Bill Zavros is the franchisee of Zarraffa’s Coffee at Hope Island on the Gold Coast. His first store has performed so well that he is looking to open a second later this year.

For 15 years Bill was a video rental store franchisee; however he says the company was in a constant state of change, which prompted him to consider other franchise opportunities.  

“We had changed the store branding four times and dealt with three different franchisors [over the 15 years]. We always valued being part of a recognised brand and saw the benefits that an organised, fair and progressive franchisor could offer.”

WHY ZARRAFFA’S?

Zarraffa’s had been on Bill’s radar for quite some time before he decided to invest in the brand, and he was a fan of its offerings himself. 

“We already knew that Zarraffa’s Coffee was a popular and valued brand on the Gold Coast, where we are based. We had watched it grow over the years and had been monitoring its expansion, plus we frequently visited its outlets. We had also spoken with people that knew existing franchisees,” he says. 

Bill is particularly fond of the fact that the company’s CEO is also its founder, Kenton Campbell. “We have learnt through our franchising experiences that the company is only as good as the person at the top. In the current business environment where many franchise groups have been purchased by public listed companies focused on profits it was comforting to know that at the helm of Zarraffa’s Coffee was its founder. 

“Kenton is a self-made business man that has worked extremely hard and overcome many adversities to build an enviable coffee empire, and his hands on experience benefits everyone associated with his company,” says Bill.

When he met Kenton, Bill was impressed that he genuinely cared about the company’s franchisees. “An early meeting with Kenton revealed that he is sincerely concerned about the success of every store and the wellbeing of every franchisee. His intention was to create a win-win situation for all involved in the Zarraffa’s Coffee brand.

“We were also aware that some franchisees were highly successful multi-store owners which further supported our findings. Working with a successful brand with this product, goodwill and leadership suited us perfectly,” adds Bill.

RESEARCH

Bill adopted a multitude of formal and informal research methods, and would adopt the same approach if he were to have his time again.

“Our informal due diligence involved speaking with existing franchisees, (an exercise highly encouraged by the franchisor), combined with the observation of stores.

“Formal due diligence involved meetings with Zarraffa’s head office and the perusal of the disclosure document. We would not do anything different from this,” he explains.

LEARNING CURVE

What is the biggest lesson Bill has learned since he invested in the brand?

“We have learnt it is important to follow the proven systems of the franchisor. The systems and training have been developed to assist each franchisee and maintain brand standards. Most of it is very simple and yet so important to the success of each store.”

He says acquiring the skills and learning the systems required to run the store was initially quite challenging, and he has learned staff management is vital.

“Managing our team and making sure standards are maintained is an ongoing challenge. We constantly need to monitor, train and retrain staff to make sure complacency and bad habits do not develop.”

ACHIEVEMENTS

Bill says the store has been performing incredibly well. “Since being part of the Zarraffa’s Coffee brand we have managed to increase sales by considerably more than our original business plan projections.

“We are also proud to have been awarded ‘Rookie of the Year’ 2011 for the group and I personally placed third in the company’s annual Barista Competition (franchisees and management category) in 2012. 

ADVICE

He advises potential franchisees ensure they are passionate about the brand the choose to take on and engage in the appropriate research.

“You need to whole heartedly believe in the brand and the product or service you are seeking to invest in. You also need to speak to as many existing or past franchisees as possible, plus visit stores.

“Be prepared to strictly support and follow a system. Develop a realistic business plan and carefully consider the viability of the franchise business.”

He also warns potential franchisees consider how much time they will need to devote to the business.

“Consider the hours required to successfully run the business and how this may be managed with your current family or other commitments.”