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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.

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.