Australian franchise, The Chocolate Room, claims “significant success” in what its founder describes as a “chocolate crazy” Indian market.
While the five year old cafe concept has just six sites in Australia, the Indian franchise has managed to build up a network of 34 stores in the region in less than four years.
“The master franchisee we have in India is a very driven man and India is such a massive, growing economy,” says Jim Richardson, founder of The Chocolate Room.
“They embrace this western franchise system of doing business, in particular with chocolate. There’s a hunger for chocolate in India.”
Indian store numbers are expected to double in the next two years, however other countries are now also being focused on, with franchisees allocated for the the UK, the US and Canada.
Richardson says Canada is particularly exciting as there are no other other concepts like it.
“There really has been a gap in the market in those areas, so we’ve been lucky.”
Australia is also a priority, with particular focus upon The Chocolate Room’s home state of Victoria. There is only one store in Victoria at Queenscliff, with the other four in Sydney.
“That was just the way it happened with applications from franchisees. We have taken the approach that the people who run our stores are more important than where they’re located.”
Richardson and his wife came up with the concept after visiting one of their children in Europe and ending up “in the home of hot chocolate”: Bruges.
“We had both been in retail for some time and so we came home and figured out how to open a chocolate cafe of our own.”
He says it differentiates itself from other local chocolate cafe chains such as Max Brenner, Koko Black, and Lindt Cafe by having significantly lower prices.
Prices range between $3.50 and $6 for chocolate drinks sourced in Italy and truffles made locally in Australia.
“Our strengths are our people and price range. We also believe we’ve got a wider range of chocolate drinks and chocolates than the others,” says Richardson.
“To be honest I don’t spend a lot of time looking at the competition.”
The Chocolate Room prefers street facing sites located within shopping centres, specifically those located near destinations like cinemas.
It keeps costs low by focusing on contemporary stores that are clean and neat – “not overwhelming fitout costs”, says Richardson.
“We don’t use Italian marble or Swedish furniture. It’s about offering a comfortable surrounding. Mum, dad and the kids find it a very affordable treat for $30 which is great for the current climate.”
