Why You Shouldn't Invest in a Vending Business

What makes a vending machine a good investment? The idea of placing a machine in a location with a lot of foot traffic, and then sitting back and accruing passive income from machines is certainly an attractive financial prospect. But what if there was a business that optimizes on the pros and mitigates the cons of a vending business? Let’s compare a standard vending machine business, with the coffee service franchise Xpresso Delight.

Both businesses require a capital investment in a machine per location, costing at least a few thousand dollars. For a vending business, a somewhat modern machine will most likely cost around $2k, where the higher end ones can be over $7k. Xpresso Delight’s premium Jura espresso machines will fall somewhere in between that range. Secondly, both businesses earn revenue on a per unit basis. A vending business can have items with varying costs, margins, and profitability, depending on if you are selling gum balls, candy bars, sodas, etc. Determining the most profitable product mix involves a lot of initial guesswork and ongoing monitoring. Even then, there is seasonality to consider, as well as variability amongst vending machine purchases depending on the type of consumer that is walking by that day. As an Xpresso Delight franchisee, you are setting a fixed price per cup of coffee at each location, with a known cost per cup, and a known audience, providing a consistent and predictable revenue stream. 

When you dive deeper into the Xpresso Delight model, you find more key differences between this coffee service franchise and a traditional vending business. First, customers for vending businesses pay out of pocket for the goods in the vending machine. Xpresso Delight offers “free” coffee to customers in the corporate offices in which the machines are placed, while the company hosting the premium Jura espresso machine is billed per cup on a monthly basis. It’s a single payer, monthly payment for the franchisee versus an unknown number of individual transactions that could vary greatly with a vending machine. From the franchisee perspective, this is especially enticing as customers for Xpresso Delight are not financially impacted by their consumption, and employers are already accustomed to providing coffee to their employees. 

Secondly, products in vending machines are usually treated as luxury goods by consumers. Candy bars or a sugar filled soda are purchased to satisfy a spur of the moment craving, not a daily routine. Xpresso Delight though provides cups of coffee and espresso based drinks such as latte’s, macchiato’s, cappuccinos, etc. These beverages are widely consumed as a necessity during the work week, and are a habit forming beverage that consumers drink throughout the day like clockwork. 

Lastly, looking at the volume of potential customers, the Xpresso Delight coffee service franchise offers significant stability and consistency. Vending machines, depending on where they are placed (malls, amusement parks, etc.), are vulnerable to external factors such as weather, traffic, and more that can drastically impact your customer flow on a daily basis. Xpresso Delight on the other hand, with machines placed in private corporate offices rather than public spaces, holds a captive audience and a regular flow of consumers, as employees generally only miss work for holidays, vacation, and the occasional sick day.

In summary, owning vending machines can be appealing for a truly passive income, but the vulnerability to consumer impulses, foot traffic decline, and product mix guesswork make for an unpredictable model. Xpresso Delight has a known, captive audience, a product that is often a necessity for workers throughout their day, and a monthly single payer model that makes for consistent, predictable revenue. 

Xpresso Delight is the largest and fastest growing coffee service franchise in the world. Find out why. 

https://www.vendsoft.com/vending-machine-types


SaaS, Subscriptions, and Coffee Franchises

The emergence and growth of the subscription economy is in full swing. From media, to fitness, to lifestyle products, there is seemingly no category that a business with a subscription based revenue model can’t succeed in. Whether it’s media giants such as Netflix ($125 billion market cap), Spotify ($25B market cap), fitness equipment & content startup Peloton (valued at $4B), razor subscription company Dollar Shave Club (acquired for $1B by Unilever), the list of companies succeeding with subscription based revenue models goes on and on. 

Why are these companies booming though? A big reason: Millenials - the generation that is in their mid 20’s and 30’s, and are overtaking the baby boomers as the largest generation of consumers in history. According to Accenture, 77% of both the millenial and Gen Z generations say they are interested in subscriptions to curated products or services. As millennials mature and reach their prime earning years over the next decade, spending on subscription based companies across a variety of industries is expected to increase even more. Although we are still in the early stages of this trend, subscription-based revenue models are already growing at 5 times the pace of the average S&P 500 index company. 

It’s evident that subscription based companies are succeeding with retail consumers, but they’re also largely impacting the B2B space as well. Businesses have entered a phase where, through subscriptions, cost-effective access at a month-by-month commitment level to numerous resources is a new reality. Service Titan ($1.6B), Monday.com ($1.9B), Flexport ($3.2B), are prime examples of subscription companies that are succeeding in B2B across many different industries. The new reality is a world where anything that can be procured as a service, is going to eventually be procured that way. This concept of “Anything as a Service” (XaaS), where if you can provide value with a subscription model in a specific category, you will reap the rewards this revenue model entails:

Sign up customers → increase spending per customer → collect massive recurring revenue!

So, what XaaS companies have the potential to succeed over the next decade? What if there was a company that capitalized on the convergence of two booming economies that millennials are driving the growth of? An example of this would be: subscription services, and coffee. That’s right, we’re talking about Coffee as a Service, targeted at corporate offices. It’s widely known that most coffee options provided in the office are of far less quality to what you can get at the local cafe, and even at Starbucks or coffee franchises like Dunkin'. Imagine a coffee service that could provide cafe quality coffee right in the office! We’re talking freshly roasted beans, fresh steamed milk, and any of your favorite espresso based drinks, all at the push of a button. Combine this offering with the convenience of a competitively priced, pay-per-cup model to clients. A business like this would meet the demand for both the cost-effective month by month access of a subscription service, and high quality coffee. If you’re interested in building a coffee franchise business with first mover advantage in this market, check out opportunities with Xpresso Delight, the largest and fastest growing coffee service franchise in the world. 

5 Stocks to Ride the Coming Wave of Millenial Spending. Barron’s. May 6th, 2019. 
Not Just for Consumers: The Subscription Economy Changes B2B. Forbes. Aug 31st, 2018.

Xpresso Delight signs local franchise agreement; Looks to create better office culture in Broward County

August 27, 2019 // Oakscale.com // New York - Australian-based office-coffee distributor Xpresso Delight has been named one of FranchiseHelp’s 2019 Franchise Award Winners. Xpresso Delight was ranked 13th for its general franchise profitability.

FranchiseHelp is the largest source of franchisee leads in the franchising industry. It ranked brands in four categories: fastest growing franchises, top performing emerging brands, top performing established franchises and general franchise profitability.

“It is exciting to see the progress Xpresso Delight is making in the American office coffee market,” said COO Nigell Lee. “With Xpresso Delight’s proven success in Australia and New Zealand, we knew it would be a success in the United States, and to see it ranked by FranchiseHelp already is fantastic for our team, our franchisees and our brand.”

Since its conception, Xpresso Delight has been focused not only on providing the freshest espresso products to customers and clients but on helping bolster office culture. The brand utilizes state-of-the-art Swiss designed espresso machines to give customers a great cup of coffee, but the real emphasis is on the Xpresso Delight experience.

“We want to bring about a cultural shift in how people think about office coffee. Everyone deserves better from their morning coffee, and Xpresso Delight wants to change that by bringing high quality ingredients, environmentally-friendly practices and unparalleled customer service,” said Lee. “This ranking by FranchiseHelp is an incredible honor, and we are proud to be a part of this esteemed group of companies. It has reinforced to us that we are on the right track to bringing the best possible service to people across the country.”

Currently, Xpresso Delight has thirteen territories open and operating in the United States, primarily along the East Coast. In the next five years, the brand hopes to have machines in each of the 50 major business cities, including Chicago, Dallas and more across the nation. The brand has exclusively partnered with Oakscale, a New York-based franchise development company, for development efforts.

For more information about the Xpresso Delight franchise opportunity, visit https://www.xpressodelightfranchise.com/

About Xpresso Delight

Founded in 2003 in Australia, Xpresso Delight,created by Paul Crabtree and Stephen Spitz, is dedicated to serving a better “office coffee” through their revolutionary Swiss-designed machine and premium proprietary coffee roast. Franchising since 2014, the brand has grown to 150 locations in Australia and New Zealand, with thirteen territories in the U.S. throughout major metro areas. For more information, visit https://www.xdcoffee.com/ 

About Oakscale

Founded in 2017, Oakscale is a franchise development company that develops innovative emerging business concepts and promotes them to investors around the world. For more information, visit https://www.oakscale.com/

Xpresso Delight Ranked in FranchiseHelp’s Top 20 Franchises

New York – Australian-based office-coffee distributor Xpresso Delight has been named one of FranchiseHelp’s 2019 Franchise Award Winners. Xpresso Delight was ranked 13th for its general franchise profitability. FranchiseHelp is the largest source of franchisee leads in the franchising industry. It ranked brands in four categories: fastest growing franchises, top performing emerging brands, top performing established franchises and general franchise profitability.

“It is exciting to see the progress Xpresso Delight is making in the American office coffee market,” said COO Nigell Lee. “With Xpresso Delight’s proven success in Australia and New Zealand, we knew it would be a success in the United States, and to see it ranked by FranchiseHelp already is fantastic for our team, our franchisees and our brand.”

Since its conception, Xpresso Delight has been focused not only on providing the freshest espresso products to customers and clients but on helping bolster office culture. The brand utilizes state-of-the-art Swiss designed espresso machines to give customers a great cup of coffee, but the real emphasis is on the Xpresso Delight experience.

“We want to bring about a cultural shift in how people think about office coffee. Everyone deserves better from their morning coffee, and Xpresso Delight wants to change that by bringing high quality ingredients, environmentally-friendly practices and unparalleled customer service,” said Lee. “This ranking by FranchiseHelp is an incredible honor, and we are proud to be a part of this esteemed group of companies. It has reinforced to us that we are on the right track to bringing the best possible service to people across the country.”

Currently, Xpresso Delight has thirteen territories open and operating in the United States, primarily along the East Coast. In the next five years, the brand hopes to have machines in each of the 50 major business cities, including Chicago, Dallas and more across the nation. The brand has exclusively partnered with Oakscale, a New York-based franchise development company, for development efforts.

For more information about the Xpresso Delight franchise opportunity, visit https://www.xpressodelightfranchise.com/

About Xpresso Delight

Founded in 2003 in Australia, Xpresso Delight,created by Paul Crabtree and Stephen Spitz, is dedicated to serving a better “office coffee” through their revolutionary Swiss-designed machine and premium proprietary coffee roast. Franchising since 2014, the brand has grown to 150 locations in Australia and New Zealand, with thirteen territories in the U.S. throughout major metro areas. For more information, visit https://www.xdcoffee.com/

About Oakscale

Founded in 2017, Oakscale is a franchise development company that develops innovative emerging business concepts and promotes them to investors around the world. For more information, visit https://www.oakscale.com/

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What To Consider When Buying A Coffee Shop Franchise.

I get it. The idea of having your own coffee shop on the corner of Main and Main in your hometown is exhilarating. Whether you start your own business entirely or buy into a coffee franchise, you can already smell the fresh ground espresso beans permeating through your beautifully designed space, you can see the familiar faces of your regulars, and you can hear the hustle and bustle of people gathering in your shop to catch up with old friends and relax to the perfectly curated music playlist.

 (Before we jump in, if the investment level described below is a little out of reach for you or the process of starting a coffee shop described below seems overwhelming, there are alternative coffee businesses out there that would allow you to achieve your coffee shop ownership dreams without the huge investment or startup hassle.)

 So where do you start? Well, first you’ll need capital. If you search online, you’ll find various answers for how much it will cost to start up a coffee shop, but if you look at established franchises that are basing their estimates on actual historical costs, you’ll find that Coffee Bean and Tea Leaf costs between $185,000-$361,500 to open, Dunkin Donuts is $217,000-$1.6M, and Scooters Coffeeshop is $331,000-$648,000. These are just a few examples, but it gives us an idea of what it costs to open a coffee shop that is based on real data compiled over thousands of store openings.  

Next, you need to secure real estate, which will likely take between 90 and 180 days at minimum. Landlords often require you to personally guarantee the lease so your personal financials will need to be approved and they’ll want to see that you’re not investing every last nickel into the business. After you pay an attorney to review and negotiate the lease terms, you’ll officially have an address for your coffee shop!

 Once the lease is secured, you can approach your local building and permits department to apply for a permit. Some municipalities can get this done in a few weeks, while others are notoriously slow and can take up to 6 months or longer.

Now that you’ve received approval to begin construction, you’ll need to hire an architect, a general contractor, and begin sourcing materials. If you’ve invested in a franchise, a lot of this is going to be standardized so you won’t need to invest too much effort here. If you’re on your own, you’ll need to design a functional space, choose your furniture, fixtures, and equipment and manage the construction process from A to Z.

You’ll also need to begin building a supply chain. What types of coffee beans will you offer and where will they come from? What about cups, stirrers, milk, and baked goods? What kind of pricing makes sense for your business model and can you negotiate terms with the suppliers that allow you a shot at making money?

Hopefully people just show up and walk in the door ready to purchase coffee, but in case that doesn’t happen, think about how you would advertise and market your business and what you’d be willing to spend on a monthly basis to generate traffic.

So how much money can you make once you get through the opening process described above? Coffee Shop Startups says that “on average,  a small-to-medium-sized coffee shop can produce between $60,000 to $168,000 in personal income per year.” Not bad. On the low end of the spectrum, you could make your money back in just 3 years if you don’t pay yourself a single dollar and keep your initial investment to $180,000. On the high end, you could pay yourself a pretty good wage, and make your investment back in just a couple of years, again assuming that you keep your initial investment to the absolute low end of things.

 So, there you have it. Best of luck to you if you’re considering starting up a coffee shop!

 Again, if you don’t quite have the funds for a coffee shop or the opening process seems overwhelming, there are alternative coffee businesses out there that would allow you to achieve your coffee ownership dreams without the huge investment or startup hassle. 

What to Expect When Exploring Franchise Opportunities

If it’s your first time evaluating a franchise, you may not know exactly what to expect. The FTC offers A Consumer’s Guide to Buying a Franchise, which is worth reading, but here’s a plain English guide written by franchise experts with more than two decades of combined experience. 

Common Mistakes

1). Avoiding the Sales Rep. You may be wary of speaking to franchise sales representatives and avoid their call. After all, in the age of the internet, can’t you just figure things out on your own? Not really. There’s a lot of information online, but often times the most important information is kept confidential by the franchise company and only shared with qualified franchise candidates. The brand needs to qualify YOU first, and that’s the primary role of the sales rep. 

The Fix: It’s best to spend 15 minutes on the phone with an expert on the brand before you spend hours of your time searching the depths of the internet. It will save you a lot of time by going direct to the source. 

2. Stopping Before You Get Started. Franchising is a long term business relationship and franchise brands are not expecting you to make any decisions early on in the process. In fact, in the world of franchising, it would be illegal to do so. There’s a document called a Franchise Disclosure Document that the franchisor must provide to you a minimum of 14 days prior to signing a contract. This means there’s a lengthy due diligence process (typically 30 to 60 days) where you’ll be receiving lots of information. In order to get access to the detailed information you need to truly assess the opportunity, the franchisor will ask a simple request of you.

Franchisors often ask for an “application” or “request for consideration” to kickoff the process. Think of the application like a gatekeeper. Your information is kept confidential and there’s no obligation or expectation that you’ll purchase a franchise. After all, you have to qualify and be approved as a franchisee. But the information behind the gates is worth protecting, and brands want to make sure that only truly qualified candidates get access. Pretty fair.  

The Fix: Don’t get scared off by the application. It doesn’t obligate you to anything at all so there’s no risk for you. It simply shows a franchisor that you’re qualified and worth their risk of exposing you to confidential information while investing time and resources into your education.

3. Going Outside of the Process. If it isn’t clear yet, franchisors are assessing your ability to successfully represent their cherished brand. One of the factors they consider is whether or not you’re able to follow a simple process. Going outside of that process in any way can negatively affect your chances of being selected as a franchisee.  

The Fix: Believe it or not, the process is actually designed with the purpose of facilitating learning for potential franchisees. Stick to the process and you’ll experience the most efficient learning process possible, which will lead you to making an educated decision, whether it’s a yes or a no.

A typical process shouldn’t cost you any money until you go to Discovery Day (explained below). Even then, it should only be your travel costs. It will probably look something like this:

  1. Initial call with brand development representative (15-30 min)

  2. You’ll complete the application (or Request for Consideration)

  3. You’ll receive the Franchise Disclosure Document (Read about this here)

  4. You’ll review the FDD with a more senior development manager or director

  5. You’ll likely get an opportunity to speak with franchisees that were once in your shoes, trying to decide if this is the right franchise for them

  6. You’ll attend Discovery Day at the brand’s HQ, where you’ll meet everyone you’ve been working with in the process, as well as founders and executives. This is the step where final approval would be issued for both parties. 

  7. If you’re approved by the franchisor and you also love the franchise opportunity, you’ll sign a franchise agreement and pay the franchise fee. 

In summary, don’t cut your wings before you learn to fly. Buying a franchise can be scary, especially when you’re being told to fall in line to a process you may wish was better aligned with your order of operations. But the truth is that top performing franchisees follow the system, and if you think you have a better way of doing it, then you should do it your way with your own brand. Follow the process. The worst case scenario is that you expand your knowledge without having sacrificed anything but time. The best case scenario is you find a great franchise that aligns with your goals and you achieve your dreams of entrepreneurship. Either way, it all starts by following the process. 

In-demand Australian office-coffee distributor now serving The Queen City

July 31, 2019 // oakscale.com // New York - Hailing from Australia, Xpresso Delight - an office-coffee distributor known for providing convenient, fresh and delicious premium coffee made with 100 percent Arabica coffee beans - is coming to the Charlotte area.

Starting operations in Charlotte on August 5, Xpresso Delight will have 150 coffee machines available to businesses and offices in Mecklenburg, Cabarrus, Gaston, Iredell, Lincoln and Union counties in North Carolina, and York county in South Carolina.

“We are thrilled to bring Xpresso Delight to the Charlotte community,” said local owner Bryan Zeiss. “We are excited to be a part of the office coffee revolution, working to connect coworkers at various dayparts. We look forward to sharing Xpresso Delight’s fresh and delicious coffee with the Queen City.”

Founded in 2003 in Australia, Xpresso Delight was created by Paul Crabtree and Stephen Spitz. Both were coming from a corporate background, and they saw the need for a better “office coffee experience.” Crabtree and Spitz went to work finding the right machine, coffee beans and systems for their new company, and landed on a high-quality Swiss-designed machine and premium proprietary coffee roast blend. Since then, the company has grown to 150 locations across Australia and New Zealand and is now expanding its U.S. operations.

Zeiss, a former institutional bond salesman, has always had a desire to be involved in business ownership. After working in the finance, investment and real estate industries, Bryan is now self-employed and plans on focusing entirely on growing Xpresso Delight in the Charlotte area.

“We wanted to offer a product that catered to everyone, and brought people together,” added Zeiss. “Everybody loves coffee and having a machine that provides premium coffee that people can get together and talk about is a great way to improve office culture.”

“Xpresso Delight’s main focus is providing a café-quality coffee experience in an office setting,” said Xpresso Delight COO Nigell Lee. “We aren’t like capsule coffee or a traditional drip pot because our beans are fresh ground and we use fresh milk to make options such as coffee, espresso, lattes and cappuccinos all at the press of a button.”

“We are excited to be operating in the Charlotte community and are thrilled to have Bryan as part of the Xpresso Delight family,” added Lee.

Currently, Xpresso Delight has five territories open and operating in the United States, primarily along the East Coast. In the next five years, the brand hopes to have machines in each of the 50 major business cities, including Chicago, Dallas and more across the nation. The brand has exclusively partnered with Oakscale, a New York-based franchise development company, for development efforts. Zeiss worked directly with Oakscale’s Senior Director of Development Joseph Sexton on his partnership with Xpresso Delight.

About Xpresso Delight

Founded in 2003 in Australia, Xpresso Delight, created by Paul Crabtree and Stephen Spitz, is dedicated to serving a better “office coffee” through their revolutionary Swiss-designed machine and premium proprietary coffee roast. Franchising since 2014, the brand has grown to 150 locations in Australia and New Zealand, with five territories in the U.S. throughout major metro areas. For more information, visit https://www.xdcoffee.com/

About Oakscale

Founded in 2017, Oakscale is a franchise development company that develops innovative emerging business concepts and promotes them to investors around the world. For more information, visit https://www.oakscale.com/

Media Contact:

Charlie Jones
Franchise Elevator PR
(847) 239-8171
cjones@franchiseelevator.com

SOURCE Xpresso Delight

International Brand Xpresso Delight Looks to Bring a New Wave of Coffee to U.S. Office Culture

Company expansion plans call for 10,000 machines nationwide in 50 major metro areas

July 30, 2019 // Oakscale.com // New York, NY - Hailing from Australia, Xpresso Delight - an office-coffee distributor known for providing convenient, fresh and delicious premium coffee made with 100 percent Arabica coffee beans- has set its eyes on conquering the U.S. market with nationwide expansion plans.

After growing to 150 territories in Australia and New Zealand Xpresso Delight launched in the U.S. in 2018 and currently has five territories active and operating throughout New York City, Buffalo, N.Y. and Washington, D.C., with a Charlotte territory on the horizon. The brand is targeting the top metro areas throughout the country and plans for 200 machines in each of the 50 major metro areas, totaling 10,000 machines nationwide.

The expansion plans come at a time when 50 percent of working Americans spend approximately $1000 a year on coffee, according to a Workonomix survey. This breaks down to spending more than $20 a week on coffee. Trends also point toward consumers seeking out high quality, milk-based espresso coffee drinks rather than settling for convenience. Xpresso Delight serves this demand by offering premium café quality coffee available right in the office kitchen.

“Our number one mission is to bring the best coffee experience to each and every office,” Chief Operating Officer Nigell Lee said. “We believe that by bringing in a high-quality product and machine while making it affordable, we can be a big part of building office culture and a positive community. Coffee is an integral part to any routine, and we believe it can bring people together to encourage an office culture based on human connection and great coffee.”

Founded in 2003 in Australia, Xpresso Delight was created by Paul Crabtree and Stephen Spitz. Both were coming from a corporate background, and they saw the need for a better “office coffee.” Crabtree and Spitz went to work finding the right machine, coffee beans and systems for their new company, and landed on a high-quality Swiss-designed machine and premium proprietary coffee roast blend.

When an Xpresso Delight machine is installed in an office, the coffee possibilities are greatly expanded when compared to a traditional large-format coffee pot. The offerings range from espresso, macchiato, latte, cappuccino and more espresso-based drinks. The machines are designed to be sustainable by not requiring plastic pods and instead grinding the coffee beans for each cup.

“When we were creating Xpresso Delight, we wanted to keep an eye on the sustainability of our machine and maintaining our standard of fresh ingredients,” added Lee. “By directly adding the beans and other fresh ingredients to the machine, we are able to significantly bring down the amount of waste each cup produces.”

To augment the company’s growth, Xpresso Delight is seeking experienced, multi-unit franchisees looking to partner with a forward-thinking coffee brand. Metro area-wide territories are available. Including a franchise fee of $37,500 plus $5,000 per machine, the estimated initial investment range to open a franchise with Xpresso Delight is $84,500 to $107,000 to reach a five machine minimum. The brand has also exclusively partnered with Oakscale, a New York-based franchise development company, for development efforts.

About Xpresso Delight

Founded in 2003 in Australia, Xpresso Delight, created by Paul Crabtree and Stephen Spitz, is dedicated to serving a better “office coffee” through their revolutionary Swiss-designed machine and premium proprietary coffee roast. Franchising since 2014, the brand has grown to 150 locations in Australia and New Zealand, with five territories in the U.S. throughout major metro areas. For more information, visit https://www.xdcoffee.com/

About Oakscale

Founded in 2017, Oakscale is a franchise development company that develops innovative emerging business concepts and promotes them to investors around the world.

Media Contact:

Marte Eggleston

Franchise Elevator PR

(847) 239-8171

meggleston@franchiseelevator.com

SOURCE Xpresso Delight

How Millennials are Shaping America’s Coffee Culture

Millennials get a lot of labels, but one that doesn’t often make the headlines is “coffee influencer.” There are 75 million members of this generation, and according to the National Coffee Association, more than 60% of them drink coffee on a daily basis. For those counting, that’s 45 million cups of coffee every day at MINIMUM, assuming only one drink per person, just for this generation alone. It’s easy to see why this population is so influential in America’s changing coffee culture. 

Like any industry, the higher the demand, the more competitive it becomes and the more important the quality of the product becomes. Hip craft coffee shops are popping up on what seems like every Main Street corner across America, and they’re often focused on espresso and milk-based specialty coffee drinks.

Europe and Australia are decades ahead of the U.S. in terms of the demand for specialty coffee drinks, but the U.S. is starting to play catch up. 20 years ago, less than 10% of U.S. adults were drinking specialty coffee on a daily basis. By 2017, that number had quadrupled to 41% and nearly 60% of all coffee consumed was specialty coffee. 

It’s no coincidence that American coffee culture has begun this shift in lockstep with the rise of Millennials in the workforce. As the largest generation assumes the role of income generating adults, they need to stay caffeinated to get them through their work day. As of today, 35% of the American workforce is made up of the Millennial generation, already the largest generational share of labor force participants. That number is expected to rise to more than 50% over the next several years. 

Yet with the majority of the workforce comprised of coffee drinkers that actually prefer espresso drinks over regular coffee, there is a major disconnect between the workplace demand and the workplace offering. Specialty coffee shops are popping up all over the U.S. to satisfy demand, and somehow offices are still flooded with drip coffee and pod system coffee machines like Keurig. 

It makes sense when you consider that the vast majority of companies cannot afford to build a cafe within their office and hire a barista to make drinks all day, and the high quality automatic espresso machines are expensive to purchase and hard to maintain. 

One company (Xpresso Delight) is offering a solution to this problem by offering a high quality espresso machine to offices at no upfront cost. Xpresso Delight franchisees install premium specialty coffee machines in offices around the country and then simply charge the company on a pay-per-cup basis. The Millennial workforce gets access to the coffee drinks they demand, and the company can actually afford to provide it.  

Companies now have the opportunity to provide quality coffee drinks that their employees love, which keeps them in the office rather than spending company time traveling, waiting in line, and returning from the local coffee shop. Millennials love it not only for the quality, but also because it is eco-friendly, using fresh whole coffee beans rather than plastic pods that cause harm to the environment. 

It’s a perfect match: happier employees stay with their companies longer. Millennials are shaping America’s coffee culture, and the office environment as a by-product.


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What is an Emerging Franchise?

What is an Emerging Franchise?

If you’ve ever spoken to someone at Oakscale you can tell we live and breathe emerging franchise development. Last year I had the opportunity to attend Springboard which is a purpose filled event in which Franchisors and Suppliers (Businesses that offer Franchisee / Franchisor specific products/services) meet at a conference to discuss best practices, learn from each other, and network to build relationships that strengthen their respective brands in the industry. 

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This event caters to emerging franchisors. In case you don’t know what an emerging franchise brand is, think of it as a startup in the Franchise space. Currently there are over 4000 franchise brands that exist and over 75% of them have less than 100 franchise locations; which I would classify as “Emerging. 

These brands comprise the largest total number of franchise concepts that exist and frankly, as a development company, we segment these brands into the following categories as we come across them:

  • Those who probably shouldn’t be franchising

  • Those that are growing quickly and just aren't at 100 units just yet. 

  • Those that don’t have the right strategy / team in place to sell franchises. 

Many brands in the emerging stage are great concepts that just need to figure out how to partner with great franchisees. An event like Springboard is an opportunity to meet with others who have grown to 100+ locations as well as meet suppliers that help emerging brands with a great model get the support they need to grow. 

At Oakscale, we partner with emerging brands in a long term growth strategy and are constantly on the lookout for the next big thing. So naturally we show up at events like Springboard to meet with brands who have just started or are looking to franchise.

In addition, we are always combing over tons of data (our parent is Metric Collective, after all),checking Yelp, Google, Facebook, Instagram, as well as running ad hoc searches, and TBH, the vast majority of the time we don’t find anything that catches our attention.

However!

The reason we constantly search is that every so often we find an absolute diamond in the rough like our emerging brand Xpresso Delight. 

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You may wonder what a company like ours looks for to figure out how to categorize concepts we evaluate and decide if they are a brand that we can take to 100+ franchise units. 

To give you an idea of how thorough our search is -> here are a few things we look for in brands.

Unit Economics -

The leverage of franchising lies in franchisees’ ability to faithfully execute a concept’s business model and receive just revenue/ returns. 

Repeatable Operations - 

A brand’s service or product must be straightforward for franchisees to learn and deliver consistently.

Scalable Supply Chain

Franchisees must be able to economically and reliably source material for a brand’s service or product throughout any market in which the brand intends to franchise.

Passionate Consumer Base

Strong customer advocates and positive word of mouth are leading indicators of a concept’s breakout potential. Proxies for this kind of early brand equity include online reviews/testimonials, social media activity, and an engaged following.

Strong Executive Team

An executive team with a deep understanding of their industry, the ability to articulate a compelling vision, and the capacity to manage rapid growth are key.

To give an example, the Xpresso Delight brand scored 5/5 for us.

Xpresso Delight is the largest coffee service franchise in the world with over 200 Franchises sold In Australia and New Zealand and just a handful in the United States. The brand made the jump to the United States and realized that although their model was great, targeting the right franchisees was key to growing the right way in the United States (something that is difficult for an Australian based franchisor to do). 

We knew the only thing holding them back was a great development company and so we partnered with them to develop the brand in the United States and take it to over 100 franchise units in the next few years. Currently we are already 10% of the way to our goal with a robust pipeline and are glad to have partnered with a concept that is disrupting a huge industry here in the United States.

Even with our early success, we know there’s a long way to go to reach our goals and we’ll continue to leverage learning opportunities like Springboard to help further the emergence of brands like Xpresso Delight. 

Xpresso Delight's Nigell Lee on the Air with Zack Fishman

Xpresso Delight's Nigell Lee on the Air with Zack Fishman

On July 1st, 2019, Nigell Lee, President of Xpresso Delight USA, joined the Millennial Monthly podcast to discuss how the Australian coffee service franchise is approaching franchising as an emerging brand in the U.S.

Professional Athlete Signs Multi Unit Deal with Xpresso Delight

April 24, 2019 // Oakscale.com // New York, NY - Xpresso Delight, the world’s largest and fastest growing coffee service franchise, with over 200 franchisees worldwide, announced today that yet another new multi-unit franchisee has joined the brands aggressive expansion in New York City. Interest in the booming coffee franchise continues to blossom outside the New York headquarters with several more franchises in the pipeline for markets like Charlotte, Atlanta, Austin, and Los Angeles. However, awarding another 3-unit franchise agreement in it’s own backyard was an easy decision when you consider the laurels of Xpresso Delight’s newest franchisee, Stu Mills, a former professional athlete turned successful corporate executive.

Being a professional cricket player in New Zealand for nearly a decade taught Stu the skills and instilled the values often tied to successful business owners: discipline, competitive drive, teamwork, and leadership. He utilized those skills, along with an MBA in Finance, to earn a myriad of roles at major retail brands over the last decade including both the buyer and seller side of transactions, as well as management. The father of two plans to utilize his education, experience as a professional athlete, and real world business experience to create a successful trio of franchises in New York City.

In his own words, “I’d been looking at franchises for years, primarily in the fitness and children’s activity categories, but I just couldn’t take on the risk of leaving the security of my job to go build a retail business full time. I started looking at franchises that I could grow more passively at the start, and build over time to a point where I could either transition full time to running the business or simply hire someone to manage the operation while I continue building my career. I found Xpresso Delight and it checked all the boxes: Inexpensive initial investment with a huge growth opportunity, it’s not a fad, and it’s good for the environment.”

Nigell Lee, COO & President of Operations for Xpresso Delight Group also shared his excitement about adding a new franchise in New York City: "When someone approaches you to become a franchisee in your flagship market, you take extra care to make sure that they’re a good fit, not just for the franchise system, but for the culture you’ve built in your local market. But it was a no-brainer to bring Stu on from the start and I feel he’ll be a tremendous help to furthering Xpresso Delight’s growth in the New York City office coffee market."

When asked if the infamous rivalry between Australia, Nigell’s home country, and New Zealand, Stu’s home country, was factored into either party’s consideration of signing a franchise agreement together, both individuals replied, “No comment.”

Xpresso Delight franchisees offer high-end café level coffee to corporate offices through its innovative coffee-as-a-service program. Along with its proprietary 100% Arabica coffee blend that is roasted locally in the United States and drop shipped fresh to clients weekly, Xpresso Delight provides fully automated coffee and espresso machines that provide café quality coffee comprised of whole fresh beans ground to order and fresh steamed milk – all at the push of a button - to offices around America.
The brand draws demand from medium to large company offices looking to upgrade their in-house coffee options they provide to their employees at an affordable cost.

Xpresso Delight has partnered with Oakscale, the NYC based Franchise Development company as the brand’s exclusive Franchise Development Partner, and the franchisee worked with Oakscale CEO Joshua Kovacs on the agreement.

About Xpresso Delight

Founded in 2003 and with over 200 franchises sold worldwide Xpresso Delight is one of the fastest growing coffee-as-a-service franchises in operation. U.S operations are led by franchise President Nigell Lee. Xpresso Delight is currently evaluating franchise candidates interested in becoming franchisees in major markets across the United States and internationally. The concept has partnered with New York City-based Oakscale as its exclusive franchise development team. Learn more about Xpresso Delight.

About Oakscale

Founded in 2017, Oakscale is a franchise development company that develops innovative emerging business concepts and promotes them to investors around the world. Learn more about Oakscale.

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Xpresso Delight Brews Up Deal In Buffalo NY

Xpresso Delight Brews Up Deal In Buffalo NY

Xpresso Delight, the world’s largest and fastest growing coffee service franchise, with over 200 franchises sold worldwide, announced today that it has awarded an additional franchise in Buffalo, NY. Interest in the franchise has begun to sprawl out from its U.S. roots in New York City to markets like Washington D.C. and now Buffalo, NY, with several more franchises in the pipeline for markets beyond the eastern seaboard.