ugh it is growing and becoming very strong in some suburbs, there are still many suburbs that still don’t have that independent coffee culture,” said Kanaris. Founded by Melbourne-based entrepreneur, George Pezaros, in 1999, Degani started with a single bakery café in Victoria’s Clifton Hill and has since grown to 70 stores, predominantly in metropolitan Melbourne, but also has five stores in Rockhampton, Queensland. On the move into Brisbane, Kanaris noted: “Our biggest competitor there is The Coffee Club and it’s very strong in QLD compared to Sydney and Melbourne. But each state and each consumer is different so you really have to tailor your offering, whether it’s what you are serving in the shop or what the purpose of your offering is. “The same applies to franchising. Selling a franchise in Brisbane is not the same as selling a franchise in Sydney or Melbourne even though the core business and business model is the same.” She said that despite it being “a bit of a slow burning process”, Degani plans to open more than 60 stores in the next 12 months, with an expansion into Western Australia the next target. “We are aiming to be there in the second half of this year to promote the brand and we are considering a company equity story over there to get the ball rolling.” Kanaris listed a lack of brand awareness and sluggish consumer spending as the biggest challenges to achieving Degani’s growth strategy at present. For franchisees, Kanaris believes Degani’s biggest point of difference is flexibility. “Our franchisees have hands on input into the design and construction of the store right down to the menu offering for two reasons. We cater to the ability of the franchisee and to the clientele of the franchisee. “A store in inner city Brisbane will have a slightly different offering to a store on the outskirts of Brisbane. Some of the other brands don’t offer the franchisee the flexibility to alter the menu to suit the customer. “If a suburb is very much into organic raw foods, we have a menu to suit that competition. Why would we set a franchisee up to fail if we can’t offer them what everyone in the area is consuming?” Degani is also leveraging off its success in Melbourne. “Nothing backs a good coffee brand like success in Melbourne,” said Kanaris. New Degani stores start from $350,000 and vary in size from smaller kiosks and cafes through to restaurants, with no two stores the same. Stores serve Degani’s signature coffee blend sourced from South America and Africa, and produced daily at the company’s warehouse in North Coburg, Melbourne. Degani has also partnered with Tea Drop Australia to provide a vast range of teas. Mediterranean infused food is served. Since the Calamvale doors opened, Degani has received around 50 enquiries from prospective franchisees looking to replicate the business model in other parts of the country. This story first appeared in Inside Retail PREMIUM issue 2045. To subscribe, click here.