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Esquires NZ takes cafe culture to China
by , last updated on 9th August 2011
October 2010 - New Zealand franchisor Esquires Coffee Houses has signed a new deal to open 250 stores in China, and numerous other Kiwi businesses are set to benefit from the flow-on effects.
The agreement is believed to be the biggest retail deal signed between New Zealand and China and is especially notable given the Free Trade Agreement between the two countries which came into force in October last year.
The deal follows commitments by the Auckland-based Esquires Coffee Houses master franchise to open throughout the Middle East during the next ten years. Esquires director Stuart Deeks says that although these new markets have ancient traditions steeped in tea, they seem to be turning their tastebuds to coffee as a result of rising income levels and the growing exposure of the middle classes to Western lifestyles. 'It is our aim to maximise the potential of these growing coffee cultures as we establish our global operations,' says Mr Deeks.
The new international stores will sell New Zealand-roasted Fairtrade organic coffee products and even locally blended teas by Kerikeri Organic Teas. Esquires has formulated all of its menu board products here in New Zealand and will be shipping these worldwide. Each store will be designed with the input of local New Zealand retail architect John MacDonald of Design Environments and in some cases will display signage by local New Zealand franchise Speedy Signs and New Zealand based shop fitters.
The first store itself opened on the 23rd of August in The Place, a large mall in Guanghua Lu, Chaoyang District, close to the embassy district of Beijing China.
Heading up Esquires as the Chinese franchisor is Ellen Zhang, who is also a shareholder in the venture. Deeks says Ms Zhang has played a pivotal role in facilitating the launch of the brand in China, with her experience in running an Esquires franchise in New Zealand providing immense value to all parties.
Mr Deeks is heading back to Beijing next week to help Ms Zhang look for additional sites and to provide operational support. A further 16 stores are planned for opening in Beijing by April 2011.
Meanwhile Esquires New Zealand is also making a foray into the Middle East, with its first three stores due to open in the UAE next month and five further stores due to open in Jeddah Saudi Arabia prior to the end of the financial year.
The latest deals show the truly international nature of franchising and the potential it can offer to New Zealand entrepreneurs. Esquires Coffee Houses was originally founded in Vancouver in 1993, and was brought to New Zealand by master franchisees Stuart Deeks and his brother Lewis in 2002. There are now some 45 stores here, and the Auckland operation has taken the licence to grant franchises anywhere in the world outside North America and Europe.
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