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Zarraffa’s Coffee

Sarah Stowe

How would you define your brand?

Zarraffa’s Coffee is a proudly Australian-owned and operated franchise, with our head office and company origins located on the beautiful Gold Coast.

The brand is defined by the Zarraffa’s Coffee experience, which has become something of an icon to many Gold Coasters and moreover many Queenslanders. There are 42 stores across South East Queensland and we remain committed to making a perfect cup of coffee every time.

WeÍre also committed to providing the ultimate environment for people to connect and apply this vision to all aspects of our business.

What are your goals for the next 12 months?

Before the end of 2010 weÍll have opened an additional three stores. We have 18 franchise opportunities available right now and are seeking motivated and passionate people to join us.

During the last two years weÍve focused on the internal operations of the business and are now rolling out advanced training programs for our franchisees and baristas. WeÍve also concentrated on South East Queensland and are broadening our horizons to the rest of Queensland including regional areas.

How old is the company and when did you start franchising?

Zarraffa’s Coffee started back in 1996 originally as a roastery in the back streets of Southport on the Gold Coast. The first store opened in 1997 at Australia Fair Shopping Centre, with the first franchise opening in October, 2001 at the Myer Centre in BrisbaneÍs CBD.

How many franchises do you have?

There are 40 franchise stores, along with two corporate stores and an additional three more stores scheduled to open by the end of the year.

How many are multi-unit franchisees?

There are eight multi-unit franchisees, equating to 40 percent of our total franchised stores. This high figure is testament to our franchisee satisfaction rate and our commitment to a first class business.

What are the start-up costs for a franchisee and what working capital should they have?

It depends on size; new stores cost from $350,000 to $400,000 for a standard store and approximately $100,000 plus extras for a drive-through model, with working capital expected to be $35,000.

What is the length of agreement?

Franchisees are granted an initial five year franchise term with options.

What are the royalty fee and marketing levy?

A franchise service fee of seven percent and a marketing levy of three percent of our franchiseeÍs gross turnover is payable to the franchisor weekly.

What skills does the franchisee need?

We look for committed and passionate individuals that appreciate the same values we do, including connection, enjoyment, life balance, unity, ownership, ethical purpose, commitment and profitability.

These combined elements create our corporate culture and we hope to instil purpose into each of these in everything we do.

What will you teach them?

Zarraffa’s Coffee offers a full start-up training program at our training academy on the Gold Coast, which covers practical training, marketing, management and accounting. We provide comprehensive operations manuals, as well as full support from the franchise management team. We ensure you have the tools of the trade and know-how to effectively run your business.

What is the most common mistake made by new franchisees?

Underestimating the hours of work required when purchasing a franchise. We place great importance on the first 18 to 24 months and recommend that franchisees are in store during this time to ensure their success.

Contact: Christine Allsopp

Ph: 07 5500 0800

Fax: 07 5500 0899

Email: franchise@zarraffas.com

Website: www.zarraffas.com