San Churro Franchise Business for Sale in Ultimo, NSW 2007
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Company overview and history
San Churro was founded in 2006 by Giro Maurici and Kelly, inspired by the churros Maurici tasted in Spain. The company has grown significantly since its first store opened in Fitzroy, Melbourne. By 2012, San Churro had expanded to 30 stores with a $30 million turnover. As of 2016, the franchise had 51 stores and over 1,200 staff. Currently, San Churro operates over 50 stores across Australia, with an annual revenue of $653.7 million. The company is known for replicating the traditional Spanish chocolateria experience, offering hand-crafted churros with high-quality chocolate. Since 2010, San Churro has been committed to using Fairtrade certified coffee and tea.
Product/service offerings
- Churros (traditional Spanish doughnuts)
- Hot and cold chocolate drinks
- Coffee and other beverages
- Ice cream and gelato
- Cakes and other desserts
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Target market and industry trends
San Churro primarily targets young adults and families looking for indulgent dessert experiences. The dessert café industry has seen growth in recent years, with increasing consumer interest in unique and Instagram-worthy treats. San Churro has adapted to market trends by offering over 40 vegan-friendly options across their menu, catering to the growing demand for plant-based alternatives.
Ongoing fees (royalties, marketing fees)
- Royalty fee: 6% of Gross Revenue
- National Advertising & Development Fund: 3% of Gross Revenue
Training and support provided to franchisees
San Churro offers comprehensive training and support to its franchisees, including:
- 6-week Induction course for Franchise Partners covering churro making and business management
- Support Office assistance in staff recruitment and initial training
- Ongoing support in training, operations, marketing, finance, and IT
- Regular store visits by Business Development Managers
- Franchise Development team aid in location selection and lease negotiations
- Access to Support Office teams including Finance, Product, Marketing, IT, Learning & Development, HR, and Operations
Day in the life
A typical day for a San Churro franchisee might include:
- Opening the store and ensuring all equipment is operational
- Overseeing food preparation and quality control
- Managing staff rosters and training
- Engaging with customers and ensuring high levels of service
- Monitoring inventory and placing orders as needed
- Reviewing daily sales figures and financial performance
- Implementing local marketing initiatives
- Closing the store and preparing for the next day
Franchisees should be prepared for hands-on involvement in daily operations, particularly in the early stages of the business.
Staffing requirements
Staffing needs may vary depending on the location and size of the franchise, but typically include:
- Store manager
- Shift supervisors
- Front-of-house staff
- Kitchen staff
Location requirements and territory information
San Churro franchises are typically located in:
The ideal store size is 60 – 175sqm with prominent signage and outdoor seating. The new Clásico format targets smaller locations of 60-90 sqm. The design and build process typically takes 12 – 18 weeks after site selection.
- Shopping centres
- High-street locations
- Entertainment precincts
- Strips and smaller precincts (for the new Clásico format)
- Airports (for the new Clásico format)
Territory exclusivity may be offered, but details should be confirmed with the franchisor.
Financing options available
San Churro offers preferred lending status with ANZ and CFI. Financing options may include savings, borrowing against personal assets, borrowing against plant equipment, cash from sale of existing business or property, or borrowing against the new business. For the most up-to-date information about financing options for a San Churro franchise, it is recommended that you reach out to San Churro using the "Send Enquiry" function on Hattch.
Franchisee qualifications and experience required
- Strong business acumen
- Passion for customer service
- Leadership and team management skills
- Financial capability to invest
- Previous business or management experience (preferred but not always required)
Unique selling propositions and competitive advantages
- Specialisation in Spanish-inspired desserts, particularly churros
- High-quality, ethically sourced chocolate
- Unique and indulgent menu offerings
- Strong brand recognition in the Australian market
Challenges and potential risks for franchisees
- Competition in the dessert café market
- Seasonal fluctuations in demand
- Rising costs of ingredients and labour
- Changing consumer preferences and dietary trends
- Economic factors affecting discretionary spending
Testimonials or success stories from current franchisees
While specific testimonials are not publicly available, San Churro has received positive feedback from various sources:
- Employees praise the work environment, training, and management, noting a friendly and supportive culture with development opportunities.
- San Churro has received a high franchise rating from FRANdata for transparency, financial outcomes, and satisfaction.
- The high franchise rating suggests positive experiences for many franchisees, based on financial performance and strong lender relations.
- Consumers generally praise the friendly staff and good management at store level.
- The brand has received high ratings and awards, indicating a positive reputation in the market.
It's recommended to speak with current franchisees during the due diligence process to gain firsthand insights into their experiences.
Application process and next steps for interested parties
- Reach out to San Churro using the "Send Enquiry" function on Hattch
- Complete the initial application form
- Attend an initial meeting or information session
- Review the Franchise Disclosure Document
- Conduct due diligence, including speaking with current franchisees
- Secure financing (if required)
- Sign the franchise agreement
- Complete training and prepare for store opening
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Franchise Overview
Number of Franchises:
34
Number of Franchise Locations:
48
Number of Corporate Locations:
6
Franchise Partner Type:
Owner Operator, Investor
Opportunity Type:
New Franchise
Year Established:
2006
Investment Range:
$300K - $500K
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