In an increasingly competitive market, what is the biggest challenge for coffee chains?
Drew Eide, brand manager, Jamaica Blue, says “The current caf industry is extremely fragmented and witnessing an explosion of strong new independent cafs. This means that we must continually evolve and innovate to remain relevant. Today’s caf customers are more sophisticated than ever before and they have very high expectations. They also have plenty of choice! If we are not the best in our niche in every trade area in which we operate, then customers will simply choose to go elsewhere.”
Jamaica Blue is part of the Foodco business. Check out this Q&A to learn more about the franchise.
1. How many outlets are there in your Australian network?
111 cafs (as of August 2015)
2. How many franchisees do you have in Australia?
107 – All Jamaica Blue cafs are franchised with the exception four invested company stores.
3. How long is a franchise term?
A franchise term is dependent on lease term.
4. How many different business models are there in your system?
Jamaica Blue is a flexible and creative concept with different caf formats spanning fully licensed caf-restaurants and in-line cafs, to kiosks and hole-in-the-wall espresso bars. Thriving Jamaica Blue outlets currently trade within shopping centres, residential areas, CBDs, airports, hospitals, universities and high streets.
5. What is the footprint of your stores?
It depends on the format of the caf; kiosk, in-line, espresso bar.
6. Who finds the location?
Foodco – which owns the Jamaica Blue franchise brand – has a dedicated leasing and development team in each major state of Australia.
7. What is the total cost of a franchise?
Again, it depends on the format.
8. What deposit is required?
$10,000
9. Is there financial assistance available to fund the franchisee’s purchase?
Yes; there most certainly are options for financial assistance, depending on location. Jamaica Blue has accreditation with the major banks to allow easier access to finance for our franchise partners.
10. What royalties and marketing fees are there?
Royalty and marketing fees are attributed to a percentage of gross sales.
11. What marketing collateral is available to franchisees?
We’ve got strong and proven national campaigns and programs as well as an e-shop with an extensive range of marketing materials that are accessible to each franchise partner. Additionally, each franchise partner has the support of a dedicated marketing representative who acts as a consultant for developing local area marketing strategies.
12. How many hours training do new franchisees need and how many hours do they spend each year on training?
Each new franchise partner completes an intense three-week training program prior to operating their caf. This is followed up with one week of in-store training in an existing training store and, a three-day program that focuses on training, leadership, coaching, finance and high-end customer service strategies. Our operations field consultants offer ongoing training throughout the course of the franchise agreement to ensure support, compliance and consistency across our network. Additionally we offer extensive online training modules for both staff and franchise partners as well as state and network based training programs held two-three times a year in each region.
13. Where is training conducted?
The initial new franchise partner training takes place at our state-of-the-art training facility – The Centre of Retail Excellence (CORE) – in Moore Park, NSW. This facility includes an operational retail caf for our franchise partners to gain valuable work experience – including front of house training, kitchen and barista training, as well as business management.
14. Is the franchisor a registered training organisation?
No; we do however partner with accredited RTOs
15. What barista training is available?
Foodco has an accredited barista program. Field consultants conduct regular in-store coffee training workshops at each of our sites. Additionally, we have comprehensive online training programs that each barista must complete as part of our training modules.
16. Does the franchisor source coffee beans from an internal coffee-roaster?
Yes; Jahnus Coffee based in Reservoir, Victoria.
17. What are the standard opening hours?
These vary from site to site but typically we operate from 7am-5pm, daily.
18. Is there a customer loyalty program?
Yes – Jamaica Blue Caribbean Crew loyalty program: jamaicablue.com.au/loyalty-program/
19. Can customers order coffee/food online and pick up?
Not at present; however, Jamaica Blue does offer an online e-commerce site so customers can purchase Jamaica Blue coffee and accessories to enjoy in the comfort of their homes.
20. How many cups of coffee are served in your network each year?
This number is constantly growing! Currently it’s more than 9,600,000.