Coffee News - Franchise Case Study
Coffee News is a weekly publication distributed through restaurants and cafés which focuses on the week's funniest and most unusual news stories from around the world, as well as jokes, trivia, amazing facts, horoscopes, community events and more. The publication is read by millions of people around the world every week, and at a local community level, strengthens communities by promoting small to medium-size businesses within the newspaper.
Coffee News is a franchise business with 40 franchisees nationally in Australia.
In 2010 Sue Mazur bought out her partner in the franchise business becoming the sole owner. Like all business owners, Sue was looking to check and strengthen the direction of the business. Sue’s goal was to position Coffee News as a premium brand in all local communities throughout Australia and her first port of call was to review all processes to ensure a quality system for both the franchise and the franchisees – enabling both to identify the qualities of, build and grow a successful business.
At the time there were also transition challenges as the franchises was initially set up as licences, converting to a franchise structure later. A few key issues were identified due to this change, plus growth of the franchise and where things were not working at their optimum. Sue wanted to reorganise the franchise structure and to re-package the franchise system, however she was not sure where to start, what to include and then how to implement this with her existing franchisees.
Cariblue was engaged by Coffee News to help design and implement a new franchise package.
Cariblue in conjunction with Sue initially completed an Operational Review, which answered some of the main franchise questions for Sue.
From the detailed review the following was outlined:
- The pricing of the Franchise
- The inclusions in the franchise package
- The Franchisee Fees
- The support provided
- The costing of providing such support
- The daily operations and what could be documented and systemised
- The resources needed and how these will be delivered, including whether delivered internally or outsourced
- The consideration of including the printing option
- Developing a detailed Action Plan to implement:
- Any changes required from above review
- The repositioning of the franchise at an agreed new price
- Any changes to fees and the support provided to franchisees
- Implementation of the printing option if selected
Via a workshop style presentation, Cariblue was able to help Sue present the new package to her existing franchisees, encouraging a two way communication which led to a coherent group of happy franchisees all committed to the new direction of Coffee News.
From the work that was done by Cariblue along with the openness of the Coffee News Franchisees and Franchisor, they were able to achieve the goals set out by Sue.
- Change to meet market demands
- Strong drive and leadership for Coffee News
- Re-assessment of current business model
- High visibility of the brand in local areas
- Good readership and reputation for Coffee News
- Keeping abreast of changes in the Franchising Code of Conduct and other legislation changes
- Happy and successful franchisees
- Business relationship with franchisees
- Open two-way communication
- Shared vision