WHY CAFES STRUGGLE AND DESSERT BUSINESSES THRIVE

Walk down any Melbourne street and you’ll find a café on nearly every corner. For years, cafés have been the heart of Australian hospitality because these are community hubs built around coffee, food, and connection. But in recent times, many café owners have faced tougher conditions. Rising costs, increased competition, and changing consumer behaviour have made running a café harder than ever.

That doesn’t mean cafés are failing; it simply highlights that the market is crowded and margins are thin. Customers still love their coffee culture, but when every suburb has dozens of options, standing out becomes difficult. Add in the challenges of larger menus, high labour costs, and long opening hours, and it’s easy to see why many café operators are feeling the pressure.

Dessert franchises, on the other hand, are showing a different story. Not just with Drizzl’d, but with our competitors too! The sector has been growing steadily, fuelled by consumer demand for indulgence, shareable experiences, and late-night options. Where cafés are often busiest in the morning and early afternoon, dessert shops come alive at night tapping into an entirely different customer flow and spending mindset.

One of the reasons dessert franchises including Drizzl’d are thriving is their simpler model. Compared to a café serving all-day breakfast, lunch, and coffee, a dessert-focused menu is tighter and easier to manage. Smaller kitchens, reduced food wastage, and quicker turnover all contribute to healthier margins. For franchise partners, that means more control, fewer headaches, and a business that doesn’t rely on constant reinvention allowing the owner (at least at Drizzl’d) to comfortably step away from daily operations.

Social media has also played a huge role. While coffee is part of daily routine, desserts are part of experiences. A plate of churros, gelato, or hot ball doughnuts is designed for sharing both at the table and online. Dessert franchises benefit from this natural marketing cycle, with Instagram and TikTok turning a sweet indulgence into content that spreads far beyond the shop itself.

At Drizzl’d, we’ve built our business around these strengths. Since opening in December 2021, we’ve refined a model that thrives in the afternoon and evening economy, appeals to both locals and visitors, and balances creativity with consistency. Our systems are designed so franchise partners don’t need to juggle endless menu items or worry about whether customers will still be coming in three years. We’ve stress-tested the concept through tough economic times, and it continues to deliver.

This isn’t about putting cafés down, they remain an important part of Australia’s culture and an integral part of my personal daily routine. But for entrepreneurs considering a hospitality investment, it’s important to recognise where the growth opportunities lie. Dessert franchises offer lower overheads, stronger margins, and a product that taps into changing consumer habits.

If you’ve been searching for a café for sale in Melbourne or exploring franchise opportunities in Australia, it’s worth asking whether there’s a sweeter path forward. At Drizzl’d, we believe the answer is yes. Dessert is more than a treat,  it’s a thriving business opportunity. And the timing has never been better to join us.

Enquire now and ask us about exclusive territories!