Why so many Zarraffa’s coffee shops have closed
HOMEGROWN Zarraffa's Coffee outlets at Gold Coast shopping centres are abruptly closing, with Westfield Helensvale the latest casualty.
Email subscribers were told it shut on Monday that due to the "current retail climate".
The message said: "Ultimately the decision to close the stores was made by the local franchisee influenced in part by the current retail climate and the end of the lease."
On the door of the popular coffee shop - stripped of signage the day after it closed - was a note detailing nearby Zarraffa's locations, all three of which have drive-through options.
Zarraffa's outlets at Surfers Paradise, Pacific Fair, Miami One and Harbour Town shopping centres have also closed. Southeast stores at Redcliffe, Oxley and Sunshine Plaza in Maroochydore have been marked on Zarraffa's website as temporarily closed.
The Banora Point Shopping Centre store in northern NSW has also closed with no reason given.
"Zarraffa's at Banora Central Shopping Centre closed abruptly too. One morning I got my coffee from there, the next morning it was shut for good," one customer said.
At Australia Fair Shopping Centre, the ground kiosk-style Zarraffa's close to the cinemas is closed, but the store near the Nerang Street entry is still open. Zarraffa's at Robina Town Centre is still open.
A source said Zarraffa's was moving away from stores without drive-through offerings "because they don't make as much from them because the overheads are much higher".
Zarraffa's Coffee CEO Marnie Sheldon said a "small number of Gold Coast stores" had recently closed due to the effects of the current retail climate and the ending of leases.
"Zarraffa's Coffee has always pursued drive-through convenience but will continue to operate stores in centres where it makes financial sense for the brand and the franchisees," she said. "Overall, the robust nature of the drive-through model has sustained turnover during this period."
The chain was founded in 1996 by Kenton Campbell, who had a coffee cart in Seattle before starting Zarraffa's in Southport.
Zarraffa's Coffee business once boasted more than 80 locations across Queensland, Western Australia and New South Wales. It developed its popular drive-through store concept in 2009. The Gold Coast has 20 Zarraffa's stores with 49 more across Queensland.
Originally published as Why so many Zarraffa's coffee shops have closed