The Xpresso Delight Coffee Franchise Opportunity
IN BRIEF:
- Xpresso Delight is a coffee service company that has served cafe-quality coffee in the workplace worldwide since 2003.
- The company is known for pioneering the Coffee-as-a service model in which they provide a state of the art automatic espresso machine, weekly shipments of coffee, and a dedicated concierge tech to offices for no upfront cost just a simple per cup rate charged monthly.
- Xpresso Delight has developed a partnership with one of the largest manufacturers of automated bean-to-cup espresso machines, the machines are able to grind whole beans, and steam milk at the push of a button to create a variety of espresso-based beverages in 30 seconds without the use of a capsule.
- Xpresso Delight has created a proprietary blend of 100% arabica coffee specifically for its machines, the blend is roasted in the U.S. and shipped directly from the roaster to the system’s franchisees.
FINANCIAL SUMMARY
- Initial Franchise Fee: $37,500
- Development Fee for 3-Unit Market ($100,000)
- Development Fee for 5-Unit Market ($150,000)
- Startup Costs (Single-Unit): $84,500 - $107,000
- Royalty Fee: $.15 to $.11 per cup depending on monthly volume.
WHY XPRESSO DELIGHT IS ROASTING THE COMPETITION
1) THEY KNOW THEIR MARKET
The office coffee market is the best industry to be involved with right now. Currently, offices are undergoing a transition from Baby-Boomer management to Millennial management and with that expectations are changing on what amenities are standard in offices. Surveys will show (survey) that Millenials prefer to drink espresso and milk-based beverages and are no longer satisfied with drip coffee in the workplace from the existing capsule and pod-based systems like Keurig or Nespresso. In addition to taste, a large amount of scrutiny has risen around the excessive plastic waste generated on a daily basis by Keurig and Nespresso systems leading, responsible management to look elsewhere. This has left a huge opportunity in the market for a company to meet this demand. The Australian based Xpresso Delight has been providing espresso-based drinks in the workplace since 2003 in Australia and New Zealand and is now franchising the rights to its Coffee-As-A-service model in the United States. The Xpresso Delight coffee service utilizes Bean-to-Cup machines, which grind whole beans for each cup of coffee and do not utilize wasteful plastic capsules or pods. To date over 10 franchises have been sold in the US and over 200 have been sold in Australia and New Zealand.
2) THEY SUPPORT FRANCHISEES EVERY STEP OF THE WAY
Having sold over 200 franchises worldwide, Xpresso Delight knows that their success depends on the success of their franchisees, which is why their mission is to provide outstanding support and ongoing assistance. The franchisor provides onsite training and 2 weeks of pre-marketing to help jumpstart your business. They have also developed custom in house systems including an automated billing system, online ordering portal, and custom IOS application for machine tracking/technician reporting.
Xpresso Delight provides world-class training to ensure you will be confident in the business before beginning operations. The Initial training is held in your territory and is provided by the Franchisors training team along with a training and operations manual as well as other materials to get started. The franchisee can include two other people with training at no additional costs.
Additional training may be provided to the franchisee as Xpresso delight sees it appropriate. It is recommended that franchisees go through training with a manager or operational partner.
3) NO RETAIL FOOTPRINT AND MINIMAL STAFF NEEDED.
There are many factors to consider when opening a franchise, and one of them is typically the headache around choosing real estate. The Xpresso Delight system has alleviated the need for real-estate or an office by creating a just in time supply chain the delivers coffee directly to clients preventing the need for a large amount of storage space. In addition to no warehousing, Xpresso Delight has a centralized billing team that tracks franchisees invoices, as well as developed proprietary software and IOS Applications for tracking machines, service scheduling, ordering, and invoicing reducing the overall administrative burden of running your franchise.
4) HIGH-QUALITY ECO-FRIENDLY PRODUCT.
Xpresso Delight has developed a proprietary blend of coffee that has been surveyed extensively to taste great out of its fully-automated machines. The blend is 100% Arabica coffee that has been sourced from Columbia, Brazil, and Papua New Guinea. The coffee not only leads in taste but due to the direct supply chain and the automated espresso machines, no plastic capsules are needed to dispense coffee!
FDD SUMMARY
Any prospective franchisee of Xpresso Delight is expected to pay a non-refundable Initial Franchise Fee of $37,500. If you prefer to go the route of an exclusive “Market Partner” franchisee you may be required to commit to multiple Franchise Fee upfront depending on market size.
Xpresso Delight estimates that the initial investment for an Xpresso Delight franchise usually ranges from $84,500 to $107,000. The estimated costs include $25,000 paid upfront at the purchase of the franchise to purchase Five (5) Xpresso Delight Beverage Machines (priced at ~$5,000 each delivered) as well as $15,000 - $30,000 Additional Funds on hand for the first 90 days of operation.
ROYALTY FEES:
- 0 – 2,499 Cups per 4 Week Billing Cycle = $0.15 per cup
- 2,500 – 4,900 Cups per 4 Week Billing Cycle = $0.14 per cup
- 5,000 – 9,999 Cups per 4 Week Billing Cycle = $0.13 per cup
- 10,000 – 29,999 Cups per 4 Week Billing Cycle = $0.12 per cup
- 30,000 or more Cups per 4 Week Billing Cycle = $0.11 per cup
ESTIMATED INITIAL INVESTMENT COSTS (SINGLE-UNIT): $84,500 - $107,000
