San Churro reports revenue boost

Sarah Stowe

Chocolateria franchise San Churro has reported a 10 percent revenue increase for October compared to the same 28 days in 2013 across the entire franchise network.

And the growth will continue, predicts the company, with the 36 San Churro chocolaterias across the eastern seaboard, South Australia and Western Australia set to generate more than $45 million of revenue over the next 12 months.

The revenues for individual San Churro stores have almost doubled over the past three years and now average $1.2 million annually. Average store monthly sales have increased by 90 percent compared to 2009. 

San Churro founder Giro Maurici said the sales increase is a result of continual improvement .

“We’ve implemented a range of really innovative practices that have directly led to sales increases across the group. It’s not just our new larger stores that are reaping the benefits, we’ve also recently renovated a lot of the older stores to make sure that every one of our franchises are booming” he said.

On the menu, the franchise has introduced brand extensions based on its couverture chocolate and winter and summer items, while bi-annual product reviews see the bottom 20 percent of performers culled to make way for new products.

Larger store formats and table service have resulted in a significant increase in average spend per customer. 

Maurici attributes much of this increase to a more complete customer service experience, “rather than expecting our customers to join long queues we have found that the introduction of good old fashioned table service in our new large format stores has our customers smiling more and spending more too.” he said.