Thinking of Buying a Coffee Van Business in Australia? Here Are 3 Vital Questions to Ask

The Australian cafes and coffee shops industry is valued at $14.2 billion in 2025, employing over 138,600 people across 29,200 establishments.

Profit margins average 3.3%, generating $468 million in profit.

Revenue is projected to grow at an annualised 1.4% through 2030, reaching $15.2 billion, supported by drive-through models, mobile convenience, and ongoing demand for premium coffee.

Coffee vans, as mobile operators, are uniquely positioned to benefit from the rising demand for fast, on-the-go service, lower overheads compared to fixed cafés, and the flexibility to service events, workplaces, and high-traffic areas.

1. Is the Business Financially Sustainable and Profitable?

Why It Matters:

Coffee vans operate with lower rent and overhead costs than cafés, but profitability depends heavily on location, customer volumes, and efficient cost management.

Margins are slim across the broader coffee sector, making efficiency and consistent sales critical.

What to Check:

• Revenue sources – Review reliance on daily routes versus event-based catering and corporate contracts.

• Cost structure – Purchases (coffee beans, milk, and food) are rising due to global inflation, while fuel and vehicle maintenance also impact profits.

• Pricing power – Assess whether pricing is competitive but sustainable against convenience stores and fast-food coffee alternatives.

• Profitability trends – Compare performance with the industry average margin of 3.3%.

2. How Competitive is the Business’s Market Position?

Why It Matters:

The coffee market is highly fragmented, with low barriers to entry and strong competition from independent cafés, drive-through outlets, and fast-food chains.

Coffee vans can carve out niches by offering convenience, mobility, and unique branding.

What to Check:

• Location strategy – Evaluate prime trading spots such as business districts, construction hubs, or tourist areas.

• Customer base – Review whether the business serves workers, commuters, students, or event-goers.

• Brand strength – Assess online presence, customer loyalty, and repeat business.

• Competitive pressures – Identify nearby competitors, including convenience stores offering cheaper alternatives.

3. Is the Business Aligned with Industry Trends and Future Growth?

Why It Matters:

Consumer preferences are shifting toward convenience, premiumisation, and sustainability.

Coffee vans that embrace these trends while leveraging mobility will be well-positioned for growth.

What to Check:

• Convenience and mobility – Confirm whether the van has permits for key locations and the flexibility to pivot to new routes.

• Premium offerings – Evaluate product mix, including specialty coffee, alternative milks, and gourmet snacks.

• Sustainability credentials – Review packaging, ethical sourcing, and waste reduction initiatives, which are increasingly valued by consumers.

• Technology use – Check adoption of cashless payments, app-based ordering, or loyalty programs that boost repeat sales.

Ready to Invest in a Thriving Coffee Van Business?

With rising demand for convenient, high-quality coffee and the flexibility of mobile operations, coffee vans present strong opportunities for growth.

However, success depends on consistent profitability, competitive differentiation, and alignment with consumer expectations for quality and convenience.

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