A new takeaway model, further international expansion and a target of 500 stores by 2020: growth is on the cards for The Coffee Club even though founder/director Emmanuel Drivas expects business will be tough in hospitality for the next couple of years.

“Great service is most important,” Drivas told Franchising. “The next couple of years are going to be pretty tough. We’re expecting business to be price driven, value adding, service driven. We don’t want to engage in the price driven side, we’re focusing on great service. We believe we have got value for money.”

TCC Espresso

Streamlining the business has been essential to the cafe chain’s current success, which has accommodated a variety of sites with models for a cafe/bar/restaurant, cafe and kiosk. The latest addition is a 50 sqm takeaway outlet serving coffee and baked-on-site, pre-made rolls.

Named TCC Espresso, the first outlet will open late February at the foot of the new Rio Tinto building in Brisbane’s Albert Street. The stores will be company owned until the model is ready for franchising.

Drivas described this as “a value add” with a focus on simplicity for the customer with standard prices for both coffee and rolls.

Global growth

In Australia Victoria and New South Wales are the states key to expansion this year with an expected 25 new cafes. Rent remains a key challenge for the business, reported Drivas, though landlords are increasingly willing to negotiate reasonable rents.

Egypt and Papua New Guinea will be new international sites, and the coffee franchise will be expanding further into New Caledonia, Thailand and the Chinese market – with plans for 30 stores in China over the next three years.

Read more about PNG and Egypt master franchises here.

Expected revenue growth in 2012

• In Australia The Coffee Club expects a revenue increase of 13.6 percent.
• The Coffee Club global brand predicts revenue growth of 18.2 percent.
• Adding in its associated brands The Coffee Club Group expects 29 percent growth globally and 25.4 percent in its domestic operations.

Last year The Coffee Club acquired the mid market steakhouse chain Ribs and Rumps, and has since opened up two stores, in Brisbane and Mackay. There are plans for further openings in Gladstone, Wollongong and Newcastle, with the first franchisee-owned outlet to open its doors this autumn in Townsville.

Read more here.