Coffee shop franchises are the most popular for franchisees since the number of consumers interested in coffee does not decrease and there is always a sufficient target audience interested in the product.
The idea of opening a coffee shop under a franchise is not new, so it has enough positive factors that make it attractive for novice people in business. The use of a franchise primarily makes it possible to get the attention and trust of a loyal target audience, for whom the chosen brand of the coffee shop is familiar. Thus, the stage of name promotion is skipped, and advertising costs are minimized.
In addition, the coffee shop franchise has several other advantages:
Despite the apparent advantages, the coffee shop under the franchise also has disadvantages. So, one of the main unpleasant moments for the franchisee is the regulated menu, which cannot be adjusted at its discretion. Of course, this con is not so critical for all businessmen, still, there are cases when the product is unprofitable and is not in demand in the selected region.
Usually, the expense of a coffee franchise will be higher than when starting a project independently, but not always. In each case, an individual calculation of costs and income is carried out. Some franchisors may not specify additional hidden costs, which in the future will become an unpleasant burden that prevents them from benefiting of the project.
When concluding a franchise agreement with a popular global brand, be ready for unscheduled inspections of the "secret buyer", who will present the franchisor a report on the activities and detected violations, if any, in the management of your coffee shop.
Before you buy a coffee shop franchise, pay attention to some features of this business segment. A famous brand of a coffee shop is a familiar taste and aroma of coffee to the consumer. The supply of high-quality coffee beans, which are used for making coffee in the entire network, guarantees a positive attitude of customers, sufficient demand, and quick payback.
When choosing such a franchise, you should take into account the quality of products and the franchisor’s desire for dialogue and equal cooperation. If the coffee shop is 100% tied to the supply of raw materials, which is organized by the franchisor, the risks associated with the deterioration of the quality of the product and the loss of customers are not excluded. Independent selection of suppliers in this industry segment is often not available.
The global network of Coffeeshop consists of 200 outlets. A distinctive feature of the organization is a loyal program of cooperation with franchisees, which assumes flexible terms of the partnership. The franchisor offers three popular coffee shop formats, decorated in a corporate style to optimize finances. The launch of each project is carried out with mandatory author's supervision and consulting at all stages of the creation of a coffee shop.
The following coffee shop formats are offered to choose from:
Features of the company: European style and the use of only high-altitude Arabica varieties for making coffee.
The franchisor carries out direct deliveries of branded equipment, products, furniture. The delivery of the company's branded goods is carried out at its expense. The franchisor also provides warranty service, preventive inspections, and repairs of coffee equipment for several years.
The Israeli company Cofix offers a unique format of a coffee shop with fixed prices and the possibility of taking food with you. Since 2013, the company has expanded the number of outlets in the world to 153. There is a fixed price for all drinks, snacks, and desserts. The profitability of a business project is based on popularity and high daily turnover.
Recognizable design, affordable prices, and high-quality goods are the basis of the company's success, which attracts a wide range of target audience. The uniqueness of the project is:
The company provides partners with a full range of ready-made products. This approach helps to control the quality of the goods and compliance with the established standards at each point. It also eliminates the need for kitchen equipment with complex engineering systems, which reduces the overall cost of starting a project.
Coffee Way is small coffee bars that serve takeaway coffee. The chain has been opened in 2008 and it strives for active development in the international market. The company controls the entire process, from the purchase of coffee to its delivery to customers. It cooperates with suppliers of coffee beans that have their own plantations, is engaged in grinding. The partner will be given training material from 361 business documents, barista training, a bar management program will be provided.
Dunkin' Donuts is the world's leading chain of coffee shops with donuts, offering its customers more than 1 billion cups of coffee a year. Founded in 1950 in the United States of America by William Rosenberg, Dunkin' Donuts has become world-famous for its huge assortment of donuts, a wide range of pastries, and its drinks.
Dunkin' Donuts is a constant example of high-quality products and fast service, friendly atmosphere and hospitality. Dunkin' Donuts is a modern, bright and stylish design; a favorite meeting place for young people and recreation for the whole family. Dunkin' Donuts coffee shops delight their visitors with a diverse assortment: more than 30 types of snacks and sandwiches. This is not the limit: Dunkin' Donuts regularly introduces new types of products, develops special offers for its favorite visitors. In Dunkin' Donuts coffee shops, you can try unique products that cannot be found in the assortment of other coffee shops.
Study the preferences of consumers, the level of income, and the willingness to pay a higher price for a quality product compared to the "takeaway coffee" format.
When choosing a place for a coffee shop, make sure that there are no small coffee kiosks nearby that will take some of your customers. A well-selected area and the format of the coffee shop will improve the business project pay off in the shortest possible time.
If you want to understand what the price of a coffee shop franchise is without overpaying, take into account all the factors that affect the formation of the final cost. It is also important to consider what exactly is included in the full license package that the franchisor offers. The package must include:
Before purchasing a coffee shop franchise, you should investigate your competitors, make every effort to find a good location, and also take the time to recruit staff.
When opening a coffee shop, remember that the key to success will not be a popular brand name or a calculated business plan. Respect for the customer and the quality of the products will be crucial. Satisfied customers and high-quality service will help make the business profitable — the investment will pay off in the shortest possible time.
Written by
Vasil Gazizulin
Founder of Topfranchise.com
CEO Expedition 2009 - 2014
Author of a book «GROW WITH A FRANCHISE»