
My custom coffee van: should I go franchise or become an independent operator?
When it comes to starting your coffee van business, many coffee-preneurs wonder if they should go it alone or become part of a franchise network? With Mobile Cafés Australia the answer is – depends. We speak with Mobile Cafés Australia directors Darren Schultz and Jonathan Payne about structuring for success.
There is a now an expectation that whether you are cheering on kids from the sidelines at Saturday morning sport, wandering through the markets or showing up at the school fete, then the on-site coffee van is going to provide a quality Barista-made coffee.
Gone are the days when serving up a boiling hot cup of International Roast cut it. Coffee-on-the-go has been a growing trend since the turn of the century, when Mobile Cafés Australia Darren Schultz fitted out his first custom van in 2001 and the new business took off.
But aspirant business owners must be wondering if getting the full support of a franchise network such as Xpresso or going it alone as an independent operator is the smart move? Now, Mobile Cafés Australia is determined to deliver not just a quality van – but the full business support for both.
An Xpresso franchise
The boom in Darren’s early business meant that he saw that there was scope to bring more vans on board. That’s when his business partner Jonathan Payne came on board and Xpresso was born.
“The demand was so strong that I got some advice on building a franchise network. I had a bit of an idea about the process, but I didn’t know much about it,” he says. “Xpresso is a business we are both very passionate about and a lot of our vans can do really well.”
Since then, coffee vans have boomed in Australia as people from all walks of life have tried their hand at fitting out a van and taking coffee to the masses.
But it is the diversity of franchisees that continue to surprise both Darren and Jonathan.
“We’ve had franchise partners that are semi-retired and still want to work five or six hours per day,” Darren says. “They are still making good money, especially if they purchased the business cash and have no loans.”
“We’ve also had young families where it has been their bread and butter and the sole source of income. They have to work harder and they have more expenses.”
“A lot of our franchisees over the years are people who wanted a change of career and they have been employed all their life. They may have started family younger and they are in the mid to late 40s, they own their home, they’ve been earning a reasonable wage, but they want to start doing something on their own,” Darren says.
A franchise provides, he says, “all the guidance and support without all the hassles of running a small business.”
“We pretty much handle every step of the way from building the van, to finding the territory with the franchisee, locate and map. We supply you with a fully fitted out operation and van and the fees are low,” Jonathan adds.
Custom coffee van independent operator
Jonathan also explains the benefits for those making their first move into working for themselves as an independent operator and the fact that new business owners can benefit from bespoke support by Mobile Cafés Australia.
“As a first business in the café and hospitality space, a custom coffee van is a stepping stone into small business. The buy in is low and most of that is equipment is an asset that can be sold,” he explains.
Darren adds that one of the biggest advantages to owning a custom coffee van is the simplicity of the business with costs typically running at 35%.
“A coffee van is a good training ground for hospitality without the hassle of rent, wages and other expensive overheads,” Darren explains.
But it’s not just the business model and the quality of the van. The duo is keen to point out that building a thriving business means taking the care to pour a quality cup every time.
“There are three components: the quality of the coffee, the cleanliness of the operation and knowledge about how to make good coffee,” Jonathan explains. “Those who put some passion and care and attention, combined with a quality coffee are most likely to succeed.”
This combination, Jonathan says, is what keeps customers coming back.
Jonathan says that what makes a mobile coffee operation better than a traditional bricks and mortar business is a bit of a no brainer.
“First, there is no rent, higher profit margins, little waste and no wages. The list goes on. With these vans, you can go on holidays with your vehicle and your customers are still there. We advise all of our customers – whether they are franchisees or independent operators, that you need to become part of your customers daily lives,” he explains.
But it’s not just new operators that Mobile Cafes Australia services. With the explosion of food trucks, established bricks and mortar cafes are getting in on the action.
“We also help existing cafés add a mobile dynamic so that he can take their business to the community,” says Jonathan.
To learn more about Xpresso or getting the support as an independent operator, contact Jonathan Payne or Darren Schultz.