Boom not gloom for Yorkshire franchise
THE threat of recession may signal a downturn in profits for many Yorkshire firms but for mobile coffee retailer Cafe2U it’s a time of opportunity.
The Leeds-based franchise business has already doubled its turnover in the six months to August and despite the financial crisis is expecting to top £1.5m in just its third year of trading.
In fact, the downturn in the UK’s economy could represent a boom in Cafe2U’s already healthy fortunes according to founder Tom Acland.
“A lot more people are either thinking about job security or are being made redundant, which is a benefit to the business,” he said.
“Cafe2U enables people to be their own boss for a relatively low entry investment. Franchises generally will benefit at times like these.”
A new franchisee training model and advertising campaign has enabled the coffee vendor to double the number of new franchisees compared to 12 months ago. Currently a new franchise is being recruited every two weeks.
“We train all our franchisees to excellent Barista standard, and our coffee blends are carefully selected to ensure we serve restaurant quality coffee wherever we arrive at office parks, factories and workshops, in fact anywhere people ask us to call in,” added Mr Acland.
“Typically our businesses are serving from 8.30am to 2pm five days a week, which makes it attractive as a lifestyle business. Parents can drop children off at school or pick them up and finish the working day at a reasonable time.
“On a 48 week average franchisees can turnover £70,000 a year. Some make even more than that.
The franchise business, originally formed in Australia was brought to the UK by Mr Acland in 2005 after he fell in love with the coffees he bought from a van in Sydney.
The Leeds Metropolitan University graduate negotiated the European rights to operate the franchise business and Cafe2U is now the UK’s largest mobile coffee brand.
It now operates 42 custom built coffee vans selling gourmet coffee and other snacks and foods to tens of thousands of customers across the UK each week.
Cafe2U sells franchises for £15,000, and then owners invest around £34,000 in the specially designed Mercedes vans equipped with coffee grinders, coffee machines, awnings, fridges and pie warmers .
The company employs seven head office staff at Thorpe Park, Leeds and 52 franchise staff work on the vans that are based as far afield as Basingstoke, London, Leeds, Manchester, Belfast and Edinburgh.
