Category: Coffee Recipes

The Appeal of the Kiosk Coffee Franchise

Many malls and shopping centers around the country have them, even some supermarkets in select areas have them as well. I’m talking about the coffee franchise kiosks. They are a great and inexpensive investment for many would be franchise owners and they provide very low overhead with a potentially high return on investment as there is almost always foot traffic in the malls and shopping centers they populate.

Why is the kiosk attractive to coffee franchise owners?

The primary reason that this particular coffee franchise is appealing is because of the extremely low start up and operational costs involved in operating a business such as this. Rather than renting a storefront or building a business in a physical location the kiosk coffee franchise has considerably lower costs involved in ownership and operational expenses.

In addition to low rent the kiosk is a small space that has low inventory. This keeps operational expenses quite low as well. This is a huge benefit for those looking to build a business with a minimal investment and relatively low capital available to invest in operational expenses.

If these reasons aren’t enticing enough, there is very little equipment to buy for a coffee franchise as well. This means another lower expense. One reason is that there is limited space for additional equipment. Another reason is that there really is no need for additional equipment. These stations are great because they do a few things but do them exceptionally well. Rather than having a full storefront devoted to a wide variety of coffee flavors the kiosk offers a couple of coffee flavor options to customers. This keeps lines moving quickly and customers moving along happily.

Yet another great benefit is the fact that there is really only a need for one staff member at a time. This keeps overhead even lower and earmarks more of the income for profit. If you are going to have an active role in running your franchise business this minimizes the expenses even more. If not you still only have a real need for two or three staff members on alternating days and hours in most cases to turn a nice tidy profit.

Another expense that is eliminated with most kiosk coffee franchises are the expenses of utilities such as electricity, heat, and air conditioning that can be quite extensive in many businesses. Every penny that you can eliminate from leaving your business the better when it comes to expenses. A kiosk allows you to eliminate many of the expenses that often plague small businesses before the profits begin to take off.

If you are considering a coffee franchise as your business of choice you might want to carefully consider whether or not the idea of a kiosk coffee shop would be appealing for you. The benefits of a store such as this are great for new business owners and the pathway to profits, though slower, are ultimately greater over time with expansion and perseverance.

Pros and Cons of the Coffee Franchise

In the world of business and investing there are always pros and cons. The same holds true when it comes to investing in a coffee franchise or any other franchise for that matter. The problem is that far too few people sit down and discuss the pros and cons before jumping in with both feet. Before you make the final decision regarding your coffee franchise future it is a wise plan to take a step back and analyze the benefits and potential pitfalls of your business. The following information should help with overall pros and cons and you can add to your list with details that are specific personal preferences.

Pros of a Coffee Franchise

Excellent potential for low investment and high profits. Most coffee franchise stores have fewer overhead expenses than many retail establishments or even establishments that require a huge amount of money for cooking and storing cold and/or frozen foods. You are also looking at lower costs related to actually operating a coffee franchise with less staff than many other business ventures require.

Having a good reputation for quality, service, and consistency. Building a business is tough period. Building a business and a reputation for quality and service at the same time are tougher still. A coffee franchise eliminates the need to build a reputation if you choose wisely and will bring in profits much more quickly as a result.

Building on a solid business plan. This is invaluable to most business owners just starting out and struggling to find a foothold in the market and in the world of business. A franchise offers the benefit of their experience to new business owners and that is something that a franchise fee just doesn’t cover when it comes to value.

Cons of a Coffee Franchise

Having the potential for market saturation. The coffee market is a tough business to break into. Even with an excellent name there is a great deal of competition in this particular field because of the reasons mentioned above. This means you are going to need to be aggressive in your marketing and work hard to be better than the alternatives in the area. This means you need to have a cleaner store, friendlier staff, better music, and other incentives to get more people in the door than other coffee franchise businesses in the area or seek areas that aren’t already saturated with coffee cafes, houses, and stores.

You must follow the directives of the parent company. For many who have dreamed of owning their own business and being their own boss a coffee franchise, or any other franchise, is definitely not the way to go. You must follow the corporate directives in order to maintain your status as a franchise store and build upon the capital of the good name of the franchise.

This is only a small sample of potential pros and cons for franchises. You must decide which things you can live with and those you’d feel better leaving behind. Your coffee franchise, if you choose to go that route, will be a long-term commitment. Do not take that commitment lightly.

Pop Culture and the Coffee Franchise

Coffee is more than a drink these days it is a cultural phenomenon that seems to have taken the world by storm. While we aren’t quite sure it exactly how it began or when it got so big, one thing is for certain: coffee is a drink that is definitely here to stay. If you are interested in beginning a business of your own, you might want to cash in on this big business (in excess of 5 billion United States Dollars per year) and the popular culture it represents.

For whatever reason the idea of a coffee franchise has grown, expanded, and evolved over the last two decades making it one of the most sought after franchise types available on the market today. Why is it so popular? The possibility of high profit for a low investment is one reason though certainly not the only reason. Investors tend to go with a product they believe in and since many Americans begin their day with a cup of coffee and drink another cup or two at some point during the day coffee promises some degree of demand on behalf of consumers.

For those planning to go into business that have done their homework it is understandable that a business like this, that has constant demand, is certainly appealing. The reason it is appealing is because all markets revolve around a system we know as supply and demand. There is typically a certain amount of demand for a product that has a limited amount of supply. The shortage of supply sets the price and the fills the demand (to some degree).

With the coffee franchise there is obviously enough demand to warrant fairly hefty prices on the cups of coffee that are served. This means that the market is not yet saturated beyond the capacity to entertain a few more contenders in most location (though some are arguably pretty well saturated with coffee franchises you’ll have to decide for yourself whether the area you are considering can handle an additional coffee franchise store).

Higher profit potential for hard work and effort is appealing to those considering opening a franchise store of any sort. Coffee often offers this allure. As far as pop culture goes, you will find coffee kiosks, vending machines, and cafes almost anywhere these days. Even hospitals are beginning to offer gourmet coffee centers for visitors. In other words coffee is becoming more and more a way of life in the United States than yet another example of popular culture.

The joys of a great cup of gourmet coffee are no longer reserved for the rich and famous. In addition to that, we are seeing a much younger generation experiencing the thrill of the caffeine and chocolate buzz that is often the result of a perfect cup of coffee. The popularity of coffee is fueling growth in an industry that shows no signs of slowing down, much less stopping. Are you ready to take your coffee franchise on that ride?

How to Find a Coffee Franchise Opportunity

The Internet is filled with information about beginning and running your own business. More importantly it is also filled with information that is particularly relevant to beginning your own franchise business. If you are interested in purchasing a coffee franchise you need to begin by gathering the facts and the Internet is a great place to do just that.

A simple search on almost any major search engine will net many results for franchise opportunities that are related to coffee. Your best bet is to go to several different franchise websites that offer pertinent information on various franchises within a given category. In this instance you would want to search for services that offer information specifically regarding coffee franchises. Franchise Gator is a great place to begin your search though other search engines such as Franchise Advantage and Gaebler.com are also excellent resources when searching for various franchise opportunities.

These websites are also excellent resources for information about the franchises and shouldn’t be used as a mere listing service (or you are wasting a valuable resources). Of course if you are looking for a list of franchises alone and then wish to narrow them down after you’ve taken a few moments to get the basics about each coffee franchise business then this is a great place to begin.

The bottom line is that you can find almost every coffee franchise opportunity in the United States and several across the globe by performing a simple search online and planning to spend a good deal of quality time sifting through the results. If you prefer to take the easy route, and there is absolutely nothing wrong with that, the websites and directories mentioned above are excellent tools for your arsenal.

What these sites do is eliminate a lot of flipping from one website to the next searching for information and guidance by putting all the information you’ll need in one place. It makes the search much more convenient while also making an easy reference point for you to return to for information as you narrow down the coffee franchise businesses you are most interested in pursuing. Use these tools wisely and they will serve you well on your coffee franchise search.

Before committing to one coffee franchise opportunity however you should do a much more complete study of the franchise than you will find on most of these directories. You will want to know how well the company is doing as a whole and what the financial forecast and outlook for the parent company are before buying into the franchise frenzy.

The reason most people decide to pursue a coffee franchise opportunity is to achieve financial security and even prosperity. For this reason you want to make a decision about your coffee franchise that will help you achieve those goals. Take the time to do the work before you invest and make decisions based on reason with a plan for profit rather than based on emotion and a hope for a payoff on your efforts.

How to Compare One Coffee Franchise to Others

A coffee franchise in most areas is a solid business decision. The complication often arises when deciding on one coffee franchise over its many worthy competitors. There are many franchises on the market that offer coffee as a primary source of revenue. Consider some of the following things when deciding which coffee franchise is the best one to meet your needs while promising the most solid financial future for your business needs.

Start up fees. Different coffee franchises will have different requirements for building space, design, dcor, equipment, inventory, and other associated fees in order to begin your business. Make a list of all the franchises you are interested in purchasing, the fees involved in starting the business, and what is included in those fees as well as what other money you may need to come up with on the front end of your business venture.

Financing. Many coffee franchises have resources to help those who wish to buy into the franchise find financing. Some do not however. If there are opportunities for financing within the franchise this is a plus to many would be franchise owners while others prefer to come up with their own financing. Some franchises also require those who buy into the franchise to have a certain amount of money to invest in addition to any financing. You need to hammer out all the fine print and financial details before making any decisions or property purchases.

Franchise fees. Every franchise has fees associated with buying into the franchise. In essence you are ‘renting’ the name of the parent company in order to run your business. Each franchise will have certain requirements of those who buy into the franchise by means of monthly fees, advertising contributions, required inventory, and other requirements that may not exactly be financial (among these are uniforms, store policies, and procedures for paperwork). Understand before buying into a coffee franchise exactly how much the franchise fees will be each year (or what percentage of your revenue will be required) and what those fees buy you as the franchise owner.

Training/Support. This is the final of the major considerations you need to check when comparing one coffee franchise with others. A company that offers a true partnership and extensive training and support to franchise owners is worth its weight in gold. You need to find out how much training and support are offered, how they are offered, when they are offered, and what this will mean to you as a franchise owner. A company that offers virtually unlimited training to help you get business up and running is worth more money and higher fees than those that leave you to tread water until you sink or swim.

Consider each of these things when comparing coffee franchises for purchase. Decide which issues are most important to you and which franchise opportunity is most likely to offer all the things you are looking for your investment. That will be the best possible choice though you might want to keep a top 3 list in case something falls through in the process.