WELCOME TO. Hey guys. Shane Saunders Head Honcho
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2 WELCOME TO 2 Hey guys Thanks for stopping by and checking us out, if you re looking to open a coffee shop, I m confident we have all the attributes you re looking for in a franchise. I started out in 2004 selling coffee and equipment for blue chip companies and it became apparent that the coffee shop market was evolving but the products were not. For that reason, I developed Mangobean to satisfy the coffee shops demands and it worked a treat, supplying to over 80 coffee shops that all had the same vibe, then the ugly recession kicked in. In 2010, I came up with the idea to develop a next generation coffee shop. Affordable, fun and innovative with a strength in numbers ethos. Taking a fun approach to our brand, we quickly focused on the escapism of the consumer, because the products should just be awesome with an on-site roaster, coffee cocktails, waffles, frappés, smoothies, the whole shebang! If you re seriously interested, I look forward to meeting you over a cup of the good stuff shortly. Shane Saunders Head Honcho
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4 4 who we re looking for This is a serious commitment, full of opportunity for anyone looking to change their lifestyle, add to their portfolio and become part of the up and coming coffee revolution that is Mangobean. The key factor to making this a huge success is partnering with complete team players, not afraid of hard work, committed and absolutely passionate about your consumers, you won t make a million pounds over night! But with hard work and lots of fun, it s a fantastic and prosperous market to be in. If you re a secret know it all, and think you could teach David Beckham how to kick a ball, then we suggest you try something else.
5 meet team bean team bean = dream team 5 Our team is built on expertise, blended with passion and ambition. With a why not attitude, experts in their field that all have franchise experience from running stores to working for the big boys. Shane head honcho development director operations director southern franchise manager Michael sales & marketing director Paul northern franchise manager design gremlin franchise recruitment manager
6 6 the concept Traffic wardens tolerated Mangobean Coffee Wonderland is a hybrid store, a next generation coffee shop, where you get what you want without the fuss, with state of the art roasters you can offer your customers not just the freshest coffee on the high street but variety too. Handmade waffles, fresh fruit smoothies, delicious cakes that are handmade by a very well-known patisserie chef, hot and cold foods that have the very best ingredients to ensure everything we do is the best but without the price tag! The store is all about escapism, a Love Nest, Nerd s Corner, all designed to distract your customer for 30 minutes in an environment where they re not constantly reminded the coffee is Italian, the farmer is called Juan, the walls are brown and the marketing will put you to sleep. At Mangobean, Traffic wardens are tolerated (cash only) and NHS staff get 10% off all drinks all year round! We have Bribery Cards, Local Hero cards and as many puns and positivity that will make you come back for more, our aim is to make you laugh, and enjoy every minute in our store. All NHS staff get 10% off hot drinks all year round
7 7 the journey Since 2014, we have been lucky enough to work with current shop owners and individuals looking to crack the coffee shop market. The first 8 stores are not franchisees but working together created opportunities for both parties, allowing us to develop our brand whilst they got to pilot the Mangobean brand and concept free of charge. We are now at the stage to launch Mangobean into the high street and my god are you in for a treat!
8 8 coffee market - Executive summary market size The total UK coffee shop market is estimated at 20,728 outlets and 7.9 billion turnover in 2015 The market grew by 9.7% in turnover and 8.9% in outlets in the last year After 17 years of continued considerable growth, this market is one of the most successful in the Uk economy Growth is driven by the branded chain segment with 6,495 chain outlets and growth of 12.4%, chains delivered impressive sales growth of 15.2% to record 3.3 billion Costa Coffee (1,922 outlets), Starbucks Coffee Company (849) and Caffe Nero (620) remain the UK s leading brands with 53% branded chain market outles share Market leader Costa added 171 UK outlets with 14% sales growth in calendar year 2015 The non-specialist segment recorded 2.6 billion turnover ocross 7,976 outlets, delivering outlet growth of 10.5%, adding 756 stores in 2015 primarily through the expansion of supermarkets and pub chains with own-branded coffee offers. market trends The UK coffee shop market is dynamic and rapidly growing Consumers are more knowledgeable and empowered. Coffee quality is expected, choice based on far more criteria than ever before Third wave \ artisan coffee has profoundly helped to raise consumer expectations about coffee and overall experience and the most successful operators are responding to this trend The significant growth of medium sized artisan chains such as Coffee#1 as well as investment into smaller chains such as Taylor St Barista s, Department of Coffee & Social Affairs and Grind & Co signals a new era of competition Greater commitment to coffee credentials by the non-specialist sector, in particular growth from pubs and retail outlets has helped to generate wider consumer participation while adding to the competitive pressures Premiumisation of the at-home segment continues to increase the availability of speciality coffee and further increase UK consumer expectations. Coffee pods such as Nespresso and Tassimo, have significantly increased popularity. 30% of consumers purchase pods regularly in 20 vs. 27% in 2014 Gourmet vending units now outnumber the branded chain market, with 6,838 machines representing 29% growth p.a. and an estimated 280 million turnover
9 9 market growth Allegra predicts the total UK coffee shop market will comfortably exceed 30,000 outlets and 15 billion turnover by 2025, driven by branded coffee chain expansion and non-specialist operator growth The branded coffee shop segment is forecast to exceed 5.7 billion to more than 8,500 outlets by Outlets are predicted to grow at 6% compound annual growth rate (CAGR) and revenue at 11.8% CAGR over the next 5 years the future marketplace The future coffee shop marketplace will be shaped by increasing consumer participation and the desire for premium quality coffee anywhere and anytime, driving improved coffee offers across a broader set of channels UK consumers will become even more informed about the subtleties of coffee preparation and delivery from bean to cup, in particular origin, roast, as well as the importance of milk texture and water quality Allegra expects to see a signifcant increase in multi-brand strategies by leading operators and investment in artisan brand concepts 85% of the population visit a coffee shop once a week The coffee market is booming! By 2018, it s estimated there will be 20,500 coffee shops nationwide! The UK drinks 1.7 billion cups of coffee annually from coffee shops 1 in 5 visit a coffee shop every day The coffee market will be worth an estimated 8.7billion by 2018
10 10 the offer 2 COFFEE SHOP LICENSES FOR 9,000 (+VAT) FOR THE REST OF 2016! For the rest of 2016, we are offering a fantastic offer for new partners joining Mangobean! For 9,000 (+VAT), we are offering 2 coffee shop licenses, meaning that a new partner can open a shop now and another in future. In addition to 2 store licenses, we are offering franchise partners the opportunity to operate a Mangobean GO Food Cube or Space Station. These innovative units allow partners to access shopping centre complexes and smaller retail units. The added benefit of operating these units is that no capital outlay is required. food cube darlington What is included in the franchise license fee? 10-year licence Complete turnkey solution 2 coffee shop licences License to operate Mangobean GO Food Cube/ Space Station Dedicated franchise manager State-of-the-art mapping software to indicate accurate turnover Coffee shop business plan Full management and barista training Central team support at grand opening In-store marketing and data capture Full PR coverage and support Fully stocked shop (excluding fresh produce) 8 weeks marketing support (prior to collection of royalties and marketing fee) royalties and marketing fees Not only do we offer one of the most competitively priced franchise opportunities in the UK, we only charge a 5% royalties fee and a zzvz3% marketing fee to help build your business.
11 11 marketing support Once shop fitting commences Mangobean s marketing operations go into gear, beginning by making potential customers in the immediate area aware of Mangobean s imminent opening, the food and beverage offer, the fun environment, etc. Social media marketing targets consumers in specific local environments, delivering tailored messages and buying incentives. Our dedicated Marketing Team coordinates these projects on behalf of all franchise partners. But traditional physical marketing is still necessary too. Mangobean will provide a list of suggested awareness building techniques that each franchise partner can perform to boost potential sales of their own store. Franchise partners should make a conscious budget allocation to marketing for every new Mangobean store, particularly around opening, as well as during the first 6 months after opening. Social media marketing (Twitter accounts, Facebook and Instagram) is all covered in your franchise fee and handled centrally by Mangobean s Marketing Team. However, there is no substitute for street marketing activities such as experiential tastings and product sampling, leafleting, and advertising in the local media. Mangobean will assist with the provision of leaflets, as well as advertisement design customised with your Mangobean store address and location. Franchise partners need to allocate time and people resources to get these physical elements out onto the streets and into the communities surrounding each shop. We ll help - you ll execute!
12 12 training You will have your own dedicated franchise manager from the moment you get your keys. Either Paul or James will be your right hand and will manage recruitment, managerial and barista training as well as ongoing support. Once the store is open, their sole purpose is to make the sales strong and stable and you a very happy partner!
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15 15 next steps stage 1 Pay 50% deposit Set up Ltd business and bank account We will construct a financial overview to establish a budget before we look for sites Introduce to Satellite Finance & PKL Sign franchise agreement and pay remaining 50% Introduce Paula to start site location stage 2 Once Paula has found site and agreed HOT s from HOT s 8/10 weeks until store is open Instruct solicitors (Farleys Solicitors) to get lease signed Instruct nominated designer to provide store lay-out and budget costs to financial forecast Agree budget cost Have design pack developed Tender store to 3 nominated shop fitters Finalised proposal from Mangobean to sign off Work starts 1 week later profit margins & typical costs Franchise license fee - 9k + VAT Shop fit - 80k - 150k + VAT (depending on location) Legal fees, deposit & design pack - 22k + VAT (deposit depends on landlord) Equipment - 40k + VAT (already agreed with our partners) Opening Stock - 10k(approx) + VAT These stores generate cash income from day 1! prime high street locations are a day + turnover
16 16 Head Office Studio 122 Hoults Yard Walker Road Newcastle upon Tyne NE6 2HL mangobean.co.uk
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