Coffee chain holds out against slowdown

http://www.theaustralian.news.com.au
Bridget Carter January 29, 2009

PROPERTY expansion plans are under way for some cafe and bakery chains, which say they expect to be resilient to the weak economic conditions this year.

The Coffee Club says it is looking to add 24 cafes to its existing 220 in Australia and New Zealand this year after recently opening its first store inHobart.

Company director Emmanuel Drivas said in Colliers International's key retail indicators report that the Coffee Club would open its first store in Thailand early this year as part of its international expansion.

"The Coffee Club are continuing to source locations across Australia as the opportunities arise to meet the demands of both existing and new franchisees," he said.

"A carefully calculated development program will ensure the sustained long-term growth of the Coffee Club in 2009 and beyond."

Mr Drivas said that in the next year, about eight cafes were expected to open overseas, including four in New Zealand.

Mr Drivas also heads property company DKL, which owns several shopping centres where Coffee Club cafes are located.

It has six properties, including small shopping centres, most of which are in Queensland, and the offices where the Coffee Club's head office is based.

"We are very comfortable with the economy," he said. "There is a price point where anyone can afford a cup of coffee and a sandwich."

Meanwhile, Retail Food Group executive director Nigel Nixon said the group had expanded rapidly, largely through significant acquisitions of the Brumby's Bakeries' 324 outlets and Michel's Patisserie's 342 outlets franchise systems in the past 18 months.

Domestic organic growth of Donut King and bb's Cafe systems had also been strong.

"RFG is confident that this growth will continue into the second half of this financial year," Mr Nixon said.

RFG expects to open 55 new outlets in the 2009 financial year.