Stellarossa supports franchisees every step of the way
Stellarossa’s growth in the last year is no small feat. Especially when you learn the well-known espresso bar franchise isn’t a massive organisation with hundreds of franchisees like other hospitality businesses. So, how do they do it?
Stellarossa has already opened three stores this year and another six will open before Christmas. This is made possible due to the company’s external focus on helping franchisees overcome their four biggest challenges when starting and growing their own business: securing finance, paying annual fees, maintaining high standards and attracting customers. “One of the biggest challenges for franchisees is securing finance”, says Darren. “We’ve established good relationships with franchise lenders and we assist franchisees as much as we can.
We find franchisees who can show they have some equity such as property behind them, are more likely to gain finance”. Unlike some other franchises, Stellarossa has packaged up their fees to make them more accessible to franchisees who are just starting out.
“We keep our entry price realistic and our ongoing fees low”, explains Darren. “Only 4.75 % of their gross turnover is our total fees, ($350 a week for first $10,000, and then 6% of anything thereafter) which is very attractive for incoming franchisees as our competitors’ have fees of around 9 to 11%”.
“We visit each store every two to three weeks”, says Darren. “We conduct regular store audits every quarter and we give the franchise partner a score out of 100 points. Franchisees are audited on everything from cleanliness to uniforms to turnover”.
Stellarossa also continues to provide marketing support but doesn’t charge their franchisees a marketing fee. “We don’t have a marketing levy but we do expect our franchisees to spend 2% of their total gross on local area marketing. Especially in the first
few years to increase brand awareness and sales”, says Darren. “It’s very attractive for franchisees not to have to spend 2-3 % of
their earnings to head office and to be able to spend it how they want to.”
With Stellarossa now ready to expand to all states and territories, Darren says he’s looking for “someone who doesn’t have any preconceived ideas about franchising. They are open minded and don’t need extensive hospitality experience. But they do need to be willing to learn and willing to listen”.
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