The coffee story

You can’t miss this name in Toronto, Aroma espresso bar. It opened its first location in 2007 in Toronto’s Annex neighbourhood. It has since expanded across the Greater Toronto Area as well as locations in Markham, Mississauga, Niagara-on-the-Lake, and Oakville. After a decade, there are 39 Aroma stores across Ontario and expected a few more to be opened soon.

Something about Aroma espresso bar

– A franchising business model;A franchise fee of $50,000 is due at the commencement of the 10-year franchise agreement.The typical construction costs for an aroma espresso bar franchise range between $500,000 and $1,500,000; And a 7% Royalty fee and a 2% Advertising fee.
– Offers healthy, made to order menu to differentiate from other coffee chains out there;
– Interesting coffee shop setting, every location has a patio including the new patio by the Water;
– Store size normally about 1,800 square feet in order to accommodate a full kitchen for on-site food preparation;

Seems a very simple business model and poised a strong momentum for growth, what’s the secret then?
– targets underserved niche in the saturated world of coffee chains;
– the model has the ability to make changes and accommodate client’s requests;
– capable to scale up to meet mass customers as compared to independent coffee shops;

What the coffee story tells you, restaurant owners,coffee shops owners, or any other business owners?

From franchisor’s perspective:
– Offers something different from competitors, either big coffee chains or independent coffee shops;
– Scale up the business through franchising and bring recurring management fee(7%) to boost up the valuation of the franchise

From franchisee’s perspective:
– Franchisee training is required to ensure service and food are provided on a consistent basis; as the managing partner Anat Davidzon stressed,”if you are not detail-oriented and you are not able to fulfill those procedures and, you cut corners.” Cut corners is a short term solution and a threat to consistency.
– Another vital area that franchisees doing quite well is to manage cash flows, inventory as well as demands and supplies. Good management all starts from the basic, the books. Good prep work will lead you to better performance management and success.

How is the quality of your books? Does it help manage your business efficiently? If not, give us a call.

FranklyCA makes your business life simpler and more focused.We help our clients prepare beautifully organized accounting data (call books)/working paper.By leveraging the technology, we make it easy for you(business owners) to picture the competitive business world and be prepared for future growth. Bookkeeping should be wonderful. We love it as we believe,there is a gold mine in your books.