August 23, 2025

Ep118 The Stellarossa Franchise Business Model

Feature

Phil Cronin and Darren Schultz co-founded Stellarossa in 2009, starting as a small espresso bar in Brisbane City before growing it into a well-recognised cafe brand across Queensland.

They explain that today, Stellarossa operates with three main models, kiosks, traditional cafes, and drive-throughs each adapted to suit local communities.

In Episode 118 - With a focus on flexibility, the brand’s menu system combines core items with elective options, allowing franchisees to tailor their offerings to regional tastes while maintaining consistency.

Their franchise model features competitive fees, strong supplier partnerships, and encouragement of local sourcing to strengthen community connections.

Phil and Darren also emphasise the importance of store design innovation, giving each cafe its own identity while keeping the Stellarossa brand thread intact. A standout growth strategy is their concept of “Stellarizing” rebranding existing independent cafes into the Stellarossa system to lower entry costs and accelerate expansion.

Built on innovation, operational support, and a people-first approach, Stellarossa continues to evolve its franchise business model, creating opportunities for both franchise partners and local communities.

0:00 Introduction

1:03 Overview of the Stellarossa brand

2:47 The three main store models in Stellarossa

3:58 Managing menu variations across different Stellarossa store models

5:45 Coordinating menu rollouts with franchisees through core items and elective choices

8:26 Managing costs, margins, and franchise fee structure across menu items

10:14: Relationships with shopping centres and support for local stores

11:41 Typical menu size per store and elective menu options

13:04 Head office supply of coffee products and contracted bulk suppliers through PFD

15:23 Store design and innovation

18:07 The concept of “Stellarize” and its role in innovation

22:42 Wrap up