~ 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.
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.
ABCs of a Coffee Franchise
One thing that is often overlooked about running a business by those hoping to run one of their own is that it isn't an easy proposition. If running a successful business were easy, there would be many more people doing it. The good news is that a franchise, such as a coffee franchise, makes the running of your business seem as simple as ABC.
Accounting. Franchises often have a unique method of accounting for the money earned, money owed, inventory on hand, inventory needed, and countless other details that are often learned by other business owners through painful sessions of trial and error. Learning these accounting practices makes financing the business, operating the business, paying taxes, payroll, and ordering new supplies much less painful than they have the potential to be. Little details such as this are often overlooked during the planning stages though vitally important to the success of a business.
Business management. This is a skill that isn't inherent in most people. There are things that must be learned in order to properly manage a successful coffee franchise, or any other business. Managing a business requires the ability to see the big picture while still paying attention to the minutest details. You need to be able to make sure the store is clean, the staff is in proper uniform, the coffee is being stored and prepared properly, and that the money is going where it needs to be when it needs to be there. This is a skill that is taught during training sessions with most franchises and one that needs to be remembered and perfected.
Customer Service. When you buy a coffee franchise you will discover that your customers are your most valued assets. You will also learn that your employees and staff are you biggest tool in keeping customers or loosing them. A coffee franchise is part of the service industry and you need to stress this fact to anyone on your staff. Good customer service is essential for your business.
Demand. Before you build a coffee franchise you need to see if there is enough demand in the area to warrant a new business. Some markets are quickly becoming saturated with coffee franchise stores because of their popularity and relatively low start up costs. Do not allow your business to be a victim of low demand. Build in an area that is underserved or that has an unusually high amount of traffic to meet the demand (such as an exceptional location).
Exceptionality. Competition is fierce in the coffee franchise industry. You must be exceptional in every aspect of building your business in order to stand heads and shoulders above the rest. Offer customers the most delicious coffee, the best service, and the nicest atmosphere and you will find that your customers are loyal to your business. Fail to do this and you will find your customers going to the coffee shop down the road.
Let the alphabet be your guide and think of other ways you can make your coffee franchise stand out among the crowd.
Before You Invest in a Coffee Franchise
There are many people who dream of someday owning a business of their very own. Franchises make this a possibility for many people who would not ordinarily have the opportunity. While the franchise path to business ownership may be the preferred method for many would be investors it is not necessarily an easy path. There are several things that must be taken care of before the process of franchise ownership begins for your coffee franchise.
Money. You must have some money of your own to invest. Even with a perfect credit rating, most franchises require a certain amount of liquid asset investment, a certain amount of personal worth, and a substantial down payment or franchise fee in addition to any sums of money that you may have financed. Be sure to check with the franchises you are considering and make sure that you have the required assets before going a step further.
Credit. Unless you've just come into a sizable inheritance or prize winning, chances are that some financing will be necessary in order to purchase the coffee franchise you are considering. There is nothing wrong with needing financing; most business owners need it in the beginning. However, you must have decent credit in order to qualify for that necessary, in many cases, financing. Get your credit in order before going one step further and keep an eye on it for at least a year before attempting financing for your coffee franchise.
Skills. You will need to have some combination of management skills for money and staff in order to be a truly successful coffee franchise owner. Whether you yourself have the skills needed or you make wise decisions in the beginning to hire managers that have those skills as well as your complete trust to assist you in the daily running your coffee franchise, someone must be in a position to make decisions that can do so with authority and certainty. You should also have a few skills that are relative to running a coffee business if this is the business you are going into.
Goals. Finally, goals are a necessary ingredient when building a successful coffee franchise. You need to have immediate goals as well as long-term goals and create a plan of action that takes you towards your goals. Your long-term goals are likely to change as your business evolves and as your experience increases. Be sure to revisit your goals often and see if any adjustments need to be made in your planning process to achieve those goals more quickly, more realistically, or more efficiently.
Building a successful coffee franchise really starts before any papers have been signed. You must have the proper mind set in order to be successful in any business pursuit. By taking time to create a plan, arrange financing, save money, get your affairs in order, and set goals you are establishing a pattern of behavior that is important to the success of your coffee franchise before you make the purchase.
Best Kept Secrets of Coffee Franchise Ownership
Once you've made the decision to purchase your very own coffee franchise there are many questions, doubts, and fears that will arise. There are a few secrets that successful franchise owners know that those who do not succeed often either overlook, forget, or do not believe the importance of. Growing a business is hard work. Heed the secrets below in order to make your coffee franchise the best in the business and to have a staff that is loyal to you.
1) Take your time when selecting your franchise and find a coffee franchise that you really like and not just one that you think will make you the most money. If you do not like the uniforms, rules, restrictions, or coffee in the beginning chances are good that you aren't going to grow to like them over time. Instead, go with a business that you believe in and let your enthusiasm be contagious. Your customers and your staff will know if you are in business just to make money or you really want to build a great environment for everyone.
2) Be passionate. If you can't get passionate about coffee then a coffee franchise probably isn't the business solution you're looking for. If you are passionate about coffee, make sure you build your business around the coffee that lights your fire and not some off brand that doesn't make your mornings shine (besides you don't want your customers to catch you sneaking a sip of the other guy's coffee).
3) Be prepared to work. Building a business is hard work. Far too often franchise owners expect to pay the bills, sit back, and watch the profits roll in. In a perfect world, maybe but in the world in which we live hard work is necessary to begin your business and an absolute necessity when it comes to making your business grow.
4) Make work fun. Build a team atmosphere, play fun music when customers aren't in the business, and give your employees incentive to succeed. While this isn't a field in which you can afford to pay your employees a great amount of money you can do little things that give them incentives to do well and succeed. These goals are often better for some employees than higher pay would be and will breed a loyal staff that actually enjoys coming to work day in and out.
5) Be involved. If you are involved in the daily operation of your business you are in a much better position to see when things start to look bleak and correct potential problems before they arise. If you are not involved the problems may be catastrophes that are much more expensive and time consuming to fix than if you had caught them early on.
There are many ways to run your business and it is your business (as long as you remain within the guidelines of the franchise) but it is much better to follow the steps above and keep things running smoothly than risk significant problems by ignoring some of these valuable recommendations.
Can a Coffee Franchise Secure Your Future?
There are many reasons that people consider franchise ownership. First and foremost among those reasons is a secure future for the family of the franchise owner. Some choose to invest in a coffee franchise in order to plan for better golden years once retirement age has been reached while others seek potential earnings for a comfortable living both now and in the future. Whatever your reason for seeking franchise ownership I'm sure the question as to whether or not coffee really is the way to go has come up at one point in time or another.
Is Coffee the Way to Go?
There is no cut and dried simple yes or no answer for this question. Each investor is different just as each coffee franchise is different. You must consider several contributing factors when weighing whether or not a coffee franchise is the wave of the future you are looking for with your investment dollars.
Many people begin their days with a nice piping hot cup of coffee. Many would be investors seeking franchise ownerships appreciate the symbolism of a coffee franchise business as a new start or beginning and the fact that so many people not only across the nation but around the world begin their days with a cup of this delicious brew.
If you are one of those people then undoubtedly the allure of a coffee franchise will tug a bit and that is a good thing, if you believe you can sell coffee, if you believe in the particular coffee franchise you are considering, and if your target area isn't already saturated with coffee related businesses and franchises. You absolutely do not want to be the new kid in a saturated market unless you have something new and different to offer that the other coffee franchise establishments in the area do not.
If you are wondering why coffee the answer is relatively simple. First of all coffee is big business. Around the world coffee is being consumed on a more regular basis as many of the negative connotations and side effects of coffee are being replaced by benefits and low or no caffeine options. New people are waking up to the appeal of coffee on a daily basis and many consumers of coffee drink more than one cup per day. This means that those coffee drinkers are likely to return on a regular basis bringing in repeat customers and if you choose the right set up for your coffee franchise you can capitalize on repeat business while also drawing in your share of new loyal customers as well.
Can a Coffee Franchise Secure your Future?
Absolutely! But this will only happen if you choose wisely, treat your coffee franchise like a business rather than a hobby, and take proactive steps in the process of growing and exposing your business. A franchise goes a long way towards establishing name recognition and professional advertising but you must play an active role in the growth of your coffee franchise as well if you are seeking true success and a comfortable living and/or retirement.
Coffee Franchise Options
One thing that coffee franchises offer that very few types of franchises have to offer is options. There are literally tons of options for the coffee franchise that simply do not exist for other franchises because of the types of businesses that many of them are. Coffee is a business that can be done in a small amount of space or it may occupy an entire store with fresh coffee, brewed coffee, and dozens of other options.
If you are looking for an excellent business but are afraid to work yourself into one particular mold a coffee franchise might be an excellent choice for you to put your research efforts into learning more about. In addition to finding coffee franchises of varying sizes and scope you will also find wide variances in price from one franchise to the next Many franchises are quite expensive to purchase and operate while some of the coffee franchises available on the market are surprisingly low in start up costs and overhead. It depends, as mentioned above, largely on what your plans and expectations may be.
The first coffee franchise that you might want to consider and the one that requires the smallest investment is the kiosk. This is a very small venture for your investment dollar that doesn't promise the eye glazing profits that some of the larger franchise stores present but does at least offer an affordable entrance into the world of franchise ownership. By purchasing one adding another to your portfolio once you get the first up and running you have the potential to add more to your investment portfolio and build a substantial income.
The drive thru coffee shop is the second on the list. This is a great high volume business. There are some that choose to have two drive thru windows so that more business can be accommodated simultaneously. This is a great business decision if your coffee franchise store is located in an area that is busy enough to accommodate both windows. The expenses in an operation such as this are a little more than a kiosk but not as much as a walk in coffee shop.
The walk in coffee shop requires a more substantial investment. The options are to offer freshly brewed coffee to guests who enter as well as a few snacks that compliment coffee and quite possibly some coffee for your customers to carry home for their brewing pleasure. These little hot spots are not as comfy cozy as most coffee bistros are coffee houses but tend to turn a nice tidy profit for those that are willing to make the investment.
A coffee house is going to be one of the more significant investments when it comes to a coffee franchise sort of business. Most of these will have some sort of prevailing theme, excellent coffee, a few options for those who do not like coffee, and a delicious dessert or two for those who need a few additional calories to finish off the experience or get the morning going.
There is no right or wrong way to build your coffee franchise only the method that you are most comfortable building. Decide which of these is best for you and then compare your options.
Coffee Franchise v Building a Unique Business
Building a business from the ground floor is a very time consuming, emotionally taxing, and financially straining prospect. This is one reason that franchise businesses are so popular among those seeking the security of business ownership but not willing to risk their financial futures and security in the effort. The price that is paid for the lower risk of franchise ownership is lower profits while the business is being built in the form of franchise fees and expenses related to following the rules and requirements of the franchise organization.
The problems with building a business of your very own are plentiful. The first hurtle to overcome is that the average first time business owner doesn't know beans about coffee much less about the market, building a business plan, or operating a business. This is problematic if you are pursuing something as specialized as coffee for your business. A coffee franchise does not only provide a product and concept for running a business but also provides valuable training on the product as well as the process of running a business. This knowledge alone is well worth the franchise fee when you choose a great partnership for your business.
Coming up with a concept that is unique and trendy is another problem that most first time business owners face. It's great if you have a fabulous concept and the know how to implement that concept it can be disastrous if you are lacking one or the other however. The coffee franchise builds upon someone else's concept and implementation. This means that you learn from the trial and error of other people saving time and money in the process while turning over an even great profit much sooner than if you were building your own business from the ground floor.
A coffee franchise is often preceded by its reputation. This is another benefit that is huge when it comes to expensive advertising and name recognition. If you have a name that people know before they walk in the door then your customers know what to expect and you will have customers that come to you because they tried the franchise elsewhere and liked it. People enjoy doing what is familiar to them for the most part and you can capitalize on the efforts of others to build a reputation to catapult your own.
Franchises are essentially partnerships. The parent company is dedicated to your success because they have their name attached to your store. While they aren't necessarily silent partners in the running of your business (as most franchises have very strict formulas for success) they are going to make their best effort to help you succeed as a partner rather than a competitor. This is good for you as a coffee franchise owner as you have someone that is willing to help you succeed. Most people going it alone are doing just that and have no one there to help them work through the rough spots or offer training, education, or encouragement.
Espresso: The Quality of Espresso Cups
Finding a Coffee Franchise with Flair
There are many ways to add a bit of flair to most businesses. Unfortunately most franchise businesses frown on adding flair that isn't uniform. For this reason, if you want something a little more than a cup of coffee out of your coffee franchise (other than profits of course) you might want to make sure you plan for that in the beginning and seek coffee franchise opportunities that have a little bit more than just a cup of Joe to get your motor running.
Why would you want more than coffee in your coffee franchise?
This is actually a great question and the answer is quite simple. Not everyone likes to drink coffee. I know that many of you out there just fainted dead away but it's true. There are those among us who do not infuse coffee directly into the veins each and every morning to wake up. In addition there are those who go so far as to not liking coffee at all. It's a sad state in which to exist I know but there you have it. If your business offers more than a cup of coffee to your customers and clientele you are going to be able to capitalize on those who come along with friends but aren't as thrilled to be in a coffee shop. In fact, if you offer the right combinations and selections you just might find a loyal customer base that doesn't ever purchase coffee in your franchise store.
The good news is that there are many coffee franchises that offer a little bit more than coffee for franchise owners to serve. My personal favorite is one such business that offers fudge and coffee though this is certainly not the only calorific option available. There are plenty of businesses that combine a bakery with a coffee franchise or a café atmosphere with the coffee culture. Some newer businesses are also combining smoothies with their coffee options.
If you are like many of the people that inhabit the United States you are probably well aware that there are plenty of coffee drinkers out there. If you open a coffee franchise in an area that isn't already saturated with coffee franchises and provide excellent quality and service chances are that your business will do well whether your focus solely on coffee or offer those extras that you might find interesting on a personal level.
There really is no one right or wrong option to make when selecting your coffee franchise only the decision that is either right or wrong for you. Not everyone wants a business with a split focus and there is a good bit of argument in favor of a business that does one thing and does that one thing exceptionally well. It is up to you which of these will be appealing to you. If you grow quickly bored with the same thing variety may be the perfect spice of life however, if you are the type of person that enjoys the idea of perfecting one thing then you might be more inclined to stick with coffee and make your coffee franchise business the best on the block by far.
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.
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?
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.
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.
The Coffee Franchise for Women in Business
Women in business are a growing occurrence. Once relegated to the roles of caretakers more women are stepping up to bat in recent years and discovering that we are not only excellent caretakers and tenders but also exceptional providers and business minds. Savvy women in business often follow the path of least resistance. One way to do this is to buy into a coffee franchise as a business investment.
Why would a coffee franchise appeal to women in business?
There are actually quite a few reasons that coffee franchises are appealing to women in the world of business not the least of which is the fact that a franchise offers name recognition, which can cut years of struggling to build a steady customer base off the timeline. Customers are what makes money in businesses such as a coffee franchise and name recognition often brings customers in the door much more quickly than a new business that no one has ever heard of.
Coffee franchises also offer products that many women find personally appealing. This is often one level in which women in business differ from men. Women are much less likely to go into business offering a product or service that they do not genuinely like or believe in. If a woman loves coffee this is a business that she will see as an attractive business because she knows the product, enjoys the product, and is in a position to really be able to help her customers by making appropriate suggestions to those who seem to be at a loss (personally, I'm almost always at a loss in a coffee café because there are so many wonderful goodies from which to choose).
Women in business also like the idea of coffee franchises in many instances because it presents a challenge but doesn't overwhelm. There are plenty of new and wonderful things to learn when opening a coffee franchise but the vast majority of them are pretty straightforward and not overly technical or complicated. This makes the path to ownership much more attractive to women who are less technically or mechanically inclined than the average guy and some of those who would simply rather save mechanical or technical pursuits for pleasure rather than business.
If this isn't enough however, there is always my personal favorite reason that a coffee franchise is more attractive than some of the other food centered franchises that are available for women: no frying. That's right. Most coffee franchises do not require a steady supply of greasy food to prep, prepare, and clean up. There is no pervasive scent of fried food that seeps into pores, clothes, and nasal passages. While all women will not count this is a favorite reason it is quite possible that most women will at least somewhere down the road consider it a definite plus when it comes to coffee franchise ownership. The scent of coffee is much more attractive than the scent of French fries-especially in the early hours of the morning when most coffee franchise stores are busiest.
The Importance of Location for a Coffee Franchise
In the world of business, location is extremely important. Most of us have heard the saying "location, location, location". There is a reason it is a saying and it is important for everything from the perfect photograph and romantic settings as it is in the world of real estate and business success. Spend time scouting out locations that you feel would be great places to open a coffee franchise business and ask yourself the following questions.
Is this is a high traffic location? Most people are rather lazy by nature. You want to find a location that people will drive by often. In other words, you do not want to select a location for your coffee franchise that is low traffic-at least not if big business is your goal. If you found a location that you think is perfect for a coffee shop sit back sometime and see how much traffic drives by the area you are considering. If the rate of traffic is busy you will get a good bit of advertisement value from putting up a sign and having people pull in on impulse.
Can customers easily get into and out of your location? As a customer there are few things that I find more frustrating than a business that is located in an area that proves difficult for entry and exits. Most coffee franchise customers are going to be in a hurry and on the go. You want to make the process as seamless as possible and this means you want a location that allows quick access off the road and back onto the road. People are more likely to make you a daily or weekly stop if your business is convenient for them to enter and exit. Many coffee franchises are electing to have two drive thru windows for added convenience, this is something else you may want to consider for your location if possible.
Is it near entertainment? You might find yourself awed and amazed at the number of people who stop in for a cup of coffee and perhaps a sweet treat after a night at the movie, theater, or even a game of bowling. Many people find that a great cup of coffee is a nice way to end the day (especially if you have a nice variety of decaf on hand). Even those that may not have considered it before will find they are often tempted to make the stop after a movie-especially those on dates that aren't quite ready for them to end if they see the sign and the coffee franchise in question is located conveniently near the theater or other entertainment venue.
With these things in mind, make sure you choose your location carefully for the best possible effect. Location won't guarantee success but a great location is a good deal of insulation against failure. When planning your coffee franchise keep all the locations in mind, ask the questions mentioned above, and go with the location that really is the best location to attract business rather than the location that has a certain look. Aesthetics can always be changed later on; the location is pretty firm once selected.
The Potential Pitfalls of a Coffee Franchise
All businesses have a few potential pitfalls that should be watched for when considering a partnership of sorts, as would be the case with a coffee franchise. A coffee franchise has excellent possibilities when it comes to profits but the reality is that most coffee franchises fail to capitalize on the massive profits that could be earned. This doesn't mean that there aren't many franchise owners that are doing well financially with their coffee franchise businesses. It simply means that there are many more who aren't doing as well financially as they should be with their coffee franchise businesses.
At the same time you really should examine potential problems that often arise when becoming a part of a larger franchise organizations rather than going it alone. More often than not the benefits far outweigh the potential problems but you should be aware of both the potential for great success and the potential for a few stumbling blocks (or outright landslides) along the way as the result of a franchise affiliation.
The first roadblock that often arises is that you, as a franchise owner, are more often than not limited to products created by and for the franchise to serve in your coffee café, shop, or house. This means that the new great flavor that you fell in love with last week may never be on your menu and many business owners find this to be a hard lesson to swallow.
The other problem with being limited to the corporate version of products and goods is that these are often neither the best nor the least expensive. This means that you are likely going to pay more for something that you may not truly appreciate the quality of. Hopefully, if you've elected to go into business with a particular franchise company you appreciate their quality but every once in a while something better comes along at a better price and it's difficult to pass it up though you are often required to do so.
Another big problem for those who go into the business of owning a coffee franchise often come across is the fact that you've dreamed of becoming your own boss and running your own business only to find out that you are still a slave to corporate policies and your own franchise agreement if you want to keep your franchise rights.
Worst of all for many people is the fact that after years and years of being told how to dress and what to do at work you might find yourself required to wear a uniform when working in your very own store as well as being told how to serve the products you are paying to serve. It's a tough role for some to swallow. Unfortunately, it's part of the package if you want to enjoy the benefits of building a business with a coffee franchise. Only you can decide, in the end, if the pitfalls are worth those benefits.
Things to Know When Choosing a Coffee Franchise
It is always a good idea to have a clear picture of any business venture in your mind before jumping in with both feet. The same holds true for a coffee franchise. You should take the time to learn everything possible about the franchise you are buying into, the market in your area, the projections and expectations for similar markets, and the competition. Those are the biggies that you should never even consider signing with a franchise before knowing. There are a few more subtle details you need to make yourself aware of however, before you dive in that will help insure your success or at the very least give you proper caution where needed in your business venture.
The most obvious thing you need to know about when deciding to open a coffee franchise is coffee. There are many resources online that can help you learn more about the products you will be peddling and there is no replacement for knowledge. Learning about coffee can also help you narrow down and ultimately select the coffee franchise that you feel will meet your standards and needs best. The more you know about the product you will be selling the greater the opportunity to make a profit.
The second thing you need to do is learn how to tell the difference between offerings from one coffee franchise to the next. The best way to do this is to ask. Most franchises have a website and an email contact as well as phone numbers. They want franchise owners to invest in their organizations and are generally pretty open to inquiries. They are especially open to those that ask thoughtful and insightful questions that aren't already spelled out and answered on their websites. Be sure to read through the website several times, write down any questions you may have, double check the website for answers, and then ask the person on the other end. You should also seek clarification if there are issues that you have questions about that aren't answered fully or that leave room for misinterpretation.
If your questions aren't answered fully and completely once asked during the search process this could be an indication that other issues will not be addressed thoroughly for those who have purchased a franchise within the organization already. A coffee franchise is appealing because you are entering into a partnership rather than going it alone. If you aren't getting the support you need when shopping around chances are that it won't be any better when you are a paying customer. Seek commitment elsewhere in other words.
If you are the kind of person who likes that little something extra you might want to find a coffee franchise that offers a little something more than just coffee-not that just coffee isn't perfectly acceptable and better for some investors. However, you should consider your personality and what you look for in a coffee shop when selecting the coffee franchise that you want to make your own. If you combine all the advice mentioned above you should be well on your way to finding the perfect coffee franchise for your business investment.
Things to Look for In a Coffee Franchise
Building a business isn't necessarily an easy task to pursue. Many people go the franchise route when building their businesses so that they may build upon the successes of others rather than learning things about building a business the hard way. A coffee franchise is a good business for most would be business owners. The problem is that very few who are interested in owning a coffee franchise actually put pen to paper and decide what they find attractive about the various coffee franchises that are available to them.
Does the franchise offer the type of training and support you are going to need to help you get things up, running, and off to a great start? This is important. Most people going into the business of owning a coffee franchise have never worked in a coffee house or restaurant before and are not aware of the subtleties or making a great cup of coffee. More importantly they know next to nothing about the business end of things in many cases. A franchise partner should be dedicated to your success and that of your business as both reflect directly upon them. Make sure they have plenty of opportunities for learning about and growing your business in place.
Is there a location nearby from which you can sample the product? It would be a shame to buy into a coffee franchise only to discover you don't really care for the coffee. It's very difficult to enthusiastically sell and promote a product you do not believe in. With this in mind make sure you've sampled the coffee and other items that your coffee franchise business is going to carry before buying in.
Do the products offered by this franchise excite you? Seriously it is much easier to promote and sell a product, good, or service that you find exciting. For some people the idea of a coffee franchise that dealt with coffee only isn't all that exciting; others find it very exciting and that enthusiasm shows. Make sure you are excited about your business and the products you are offering.
What kind of advertising is covered in the franchise fee? Advertising is the thing that often gets people in the door of your coffee franchise business. Without adequate advertising you are going to face a few extra hardships when it comes to bringing people into your business. If the parent company offers an aggressive advertising campaign for a nominal fee or as part of the franchise fee you are much more likely to enjoy greater success (provided you do your part once customers walk through the door).
There are many things that different franchises do differently. Find out exactly what the franchise company you are considering offers its franchise owners as incentive and compare to other coffee franchises you are considering. You might find that one is heads and shoulders above the rest and that is the one you'll want to do business with. A few extra steps in the beginning save time and aggravation later.
What are the Benefits of a Coffee Franchise?
Building a business from the ground up can be an intimidating, back breaking, and bankrupting process for many would be business owners. Most businesses fail miserably after the first year and even those that hang on often fail to do much more than break even (if that) during their first three years in existence. For this reason we are seeing a growing trend among those who are interested in owning a businesses in franchise purchases and ownerships.
If you know very little about what it means to own a franchise businesses such as a franchise coffee establishment you might not realize how many benefits ownership of a business such as this really has. Name recognition is often one of, if not, the greatest challenges that most businesses face. It is difficult to get people to try something they've never heard of before, especially if it has something to do with food or drink. It is much easier for most to go to the same big chain stores that line malls and shopping centers across the nation rather than taking a chance on the new kid in town that offers something unexpected.
While name recognition goes a long way to making ownership of a coffee franchise, or other franchise establishment, there are plenty more wonderful reasons to consider a franchise business rather than going it alone. In fact one of those reasons is that in a franchise you aren't going it alone. You will have training and education that allows you to build your business on the experience of others without making many of the costly mistakes they have made in the process. Build on the positive and avoid the negative to make more immediate profits than if you were to build your own business from the ground up.
Another great benefit of joining a coffee franchise is that they have the ability to do extensive marketing research that most small business owners cannot afford. This means that the advertisement campaigns are much more likely to appeal to your target audience and get results than if you were creating the ads yourself. You will also find that most larger franchises run national advertisements that you are not likely to be able to afford until you have a few franchises under your belt and would have even more difficulty affording if you were building your own business. Professional advertising is a huge benefit to small business owners and a coffee franchise will receive a big bump in business due to a successful ad campaign.
Training is yet another big benefit to choosing a coffee franchise rather than going it alone with your business. Most franchises offer comprehensive training programs for everything from paper work, closing sales, perfect water temperatures for brewing coffee, and how a uniform should look on staff. Extensive training in these methods means less mistakes which turns into great profits. A coffee franchise may not be the perfect business but going with a franchise is often a much quicker path to profits than stepping outside the franchise umbrella could ever be.
What is in a Coffee Franchise?
The biggest bonus or boon of franchise ownership is the name recognition that you are purchasing along with the education and training that most franchises offer as part and parcel of the commitment on your behalf as well as the hefty franchising fees. Truthfully speaking though, there is much more than just a name that you get when buying into a coffee franchise, or any other for that matter.
When deciding on the coffee franchise that you wish to purchase for your investment you should pay careful attention to the type of education, commitment to franchise owners, training, and other forms of assistance that are available to franchise owners within the organization. You want to choose a coffee franchise that is as committed to the success of your franchise operation as you are in order to have the best possible partnership.
Purchasing a franchise business makes you a partner in many ways rather than someone that is simply going it alone. For this reason it is vitally important that you choose wisely when you decide which company to enter into a partnership with. Do your homework and pay attention to more than just the numbers or the bottom line when determining which coffee franchise you wish to own.
The numbers are great and should not be overlooked but you should avoid tunnel vision that allows you only to see those franchises that are offering the most immediate profit potential. Most people purchase a franchise business such as a coffee franchise for the long term potential for profits rather than an immediate windfall. This is the wise route to take of course and could lead to serious long-term profits.
Another thing you want to pay close attention to when selecting a coffee franchise for your investment needs is the possibility for growth. Is there a lot of competition in your area? Is there the potential for growth and expansion in your area? Are you interested in or willing to have multiple coffee franchise stores in different cities? If you are interested in this sort of expansion does the franchise you are considering allow it? Remember that all franchises have different philosophies, requirements, and restrictions. This is the sort of small print you need to flesh out during the courtship phase rather than discovering once the marriage has been made.
You should also keep in mind that a coffee franchise doesn't necessarily mean that it only deals with coffee. There are plenty of coffee franchises that offer so much more than a simple cup of coffee in the morning. There are coffee franchise stores that offer full deli services for breakfast and lunch, those that are also bakeries, and those that serve coffee, tea, and smoothies. Truth be told, there are all kinds of grand ideas that work well with a coffee franchise and many of them have been thought of already. This means that franchise opportunities are generally available for many of these new and wonderful ideas. All of these things are part and parcel when building a coffee franchise.
Which Coffee Franchise is Best for You?
When it comes to the wonderful wide world of franchise business opportunities there are plenty from which to choose. The coffee franchise is one particular franchise that seems to be growing by leaps and bounds with new businesses and franchises being created in this field on a very regular basis. Much like the drink, coffee franchises have seen a few evolutions during the course of the last decade and business is, quite literally booming in little drive thru coffee shops and huge coffee cafes across the country and around the world.
The big problem with this is that as businesses are created and franchises made there are more decisions that must be made when deciding on whether or not to open a coffee franchise of your own. If you do decide to open a coffee franchise, there remains the question of which coffee franchise is the best choice for your management style and desires for your business future.
Putting pen to paper is always a great way to begin the search for the perfect franchise. Study the establishments in your area and the general vicinity in which you would like to place your coffee franchise (assuming of course, this is the sort of business you are planning to pursue) and do the math. Some questions you will want to ask are: are there existing coffee franchises in the area and what sort of competition will they create? What type of market do you have for the business you are pursuing? Will business be largely seasonal and is there a way to cut cost during slower seasons that will not jeopardize the reputation of your business and the good name of your coffee franchise? Are you interested in a "hands on" business or do you wish to leave the running of the business in the capable hands of managers? Finally, you need to ask yourself if you can feel passionate about the coffee franchise you are considering?
Each of these questions is an important question to answer before deciding if a particular coffee franchise meets your needs. Different franchises have different requirements and some will only deal with franchise owners who are interested in a direct involvement in the daily running of the business. Others are a little more open to investment franchising. You should also ask yourself if you prefer a coffee franchise that deals with one thing and does that one thing exceptionally well or a franchise that handles coffee and something else.
Building a business is a lot of hard work. Investing in a coffee franchise is a good beginning for many investors that are willing to put the effort into learning their business well (as are any franchise opportunities) but they are somewhat risky in light of extreme competition in many areas and battles with the big names that everyone is familiar with. Choose wisely when deciding the coffee franchise you will pursue and make sure it is one that you can enjoy working with as hard work is a requirement for building a successful franchise.
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 café, 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.
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.
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 café 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?
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