Franchise Spotlight: Confectionary
Most franchises operate a cafe concept and specialise in sweet treats like chocolate, ice cream or frozen desserts.
Confectionary is of course enormously popular worldwide and Australians are no exception.
The country’s confectionery sector generated total revenues of $3.3 billion in 2019 – equating to 236 million kilograms in product weight – according to statistics from MarketResearch.com. This represented an industry growth rate of 1.3% since 2015.
Mindful of changing consumer demands, however, manufacturers and restaurants have protected the future of the confectionery industry by reducing sugar content, increasing nutritional value, and sourcing cocoa from sustainable or fair trade-certified sources, among other industry trends.
Franchise market analysis
Confectionery franchises typically sell lollies, chocolates, sweet pastries, cakes and/or ice cream, sometimes in addition to savoury foods. Mostly, they are sold out of modestly-sized premises for takeaway and, sometimes, on-premises consumption.
That cakes and desserts are often prepared and distributed from a centralized depot is good news for franchisees seeking a simple business model.
Ben & Jerry’s has since its foundation in 1978 focused on improving the ‘mouth feel’ of its ice creams, shakes, sundaes and ice cream cakes.
The iconic, Unilever-owned brand now has more than 500 franchised ‘Scoop Shops’ globally including around 30 stores across ANZ.
Offering 98% fat-free, gluten-free and probiotic-rich desserts, Tutti Frutti Frozen Yogurt offers health-conscious customers a guilt-free sweet treat.
This strategy, alongside a simple-to-operate business model where customers serve themselves, has seen it grow to 700 stores worldwide.
Oliver Brown imports premium chocolate from Belgium for use in hot and iced drinks, desserts and a range of chocolate bars, now sold from 45 Belgian chocolate cafes across Australia.
Goldsteins Bakery and Pie Shop has won awards for its signature pies, but also sells sweet pastries and cakes – all baked from a central bakehouse on the Gold Coast and distributed daily to 14 stores.
STACKS OF SNACKS supplies snack boxes comprising confectionery and other snacks to more than 31,000 workplaces across Australia.