Owning A Regional Café Vs. Owning A Metro Café
With Muffin Break® café opportunities available all over Australia choosing between opening a café in a regional area or opening one in a metropolitan area can be a tough decision for our franchisees. Undoubtedly there are benefits to both, varying between each individual and their circumstances. With over 25 years of experience in franchising, the development team at Muffin Break have created this guide to help you determine whether you are better suited to owning a café business in a regional location or if you are more of a city dweller.
BENEFITS OF OWNING A REGIONAL CAFÉ
Owning a café in a regional area brings with it numerous benefits that may be hard pressed to find in cities. Whether you are planning to uproot from the city or if you have been part of your regional community for the majority of your life, opening a Muffin Break bakery café in a regional area is sure to bring you an exciting experience with countless benefits. Some of these include:
Longer average business lifespan. Studies suggest that the average lifespan of a small business in a regional area lasts up to 30% longer than those in metropolitan areas. With an average business life expectancy of 10 years, small businesses in regional areas seem to have a huge advantage over those in the city, whose average lifespan is reported to fall shorter by around 3 years.¹
Strong customer relationships. Running a café in a regional town allows you to focus on building strong relationships with locals, which will ultimately help your business grow. A study conducted by Gartner Inc. suggests that 80% of future revenue will come from just 20% of your existing clients, meaning that establishing a loyal customer base is extremely important for the progress of your business.²
Inclusion in the community. If you’re from a regional town, you will be aware of just how important each small business is to the community, whatever its trade. Many regional towns host annual fairs and events that require input from local business owners, allowing you as a café owner to become involved and recognised as an essential member of the community, earning you recognition, trust and respect.
Traffic? No thanks. To many the word ‘commute’ brings with it horrifying thoughts. A major perk of owning a business in a regional area is that you are much less likely to find yourself stuck in traffic on your way to work, especially if you have chosen to open your business close to your home. Recent studies claim that an average Australian will spend around two hours a day commuting to and from work – that amounts to around 3 weeks a year! Opting to open a Muffin Break café business in a regional area may just result in the word ‘commute’ being eliminated from your vocabulary altogether.³
BENEFITS OF OWNING A METROPOLITAN CAFÉ
It is no surprise that owning a Muffin Break café business in a metropolitan area has various advantages, which can bring with it multiple benefits and unlimited possibilities. We have highlighted some of the main benefits to owning a Muffin Break café in a metropolitan location below.
High foot traffic throughout the year. Major cities benefit from high foot traffic, from both residents and visitors to the area, all year round. With an abundance of attractions and retail facilities designed to attract people to the area, your Muffin Break bakery café will be in a prime location, exposed to the thousands passing through the area every day.
Higher wages = higher priced goods.Inner-city wages are, on average, around 11% higher than wages in regional areas.¹ª Coinciding with this, as well as a higher demand due to a larger population, product prices such as food and services can also be set higher than those you would expect to find in regional locations.²ª
Convenient location. Opening your café business in a metropolitan location allows you to take advantage of the many modes of public transport available in the area. Most cities around Australia benefit from a variety of regular buses, trains, trams, ferries and even planes transporting residents and visitors in and out of the city. Strategic and careful site selection is a crucial factor in a great café business.
Whichever location you decide, joining the Muffin Break franchise is sure to be a great adventure for you and your family. We pride ourselves on providing franchisees with all the support they need to run a fulfilling café business. When it actually comes down to the numbers, studies report that average annual turnover is fairly similar whether you choose to open your business in a regional or a metropolitan area.³ª Therefore, choosing between a metropolitan café business and a regional café business really comes down to you, your personal preferences and business goals.
For more information on available Muffin Break café opportunities click here or call one of our expert advisors to discuss which café option would best suit you.