Coffee Fellows Franchise

About the Coffee Fellows Company

Coffee Fellows began in 1999 with a simple but ambitious idea: to create a European coffee house built not just on exceptional coffee, but on genuine human warmth. What started as a single café founded by Kathrin and Stefan Tewes has grown steadily into a beloved international brand.

Our growth has always been organic, values driven, and rooted in long term partnerships making Coffee Fellows not just a coffee concept, but a community oriented brand ready for global scale.

From day one, the vision was to build a place where guests could slow down, enjoy handcrafted drinks, and feel truly at home an experience shaped by cozy interiors, responsible sourcing, and a strong culture of hospitality. As the company expanded, this philosophy became the backbone of our brand.

Today, every store carries the same DNA:

• premium quality,
• emotional comfort,
• and authentic connections.

Our growth has always been organic, values driven, and rooted in long term partnerships making Coffee Fellows not just a coffee concept, but a community oriented brand ready for global scale.

Franchise Characteristics

Market support

• Feasibility and market analysis,
• Development planning for first 5 years,
• Real estate assessment for flagship stores.

Training & operations

• Barista training (coffee techniques, machine handling),
• Manager training (operations, HR, financials),
• Brainee digital learning platform for efficient staff onboarding,
• Standardised operational manuals across all departments.

Ongoing support

• Dedicated area managers and franchise support team,
• Continuous improvement programs,
• Regular international partner meetings.

Detailed franchise description

Coffee Fellows converts brand strengths into predictable cash flow and defensible margins.

• our all day proposition (coffee + signature bagels + seasonal LTOs) drives basket size and visit frequency,
• standardized prep lowers labor minutes per transaction,
• and a balanced F&B mix stabilizes gross margin through seasons.

For masters, the model scales with high margin, recurring royalties and supply chain contribution, while capex can be optimized via a blended estate (flagship + sub franchise + travel/compact).

Centralized brand campaigns and menu innovation lift like for like sales. The result is a concept with repeatable unit economics, faster payback potential, and operating leverage as networks grow.

Size of area

Coffee Fellows Express (15-25 sqm)
Designed for busy high streets, shopping centres, and retail destinations with sustained all‑day footfall. The Express format prioritises speed, visibility, and efficiency, delivering premium coffee from compact units that maximise impulse purchases and repeat visits, while maintaining strong brand presence.

Coffee Fellows Classic (45-110 sqm)
The Classic format balances sit in comfort, a premium product range, and efficient throughput. Suitable for airports, hotels, high streets, and shopping malls, it serves customers with moderate dwell times including travellers, families, business guests, and everyday shoppers.

Coffee Fellows Large/Bistro (120-300 sqm)
Our Large Bistro format creates a warm, premium hospitality environment for airports, hotels, high streets, and shopping malls. With extended food offerings and generous seating, it is designed to encourage longer dwell times, attract families and premium customers, and drive higher average spend.

How much does the Coffee Fellows franchise cost?

Initial investments: €250,000-€750,000
Payback period: 24-60 months
Royalties: 6% + 1% Marketing fee both net sales
Average turnover per month: €60,000-€120,000
Other current payments: €20,000 (Store Activation Start up)

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Business model

Illust rative commercial model (example for planning):

• Network scale: 12–20 stores over 5 years (mix of 2–4 company owned + sub franchise),
• Royalty flow: As stores mature, royalty income becomes the largest recurring revenue stream, with operating leverage at the master level,
• Supply margin: Standardised specs and volumes enable negotiated pricing and predictable margins; private label SKUs enhance contribution,
• EBITDA expansion: Master overhead is relatively fixed; each additional store adds high margin royalty and supply income, improving EBITDA % year over year.

Quality & speed of scale:

• We recommend master partners operate the first stores directly to embed standards and build country know how before scaling via sub franchisees or tenant operators—ensuring quality and accelerating replication.

Key value levers you control:

• Site selection discipline, rent to sales targets and store mix (High Street / Mall / Travel / Compact),
• Menu localisation that increases attachment rate (e.g., seasonal LTOs),
• Barista training intensity that improves service speed and consistency,
• Digital marketing activation and loyalty mechanics to lift frequency.

Your responsibilities:

• Roll out and manage the national development plan,
• Open and operate flagship stores,
• Recruit, train, and support sub franchisees,
• Set up local supply chain solutions based on our specifications,
• Localise marketing and maintain brand standards.

Your revenue streams (commercial gains):

• Sub franchise royalties
  Ongoing percentage of net sales from each sub franchise location. Scales with network size and sales growth.
• Product margin / supply chain income
  Margin from centralized or approved local purchasing of core products, private label items (e.g., Frappiato), packaging and consumables.
• Marketing fund management
  Participation/administration fees where applicable; brand campaigns can lift same store sales and accelerate payback.
• Company owned store profits
  Full P&L capture on flagship and selected corporate units to increase EBITDA and showcase best practices.
• Development fees (where applicable)
  One off fees tied to new sub franchise agreements and openings.
• Training & services income
  Fees for initial training, certification, audits and ongoing operational support (as set out in the master agreement).

Requirements to buy Franchise

1. Market Entrance fee: from €250,000 to €750,000 (country minimum usually 10 shops),
2. Store Signing Fee: €20,000,
3. Franchise Fee: 6% of net revenue,
4. Marketing Fee: 1% of net revenue,
5. Investment: €150,000–€350,000 per shop.

Franchise advantages

Development obligations:

• Commitment to a multi year development schedule,
• Typically 10–20 stores over first 5 years,
• Establishment of national franchise support structure.

Key competitive advantages (commercial perspective):

• European premium positioning with high customer trust,
• Signature Bagels as a strong unique selling point,
• Wide product selection enabling all day sales (breakfast, lunch, snacks),
• Agile family run company able to innovate quickly,
• Proven quality and sustainability standards.

Brand differentiators:

• Warm interior design based on the „Feel at Home“ philosophy,
• Constant menu innovation including seasonal specials,
• Plant based alternatives at no extra charge (e.g., Oatly Barista).

Success Story

USA

• High consumer familiarity with specialty coffee and bagels enables clear positioning and fast guest education,
• Focus on compact urban and travel formats to capture commuter and on the go demand while showcasing European brand credentials.

EGYPT

• Robust café culture with high social dwell time; opportunity for larger seating footprints and community engagement,
• Menu and sourcing adapted for local tastes and dietary preferences while maintaining brand standards and product consistency.