The Federal Government announced recently an increase in the 10% "Temporary Investment Allowance" to 30% as further stimulus to encourage businesses to invest in Capital Equipment and Vehicles.

Subject to acceptance by the Senate the following will apply:

The allowance, gives businesses a “one off tax deduction” equal to 30% of the Capital Cost of eligible New Equipment and Motor Vehicles. This is in addition to the standard depreciation claimed for such assets.

For example, on a $100,000 machine this equates to an extra $30,000 as a “one off” tax deduction.
Although Industry is awaiting the finer details to be released (which are expected shortly and we'll update you as soon as the information comes to hand), the main points are:-

• For new assets only (not used)
• Must have a cost price in excess of $10,000 ($1,000 if company turnover is less than $2mil p/a)
• Eligible capital equipment (including motor vehicles)
• Acquired or ordered between 13th December 2008 and 30th June 2009
• Installed & ready for use by 30th June 2010

N.B. A lesser 10% allowance is available if the 30 June 2009 order deadline is missed. This is essentially a 6 month extension on both order and delivery deadlines.
With interest rates at 40 year lows and still dropping, Equipment and Motor vehicles being sold at bargain prices, a 30% extra tax deduction on the table and a $42 billion stimulus package, it may be time to act!!

There has never been a more critical time to position your business for the future. If investing in capital equipment can make your business leaner & fitter you should give it serious consideration. Even in tougher economic environments client bases can expand as less capable competitors go out of business.

You may be wondering how our team in Victoria have been faring with the bushfires.

Thankfully, from all reports, none of the Victorian Cafe2U Franchisees have been directly affected.

The great news is that three of our Franchisees have volunteered their time and energy to support the relief effort. They are also providing milk and sugar while Cafe2U Head office are supplying the cups and coffee beans.

Tim and Kimberley Morgan, who operate the Bendigo territory, have offered their assistance by providing coffee to local shelters and meeting points around the Bendigo area.  They are  also planning on donating a days sales to the relief effort.

Michael and Samantha Carne of the Port Melbourne territory provided the same gesture of support, providing coffee to shelters, meeting points on Sunday at Wallan and last night at Kinglake. They are also attending a fundraiser on Sunday 22nd, serving coffee for a gold coin donation to the relief fund.

On Sunday and Monday evening, Portsea territory operator Jill Bilston was helping provide coffee and other beverages  to the  local CFA operations close to her territory. This is an amazing effort since last week was her first week of operation!

PETER AND KYLIE ARCHER - NOOSA HEADS, QLD

Peter joins Cafe2U from the printing industry where he worked long hours and nights shifts. Kylie has her own successful beautician business. They are both looking forward to seeing a lot more of each other as they plan to do all weekend event work together.

FRANK AND TARYN MUNNICH - TOWNSVILLE WEST, QLD

Frank and Taryn have moved to West Townsville to start their Cafe2U franchise. Frank has been working long hours running his own construction equipment hire company and is looking forward to a change of pace.
Taryn makes a great latte, but is a non-coffee drinker. She is looking forward to an ongoing supply of the yummy Cafe2U Drinking Chocolate that she has learned to make !

JILL BILSTON - PORTSEA, VIC

Jill is looking forward to finally being her own boss after a career spent in the legal profession. In her last role, Jill worked in conveyancing and is eager to swap the office and documents for open-air and people. Have fun, Jill !

MALCOLM WINKLER - CANTERBURY BANKSTOWN, NSW

Malcom has leased his Cafe2U operation from Doug Wigg, who has returned to the Australian Defence Force.
Malcom has owned cafes in the past and has seen a huge change in the way coffee has been served in Australia in the past 30 years. He is excited about the way the market has moved and the new challenge ahead of him – good luck, Malcom !

Cafe2U has introduced a new top level position in Australia to offer comprehensive support to the franchise network. The level of franchise support will even involve ‘warming up’ a new territory to give every new franchise the greatest possible chance to thrive from the word go.
Having hit the 120 franchise mark worldwide in September, Cafe2U have experienced a 20% growth rate in the last six months. They have created a new position by introducing Derek Black as General Manager of Operations, part of an overall restructuring of the business.
“Derek has over 30 years worth of business and franchise experience so he is a big asset to our operation,” explained Managing Director Andy Simpkin.
Mr Black will manage the Franchisee Development Manager Team who will ‘warm up’ territories before any new franchisee takes it on. A new initiative to the Cafe2U franchise, the development managers will undertake the initial hard work of creating brand awareness, educating the local market and stimulating custom on behalf of the franchisee in a new territory. This involves a lot of cold calling and canvassing, which is not easy and can challenge people - because they either don’t like doing it or are not very good at it.
“It means that the franchisee will have the ground work done for them, where it would normally take up to 3 months of building up the business. Our new Market Entry Strategy really stacks up the benefits for franchisees. They are getting full training, brand marketing and publicity, a fully branded and well equipped vehicle and a ‘warm’ territory with a guaranteed turn-over of $500 per day for their business. At $125 000 + GST per territory, it should allow franchisees to get their investment back within a year of trading,” said Mr Black.
“This is a newly created position in response to our recent growth. We want to make sure our franchisees are prospering from day one and this is Derek’s primary role – to focus on franchisee success, implement the new market entry strategy, ensuring they get our full support. Our whole business has been restructured to give maximum support to each and every franchise, which is the primary reason for these changes. Having Derek on board will help ensure every new franchise hits the ground running,” Mr Simpkin added.
“Other benefits for franchisees include our national marketing campaign and brand awareness, territory focused publicity through various media and of course the well recognised and established Cafe2U brand”.

Cafe2U operators around Australia supported Australia’s Biggest Morning Tea to help raise funds for the Cancer Council.

Our mobile coffee franchisees raised over $1500 for the Cancer Council by holding their own mini ”Morning Teas”.
Over one million people around the country participated in the Cancer Council’s largest fund raiser for 2008.

Cafe2U have recently joined the International Franchise Association (IFA) and in February 2008 participated in the annual IFA conference in Orlando, USA.

The strength of Cafe2U was reinforced by the discovery that, in the US, any franchise system with more than 100 franchisees is considered significant. "Our mission to the US annual IFA convention displayed to us that not only were we more competitive in the US in terms of size, but that our business model and collateral was considered best in class", states Andy Simpkin, Managing Director.

Cafe2U franchisee, Andrew Maffey (Hawkesbury, NSW) recently supplied espresso coffees and snacks to the cast and crew of Channel 9's new TV show, Domestic Blitz.

Pictured with the host, Shelley Croft, Andrew kept the production moving with his endless supply of flat whites, lattes and espressos from his mobile coffee van.

Recognition

SAFE FOOD HANDLING AND MANAGEMENT ACCREDITED

Cafe2U Franchisees are to date the only mobile coffee franchise partners to be properly HACCP accredited for Safe Food Handling - audited by an accredited third party.

Cafe2U are proud members of the Franchise Council of Australia. The role of the council is to establish and maintain strict set of guidelines to which franchisors must abide, this ensures that the interests of potential franchisees are protected. The Cafe2U Franchise System meets these strict member standards and is therefore permitted to use the Franchise Council of Australia Logo.

The critical component of these standards is the maintenance of a certified Disclosure Document that provides a potential franchisee all the necessary information to consider a Cafe2U Franchise. Click on the link for further information about the Franchise Council of Australia.