Can success really be this sweet? Marcella Bidinost checks in on Planet Chocolate's plans for expansion.
Sprawled across Planet Chocolate's menu are Belgian chocolates, Dutch pancakes, waffles, crepes, fondues, cakes, tarts, slices and biscuits - and there's a one-metre chocolate fountain in every store. What's not to like about this kind of franchise?
Brothers Darren (left) and Greg Factor with mascot 'Mr Choco'.
But going on recent reports of troubled times at the more sugary end of franchising (think Krispy Kreme and Baskin Robbins), the rise of Planet Chocolate's dessert bars seems very brave.
Still, owners Greg and Darren Factor are buoyant. And it's not just the sugar talking.
Liquid lunch anyone? Planet Chocolate's fondue offering.
The brothers aim to expand on their two company-owned and three franchised stores by opening 35-40 more Planet Chocolates across Victoria and interstate over the next three to four years, keeping 15 per cent of them company-owned.
The pair currently owns stores at Melbourne's Westfield Southland and Highpoint Shopping Centre, with franchisees running Planet Chocolates at Westfield Doncaster, Geelong and Werribee Plaza.
The brothers make a strong case for doing what you love – in their case, running a business and making and eating desserts – and letting that passion override anything the business world says.
And they're diligent. It took them four years of development and improving the Planet Chocolate concept before even considering granting franchises to successful applicants. It was only this year, five years after opening their first store at Westfield Southland, that the brothers actually placed their brand in the hands of two other operators.
“We knew that in order to franchise, we had to perfect the concept first,” says Darren, 33, a qualified chef.
“Many franchises franchise after one to two years of operation. We believe that in those first few years a business is still developing, testing products and proving its brand. Is this fair to the franchisee? Definitely not. Why should the franchise be a guinea pig?”
The brothers also underwent 10 months of strategic planning with specialist franchise consultancy DC Strategy, whose credits include Boost Juice, Grill'd, 7-Eleven, Fernwood and Australia Post.
Once satisfied their financials and systems were in place, the next step has been choosing the right sites and franchisees. And that doesn't mean simply finding people with the $170,000-200,000 it costs to buy into Planet Chocolate. Rather, they've been hunting for those who share the same passion for the brand.
“No one will love and care for their business as much as an owner-operator franchisee,” Darren says, adding that there are more interested franchisees than the number of suitable sites they can find.
“Food courts are perfect because it's where people are looking for a dessert option, but the lesson we've learned is don't overpay on rent because it's the one fixed cost we have on a (typical) six-year lease.”
The brothers, who arrived in Australia from South Africa six years ago, are also aware Sydney, Melbourne and Brisbane are among the top 10 most expensive retail markets in the world.
Planet Chocolate started out as a bunch of scrawls and recipe ideas recorded by Darren, who then spent 18 months regularly drizzling liquid chocolate on waffles, crepes and marshmallows before inviting his family “to work really hard on taste testing binges”.
“I went to shopping centre managers and showed them the Planet Chocolate concept and what I wanted to do, but I didn't have much experience in retail and no one wanted to give me an opportunity,” he says.
But by 2005, the brothers had left another family's café they'd been working in, secured 25 square metres at Southland and set up their first Planet Chocolate four-sided kiosk-style store.
Greg, 29, had studied accounting but, after graduating, opted to focus on running his own business than a career in finance.
“We've always been close so going into business together was an easy decision to make,” Greg says.
But the products they were planning to peddle weren't exactly thin on the ground. In the past six years, chocolate and dessert cafes have blossomed with the likes of Koko Black, Max Brenner, Chocolateria San Churro, Cacao – even Lindt and Guylian Belgian Chocolate Cafés – springing up across the country.
“But everyone was taking it from quite a formal angle – serious, dark – whereas we thought to do something a bit more fun and appealing to a wide audience, from kids and teens to seniors,” Darren says.
To buck the trend, Planet Chocolate runs a fun club, featuring colouring competitions and a roving mascot called Mr Choco who wears a blue top hat and strawberry-shaped shoes. Even the website and store designs have a touch of the Willy Wonkas about them, and let's not forget those metre-high chocolate fountains.