If there’s one thing that most Americans could never live without, it’s a cup of Joe. Coffee to North Americans is what tea is to the English. There’s nothing like a freshly brewed coffee to kickstart your morning.
Coffee is second only to water in beverage popularity in the United States. In fact, Americans drink more coffee than tea, juice, and soda COMBINED.
Coffee shop franchises are part of an $11 billion industry. According to market research by Hexa Research, the US coffee franchise market is expected to reach almost $14 billion by 2025.
Coffee is widely consumed throughout the United States - an estimated one-third of US citizens drink at least one coffee a day, while half of the population drinks coffee at least once each week. And while great coffee is available in supermarkets across the US, there's nothing like the taste and aroma of an expertly brewed cup, lovingly crafted by a barista.
Most people in the US stop off at a coffee franchise unit every day as part of their daily commute, frequenting cafes and coffee shops on the way to work. Indeed, coffee serves as an essential pick-me-up to help Americans get their day off to a great start.
The average American spends over $20 each week on coffee from coffee franchises.
So, if you’re passionate about serving up the very best in coffee, seek out a coffee franchise with Franchise Direct. Our range of expert blenders and brewers will train you in the way of the perfect cup. Learn more about this industry below!
Facts About Coffee Franchises
Brazil leads the way in coffee production: it produces around 30% of the world's consumed coffee. However, two US states have the suitable climate and infrastructure to grow and harvest coffee: Hawaii and California.
Most coffee houses don't just sell coffee - that's just the starting point. Nonetheless, it's coffee that draws customers into coffee shops. But once a customer has entered your outlet, there's an excellent opportunity to upsell.
In addition to coffee, most coffee franchises offer a selection of teas, smoothies, bottled drinks, and soft drinks while offering a range of delicious food items, including pastries and baked goods - perfect for mornings on the go or leisurely lunchtimes.
Top coffee franchises including Dunkin' Donuts who has opened over 1500 stores and units around the US over the past five years. Other popular coffee franchise brands are Corner Bakery, Biggby Coffee, and PJ's Coffee.
Franchising
Franchising provides the opportunity to benefit from the reputation and established branding of an existing company. In a market as massive as the coffee sector, independent baristas (without the support of an established partner) often find it difficult to break through the competition.
When you open up a coffee franchise, you inherit the skill and reputation of an instantly recognizable brand. This delivers instant visibility to consumers who already know and trust the parent company; customers who know that they can depend on the exacting quality, service, and experience they’ve grown to expect.
Above all, possibly the most beneficial feature of franchise investments is the world-class training that accompanies the venture. Your parent company has built its reputation on its mastery of the coffee bean. And this is an approach that must be learned.
It's vital for the parent company that you can deliver the level of quality that their customers have come to expect, so look forward to expert training to bring you up to champion barista status.
Additionally, most franchise opportunities come with business- and HR support from the parent company to ensure that your new business runs in compliance with industry-, employment, and tax regulations.
Another excellent benefit of the franchise model is that you gain access to an established supply chain, ensuring the best value for money to maximize your profits and your products' quality. Access the best quality ingredients at the most competitive rates; the best quality ingredients make superior coffee, after all.
Investing in a coffee franchise buys you the right to use instantly recognizable branding, providing your unit with immediate curb appeal.
Coffee franchisees, therefore, benefit from a vast array of opportunities that independent companies struggle to achieve.
The first three years for an independent company are fraught with financial peril. Generally, it takes at least two-to-three years to recoup initial investment - and when business is slow (as it's likely to be until a reputation has been earned), it becomes difficult to sustain a company without an established partner.
Franchising offers the unique opportunity to hit the ground running with a coffee shop franchise. Of course, it depends on your initial investment size, but many franchises turn their profits around within the first year.
Franchising vs. Independent
Moneylenders and banks often favor the franchise model when it comes to allocating and awarding start-up funds. This is because franchises are businesses built on proven metrics - the parent company has already demonstrated an effective and sustainable record of growth, profit, and customer need.
Franchises are built on robust financial models: the parent company has worked through the inevitable pitfalls experienced by all new businesses and arrived at the other side with earned wisdom to pass on to their new franchise partners. Indeed, franchise businesses are often more resilient when the financial going gets tough.
Independent companies who enter the market without the expertise and ongoing support of an established partner often struggle to achieve affordable interest rates on start-up loans. This is usually because their business plan has yet to be proven viable, so the lender's financial risk is higher.
So, you can rest assured that when you take on a coffee franchise, you inherit a wealth of benefits, including your franchise parent's reputation, business model, and marketplace position.
Franchises often enjoy healthy launches due to their instant curb appeal and a customer base that recognize and love the brand.
Coffee Franchise Opportunities
Some people are so passionate about coffee that they turn that love into buying a coffee franchise. Considering the number of coffee aficionados who drink multiple cups of coffee per day, it could be a wise business move. Franchise Direct can help you learn what coffee franchises may be available to you and their corresponding information.
Why Should You Consider a Coffee Franchise?
Starting any business can feel intimidating and overwhelming, but opting for a coffee franchise could be a way to remove some of the pressure.
For starters, much of what a business owner typically has to deal with is already built-in. A coffee franchise comes with perks like an established business model. Customers already know and buy the products, the branding is taken care of, and there's always a demand for coffee.
Another benefit is that people already know your business name and what the establishment is all about before you even set up shop. That gives you a competitive edge over coffee businesses starting from the ground up with no name recognition.
How Much Does It Cost to Start a Coffee Franchise?
As you likely already know, more often than not, establishing a business isn’t cheap. The same goes for starting a coffee franchise. However, going with a franchise is a much different experience than starting from scratch, so a big part of the start-up costs pertains to the benefits and convenience of the added perks.
The total cost of a coffee franchise may reach upwards of the mid-6 figures, but as with any business, that number can go higher or lower depending on various variables, such as its fee structure.
Contact Franchise Direct for More Information
Browse Franchise Direct if you’re curious about what coffee franchise opportunities are available in your area. Once you find some of interest, request free info to get started.
Explore our delightful choice of fantastic coffee franchises, and learn the skills to produce the perfect cup of Joe every time.
You can also check out many more exciting opportunities, such as Café Franchises, here on Franchise Direct.