Franchise Opportunity Brochure
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1 Franchise Opportunity Brochure
2 A Little Taste of Michel's Michel s Patisserie is renowned for its delicious specialty cakes, pastries, treats, savouries and exclusive award-winning coffee. Michel s Patisserie has grown to become Australia s largest patisserie chain with over 200 locations across Australia. Michel s Patisserie houses Michel s Espresso; a bespoke coffee blend crafted under the expert guidance of our internationally accredited Master Roaster. Michel s Espresso is an award-winning blend and its promise of expertise, coupled with some of the top Baristas in the country, ensures the perfect cup every time. Recently, Michel s Patisserie has evolved and extended to include their larger Café model. Michel s Patisserie & Café holds true to the Michel s Patisserie philosophy whilst providing its customers with an extended product offering. This model enables a larger footprint and includes a kitchen cooked café menu, with breakfast and light meals.
3 Our Philosophy & History our history Michel s began with a passionate European pastry chef. His vision: to share with Australians his love of exquisite cakes and pastries from the northern hemisphere. Michel Cattoen started small; baking delicacies for a select group of cafes and restaurants in But as his reputation flourished, the business grew and naturally his irresistible range of gateaux, fruit flans, quiches, pies, cookies, cakes, croissants and danish pastries needed a bigger stage. This was the inspiration for the first Michel s Patisserie and how the brand was born. National expansion was undertaken in 1990 and in 2007, Retail Food Group (RFG) - Australia s leading retail food brand manager and franchisor - acquired the franchise network which now operates over 200 stores nationally. Michel s Patisserie exists to: Amplify the Special Moments By creating and delivering quality cakes, coffees and savoury treats that elevate the occasion and make every individual and moment in life, no matter how big or small, feel extra special. In 2013 Michel s Patisserie underwent the single biggest transformation in its history to bring forward its French inspired heritage and create the store of the future; we called it Evolution. Now enriched with an exciting new in-store customer experience, new brand livery, and delicious new products, Michel s Patisserie is designed to surprise and delight every customer. Evolution hasn t stopped there; Michel s has continued further by introducing an exciting new store format, Michel s Patisserie and Café, opened in Cannonvale QLD in 2014 complete with an extended menu. Now selling over 16 million coffees and 1 million cakes per year, it is quality and evolution that s made Michel s Patisserie such a wonderful success for nearly 30 years and why it remains the largest patisserie chain in Australia.
4 Our Story and Awards our story Michel s Patisserie was created by French visionary Michel Cattoen, who wanted to share with the world his passion for exquisite sweet delicacies. Creating mouth-watering flavours influenced by the very best European kitchens, his dream soon came to life in Australia. The irresistible cakes, pastries and savouries customers enjoy today still reflect French excellence and help to make each moment in life, no matter how big or small, extra special. our awards Coffee Shop of the Year 2014 Coffee Shop of the Year 2013 Coffee Shop of the Year 2012 Coffee Shop of the Year 2011 Chain Store/Coffee Franchise (Milk Based) Bronze Medal Winner 2014 Best tasting coffee in a chain 2011
5 Our Evolution In 2013, the evolution of Michel s Patisserie took the brand back to its French heritage to bring forward a modern and appealing store design, new livery and to target a younger demographic. The evolution included: A refreshed, modernised logo; Updated, on trend colour palette; A new store design that has moved to a clean, warm, finish with white tiles, marble bench tops, dark wood timbers and red cladding; A warm and inviting seating area; and A revitalised product range, including baked pastries. Michel s Patisserie previously appealed to a 55+ demographic. With its new evolution, Michel s Patisserie will see the brand appeal to a wider demographic, including those aged 35+. Before
6 After
7 About Retail Food Group Retail Food Group Limited (RFG) is a publicly listed leading Australian retail food brand manager and franchisor. It is the intellectual property owner and manager of 11 successful franchise outlets including, but not limited to, Brumby s Bakery, Pizza Capers, Crust Gourmet Pizza, Cafe2U and Esquires Coffee House. Since its inception in 1989, Retail Food Group has successfully grown from a small franchisor with less than 50 stores to become the largest multi-food franchisor within Australasia with eleven (11) franchise systems, boasting in excess of 2,400 stores. a word from the ceo On behalf of Retail Food Group, and the Michel s Patisserie franchisor, we welcome the opportunity to introduce ourselves and our proven franchise systems and thank you for your inquiry. We are of the opinion and belief that our systems are some of the most respected systems in Australasia, remaining unsurpassed in terms of being fully integrated franchise systems, all offering quality products and market leadership in each of the brand s eleven target markets. We attribute this to the ongoing dedication and loyalty of our franchisees whose businesses are nurtured by a franchisor who provides business education, marketing and operational systems as well as ongoing, continually improving support systems which have been developed, enhanced and maintained over many years. Andre Nell RFG Managing Director
8 Why Franchising? Franchising offers business buyers the opportunity to be in business for themselves, but not by themselves. The benefits of being part of a franchise system are significant. The combined strength of a multibrand franchise system provides franchisees with: A competitive edge by their use of a wellknown brand; Access to established and proven business systems; Best price negotiated for them through the strength of the franchising system; Greater advertising frequency and marketing opportunity; Greater brand awareness through the visibility of the brand; and Access to a broad range of products, services and training programs. Michel s Patisserie Albion Park - Mario and Stacey We have been Michel s Patisserie franchisees since We originally came into the system as a means of having support of an established and recognised brand as we had no small business experience. We did however have a wealth of experience in customer service and knew that with the help of Michel s we could make things work. The Michel s system provides exceptional support on all aspects of the business to ensure that its franchisees succeed and continue to grow. This is evident in the coffee side of the franchise. Michel s has developed an exceptional coffee following having won Coffee Shop of the Year four years running. When we started eight years ago our store operated on 12 kilos of coffee a week. Thanks to the hard work of our team both in store and at the management level, we have been able to increase our coffee sales from 42 to 45 kilos a week with the growth continuing on a weekly basis. We love the vibe of our store and the customers we encounter on a day to day basis, going to work has never been so much fun. We are in the process of building a new store which has been daunting and exciting all at the same time. The Management team at Michel s have a wonderful vision for the business and the support that they have given us during this process has been nothing short of fantastic. In our time with the system we have seen many changes, but we truly see the direction that we are heading as being the best for our system. We are extremely excited for what the future holds for us and the franchisor. MARCH 2015 Michel s Patisserie Glenmore Park - Nady and Wafaa Wafaa and I met at university while we were studying our business degree in Egypt. After arriving in Australia I worked as a store manager for Woolworths for many years. Retail and food has always been something I enjoyed and wanted to pursue. We are very passionate about our Michel s Patisserie and have now been in the system for four years. We fell in love with the brand and what is has to offer. Nothing is more satisfying than seeing our customers always happy and being offered the best customer service ever which has been acknowledged by them, voted for us to win the favourite retailer in the centre for the second year running. We take pride in what we sell and offer to our customers. Coffee is the secret to the success of our business and we love making every cup. Very rewarding and satisfying to get such satisfaction at the end of the day. MARCH 2015
9 Everything you need to know about Michel's Patisserie Available in two different formats, Kiosk and Inline, Michel s Patisserie offers customers a dinein or take-away experience across a variety of product offerings. Michel s offers six main product categories, which covers Hot Drinks, Cold Drinks, Whole Cakes, Special Occasion Cakes, Individual Sweet Cakes and Savouries. The Michel s Patisserie format is typically found in small neighbourhood shopping centres, or large scale shopping centres, and can vary in size depending on location. Michel's Patisserie Menu whole cakes A delicious range of cakes to share, celebration cakes, build to order cakes and special event products, designed to elevate the occasion and make every customer feel special. From our signature and well known mud cakes to creamy cheesecakes and soft, fluffy sponges, every Michel s Patisserie cake is created to surprise and delight customers. individual sweet The perfect treat to sweeten your day. From a delicious slice of our renowned Cake of the Day to a Shortbread Man to treat your child s good grades. Michel s Patisserie fills its cabinets every day with delicious tarts, buttery biscuits, sweet slices and delicious kids treats. savoury A tempting selection of home-style savouries that are perfect for a lunch time escape. From warm pies, sausage rolls and quiches to freshly filled sandwiches and crunchy baguettes. hot drinks Our award-winning Michel s Espresso is sourced with care, crafted with passion and expertly roasted in Australia by Michel s. From Mochas to the best Chai Lattes, to the perfect tea selection, Michel s Patisserie offers a wide range of hot drinks. cold drinks A sophisticated range of chilled iced-teas, indulgent frappe blends and fruit smoothies along with ready to drink options. The perfect way to unwind.
10 size Kiosk = 28 m² - 30 m² size Inline = 50 m² m² *Sizes are indicative only and may not represent all stores.
11 Everything you need to know about Michel's Patisserie & Cafe Our newest concept, Michel s Patisserie & Café, was first opened in 2014 with great success. Michel s Patisserie & Café is everything a Michel s Patisserie is, with a little extra touch. Whilst still maintaining a take-away offering, this concept offers an extended dine in experience, so customers are invited to stay a little longer. The menu offers everything a standard Michel s does with added breakfast and light meal options. Michel s Patisserie and Café s are equipped with an easy to run short order kitchen, an easy to execute menu that doesn t rely on a fully qualified chef together with a larger seating area to ensure all customers can be catered too. The Michel s Patisserie & Café model typically achieves a higher average transaction value and is suited to shopping malls or strip locations. Michel's Patisserie & Cafe Menu The same Michel s Patisserie product offering of Hot Drinks, Cold Drinks, Savouries, Individual Sweet Products and Whole Cakes with a little more! breakfast Delicious hot breakfast options, from Bacon and Eggs to Eggs Benedict, enjoyed alongside an award-winning Michel s Espresso. light meals Escape the chaos and relax with a delicious café meal. A selection of delicious fresh salads, chicken parmigiana, seafood basket and more. Smaller meals are also available for the kids.
12 Everything you need to know about Michel's Patisserie & Cafe size Café = 90 m² m² The café menu is extremely simple, meaning there is no requirement for a professional chef! *Sizes are indicative only and may not represent all stores.
13 Everything you need to know about Michel's Espresso Michel s Espresso is Michel s Patisserie s in house, multi award-winning coffee brand. Accessing the world s finest coffee beans, Michel s Espresso sells around 16 million cups of coffee a year and provides its customers with some of the best coffee in the country. With our own state of the art roasting facility, Michel s produces over 212,000kgs annually of its sought after bean, designed and crafted especially for the Australian palette with undertones of chocolat and berries. Our internationally accredited Master Roaster ensures that our Michel s Espresso blend is sourced, roasted and blended consistently, every time, whilst our fully qualified and trained Baristas provide the same quality and expertise in every cup of coffee poured at Michel s. In 2013 Evolution also touched Michel s Espresso to ensure the brand was highlighted in the coffee market whilst maintaining recognition to the Michel s Patisserie brand. The new look and feel elevates our coffee expertise and appeals to a wider demographic.
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15 Support 100% of the way! Being part of a franchised system means you are supported 100% of the way. By following best practice we give you the tools to grow and operate your own business. Components of support include: learning and developing Training People from all walks of life can become successful Michel s Patisserie franchisees. No prior baking or coffee knowledge is required. A comprehensive preliminary training programme is provided for all new owners covering theoretical and practical aspects of coffee making, customer service and operational facets all trained in our state of the art, purpose built training academy on the Gold Coast. Once the training in the academy is completed, an in-store practical component follows, as does onsite assistance at opening or takeover stage. Our franchisees have access to comprehensive online training programs, Inspire and RIOT, to help train their team. In-store training is delivered on a needs basis by our dedicated Sales and Performance Managers and Barista Trainers at no additional cost. All of this means that our franchisees are supported 100% of the way. driving customers to stores Marketing Michel s Patisserie s marketing department are a team of qualified professionals with years of experience creating and implementing innovative and successful marketing programs. The marketing team are responsible for all major national campaigns, digital and social media, promotions and point of sale materials as well as helping you with local area marketing all activities having the primary focus of driving customers into your store, increasing store sales and enhancing the Michel s Patisserie experience for every customer.
16 daily assistance Operations The Michel s Patisserie operations team are there daily to help you, with a dedicated Sales and Performance Manager who will help review your profit and loss statement to improve your profitability in line with the national average -COGs, labour and sales, help you set daily targets to help you achieve your goals and assist you with any training you and your staff require to help you get the most out of your business. buying power Procurement The experienced Michel s Patisserie procurement team have a proven track record of managing key supply chains within the food industry. Their focus is on managing suppliers to deliver quality, supply chain integrity, innovation and value. They utilise the strength across all of our brands to negotiate the best price for our franchisees. All of this means greater savings, efficiencies and service for our franchisees.
17 Is Michel's the right business for me? At Michel s Patisserie we take the process of selecting our franchising partners very seriously. We do not require that you have experience in running a café, rather that you have the right personality, outlook and aspirations. If you are wondering whether you are the right type of person to become a Michel s Patisserie franchisee, start by asking yourself the following questions: 1. Do I have good people skills? 2. Do I really want to take control of my destiny? 3. Do I have a strong desire to succeed in my own business? 4. Am I prepared to have personal day-to-day involvement in my business? 5. Do I have a positive attitude? 6. Do I have strong communication skills? 7. Do I have a genuine interest in people? 8. Do I have the ability to deliver outstanding customer service? 9. Am I prepared to learn and to adopt new ideas? If you can honestly answer YES to all of these questions, then you may be our next Michel s Patisserie franchisee.
18 Joining the Michel's Patisserie Team So you ve decided a Michel s Patisserie franchise is for you! We are here to support you every step of the way through the application process. Step 1 You make your initial enquiry and are introduced to the Michel s Patisserie Franchise Sales Executive. They will arrange for an information package to be provided to you. Step 2 A first meeting and interview is completed. New store location information is provided to you and if appropriate at this time, a site specific budget estimate is offered. Having received this information, you are now able to consider finance options. Step 3 You are provided with the Michel s Patisserie disclosure documentation and a franchise application form. Please complete these in full and return to your Michel s Patisserie Franchise Sales Executive. A refundable deposit is to be included with the application. Step 4 You should now obtain independent legal and financial advice. Step 5 You are invited to take part in a formal operational interview with an RFG representative. This report is added to your application for approval and helps us determine your suitability to the Michel s Patisserie system. Step 6 The RFG Legal Department will inform you whether your application has been approved or declined, and if approved, a conditional franchise approval letter will be sent to you. After you have obtained legal advice, the conditional franchise approval should be signed and returned to RFG. Once this is received, RFG will provide available training intake dates, subject to the completion of formal approval conditions.
19 Joining the Michel's Patisserie Team Step 7 You must now have confirmed that you have obtained finance approval, ensuring that the finance allows for the making of progress payments. RFG now issues you with the formal franchise grant documentation. We request that you seek mandatory independent legal advice (it is also recommended that you seek financial and business advice at this time). Step 8 You execute and return the franchise grant documentation with all of the requested deposits or progress payments. Cooling off periods apply to enable training commencement, so it is important to attend this in a timely manner. Step 9 Your training at the RFG Academy in Southport Queensland begins provided all formal conditions have been met. Staged progress payments commence. Step 10 The shop fitter s contract is completed and progress payments continue. Step 11 You graduate from the RFG Training Academy. Step 12 You now make payment of any balances remaining. Step 13 Your Michel s Patisserie outlet opens! Step 14 RFG provides you with ongoing support in all aspects of your business including administration, financial management, local area marketing, coffee, retail operations and customer service. You will receive regular visits from your dedicated Sales and Performance Manager, as well as being provided with newsletters and other communication pieces. You are now part of the network of Michel s Patisserie franchisees. The foregoing is a guide only. The application process is dependent on individual circumstances.
20 Investment what s included? A fully fitted out Michel s Patisserie store; Five weeks training, plus 3 days in-store training Reference manuals for your store and staff; Promotional support covering national promotions, local area marketing, advertising, product innovation and PR; Your initial franchise fee; and Ongoing franchise support from Retail Food Group. Agreement term: 5 year term plus an additional 5 years (adapted to suit site lease terms) - Total of 10 years. Ongoing franchise fee: 7% of gross sales per week. Ongoing marketing contribution: 3% of gross sales per week. Ongoing Inspire training contribution: $23 per week Opening hours: Typically 7 days per week, with hours dependent upon individual locations. new stores The investment required for a new store is generally within the range of $300,000 to $400,000 (excluding GST), including initial franchise fees. Investment level is dependent upon the store concept chosen, size of the site, equipment required and the landlord conditions or contributions. established stores There are many advantages to taking over an existing store. Established stores have the benefit of already having been set up and maintaining a loyal customer base in a proven site. The selling price of existing stores is set by the current franchisee and will vary as does the price of any existing business. *Fees and charges are a guide only and may be subject to change.
21 Investment conversions Many factors will determine the cost of converting an existing business to the Michel s Patisserie franchise system and as such no price range can be offered in this booklet. Please contact us for more information on converting your existing café to the Michel s Patisserie franchise system. international master franchise The licence will depend on the size and market potential of the country or region being purchased. Please contact us for more information on International Master Licences.
22 What should i do next? Contact our Franchise Sales Executive to discuss suitable sites in your area on or rfga@rfg.com.au with your contact details and we will make contact with you. 1. Attend an information meeting with our Sales Executive, or request a meeting via SKYPE or teleconference. 2. Review all information obtained during the meeting and make a decision on your preferred store/site. 3. Request an application form and disclosure document. 4. Complete the application and through to the Franchise Sales Executive once completed. 5. Confirm your purchasing ability with your bank and with your accountant. 6. Speak to existing franchisees. 7. Seek legal and financial advice.
23 Contact Thank you for taking the time to read this document. If this information pack has raised more questions than it answers we are delighted - there is so much more we can tell you about the Michel s Patisserie franchise opportunity. visit our websites: call us Free Call: rfga@rfg.com.au Web: Your contact in the Sales and Leasing Department is: Joanne Taylor Sales Executive
24 Frequently Asked Questions Q: Do I require any special experience? A: No, although having business experience is always an advantage. We provide comprehensive training for all areas of your new store. Q: What is the term of a franchise agreement? A: New franchisees are ordinarily granted a five (5) year initial franchise term together with an option to renew for a further five (5) years. This may vary depending upon the term of the lease applicable to the site. Q: What is the total cost of acquiring and opening a Michel s franchise? A: A new Michel s Patisserie or Michel s Patisserie & Cafe store can range in price from $300,000 to $400,000 (excluding GST). Q: What does the total cost include? A: It includes a fully fitted-out store and equipment, training, manuals and initial franchise fee but excludes GST. Q: Do I have to pay a deposit? If so when and under what circumstances would I lose my deposit or any part of it? A: A deposit is payable upon application. These monies, less the franchisor s reasonable expenses, are refundable if the application is not approved. Q: What are the ongoing fees of the franchise? A: A franchise service fee of 7% (plus GST) of your total gross sales is calculated weekly, payable in connection with the Michel s Patisserie franchise system. A marketing contribution equal to 3% (plus GST) of your total gross sales is calculated weekly, also payable into an independently audited marketing fund. Q: How much profit will I make? A: This depends largely on several factors such as the value of wages paid, cost of goods and other operating costs and generally how you operate your business. We have identified certain key performance indicators which are monitored in order to maximise your profitability. Q: What initial franchise fees are payable? A: $50,000 (plus GST) - initial franchise fee $13,500 (plus GST) - training fee $3,000 (plus GST) - initial marketing fee The Franchisor s disclosure document provides full details of all fees and costs in connection with the establishment of a Michel s Patisserie franchise. Q: Do I need any other money to start? A: It is recommended that you have money available to be used as working capital and as a minimum we would expect you to have $16,500. This will cover costs such as accounting and legal fees, business and public liability insurance and your first day s trading stock and packaging. You will also need to budget for accommodation and living away from home expenses while at our training academy in Queensland. For a more precise list of costs associated with the acquisition of the franchise, refer to the Franchisors Disclosure Document. Q: What services are included in return for the franchise and marketing fees? A: The services you will receive covers a wide range of management assistance and operational services, including: On-going operational training, tools and support; Marketing support including national advertising, public relations campaigns, media selection and national media placement; Stringent quality control standards; and A Sales and Performance Manager to assist franchisees with all aspects of daily operations Q: Who are the main competitors to Michel s Patisserie? A: Other competitors in our market include local patisseries, Gloria Jeans, Zaraffas, Coffee Club and Jamaica Blue. Michel s Patisserie s strength lies in our exclusive award-winning coffee, delicious sweet treats and scrumptious savouries, plus the security of being part of Australia s largest multibrand franchising group Retail Food Group. Q: Who selects the site? A: Michel s Patisserie will select the site and secure the lease. Ultimately however, you must satisfy yourself as to the suitability of the premises. *These fees and charges are correct at date of publication and may be subject to change.
25 Frequently Asked Questions Q: Have you got any sites ready to go? A: Yes. Please speak with our Sales Executives fo further information. Q: Are Franchisees expected to actively work in store? A: Yes. Franchisees are expected to work in store. This is an important factor in the success of our stores Q: Why should I purchase a Michel s Patisserie? A: Michel s Patisserie offers delicious cakes and savouries as well as award winning espresso coffee; Comprehensive training at our purpose built training Academy on the Gold Coast with dedicated, experienced and qualified trainers; Proven franchise operating system; Field training and ongoing support; National integrated advertising and promotional campaigns; A cash business offering minimal risk of bad debt; and The opportunity to become a successful business owner.
26 Michels Patisserie 2016 Information enclosed within was correct at time of print, and is subject to change at the sole discretion of the franchisor.
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