Jamaica WP FINAL 28 1 15

www.muffinbreak.com.au

Why Choosing a Mature Franchise is Less-Risk

Better With Age

Firstly, coffee, isn’t just coffee. It’s the bean, the milk and the barista which work to make the perfect cup. An experienced coffee/café franchise knows that the final product is everything, and will have invested time and money into extensive product sourcing, innovation and training, so that each store is consistent and a good representation of the brand.

An experienced franchise business knows the importance of putting the customer first, listening to feedback, and keeping up to date with food trends. A franchise that consistently updates and evolves their menus to include the latest food and beverage fads, stays relevant2 and will usually be around for a longer time.

Knowing How to Stay Relevant

There are many things ‘experience’ is good for; life, work, travel, and most definitely business. That is why franchising is so popular in Australia, growing stronger and quicker than the rate of start-ups1 and proving invaluable to those with minimal business experience, looking to enter their industry of choice.

Much like our love of vegemite, beaches and cricket, Aussies have a relentless thirst for coffee, which has fuelled the fast growth of coffee and café franchises. Though café and coffee culture is a solid and growing trend in Australia, there is an abundance of retailers, both independent and franchised who are all competing for the consumer’s dollar.

This is why, when looking for a franchise it is important to recognise that not all franchises are the same and not all franchisors can offer the same support or wealth of experience.

Introduction

You should also be cautious of brands that are expanding too quickly. With limited finance available, new franchisors rely on the recruitment of franchisees to pay their own bills and can put growth above the needs of franchisees”

Financially Stable

Today, it is not uncommon for a young business, doing well, to begin franchising with only two or three outlets in their portfolio and very little experience in what it takes to run a successful franchise business. Inexperience can lead to new franchisors underestimating the cost of support, and enlisting franchisees without the financial capability to provide much needed management, operational and marketing support.

One of the reasons for the failure of start-up franchises cited in a UK study3 was that new franchisors often underestimated the amount and cost of support required by franchisees.

Similarly, one of the greatest sources of franchisee complaints reported to the Australian Competition and Consumer Commission (ACCC) about their franchisor arises from a perceived lack of support4.

You should also be cautious of brands that are expanding too quickly. With limited finance available, new franchisors rely on the recruitment of franchisees to pay their own bills and can put growth above the needs of franchisees5. As many people realise too late, rapid growth doesn’t always equal success.

Tried & Tested Business Model

Start-ups have a high rate of failure6, usually down to lack of in-depth planning for the future. Once the novelty of a new business opening wears off, most independent businesses find themselves struggling to attract new customers. The same goes for new franchise businesses, particularly those who have a brand that is built around a ‘fad’. When buying a franchise, a long standing brand is evidence of a solid business model. Match these with support and advice from experienced franchisors, as well as marketing, operational and training support and you have yourself a step-by-step business ‘blueprint’ for running a successful franchise.

The Jamaica Blue café concept is owned by Foodco Group, one of Australia’s most successful and established franchise companies, and has been in operation since 1992 and now has more than 130 stores worldwide.

Jamaica Blue’s 22 year success is down to many factors. A commitment to serving customers the best coffee, made from world class expertly roasted beans, alongside an array of delicious meals, savouries, and snacks that can be tailored to local areas and regions. Unlike others, they have bank accreditation with all four of the big banks (ANZ, NAB, Westpac and CBA), which allows easier access to start up funds.

The Jamaica Blue franchise is for those who want a lifestyle change and who are willing to get involved in the day to day management and operations of the café business, including mingling with customers day-to-day and getting to know the regulars.Unlike many food retail franchises, you don’t require previous work experience in the food or hospitality industry. All skills are taught in a state of the art training facility delivering accredited courses including: Certificate 3 in Hospitality and Barista training, whilst giving you a hands-on feel for what it will be like in your own store.

When you buy a Jamaica Blue café franchise, you receive: • Initial and ongoing training in all key business areas,

including store design and construction, food, coffee, business management, marketing, IT, product procurement and training.

• Established business systems. • National marketing program and access to specialised consultants to assist with local area marketing campaigns.• Dedicated Operations Consultant who provides business consultation and regular visitations. • Ongoing product innovation with new seasonal menu launches.

A Jamaica Blue café franchise could be just the business you’ve been looking for.

For more information on becoming a franchisee, click here.

Jamaica Blue™ Café Franchise

www.jamaicablue.com.auwww.muffinbreak.com.au

REFERENCES

1. Bowen, Nigel, Sydney Morning Herald, ‘Five things to look for in a franchise’, December 2014,

http://www.smh.com.au/small-business/franchising/five-things-to-look-for-in-a-franchise-20141127-11t5qq.html

2. Franchise Business, ‘Staying relevant in retail’, April 2012,

http://www.franchisebusiness.com.au/case-study/staying-relevant-retail

3. John Stanworth, Celia Stanworth, Anna Watson, David Purdy and Simon Healeas. International Small Business Journal 2004; 22; 539. ‘Franchising as a Small Business Growth Strategy: A Resource-Based View of Organizational Development’, pg. 546, 2004,

http://www.uk.sagepub.com/chaston/Chaston%20Web%20readings%20chapters%201-12/Chapter%206%20-%2021%20Stanworth%20et%20al.pdf

4. Gehrke, Jason, Smart Company, ‘Why Franchisors and franchisees disagree about franchise support’, January 2010,

http://www.smartcompany.com.au/growth/franchising/12790-20100112-why-franchisors-and-franchisees-disagree-about-franchise-support.html#

5. Spors, Kelluy, Entrepreneur, ‘For Franchises, Growing Rapidly Isn’t Always Best’, December 2005,

http://www.entrepreneur.com/article/81172

6. Wagner, Eric. Forbes, ‘Five Reasons 8 Out of 10 Businesses Fail’, Decmeber 2013,

http://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/