The average American spends a lot of money on coffee every month. You would be wise to get into the billion dollar coffee market. However, starting a coffee business can be very challenging. After all, there are many dominant coffee franchises like Dunkin Donuts, Starbucks franchise and Tim Hortons (in Canada). Despite the intense competition between coffee franchises, you can still have a profitable business of your own. In this post, we will cover the important steps to become a coffee franchise owner and compete with the big enterprises too.
Research Your Market
Starting a coffee franchise requires an indepth knowledge of the market around you. Different areas have demographics that can make your franchise business a successful venture. Learn about your market to see if they like a modern design appeal, fun/exciting environment or something classic and cozy. For example, a coffee franchise that focuses on drive through income may perform better in a suburban area. Meanwhile, a modern and chic looking coffee house can attract trendy crowds in a major city. To make your franchise successful, research what your market would like best.
Analyze Your Value Set
After learning about your customers, you should think about what your values and how they would align with a potential coffee franchising company. While your customers are the main priority, your business will thrive if you and your team can fully align with the values of the company. Before you can start evaluating the best coffee franchises for you, have a firm understanding of what you personally stand for. Think about what motivates, inspires and makes you happy. Then, if you find a company that cares about your customers and values the way you do, it will make for a better match.
Consider Coffee Franchise Costs
Next, create a budget for investing in a coffee franchises. Many times, people put a large percentage of their savings into buying a franchise license. While many of the coffee chains know this, the investment does not always work out. Thus, you should only invest money that you can afford to. Depending on how you want to start franchising in the coffee industry, there are many options. You can buy a full coffee retail store, drive-thru coffee location, small cafes or kiosks which range anywhere from $25K-$500K. On top of that, the brand awareness and exposure can impact your budget as well. Therefore, make sure you have a budget for covering your franchise startup costs and operating costs.
Find Your Ideal Coffee Franchise
With your budget in mind, start reaching out to prospective franchise companies. They will have varying levels of training, specialties, process and standards. Some coffee chains require a certain type of location. Meanwhile, others will require you to have a minimum amount of liquid assets. Most coffee companies are heavily skilled in drink preparation, barista training, business administration and more. Look for the company who’s standards and requirements match your own criteria. Keep your target market, core values and budget in mind when finding the best coffee franchise.
Become A Coffee Franchise Owner
Once you have found the best franchises to invest in, you should narrow your selection down to the top three. Start the process to buy a retail coffee business with a few companies because they won’t all work out. Then, as the franchise buying process moves forward, you can select one that is working out for you. This way, you don’t waste too much time and energy on only one option that may not work out. When you get to this stage, you will be ready to invest in a coffee franchise. You might even receive a gift for new business owners who become franchisees.
Starting a coffee franchise can be a major endeavor. There are high costs to buying a franchise. However, if you find the right one, it could pay dividends for years to come. Remember to research your market, analyze your own values and develop a realistic budget. Then, you can work on finding the best coffee franchise option for your situation. Finally, when you find the right one, make the investment and you’ll be able to call yourself a franchise owner.