Milking Australia's love for a good brew

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This was published 13 years ago

Milking Australia's love for a good brew

By Anneli Knight

The maturing palate of Australian coffee drinkers is fuelling a fast-growing thirst for franchises that serve up high-quality espressos.

BIS Shrapnel's Coffee & Beverages in Australia 2010 report reveals that Australian consumers spend $10.7 billion a year on coffee when combining the spend of coffee at home and away from home – or a total of $594 for every Australian aged 14 and over.

Australians are world leaders in their consumption of high quality coffee, says the aptly named director of franchise Cafe2U, Derek Black.

Australians are world leaders in their consumption of high quality coffee, says the aptly named director of franchise Cafe2U, Derek Black.

BIS Shrapnel senior researcher Tim Emmerson says half the Australian population drink espresso-based coffee, consuming an average of four espressos per week.

“Further evidence of the coffee culture is supported by the importance of factors when selecting where to go for a coffee or what brand of coffee to purchase with coffee taste and strength and coffee quality the most important by a significant margin,” Emmerson says.

Derek Black, director of Cafe2U, an Australian franchisor that is now expanding into the US and the UK, says Australians are world leaders in their consumption of and demand for high-quality coffee.

“Australians drink 2.4 kilograms of coffee each year,” says Black, citing Australian Bureau of Statistics data.

“The coffee consumer in Australia today is very mature in their taste, far more so than in the US or Europe. If people were to try to give away bad coffee they'd find it difficult to give it away for nothing,” he says.

“You've got people you wouldn't expect ordering a macchiato and latte and drinking a straight espresso. Fifteen years ago you wouldn't have had a blue-collar worker in blue singlets and stubbies drinking espresso - now it's quite normal for that worker to order a latte.”

In its pursuit of serving good coffee, the Cafe2U franchise has developed its own coffee blend in conjunction with coffee roasting company Belaroma and all franchisees are trained as baristas. The franchise is a portable business that serves up coffees at building sites and sporting events and in office districts.

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Black says coffee says even an economic downturn is unlikely to reduce consumer demand for the low-cost item of a coffee.

“To a great degree, coffee is recession resistant. The other critical thing is whilst people can bring a soft drink in from home, they can't actually replicate a good quality barista-made espresso coffee,” Black says.

While the coffee business might be booming, it doesn't necessarily herald a boon for the bottom line of business. Espresso Vend Australia director Mike Greenslade says the daily walk for coffee by staff members could be costing small businesses up to $72,000 each year.

“If 30 staff employed at $20 an hour take two 15-minute walks to a coffee shop each day on company time, this can add up to $72,000 in lost productivity,” Greenslade says.

The Espresso Vend franchise brings espresso coffee vending machines into the workplace so staff can get their caffeine fix and stay on the job.

The Italian Saeco vending machines serve coffee made from beans that are grown in South America and Southern Africa at high altitudes and roasted in South Australia by a master roaster to produce a top grade blend. Cafe Vend franchisees install and maintain the vending machines within workplaces and the unit price for coffees is generally lower than the cost of coffee in a cafe.

Despite these innovative options bringing coffee straight to the workplace, the BIS Shrapnel report shows that a cafÌÌ culture dominates in Australia.

The Coffee Club franchise is Australia's largest cafÌÌ group, with 252 cafes across Australia, New Zealand and Thailand that serve more than 40 million cups of coffee each year. The franchise has enjoyed a rapid expansion with 37 new cafes opening in 2010.

The Coffee Club director John Lazarou says the franchise invests significantly in creating an ambience for its customers.

“We are more about sitting down and enjoying the whole experience,” Lazarou says.

The company sources utz-certified coffee beans, a global certification system that promotes sustainable agricultural supply chains. “It's not just us making money at the end of the coffee chain – it includes everyone in between. It's called coffee conscious.”

Lazarou has explored the globe observing the tastes and habits of coffee drinkers and is impressed by the finely-tuned palates of Australians.

“I've travelled all over the world and I am still convinced that the Australian person is a fine coffee connoisseur,” Lazarou says.

And competition remains strong to deliver the best coffee to the thirsty Australian consumer, and enjoy a slice of the $10.7 billion coffee spend.

“We are all trying to outdo each other here in Australia, which is great for the consumer,” Lazarou says.

The Cafe2U, Espresso Vend and the The Coffee Club franchises are all seeking new franchisees.

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