Buying a coffee franchise in Australia: kiosk vs cafe vs coffee van

• Across every category on the Register, the median setup estimates were $146,984 (low, 937 profiles) and $400,000 (high, 923 profiles), so coffee sits well above the typical franchise.
• Supply is tightly controlled: 35 of 38 coffee and cafe profiles restrict where franchisees can buy goods or services.
• Every food business must give its details to the food regulator, usually the local council, before any food handling begins.
• FSANZ lists cafes, takeaway shops and food vans among the businesses generally covered by Standard 3.2.2A, which requires a certified food safety supervisor and trained food handlers.
• Minimum award wages rose 4.75% from 1 July 2026, and which award applies depends on whether you run a sit-down cafe or a takeaway business.

The three formats sell the same product but run very different businesses. Compare them on these points before you compare brands.

• Fit-out: a kiosk is a compact counter build, often inside a shopping centre; a cafe needs seating, food preparation and more services; a van needs a vehicle build with water, power and refrigeration.
• Site: kiosks and cafes sit on a retail lease, sometimes with the franchisor or an associate holding the head lease; a van needs permission for each place it trades and a secure place to park overnight.
• Trading hours: a shopping centre lease can set your minimum hours; a street cafe follows local foot traffic; a van follows events, worksites and regular stops.
• Staffing: a kiosk may run with a small team, a cafe with food service needs kitchen and floor staff, and a van is often run by the owner.
• Awards: a takeaway business selling mainly for consumption elsewhere may fall under the Fast Food Industry Award, while cafes are named in the Restaurant Industry Award. Check your format with the Fair Work Pay and Conditions Tool.
• Revenue drivers: a kiosk depends on centre foot traffic, a cafe on seat turnover and food sales as well as coffee, and a van on securing enough good sites and events.
• Weather: vans and outdoor seating are exposed to it, so ask for monthly sales for the format you are considering, not an annual average.

The rules come from the national Food Standards Code, but councils and state agencies enforce them, so the details differ by location.

• Before any food handling begins, a food business must give the regulator its contact details, the nature of the business and the location of its food premises, and must report later changes.
• In the states the regulator is likely to be your local council; in the Northern Territory and the ACT it is the local health department.
• Standard 3.2.2A, in force since December 2023, applies to food service, catering and retail businesses that handle unpackaged, potentially hazardous food that is ready to eat.
• Category two businesses need a certified food safety supervisor and trained food handlers. Category one businesses, which make ready-to-eat potentially hazardous food, must also keep records or otherwise show that key food safety controls are met.
• A food safety supervisor must hold recognised certification obtained in the past 5 years, and food handlers must be trained or have the skills before handling high-risk food.
• A coffee van may trade in more than one council area, so ask each council how registration and trading permits work before you plan a route.
• Ask your council about footpath dining, signage and event trading permits before you budget for them.

Coffee margins depend on what is left after rent and wages. Test both before you sign.

• Minimum award wages rose 4.75% from the first full pay period starting on or after 1 July 2026, and the national minimum wage became $26.44 an hour.
• Under the Restaurant Industry Award, as consolidated at 1 July 2026, full-time and part-time staff earn 125% of their minimum rate on Saturdays, 150% on Sundays and 225% on public holidays. Casuals have their own weekend and public holiday percentages, which include the casual loading.
• Under the Fast Food Industry Award, full-time and part-time staff earn 125% on Saturdays, 125% on Sundays at level 1 and 150% at levels 2 and 3, and 225% on public holidays, with casual rates adding the 25% loading.
• From 1 July 2026 employers must pay super at the same time as wages, which affects your weekly cash flow.
• If the franchisor or an associate leases the site to you, the Code requires it to give you the head lease or a summary of its commercial terms before you sign.
• Ask how rent is reviewed, whether you pay turnover rent and outgoings, and whether the lease runs for at least as long as your franchise term.

Two datasets help put a coffee franchise in context. Neither measures franchise failure, because no Australian dataset tracks it.

• Setup costs: across 41 coffee and cafe franchisors' profiles, the median low estimate was $250,000 (35 profiles) and the median high estimate was $750,000 (29 profiles) (FranchiseScope analysis of Register profiles captured 19 August 2026, self-reported).
• Supply restrictions: 35 of 38 profiles (92.1%) restrict where franchisees buy goods or services, compared with 70.2% across all categories.
• Restraint and goodwill: all 37 profiles that answered include a restraint of trade, and 4 of 36 say franchisees have rights to goodwill they generate.
• System size: the median coffee and cafe profile reported 11 franchisees (40 profiles).
• Survival: of about 17,969 food and beverage services businesses that started in 2021–22, about 47.5% were still trading in June 2025 (ABS). The figure is approximate, covers all such businesses rather than franchises, and an exit is not always a failure.
• Context: of 442,555 businesses of every kind that started in 2021–22, 48.0% were still trading in June 2025.

1. What does the setup estimate include: fit-out, equipment, first stock, training, legal costs and working capital?
2. Who holds the lease, what are the rent and outgoings, and when does the lease end compared with the franchise term?
3. Which suppliers must you use for coffee, milk, cups and food, and does the franchisor or an associate receive rebates from them?
4. What significant capital expenditure, such as a refit, does the disclosure document say you will need during the term?
5. Which award do current franchisees use, and how does the franchisor check wage compliance across the network?
6. What are weekly sales, cost of goods and wages as a share of sales at comparable sites?
7. How many sites have closed or changed hands in the last three years, and why?
8. What help will you get to find and assess a site, and what happens if it underperforms?

• A site chosen for you with no sales history, no foot traffic evidence and no clear reason it will work.
• A lease that ends before your franchise term, or a term too short to recover your fit-out. For agreements from 1 November 2025, the Code requires a reasonable opportunity to make a return on the investment the franchisor requires.
• Sales figures without wage and rent percentages, or projections without their assumptions.
• A site history with several previous owners. The ACCC calls repeated turnover at one site churning, and says it could mean the location isn't suitable.
• Mandatory suppliers with no clear disclosure of the rebates the franchisor receives.
• No clear answer on award coverage or on how the franchisor supports wage compliance.
• Pressure to commit before the 14-day consideration period ends.

• Choose the format first, kiosk, cafe or van, and match it to your budget and how you want to work.
• Get the lease or head lease terms and have a leasing lawyer review them alongside the franchise agreement.
• Build a wage budget from the correct award at 1 July 2026 rates, including weekends and public holidays.
• Confirm your food business notification and Standard 3.2.2A duties with your council.
• Visit the site at different times of day and week and count customers yourself.
• Call current and former franchisees about sales, wages, rent and support.
• Read the capital expenditure and site history items in the disclosure document.
• Get independent legal and accounting advice before you sign.