The Coffee Club has turned 20. What next for the franchise chain?

When the doors opened to the first The Coffee Club on Eagle Street Pier, Brisbane, on November 2, 1989, directors Emmanuel Drivas, Emmanuel Kokoris and John Lazarou had little idea they were on the path to building one of Australia’s most successful franchises.

So in the wake of The Coffee Club’s 20th birthday celebrations late last year, Lazarou reflects on the franchise’s long and proud history.

I remember when the only place in Brisbane you could get a coffee after 10pm was at a fine dining restaurant, a service station or McDonalds, so to say caf_ culture has come a long way is an understatement, he said.

In June 2008 Minor International, one of the largest hospitality and leisure companies in the Asia Pacific region bought a 50 per cent stake in the company. Lazarou says this has been the key to The Coffee Club’s ongoing success and international expansion. Our partnership with Minor International will enable The Coffee Club’s expansion well into the future. I have visions of landing in countries around the world and being welcomed at the airport by a The Coffee Club cafe – that dream is now within reach he said.

Franchising was neither an obvious path nor a quick route to expansion. With seven company owned stores until 1994 the three founders were continually bombarded by questions: is this an American franchise? How do we get one?

There was a disbelief when people found out we were Australian. That’s how franchising came about,

people wanted a business like ours. We set up meetings, employed attorneys, had documents written – it took a couple of years and thousands of dollars but in franchising you’re only as strong as your documents.

We sold off a few stores in 1994 and before long two franchisees went to get a second and then a third store.

Like many other companies, not just franchises, getting the right people to fit the business has been the biggest challenge Lazarou admits. Money is not a big issue. Most people know we’re not the cheapest franchise, we’re middle of the road, so if people are investing they have access to the money. We just need the right personality and attitude and people who want to enjoy what they do. We can teach the skills, we want someone that loves people.

The network expanded through south east Queensland and opened in Port Macquarie, Wagga Wagga and Adelaide. A Darwin store was the 40th outlet to be opened.

The franchise chain is now looking at regional development. We’ve just opened up in Katherine and in four months it has surpassed our expectations. We will move into regional and rural areas because people there have a real hunger for city products and they show strong loyalty, Lazarou said.