FRANCHISE INFORMATION
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1 Café Vienna FRANCHISE INFORMATION since 1913
2 AIDA SNAPSHOT => One century of success: AIDA serves its customers with first class pastries, cakes and coffee since more than 100 years as an Austrian family business in its 4 th generation => Highest quality standards: selected innovative products and hand-picked ingredients ensure our sustainable success => A piece of Austrian culture: offering its products in a traditional, exclusive Viennese ambience, imperial atmosphere and coffee house culture => Growth strategy: Franchise possibilities worldwide. 2
3 100 Years of Success 1913: Joseph Prousek opens his first coffee shop 1917: Joseph Prousek opens the first factory in Vienna 1934: 11 outlets are oppenned 1943: Aida started shock freezing the products 1945: The first big B2B order for the American soldiers (Ice Cream and Doughnuts) 1946: Felix Prousek the second generation joins the company and opens more stores with his father. 1950: Felix Prousek is announced CEO 1973: Due to demand new outlets and a bigger factory is built 1990: Over 20 outlets are oppened 2003: Michael Prousek is announced CEO 2005: 28 outlets in Vienna have been oppenend 2007: Dominik Prousek (4 th generation) joining the familiy business 2008: Two franchise outlets in Vienna oppened 2012: Aida opens four franchise outlets in Vienna which makes it a total of 31 stores in Vienna 2013: Aida opens in first international franchise outlets in Zagreb Croatia, Jeddah Saudi Arabia and Krakow Poland 2014: 2 shops are under construction in Kazakhstan, 1 shop in Shanghai, 3 shops in Saudi Arabia and one shop in Bosnia. Further Aida franchises are being planned world wide 3
4 AIDA Facts => Largest and most exclusive privately owned confectionery producer and coffee shop brand in Europe => Operates 29 AIDA stores in its home market Vienna, where 18,000 cups of coffee sold daily and 115 tons of coffee are served per year => Franchise roll-out started in Riyadh and Jeddah, Saudi Arabia, 3 coffee shops in Doha Qatar open in 2013 => More than 300 employees worldwide => 130 confectioners produce 3 tons of cakes and pastries daily => Winner of the Golden Coffee Bean in
5 AIDA - Value Chain Product Development Selection of coffee, tea, ingredients Product Distribution AIDA outlets Products to go => AIDA SERVICES COVER THE ENTIRE VALUE-CHAIN, ensuring best-in-class quality standards => Constant research & development of new products to meet demands of different cultures, catering to the tastes of local consumers => Continuous improvement and diversification of supply-chain, including numerous Fair Trade suppliers of high quality beans => New market trends: implementation of a healthy low-calorie line, AidA light, and introduction of AidA Premium Single Cups 5
6 Product Portfolio => A variety of over 350 products => Menus are adjusted to the target market, eg. for the Asian Franchises AidA will offer a fine selection of local teas and deserts => Taste and sweetness of products can be adapted to the market => 98% of our products are shock frozen and last over 6 months => They are shipped from Vienna by cargo twice a month to any destination and have to be stored in a cooled warehouse => Local production, tbd COFFEE TEA CAKES PASTRY CHOCOLATES SALADS SNACKS ICE CREAM SOFT DRINKS GIFTS MERCHANDISE 6
7 Corporate Clients Aida provides tailor-made and customized products for a selective range of clients and distribution channels: => High end hotel industry: eg Burj Al Arab => Retail store chains, eg SPAR => Wholesale store chains, eg Metro => Corporate clients, like Fashion TV => Catering services for special events, like weddings or conferences => Home delivery services (on request) 7
8 Customers Aida coffee shop is a popular meeting point for private and for business, for socializing and for relaxing over a coffee, a cake or a lunch snack. The shop also offers an integrated takeaway bar for coffee, cakes and sweet Austrian dishes. Our target group => Varying, based on the shop concept => Comprises connoisseurs, people who define themselves through tastefulness and exclusive style => Our customers are highly quality-conscious. They know what they get since we always keep our promise and are willing to pay a certain premium for exclusivity and quality => High recognition value: A lot of regular customers visit our shops several times a week. 8
9 Market Environment Market environment Expensive 5* Hotel Coffee Shops High quality Low quality Independent Coffee Shops Inexpensive 9 9
10 AIDA s unique selling proposition => Sustainability: 100 year of success through continuous achievement of highest and constant quality standards in the entire value chain, in production, distribution, sales and services => High-End-Diversity: exclusive product range comprises a variety of unique cakes, coffees, salads, soups, snacks, ice cream, pastries and gifts => Flexibility: Highly flexible market requirements through tailormade shop concepts (3 modules, AidA PiNK, AidA BROWN and AidA GOLd address specific target groups) => AIDA personality : serving clients with a piece of Vienna, combining tradition, luxury, style and Viennese charm with comfort and pleasure 10
11 China - market analysis => Europe and North America, average coffee consumption per capita 400 cups pa, Japan s 360 cups; Chinese consumption around 20 cups in metropolitan areas, like Beijing, Shanghai, Guangzhou. => China s coffee shop market offers boundless potential, market growth 30% pa, compared to 2% worldwide; approx. 200 million potential consumers in China, which would put China on a par with the major coffee consumer, the United States. => Starbucks Coffee International plans to increase its outlets in mainland China, from 700 to 1,500 by => Majority of visitors are at the age of years, affluent, fashion-conscious, urban Chinese. Foreign travelers and expatriates account for 15% to 25% of coffee house customers. => Chinese frequently visit coffee shops to experience merchandise like coffee mugs, thermoses and a variety of beverage and fresh pastries in a cozy ambience 11
12 3 Shop Concepts 1. AIDA PINK a.) Pink wall b.) Pink shop 2.AIDA CLASSIC (for home-market only) 3. AIDA GOLD 12
13 AIDA PINK Target market / location: designed for airports, retail chains, busy areas, hospitals, malls, bookstores, etc. 2 modules: => AIDA PINK WALL or => AIDA PINK SHOP Target group: 20 to 80, travelers, shoppers, patients and visitors Core business: coffee & pastry to go, breakfast & snacks to go, cakes, beverages and merchandise Advantages: => flexible modules => Low investment costs => Maximum 2 employees => Only small space needed 13
14 AIDA PINK WALL Size: 2 sqm Employees: none Shop-in-shop: in retail stores & duty free shops Facilities: => Espresso machine => Showcase for warm pastry => Showcase for cooled cakes Product shelves => Coffee (AIDA-Tabs, Classic AIDA, AIDA Espresso) => Chocolates and confections => Gift and seasonal items => Cakes in boxes 14
15 AIDA PINK SHOP Size: 6-15 sqm Employees : 1 sales person Location: public facilities and highly frequented areas like airports, on busy streets, malls, trainstations, hospitals, bookstores, hotels Facilities: => Fresh-oven and microwave => Espresso Machine => Bar tables and / or seating area => Cooled and Heated Display => Sales desk => Locker room for staff and storage space Average stay per costumer: 3-10 min 15
16 AIDA PINK SHOP Size: 10-50sqm Employees : 2 sales person Infrastructure & Facilities: => Garden / parking area => Order and Sales Window, Sales desk => Fresh oven, espresso machine, microwave => Bar tables and seating area => Cooled and Heated Display => Locker room for staff and storage space Products => Coffee, AIDA chocolates and sweets => Gift and seasonal items - various hot and cold drinks- => Pastry, Coffee, Snacks and lunch to go Average stay per costumer 3-12min 16
17 AIDA PINK DRIVE Size: sqm Employees : 2 sales person Infrastructure & Facilities: => Garden / parking area => Order and Sales Window, Sales desk => Fresh oven, espresso machine, microwave => Bar tables and seating area => Cooled and Heated Display => Locker room for staff and storage space Products => Coffee, AIDA chocolates and sweets => Gift and seasonal items - various hot and cold drinks- => Pastry, Coffee, Snacks and lunch to go Average stay per costumer 3-12min 17
18 AIDA CLASSIC Size: sqm Employees: 2-5 sales person Location: busy street corners, shopping malls, airports Designed as a classic Viennese café with pictures of famous Austrian characters such as Mozart and empress Sissi Target group: at the age of Mass marketing Average stay per costumer 12min 18
19 AIDA GOLD AIDA Gold is the luxury line of AIDA brand and preferred franchise-brand Size: sqm Employees: 4-40 sales person Location: flagship sites, and shopping malls, busy streets in city centre, airports A combination of old imperialistic futures combined with modern fusion. Average stay per costumer 20 minutes 19
20 AIDA - Franchise Owning and operating an AidA store comprises the use of the brand name, trademarks, products, operational systems, interior and décor and marketing. Additionally AIDA provides a franchise manual and further assistance in: => Site selection => Facility planning and architectural design (drawings and specifications, specifications for fixtures and equipment) => On-site Training of owner/operator, operational manager, sales team => Pricing policy and increasing profitability => improving efficiency of operational and administration processes => Continuous support from members of the Training and Operations Team => Continuous updates and exchange of information on market trends and innovations 20
21 Franchise - parameters Average Investment/Unit/Store The initial estimated investment of an AIDA coffee shop is in the range of USDxx and USDxx, based on location, structure and size and including initial franchise-fee. Investment including fully fitted store, equipment, training, franchise manual and continuous franchise support. Types of Franchise a) Terrestrial Franchise b) Single-shop Franchise Fees Initial Franchise Fees (one-time cost): tbd Monthly royalty fee (% of turnover): 6% of gross sales Monthly marketing contribution fee (% of turnover): 1% of gross sales Term of Franchise Agreement: Minimum of x-years 21
22 What is an Aida Master-franchise? Master Franchise gives the franchisee the possibility to have the AIDA franchise rights to own and sub- franchise all three AIDA models in PINK, BROWN, GOLD for an entire country or city. There is a one-time payment to own a Masterfranchise which depends on the country. The Master-franchisee himself can open an unlimited amount of stores with a royalty of 6%, but without further franchise fees to Aida for store openings. In case of sub-franchising, the franchise fee per store and royalty fee will be split between the Master-franchisee and Aida. Masterfranchisee has further the right to sell the goods to grocery stores, hotels, catering and other B2B possibilities. What is an Aida Sub-franchise? An Aida Sub-franchisor has the choice of opening one of the three AIDA models PINK, BROWN and GOLD. There is a 6% Monthly royalty fee and a franchise fee depending on the type of model. 22
23 What is the Aida Sub-franchise fee in Austria? AIDA PINK: e AIDA CLASSIC: e AIDA GOLD: e
24 Where do I get my products? AIDA sells all products deep frozen ex-works from Vienna. What is my margin on the products? AIDA offers 50% on all goods from the sales price in Vienna. How many products does AIDA offer: Aida has over 350 products in its assortment. The franchisee will receive a list of bestsellers and may order accordingly to the markets taste. What is the price for coffee? Since coffee is the main income we offer our franchisees a net price of 8.50 e 24
25 Can we produce locally? All cakes, pastries, coffee and branded Aida goods must be imported from Vienna, since it gives the goods added value and quality can be guaranteed. Additional dishes such as fresh salads, sandwiches, soft drinks and other approved goods may be purchased locally. Who takes care of the interior design? Aida arranges a layout together with the franchisee and slightly adjusts it to the market. Aida does not profit from the interior instead gives the franchisee the contacts of the companies directly and allows the franchisee to search locally for the items. Only the coffee machine must be from an Italian brand called San Marco. Who looks for the locations? The Franchisee must look for the location and get it approved by AIDA. 25
26 How many employees do I need? Aida has on average one employee for 10 tables. What is my selling Price? Master-franchisee may set the prices for the entire market, while sub franchisor must follow his lead. How do I learn Aida s knowhow? Aida trains the franchisee for one week in Vienna, before the store opening; Aida sends staff to the new branch and trains for one week onsite. A handbook, which offers 100 years of knowhow, is handed to the franchisee when the contract is signed. 26
27 Contact Dominik Prousek mobile: Schönthalergasse Vienna Austria 27
Café Vienna since 1913
Franchise Information Café Vienna since 1913 AIDA snapshot One century of success: AIDA serves its customers with first class pastries, cakes and coffee since more than 100 years as an Austrian family
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