDonald's McCafe
Basic Information: Established in 1993, this Australian franchise has expanded to 1,043 locations nationwide, with its headquarters in Sydney, New South Wales. The company, led by CEO Antoni Martinez, requires a substantial initial investment of approximately $2 million from prospective franchisees. Ongoing costs include a 5% royalty fee and a 4% contribution towards advertising efforts. New franchise owners undergo a comprehensive 12-month training programme to prepare them for operating their business. From its origins in New South Wales, the franchise has developed a significant presence across Australia, demonstrating considerable growth over the past three decades.
Background Information: While McDonald’s is globally renowned for their burgers, their coffee offerings have gained significant traction.
McCafé began as a cafe concept on Swanson Street in Melbourne, designed to emphasise Australia’s coffee culture. After launching its first international location in New Zealand, the brand has grown into a globally recognised entity, boasting 1,034 locations in Australia and over 4,000 locations in 60 countries worldwide.
Over time, McCafé has built a reputation for high-quality blends and expertly crafted barista-made coffee, consistently evolving to meet Australia’s changing tastes and preferences.
McDonald’s McCafé has revolutionised the coffee franchise industry, investing more than $40 million annually in employee development and training, generating over 3,000 new jobs annually. If you feel McCafe is right for you, find out more here.
Hungry Jack's
Basic Information: With 440 locations spread across the country, this company has come a long way since its founding in 1971. Headquartered in Sydney, NSW, the organisation has shown impressive growth over the years. Under the leadership of CEO Chris Green, the company has attracted significant investment, with fees reaching approximately $2 million. This blend of longstanding history and continued expansion positions the company as a notable player in its industry.
Background Information: Hungry Jack’s Jack’s Cafe is an iconic Australian brand with more than 42 years of innovative business. They are a tried and trusted Australian business model that is willing to work with business ethicists as a way of giving back to the community.
With more than 420 stores across Australia, you can easily pick a location closer to you to run. They offer seasoned employee tools, vast training programmes, and full franchisee support. Working with them wouldn’t be a hassle, as they have a good reward system and a career ladder.
To become a franchisee with Jack’s Cafe, find out more here.
Gloria Jean's
Basic Information: Since its inception in 1979, this dynamic company has expanded to encompass 420 locations across the country. Nestled in Chastehill, NSW, the company’s headquarters serves as the main centre for its operations. At the helm are CEO Charmain Cheand and Managing Director Megan Tan, steering the organisation with their combined expertise. For those interested in joining this thriving franchise network, the investment ranges from $380,000 to $600,000, with an initial franchise fee of $50,000. Ongoing fees include a 2% marketing fee and a 6% royalty fee, ensuring continued support and brand development. New franchisees undergo a comprehensive training programme lasting over six weeks, equipping them with the skills and knowledge needed to succeed in this established business model.
Background Information: Since its conception in 1979, Gloria Jean’s has been committed to providing great coffee. Their first store was opened by Gloria Jean Kvetko in Chicago, Illinois, and they currently operate a global network of locations in 33 countries.
They believe the best days always start with a great cup of coffee. That’s why they ensure to make the best golden bean to cup brew in the country, fresh from their roaster to your cup.
Gloria Jean’s offers the road map to launch your proven business plan together with support networks to make opening and operating your coffee shop hassle-free! With their franchise relationship, you can have a clear, growth-oriented recipe for success along with lifestyle perks.
If you want to construct the life you truly desire and put more money into both your career and personal development, then Gloria Jean’s is right for you. You can find out more about their franchising opportunities here.
Michel's
Basic Information: Established in 1988, this enterprising business has grown to encompass 123 outlets nationwide. The company’s core operations are managed from its base in Southport, QLD, where strategic decisions shape the brand’s future. Aspiring entrepreneurs looking to join this network can expect an initial investment ranging from $320,000 to $400,000, along with a $50,000 franchise fee. To maintain the brand’s quality and support structure, franchisees contribute a 3% marketing fee and a 7% service fee on an ongoing basis. New partners undergo a thorough onboarding process, with an intensive training programme spanning 4 to 5 weeks. This preparatory phase equips franchisees with the essential tools and knowledge of the company’s proven business framework.
Background Information: Michel’s patisserie is the largest patisserie chain in Australia, known for its exquisite cakes, gourmet pastries, delectable savoury dishes, and unique, award-winning coffee.
They are a well established and known brand, with training programmes and an efficient support system positioned to skyrocket your business. They have recently launched an exclusive Gourmet Pie range, made by one of Australia’s most famous Master Chefs – Matt Sinclair. This is a good move and will surely propel the brand forward.
So, if you value the qualities of security and stability, then Michel’s is the franchise partner for you. Find out more here.
Donut King
Basic Information: With a strong presence of 250 locations and headquarters based in Southport, Queensland, this franchise has been making waves since its inception in 1981. Aspiring franchisees can expect an investment ranging from $280,000 to $380,000, which includes an initial franchise fee of $50,000. Ongoing fees consist of a 3% marketing fee and a 7% franchise service fee, ensuring that franchisees receive valuable support and resources. To prepare for success, new franchisees will undergo a comprehensive training programme lasting 4 to 5 weeks, equipping them with the knowledge and skills needed to thrive in this dynamic business environment.
Background Information: This is a brand that has been in business for years. Regardless of being the most sought after doughnut brand in Australia, they offer a fresh coffee blend. Their coffee franchise is owned by Retail Food Group Limited. As a stable brand, they’ve proven to be a good franchise opportunity in terms of satisfaction and profitability.
They are known for planting strategic locations that delight customers’ desires. They claim to be a profitable franchise in Australia, and if you’re looking to be part of Australia’s leading doughnut and coffee destination, you should check them out now.
Cafe2U
Basic Information: Cafe2U operates 110 locations and is headquartered in Southport, Queensland. Established in 2000, this mobile coffee franchise has become a significant player in the industry. Franchisees should anticipate a minimum investment fee starting at $130,000, with initial fees included in this amount. Ongoing fees are fixed, providing clarity in financial planning. New franchisees will benefit from a comprehensive training programme that lasts four weeks, ensuring they are well-prepared to deliver exceptional service. The company is led by CEO John Stanton, who plays an important role in its continued growth and success.
Background Information: This is also another brand owned by Retail Food Group, known for their Cafe2U mobile coffee approach, which brings quality coffee to strategic locations across Australia. For more than 10 years, they have pioneered the mobile coffee industry, trying to position the finest coffee possible in many locations.
As a pure representation of their name, this innovative franchise model allows franchisees to operate a mobile cafe, reaching customers in places where traditional cafes cannot. They also provide espresso coffee wherever they go.
They provide opportunities for small business entrepreneurs who wish to deliver great coffee and food to businesses, events and functions.
They boast of a two-week income guarantee during the initial weeks of operation. They also provide territory managers who are like personal coaches and mentors who assist you in launching and growing your firm.
This business model is perfect for those looking for flexibility and a lower entry cost. Now is the best moment to start living the life you’ve always wanted, keeping these safety nets in mind. Find out more about their attractive offers right here.
Xpresso Delight
Basic Information: Boasting 140 locations and headquartered in the vibrant city of Gold Coast, Queensland, this franchise has been making its mark since 2003. Aspiring franchisees can expect a total investment starting from $49,500, which covers the initial costs. Ongoing fees are based on a straightforward 15 cents per cup sold, providing a scalable revenue model. New franchisees will benefit from a comprehensive 4-week training programme, ensuring they are well-prepared to operate the business efficiently. The franchise is led by the capable hands of CEO Stephen Spitz, whose leadership has been instrumental in the company’s growth and success over the years.
Background Information: Xpresso Delight is an innovative franchise that places commercial-grade coffee machines in offices, providing employees with premium coffee without leaving their workplace.
When you become an Xpresso Delight franchise, you become your own boss, and you wouldn’t need to work all week. All you need to do is service the machine each week to ensure it continuously delivers delicious and tasty coffee to businesses.
As such, if you are scared of the risk associated with small businesses, you can eliminate that fear with Xpresso Delight.
They offer franchise partners extensive training and ongoing support, which will give you confidence similar to running your own business. Find out how to become a franchise with them here.
Soul Origin
Basic Information: With 142 locations and headquartered in Sydney, New South Wales, this franchise has been thriving since its establishment in 2014. Prospective franchisees should prepare for an investment fee ranging from $300,000 to $400,000, with a 9% royalty fee applied to ongoing sales. The initial fees are included within the overall investment, providing a straightforward financial structure. New franchisees will undergo a comprehensive training programme lasting six weeks, equipping them with essential skills for success. Leading the company is CEO Adam Neill, whose vision and leadership have been pivotal in driving the franchise’s growth in the competitive market.
Background Information: Soul Origin is not just a coffee brand; they provide fresh food to Australian food lovers.
They provide franchise opportunities across locations like Wanneroo Central, Jesmond Central, Dapto Mall, and a whole lot more. Before they started making waves in the Australian coffee market, their aim was to break into the market with the commitment to provide well prepared food that appeals to health-conscious consumers.
If you partner with Soul Origin as a franchise, you get a special ingredient of training, support, and marketing assistance, ensuring you can meet the demands of their customers. They love making exceptional coffees, and if you want to stand out in your coffee business, then Soul Origin will be good for you. You can find out more here.
Jamaica Blue
Basic Information: With 98 locations and headquartered in Sydney, New South Wales, this franchise has been operational since 1995. The investment required to join ranges from $200,000 to over $600,000. The initial franchise fee is included within this investment range. Franchisees will incur ongoing fees consisting of a 3% marketing fee and a 6% royalty fee, providing a structured financial framework. To prepare for success, new franchisees will participate in a comprehensive training programme lasting six weeks. The company is led by CEO Matthew Williams, whose leadership has been vital in navigating the franchise’s growth and development over the years.
Background Information: The opportunity to own and manage an award-winning café brand is provided by Jamaica Blue, which is built on the foundations of delicious food that is freshly produced on site coupled with excellent coffee.
You can be your own boss, take charge of your life, and design a lifestyle. With their formula for franchise businesses, your business is ready to go without any hidden costs.
They provide a 3 week training programme led by an experienced team of trainers, business and food coaches to ensure their franchise partners develop the skills, knowledge and confidence required to run their own Jamaica Blue café. Follow this link to find out more.
Muffin Break
Background Information: Be a part of the Muffin Break family if you’d like to own a franchise. This is a terrific franchise opportunity to run your own bakery café business and be a part of a globally recognised franchise brand that has been reputable, reliable, and trusted for over 30 years.
An award-winning brand originating in Australia, Muffin Break has expanded its presence both domestically and internationally, with a focus on offering delicious baked goods and premium coffee.
Franchisees benefit from comprehensive training, ongoing support, and a strong brand reputation, making it an attractive opportunity for those looking to enter the cafe industry. With a commitment to quality and customer satisfaction, Muffin Break continues to be a favourite destination for coffee and baked treat lovers. Find out more about them here.
Key Considerations for Prospective Franchisees
Understanding Royalty Fees and Costs
One of the critical aspects of joining a franchise is understanding the costs involved, including royalty fees. These fees are a percentage of the franchisee’s revenue paid to the franchisor for the support and brand recognition provided. It is essential to review the franchise agreement carefully and understand the financial commitments before signing. For example, franchises like Michel’s and Donut King have clear guidelines on their royalty fees, ensuring transparency.
Location, Location, Location
The success of a coffee franchise often hinges on its location. High foot traffic areas such as shopping centres and business districts are ideal for cafes. Brands like Hudson’s Coffee and Cibo Espresso have strategically positioned their outlets in such locations, ensuring maximum visibility and customer engagement. For mobile coffee franchises like Cafe2U, choosing routes and events with high customer traffic is crucial for success.
Training and Support
Franchisees provide extensive training and ongoing support to ensure franchisees can operate their businesses effectively. This support includes initial training on coffee preparation, customer service, and business management, as well as ongoing assistance with marketing and operations. Franchises like Gloria Jeans and Zarraffa’s Coffee are known for their robust support systems, helping franchisees navigate the challenges of running a coffee business.
The Future of Coffee Franchises in Australia
Trends Shaping the Industry in 2024
In 2024, several trends will shape the coffee franchise industry in Australia. The demand for premium and speciality coffee is on the rise, with consumers seeking unique coffee experiences. This has led to an increase in coffee franchises offering high-quality, artisanal coffee. Additionally, the trend towards health and wellness is influencing menu offerings, with more franchises incorporating healthy food options alongside their coffee.
The Rise of Mobile and Flexible Coffee Solutions
Mobile coffee franchises like Cafe2U and Xpresso Delight are gaining popularity due to their flexibility and lower entry costs. These franchises cater to the modern consumer’s need for convenience, bringing quality coffee to workplaces, events, and remote locations. The ability to operate a mobile cafe allows franchisees to reach a wider audience and adapt to changing market conditions.
Sustainability and Ethical Sourcing
Sustainability and ethical sourcing are becoming increasingly important to Australian consumers. Coffee franchises that prioritise sustainable practices and source their coffee ethically are likely to attract more customers. Brands like Soul Origin and Jamaica Blue are leading the way by offering sustainably sourced coffee and implementing eco-friendly practices in their operations.
Conclusion
Investing in a coffee franchise in Australia offers a promising business opportunity for aspiring entrepreneurs. With a wide range of options, from established brands like McDonald’s and Gloria Jeans to innovative mobile franchises like Cafe2U and Xpresso Delight, there is a franchise to suit every business model and lifestyle. Understanding the costs, location, and support provided by the franchisor is crucial to making an informed decision.
As the coffee industry continues to evolve in 2024, staying attuned to emerging trends and consumer preferences will ensure the success and profitability of your coffee franchise venture.
Need help selecting a franchise of your choice? We are here just for you. Contact us today to book a session so we can go over the selection process together while giving you expert and professional advice.
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