Why Investing in Churros is a Sweet Business Opportunity

Friday, November 18

Authentic Spanish flair combined with cutting-edge products and marketing campaigns make the San Churro product the unique-yet-versatile customer favourite that it is today. Whether it’s a milestone celebration, a cosy winter date night or a movie night at home, there are endless reasons our customers choose San Churro again and again.

Back in 2006, our founder Giro Maurici wanted to create a place where people didn’t just come to eat, they came for an experience. An experience they wanted to bring with them their mums, their grandparents, their friends and everyone in between.

It was lucky that the Australian consumer wasn’t too familiar with Churros back then, because it meant that the Spanish Doughnut and the San Churro business model was not easily copied. Now, thanks to the hard work of our existing Franchise Partners and Support Office team, San Churro is a well-known and loved brand in the Australian food and beverage landscape and leads the way for dessert innovation. 

So… what makes our Churros so unique?

Our Churros are hand-crafted from scratch in-store using a traditional (vegan!) Spanish recipe and delivered straight from the Churrera to the plate. They’re adored served with cinnamon sugar and only the best couverture chocolate, but that hasn’t stopped us from creating endless versions of our favourite Spanish Doughnut including Churro Sundaes, Churros Snack Packs, Churro Bowls, Filled Churros and more. 

Our versatile product and ever-evolving menu is just one of the reasons why investing in a San Churro could be the perfect new adventure for you. With over 50 stores nationwide, we have established a successful business model with our existing Franchise Partners, and now we are focused on growth. This is the perfect opportunity to start your own San Churro and spread chocolate joy in your community. 

To get started on your San Churro journey, read more about our current opportunities or get in touch with us!

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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 $350,000 to $550,000. 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.