Category: Coffee Recipes

A Coffee Franchise by the Numbers

Franchises often make expensive partnerships though many people find them far less expensive than building a brand new business venture. There are still plenty of expenses that go into building a franchise that are often overlooked until too late. Before you even consider buying into a coffee franchise you need to sit back and take stock of your overall financial situation. Business is risky, even going the lower risk route of purchasing a franchise there is no small degree of risk involved that you will lose your investment and perhaps any collateral you had invested in your business venture.

How much cash do you have available to invest in your coffee franchise? Most franchises will require a personal commitment of finances even if you can arrange for a good portion of the costs through financing. The reason for this is that most people are going to work twice as hard when their own money is on the line to make the business a success. It is a sound business move on their behalf and one of the reasons that they are able to become franchises and maintain a solid reputation for quality goods and services.

What is your net worth? There are quite a few bigger named franchises that require you to have a certain amount of net worth before they will even discuss an investment opportunity with you. There are various reasons for this and each company has its own reasons. The bottom line is that you should expect to be asked for your total net worth and prepared to divulge that information when applying for franchise partnerships.

What are you willing to use as collateral in order to secure any business loans you may need? This is an important question to ask yourself. It is best; if at all possible, not to risk your personal home or your family’s security (IRAs and 401Ks) to secure the funds needed to buy into a franchise business. That isn’t always possible however and extreme caution is urged when doing so. It is best to go into this with your eyes opened to the risk rather than wearing rose colored glasses. You run the risk of losing whatever you use to secure the funds for your business. Are you willing to accept that risk? Is your family?

What money are you going to live on while building your business? It takes a little time to build a steady profit that will provide a sustainable income. Do you have enough money set aside to pull you through the lean months while you are building your business or do you have some other methods of earning income during that important time for your business?

Finances are surprisingly the most overlooked aspect of building a business such as a coffee franchise and one of the most important and necessary for doing so. You need to plan to support your family while you are building your business in addition to having the money that will be needed to start your business in the first place. It takes money to run a business and this is more true in the first few years of your business than at any other time.

5 Tips for Beginning a Successful Coffee Franchise

Chances are quite good that if you are beginning a coffee franchise that you have visions of successful endings and massive expansion swimming around in your dreams at night. These are good dreams to have but do not allow them to occupy your thoughts and dreams at the expense of the work at hand to grow your current coffee franchise business to the point of successful expansion and profit.

1) Study all aspects of the coffee franchise before deciding to buy. In fact, study the big picture for several different franchises before you decide to buy. What looks wonderful on the surface may look completely different upon deeper inspection. This is definitely true of businesses that you are considering as an investment. Do the numbers and pay attention to the type of support that you should expect from the franchise partner. In fact, it’s a great idea to talk to others who own coffee cafes within the franchise to see how supportive the partner company really is when it comes down to it. You might be surprised and amazed by the companies that have a tendency to leave their store owners hanging and those that are very supportive of store owners and work to help make the success mutual. Go with the companies that not only meet your criteria but also work with you to help you achieve your goals.

2) Plan to work your business. This is important at least for a little while because you never know when you’ll need to be able to work your business. Stuff happens in business and no matter how great you think your staff may be you never know when you will come across a staffing crisis. Be prepared to work your business if necessary in order to make it successful. In fact, working alongside your staff is a great way to build their confidence in you and make sure that everything is on
the up and up.

3) Put money into your business. It takes money to make money and if you are pulling all of the profit out of your business and not investing at least half (though preferably more than half) into growing and expanding your business you are doing yourself and your business a great disservice.

4) Appreciate your staff. A little appreciation goes a long way to instilling loyalty from your employees. Set goals, give awards (and praise), and build a team of staff. You will find that by doing these things you are creating a loyal staff and a great working atmosphere.

5) Serve your customers. Repeat business is the bread and butter of any retail or service industry establishment. It takes a lot of effort on someone’s behalf to get the customers to walk in the door and very little effort (or a distinct lack of effort) to insure that they will never again walk through the doors of your business.

If you make these five tips a priority in your business you should have the success you are dreaming of.

Why Choose a Coffee Franchise?

A coffee franchise might very well be the perfect business for many would be business owners seeking the safety of buying into a name that is well know and well loved rather than engaging in the riskier business practice of building a business and a brand name from the ground up. If you are looking for a franchise opportunity consider carefully the gold mine that a coffee franchise can be in the coffee culture of the new millennium.

Some say it all began with Friends though there are those who will argue that the growth of the coffee industry has been a long time in the coming and that the popular situation comedy is only a testament to just how popular and iconic coffee houses were becoming. Regardless of why, one thing is certain. Coffee has become big business and those that are seeking a franchise business to build would do well to consider the value of owning a coffee franchise when making business plans and decision.

A coffee franchise will require lower start up costs than many restaurant businesses and the operating costs for many of the smaller coffee businesses are lower than a typical full service restaurant and even the average fast food restaurant on a normal day. There is less staff involved in running a coffee franchise and, in many cases; there are lower energy costs involved in the daily operations of these types of businesses.

Another reason to consider a coffee franchise for your investment business is that they are popular and seem to be growing in popularity each and every day. Some communities are more open to a coffee house or coffee caf than others but those that accommodate these types of businesses often find that they perform quite well and turn nice tidy profits. The days of one big kid on the block when it comes to coffee are long gone. There are plenty of options available when it comes to coffee franchises and believe it or not, there are plenty of customers that are both brand loyal and that enjoy switching things up a bit. This means that there are plenty of opportunities for new customers on a regular basis as people expand their horizons, try something new, or find a new favorite brand to be loyal too.

In addition to a coffee franchise that deals solely with serving coffee to the demanding public there are plenty that also offer goods and services that compliment coffee quite nicely and go well with your coffee time. From wi-fi access and Internet cafes to those coffee franchise restaurants that offer smoothies, bagels, sandwiches, baked goods, and countless other enticements to get customers in the door there are plenty of options when searching for a great coffee franchise investment.

There are plenty of reasons why a coffee franchise is a sound investment decision. The bigger question you may need to ask yourself is why not choose a coffee investment with all the great things going for them?

Why are Coffee Franchises so Popular?

Investors everywhere are enamored with the idea of building a coffee franchise business. There are many reasons for this but the bottom lines boils down to the fact that so many among us love coffee-especially those that own and operate a coffee franchise. While loving your product or service is a great reason to go into a certain business, there are many other things that should be considered. With that in mind, many of the following reasons contribute to the wide popularity of the coffee franchise in the United States.

Low Investment. While this certainly isn’t true of all coffee franchises there are many emerging coffee franchises that allow business owners to invest in their franchises and build upon the capital of their good names for well under one hundred thousand dollars. In the world of franchises this is huge with more popular franchises selling in excess of one million dollars for the first restaurant or store.

Low Overhead. This is yet another great reason to look to the wonderful product of the coffee bean upon which to build your business. The less money spent on expenses equal greater profit. Profits are the goal when investing in a coffee franchise or any other business venture.

High Profit Potential. When you consider the cost of a cup of coffee at your average coffee franchise store the return on the investment is phenomenal. People spend more on a cup of coffee than they will spend on a gallon of gasoline at today’s prices and consider it money well spent for the pleasure a good cup of Joe provides. The costs involved in creating that cup of coffee are relatively low when compared to the cost of a fast food hamburger and yet the cost of the cup of coffee is generally much higher.

Popular Product. Coffee is popular with millions of drinkers worldwide and new people turned on to the wonderful world of coffee each and every day. Not only are we looking at a world of growth as a business but coffee drinkers are growing younger than in years past. Coffee is a part of pop culture these days and seems to be a fad that is here to stay. You will need very little advertising to get your message across. Your biggest concern will be to continue providing excellent products and service so that customers will return day after day.

Pop Culture Appeal. I mentioned above that coffee houses, stores, and cafes have become a part of pop culture. This is appealing to many would be business or franchise owners and a huge reason that the coffee franchise has become prominent across the country in big towns and small communities alike. It is an opportunity to become a part of the popular culture of a generation and that is the sort of momentum that many business owners would love the opportunity to capitalize upon.

If you are considering buying into a franchise business, a coffee franchise may be the perfect solution. Examine carefully your reasons for wanting to do so and take the time to put pen to paper before buying in to make sure you are getting the best value for your investment dollar.

Who Wants a Coffee Franchise?

If you look around your community or town you will find that there are all kinds of businesses (unless of course you live in a very small town or community of course). It takes all kinds of businesses to keep a community running smoothly and meet the laws of supply and demand. Now, take a look at your community through the eyes of a potential business owner. Take note of specialty shops, franchise stores, and retail establishments that line the streets and boulevards of your hometown. Is there are coffee franchise among the mix and if so, how many?

Many people are beginning to compare certain coffee franchises to McDonald’s. In fact, there are certain areas of the country where one particular coffee franchise seems to be more prevalent than the hamburger giant. If your community isn’t blessed with any sort of coffee caf, coffee house, or coffee franchise store you might seriously consider bringing one in. The reason being that coffee is considered liquid gold by many in the business. Coffee is something that people are willing to pay more for one cup than they often pay for a gallon of gasoline. If you’ve visited the pump lately I’m quite certain you can do the math there.

More importantly, those that drink coffee rarely limit themselves to one cup a month, a week, or even a day. They are truly loyal to this beautiful dark brew and drink several cups a day. This means that a good quality franchise is very likely to be visited by those coffee lovers in the community at one point in time or another and coffee lovers seems to be growing in scope on a regular basis. Even those who don’t ordinarily drink coffee are often tempted by some of the fancier coffee drinks that are often sold at a coffee franchise store and will visit as an occasional treat or reward for a job well done.

You should also keep in mind that there are many coffee franchise businesses that are so much more than just a few cups of coffee. There are those that also serve tea, those that have bakeries, those that have cafes, and many other great combinations to compliment the coffee being sold. This means that you are not necessarily limited to coffee if you choose to go with a coffee franchise for your business investment.

With these options available to franchise owners who on earth would want to invest in a coffee franchise for their business investment? Chances are that almost anyone that is looking to build a business that provides a useful service to the community while promising a decent return on investment and phenomenal growth potential would be interested in beginning a coffee franchise business of their very own. This includes almost anyone that is trying to start up a great business. Are you interested in a coffee franchise yet? If not, you might want to check out the financials of most coffee franchises. Once you do the math you might find that you are very interested.