8 Reasons Why a San Churro Franchise Is An Investment You Should Make

Thursday, August 18

Thinking about franchising but just don’t know where to start? San Churro has been bringing chocolate smiles to our customers for over 16 years, and, trust us – that’s a lot of practice in figuring out how to sell Churros. So, we’re here to make the decision easy for you and tell you why investing in the simple yet delicious Spanish Doughnut could be exactly what you’re looking for!

  1. We have a strong brand presence in Australia

After our founder, Giro Maurici, returned from an inspirational trip to Spain in 2006 which involved a late night love affair at a local Churro cafe, he had faith that Aussies would fall in love too. Since our first store in Fitzroy, VIC, we have been on a mission to become the number one sweet treat destination in the country and give Australians a taste of Spain. Now, with over 50 stores nation-wide, we are the first place Aussies think of when they hear the word ‘churro!’

  1. Unique product with innovation at our core

At San Churro, we’re constantly thinking about how we can level up our product. Sure, we pretty much have the most fool-proof Churro recipe in Australia, but that’s not all we do. We’ve won awards for product innovation including ‘Best Innovation – Food & Beverage’ for our Hot Chocolate Bombs at the 2021 QSR Media Awards, and Best Vegan Menu from PETA in 2019. Although our heart and soul lies within the humble Churro, we pride ourselves on bringing our customers new and exciting products like Croffles (it’s as if a Croissant and a Waffle had a love-child!) and Fruit Fresca drinks (think bubbly, fruity and summery perfection). Our award-winning product team looks to trend forecasts, sales data and customer research to create the next delicious San Churro menu item.

If you’re a self-diagnosed chocoholic and want to share your chocolate dreams with your community, the opportunities are endless!

  1. Customer service is #1

Nurturing the customer is at the heart of what we do at San Churro. After all, our customers are a part of our ‘familia’ and we want them to feel valued, respected and comfortable so that they come back for more. Our Support Office team provides our stores with the tools to deliver exceptional customer service, including in-depth and ongoing Franchise Partner and staff training, cheat sheets to help your team create our products to perfection, our el SOCIAL loyalty program that rewards our customers, and so much more.

  1. Our cost-efficient approach with everything we do is what improves the overall profitability of a San Churro store.

Our franchise model is built around cost efficiency, economies of scale and waste reduction. While we prioritise the importance of quality infrastructure, equipment, training and more, the San Churro business model focuses on constantly analysing and improving on costs to increase profitability for our Franchise Partners. 

San Churro, along with other brands in our industry, is considering sustainability and the rising price of raw materials and metals, to make decisions such as price increases on our menu, and negotiating cost decreases with our suppliers and partners. Today’s consumer is focused on sustainability as opposed to just price and quality when choosing what products to buy and which brands to buy from, and this is what impacts our decisions that help us remain successful in this current climate.

  1. San Churro supports its Franchise Partners in all areas of business. 

Every department at the San Churro Support Office is committed to the success of our stores and Franchise Partners. Once your San Churro journey begins, our Training team is by your side to ensure you’ve got everything you need to operate a thriving business. Our dedicated Business Development Managers are there to assist with making your store the best it can be, our bustling San Churro warehouse is working hard to get all the finest quality product to your door, and our Marketing and Product teams (who know the San Churro customer like the back of their hand) are creating the most exciting products and campaigns to stay ahead of the game! On top of all that, we’ve got you covered for the rest with our Finance, IT and Build departments. Yep, we’re all here for YOU!

  1. We are committed to doing the right thing for our community and the environment. 

For the eighth year running, we have partnered with Beyond Blue for Share a Churros Week, an initiative that encourages Aussies to catch up and share churros with loved ones. To date, we’ve raised over $264,000 for Beyond Blue’s 24/7 Support Services to help those impacted by anxiety and depression. Another initiative that we’re super proud of is our Fairtrade commitment to positively impact the lives of coffee farmers in Brazil, Honduras and Mexico. Through our partnership with Fairtrade, we have contributed more than $370,000 to directly help farmers escape poverty, improve working conditions and build better futures for themselves and their communities through our coffee sales.

We believe that as a business we have a responsibility to act with sustainability in the forefront of everything we do. We are currently working on an ongoing sustainable packaging project with the goal to be ahead of single-use plastic legislation. We love chocolate but hate waste!

  1. Joining the San Churro Familia is an adventure! Work with passionate people, have fun and be rewarded.

Life is never boring at San Churro. We’re all about being adventurous. We believe that if you’re not striving to grow, innovate and improve everyday then you’re going backwards, and this is how we have remained successful since 2006. Our existing San Churro Franchise Partners are a special group of individuals who share that same mindset and passion for our business. We don’t just let anyone become a Franchise Partner, we are looking for new familia members who are willing to put in the work and make an impact on our communities. We truly believe that the most important thing we have at San Churro is our passion to create a destination for friends and family to come together and share a sweet moment. Where every amigo is welcome to celebrate life, the Spanish way.

  1. With over 50 stores opening across Australia, San Churro’s franchising offers a proven way to enter the market and grow your own business.

Investing in your own San Churro store will give you the edge you simply wouldn’t get with starting your own business from scratch. We are known and trusted for our delicious and drool-worthy menu, fun and inclusive brand and friendly staff. Your potential customers are already out there, asking when a San Churro will finally open in their area!

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FAQs

1. What is the initial investment when opening a traditional San Churro store?

The cost of opening a brand new San Churro store varies depending on the size, location and format of the site, however the average initial investment ranges from approximately 450k – 650k depending on the site. This cost includes start-up fees, training fees, and store design and build costs.

Occasionally there will be an opportunity to invest in an existing San Churro store.

2. How can I finance my business?

There are many ways you can fund a San Churro:

  • From savings
  • Borrowing against existing personal assets
  • Borrowing a portion against the plant equipment purchased by the business
  • Using ready cash from the sale of an existing business or property
  • Borrow against the new San Churro business

San Churro currently has a preferred lending status with ANZ and CFI. Both specialise in franchise lending and have all the details of our franchise system.

3. How long has San Churro been in business?

San Churro commenced business in September 2004. The first store opened its doors in March 2006 in Fitzroy, Victoria.

4. Does San Churro help with location selection and the lease?

The San Churro Franchise Development team locates new potential San Churro store sites, however we are open to suggestions from prospective Franchise Partners who have a location of interest. The final decision on all new sites will be at San Churro’s discretion.

We then work closely with new Franchise Partners in negotiating with landlords to secure the best possible lease arrangement. The Franchise Partner will ultimately enter into the lease in their entity.

5. What is the average size of a San Churro store?

The ideal size of a San Churro store is approximately 60 – 175sqm, preferably with prominent frontage, highly visible signage opportunities and outdoor seating.

6. How long will it take to open a San Churro store?

It takes time to find the perfect San Churro site and work through the negotiation process. Once the site has been selected, designing and building a San Churro store takes approximately 12 – 18 weeks.

7. Am I required to work in the store?

Yes, we believe that it is vital that our Franchise Partners work in their stores. The best stores are those that the Franchise Partner operates as this ensures that they remain familiar with the store’s day-to-day operations and that their valued customers are experiencing the exceptional standards of service that they expect from a San Churro store.

8. What kind of training support is provided?

San Churro Chocolateria conducts a comprehensive 6-week Induction course for all Franchise Partners. Throughout this training, you will learn everything from how to make the perfect churros to how to manage a successful business.

In addition to the 6 weeks of Induction Training, the San Churro Support Office team will work with you to recruit your new team and provide initial training for your staff. The team will also be there to help set up your new store and work with you during your first week of trade.

9. What happens once my store opens?

Our dedicated San Churro Support Office team is always on call to provide ongoing support in all areas of your business including training, operations, marketing, finance, IT and more. There are also many opportunities to connect with the San Churro network with regional and national meetings. Our committed Business Development Managers will also conduct regular store visits to help your business be the best it can be. 

10. What kind of return can I expect from the operation of a San Churro franchise?

When you submit an application and pay your application fee, we will provide you with a copy of our current Disclosure Document, which will give some historical financial information based on the performance of our actual stores. We recommend that you enlist the assistance of professional business, accounting and legal advisers to assess the viability of the business.

Due to the significant variables affecting the profitable performance of each franchise, it is inappropriate for us to make any representation to you on the potential level of sales and profitability of any existing or new store.