More than 70% of Cafe2U franchise owners worldwide are first-time business owners
For more than 70 percent of Cafe2U franchise owners, this is their first business. Why is Cafe2U attractive to first-time business owners?
Here are several reasons:
The benefits of a franchise system
Franchise companies have proven business models and systems, which leads to a higher rate of success compared to most startup businesses. Industry expert FranNet released the results of a survey last year in which it reached out to people it had helped start franchise businesses in 2006, and the survey found that 85% were still in business — and this was during the worst of the recession! Compare that to the most recent data from the U.S. Census Bureau which shows that about 50% of new businesses fail within five years — and that was from data collected during the boom time of the 1990s.
Franchisees have better odds of success because they have access to headquarters staff with a wealth of industry experience, access to other franchise owners they can turn to for advice, and consistent, tested products that appeal to customers. Cafe2U, which started franchising in Australia in 2005, has 203 franchisees worldwide.
The benefits of a low-cost, flexible business model
Cafe2U is a low investment franchise, especially compared to the normal cost of starting a coffee shop. The fact that Cafe2U is mobile means franchise owners don’t have to pay high commercial lease rates. They don’t have to pay for a huge staff of baristas in the hopes of generating massive sales numbers in order to cover their costs. Most important, they’re not tied to a fixed location. Cafe2U’s business model is predicated on the fact that there are millions of customers who can’t get to a coffee shop. Cafe2U espresso vans seek out those customers and serve them. That gives Cafe2U owners the flexibility to adjust their service routes in order to boost sales and profits.
The benefits of outstanding training and support
Another benefit of being part of a franchise is that you receive training and support. We offer extensive training and support to help your business succeed, starting with a week of classroom training at our U.S. headquarters in Bend, Ore. What really sets us apart, though, is the way we launch our franchisees’ businesses.
We send our franchise development manager, Mike Ditullio, out to help franchisees build their initial Monday-Friday route. For the first two weeks, Mike helps identify businesses, make cold calls, and also helps make the coffees while franchisees chat with and build relationships with customers. The process allows franchisees to observe best practices in the field and transition into their new role as a business owner. And during those first two weeks, franchise owners don’t have to worry about money — Cafe2U will guarantee revenue of at least $400 a day. If the register falls short, Cafe2U writes a check to make up the difference.
The FDM stays in touch, too, to help spot opportunities to grow.
Sound like an opportunity you’d like to know more about? Check out our research pages at cafe2ufranchise.com to learn more about our business model and why we think the $19 billion American coffee market can support 1,000 Cafe2U franchises. To learn even more, fill out this form to download a free franchise information report and we’ll be in touch, or give us a call at 1-855-522-3328.