Franchise Talk

Mocha Blends Tweaks Franchising Strategy

July 2nd, 2009 | Author: Jack

Homegrown coffee shop chain Mocha Blends Corp. is banking on a new franchising strategy to continue expanding amid the economic downturn, and remains optimistic that the business would still grow this year.

The new business concept brings down the initial investment for franchisees to just around P500,000, compared to kiosks that cost at least P2 million and a full store that requires an initial P4 million, an official said.

This is because of a new technology eliminating the need for pricey espresso machines that eat up much of the franchise cost involved in setting up full stores and kiosks, said Ryle M. Nepomuceno, Mocha Blends brand manager.

The “espresso in a bottle” concept will be introduced for the first time in Mocha Blends “lounges,” the chain’s new franchising package, which is essentially a take-out store featuring selected hot espresso and blended beverages from the full menu.

The quality of the beverages will remain the same as in full stores and kiosks despite the simplified work flow and product preparation, Ms. Nepomuceno said in an interview.

The initial investment of P500,000 covers the stall, with franchisees providing other equipment such as refrigerators, blenders, and cash registers. The espresso in a bottle technique no longer requires espresso machines which cost up to P1 million.

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