Dome coffee franchises popularity spreads in WA

Property valuer turned café owner Kevin Kelly wanted a secure cash flow without having to work from nine to five every day. After researching the options, Mr Kelly decided that buying a franchise was the way to go.

He investigated several franchises currently operating in Perth and interstate but it was coffee shops which Mr Kelly believed had the growth potential.

And according to Mr Kelly, “the plan has worked, I now own three Dome cafés and I’ve got more to come”.

Mr Kelly bought his first Dome franchise in Napoleon Street, Cottesloe (the first ever Dome café), followed by one in Bayview Terrace, Claremont and his most recent purchase in Hampden Road, Nedlands.

“I bought the Cottesloe Dome about five years ago,” he said.

“I will open one more in Marine Parade, Cottesloe within the next couple of years.

“In my five years I have seen the coffee culture grow from being entirely women sitting at tables to four or five business meetings taking place at a time.

“Men are becoming more comfortable with the coffee experience and doing their business transactions there. The liquid lunch has been replaced with the café culture, as an alternative place to do business.”

As with any business, Mr Kelly said there were both upsides and downsides when buying a franchise. “Some of the positives are being handed the menu. It takes the heat off me having to be creative and it provides consistency,” he joked.

“There are also training guidelines and training support. There is a training manual that tells you everything. It is all in there from the barista to the food preparation.

“And you’ve got the name, Dome.”

In WA alone, there are more than 20 Dome cafés, and almost 100 around the world including Singapore and Indonesia.

Another plus for Mr Kelly is his ‘exclusionary zone’ which prevents anyone else from building a Dome in his territory.

“And the negatives are of course the enormous costs involved,” Mr Kelly said.

“The shop outfit contains a lot of timber which increases the price.

“It is about $60,000 for the Dome franchise fee and then the Hampden Road Dome cost around $750,000 to build (including building).”

Dome cafés have created their own unique spot in the coffee market, says Mr Kelly, “we do what no one else is doing”.

He said the Dome menu was a good example of what stood them apart from other coffee shops such as Gloria Jeans and Starbucks. “We offer more than coffee, cake and some lunch items, we have a full menu including breakfast, lunches, cakes and desserts, hot drinks and cold drinks, salads and much more,” Mr Kelly said.

And like any business, Mr Kelly believes part of his Dome café success is due to “location, location, location”.

He said the Claremont Dome was the prime site of the three, but expects big things from Hampden Road.

“There are so many businesses along Hampden Road and the surrounding area. You also have Hollywood Hospital, Sir Charles Gairdner Hospital, UWA and the student housing and many other cafés, restaurant and shops,” Mr Kelly said. “There has already been so much growth here and I think it will continue similar to what has happened in Claremont and Subiaco.”

Mr Kelly added that Hampden Road was providing locals with an alternative place to meet, greet and eat so they didn’t have to travel to Claremont or Subiaco for a coffee and a meal.