Opening a coffee franchise can indubitably prove to be highly profitable in the long run. Passing by any bustling specialty coffee shop you will most likely find it to be full of customers enjoying their espresso, teas, coffee, lattes, and a variety of cakes, pastries, and other delicacies. Apart from this, work-friendliness and Wi-Fi have also become some of the common features in the present times. As a result, a coffee shop is frequently considered a meeting hub for people.
Coffee franchises and related industries are spreading their roots all across the world. A whopping 65% of consumers in the US tend to drink coffee daily; as a result, the United States alone fills up about $50 billion a year of coffee users, making it the second largest commodity traded globally.
How to start a coffee shop franchise business?
For starting a coffee shop business, a person can consider following the steps mentioned below
- Creating a coffee shop business plan or selecting the right coffee franchises.
- Finding a suitable location for the coffee shop
- Determining the menu for the coffee shop
- Choosing the coffees
- Ordering equipment for the coffee shop
- Managing the inventory for the coffee shop
- Determining the prices of coffee and food
- Forming the culture and values for the coffee shop
- Crafting a unique coffee shop brand
- Choosing an accounting strategy for the coffee shop
- Creating a marketing strategy for the coffee shop
- Choosing a POS system
- Training staff
If you buy or start a coffee shop franchise, then most of these steps are taken care of by the franchisor. The franchisor will have standard operating procedures, a franchise operations manual, and a franchise training manual. These are the benefits of franchising.
Follow the system, the system will take you places. This is the reason I always recommend you start a coffee franchise or expand your business with franchising. While writing this article I am sipping coffee in one of the coffee shops listed below. Will not make it a biased opinion!
How much is the cost to start a coffee shop franchise?
Starting one of the best coffee franchises is comparatively easier to open. The cost of a coffee franchise opportunity is generally coupled with a range of $20,000 to $50,000 as an initial fee. Starting from there, other expenses can range somewhere between $300,000 to around $750,000. With few exceptions, the franchise cost can be up to $1.5 million.
Why Start a Coffee Shop franchise business?
A person can consider starting a coffee shop franchise business for the following advantages or benefits he might reap in the process.
Serving snacks and coffees of high quality in a relaxing and trendy atmosphere can make a franchise business model a highly successful venture in no time. Say, for instance, a business model discovered by Starbucks has grown its reach to more or about 33,000 locations of coffeehouses all across the world. If a person loves coffee and is looking for a golden business opportunity, this guide can help him kick-start a coffee shop franchise and make it a huge success.
- Lower risk of failure of the business
- Recognized brand name
- Well-established business model
- Built-in customer base
- Real training, guidance, and support
- No requirement for any prior experience
Pros and Cons of Coffee Franchise
Pros
- High profits
- Fulfilling personal dreams and vision
- Ability to create one’s schedule
- Being a part of a big community
- Creating the lifestyle one wishes for
Cons
- Weight of responsibility on the head
- Possible lack of financial resources
- Firing and hiring
- Risk of failure
- Time-consuming task
Best Coffee Franchises for sale in the USA
Starbucks was founded on March 31, 1971. It might come as a surprise that Starbucks, as a coffee shop, does not provide franchises. The company wishes to retain its culture, which most likely might get muddled by following such a franchise network. For this very reason, a person cannot invest in buying a Starbucks franchise. Starbucks itself owns each of its locations within the United States.
Although Starbucks is expanding by licensing, you can read more on Licensing Agreement vs Franchises.
- Founded in 1964
- Franchising since 1964
- Tim Hortons Franchise cost is $680,900 – $1,906,300
- Expected Franchise owner salary or profit is $75,000 to $125,000
- Franchise fees of $50,000
- Royalty fees are 4-6% of gross sales
- Franchise units 5100+
It is the largest franchise chain in Canada, with more than 4000 restaurants in 9 countries. Their menu includes hot and cold beverages, donuts, snacks, coffee, tea, etc. Upon investing in a Tim Hortons franchise, a person can receive a package of training, profit balance tips, a franchisor’s assistance, and the franchise cost.
- Founded in 2014
- Franchising since 2017
- Black Rifle Franchise cost is $500,000
- Franchise owner salary or profit is $60,000 to $90,000
- Franchise fees are $25,000
- Royalty fees are 5 to 7%
- Franchise units are 100 out of 400 units
- Founded in 1994
- Franchising since 1999
- Biggby Franchise cost is $246,305-$564,626
- The expected Franchise owner salary or profit is $65,000 to $265,000
- Franchise fees are $20,000
- Royalty fees are 6%
- Franchise units are 262
Biggby Coffee was founded in 1995 by Mary Roszel and Bob Fish under the name “Beaner’s” which was later changed to its present name. This café offers its visitors drinks based on expresso with tea, coffee, and several other drinks. Their menu includes pastries, sandwiches, whole grain coffee, accessories, and other coffee products.
- Gloria Jean’s Coffee franchise
- Founded in 1979
- Franchising since 1986
- Franchise cost is $173,150-$473,000
- Franchise fees are $15,000-$25,000
- Royalty fees are 6%
- Franchise units are 859
The store was started in 1979 and has expanded to more than 50 locations in the United States. It offers training programs along with established business models to its partners. The franchisee tends to receive recommendations on how a business must be started and run smoothly, which includes marketing and operational support.
- Founded in 1998
- Franchising since 2001
- Franchise cost is $512,400 to $1,046,000
- Franchise owner salary or profit is $120,000 to $200,000
- Franchise fees are $40,000
- Royalty fees are 6%
- Franchise units are 651
It is a chain that offers fast services and high-quality coffees. It was founded by Linda and Don Ackles and offers people coffee that traces its roots from responsible links. It has offices in more than 20 states at present and is still in search of capable entrepreneurs who can operate coffee kiosks.
- Founded in 1992
- Franchising since 2004
- Franchise cost $249,000-$1,146,300
- Franchise owner salary or profit is $511,213 to $992,940
- Franchise fees are $25,000-$50,000
- Royalty fees are 8%
- Franchise units are 725
Caribou Coffee was established in the United States in 1992. However, the concept looked to be so successful that the proprietors decided to sell their first franchise in 2004. Since then, the business has expanded to 718 locations both inside and outside of the country.
Caribou Coffee’s success is not only due to its amazing menu, which includes iced teas, bagels, oatmeals, mochas, sandwiches, pop, and creamy latte but also to its tried-and-true business model, which includes gift cards and its well-known benefits for frequent visitors.
- Founded in 2016
- Franchising since 2016
- Franchise cost $790,800 to $1,582,000
- Franchise owner salary or profit $250,000
- Franchise fees are $45,000
- Royalty fees are 4.5-7%
- Franchise units are more than 10
7 Brew was founded with the idea of making drive-thru coffee a joyful and fun experience for everyone. They dream of making new acquaintances while serving excellent coffee in record time. 7 Brew is more than a coffee shop. They aim to create kindness and excitement with each drink through their service, speed, quality, enthusiasm, and atmosphere.
- Dutch Bros coffee franchise -Not franchising currently
- Founded in 1992
- Franchising since 1999
- Franchise cost is $120,000-$1,000,000
- Franchise owner salary or profits
- Franchise fees are $30,000
- Royalty fees are 5%
- Franchise units are 471
An American drive-through coffee franchise, Dutch Bros Coffee, was started by Dane and Travis Boersma and has both company-owned and franchise sites, with its main office located in Grants Pass, Oregon. It is a franchised coffee business committed to providing high-quality caffeinated drinks and making a contribution to the community. They make an effort to offer exceptional customer service in addition to high-quality products.
- Caffeine franchise
- Founded in 2008
- Franchising since 2008
- Franchise cost is $414,500-$899,600
- Franchise fees are $35,000
- Royalty fees are 6-9%
- Franchise units 1,403
It has a rich menu of coffees and waffles with its beautiful shop interiors. With over 650 stores in its initial years, the coffee shop has witnessed rapid growth and success. The company is known to be on the lookout in the International market for accelerating growth and expansion.
- Peet’s Coffee franchise
- Founded in 1966
- Franchising since
- Franchise cost
- Franchise owner salary or profit $66,000
- Franchise fees
- Royalty fees
- Franchise units are more than 338
Peet’s Coffee will not be offering franchise opportunities in 2023. However, this does not exclude potential investors from pursuing business development opportunities with the coffee brand. Peet’s Coffee, like Starbucks, has license arrangements with privately owned and operated locations, providing entrepreneurs with an entrance point into such a coffee business.
While the majority of the firm’s 338 locations are owned and run by the company, there is potential for more Peet’s Coffees under their licensing agreement.
- Founded in 1978
- Franchising since1989
- Franchise cost is $192,000-$1,131,000
- Franchise fee is $35,000
- Royalty fee is 5%
- Franchise units are 164
This café was founded by Phyllis Jordan and is known to offer a full line of flavored coffee, espresso, and original cold brew coffee beverages, along with an array of dishes. You can also enjoy fresh desserts and pastries at the coffee place. The company supports sustainable development and sources practices, farm to cup.
- Black Rock Coffee franchise
- Founded in 2010
- Franchising since 2014
- Franchise cost is $1,519,940-$2,957,625
- Franchise owner salary or profit
- Franchise fee is $50,000
- Royalty fee is 4%
- Franchise units are 16
Founded in 2010 by Lonny Morganroth, the Black Rock Bar and its principal products have expanded to encompass a variety of gourmet specialties. If you are a hardworking and driven individual who is passionate about offering unique culinary experiences, opening a Black Rock Bar & Grill franchise could be a nice choice for you. Customers can now order a variety of appetizers, burgers, fresh salads, and other dishes.
- Philz coffee franchise
- Founded in 2003
- Franchising since
- Franchise cost is $340,425 – $827,725
- Franchise owner salary or profit is at least $66,000
- Franchise fee is $30,000
- Royalty fee is 0
- Franchise units are more than 71
Philz Coffee is a famous example of an American success story. The company was founded in 2003, and it was able to do so due to approximately 25 years of personal testing and research.
Phil Jaber adored coffee and believed he was created to brew it. He blended several beans from throughout the world in search of the richest, best-tasting coffees on the planet. Phil tested his experiments from his small corner grocery store situated in San Francisco, and the rest is history.
Philz Coffee now has several locations and is regarded as one of the greatest coffee shops in the United States. They are not currently offering franchise opportunities.
- Blue bottle franchise
- Founded in 2002
Blue Bottle Coffee is a new coffee brand. They are coffee roasters, which means they make their own branded coffee beans and combinations but also have coffee retailers where customers can buy their coffee in various flavours and options. The Blue Bottle Coffee firm is particularly focused on their coffee’s superior quality delivered to the public; they specialize in single-origin coffee.
W. James Freeman started Blue Bottle Coffee in Oakland in 2002. The major goal has always been to give a higher quality coffee in comparison to their competitors. They do not franchise, they are a chain business.
- Ziggis coffee franchise
- Founded in 2004
- Franchising since 2016
- Franchise cost is $467,000 to $2,000,000.
- Franchise fee is $40,000
- Royalty fee is 6%
- Franchise units are 75
Ziggi’s Coffee is a drive-thru coffee franchise that serves a variety of specialized drinks. It may also serve various breakfast and lunch products.
Starting on Main Street in downtown Longmont in 2004, the company has now expanded with a national franchise family that is continuously growing.
Ziggi’s Coffee recognizes the importance of cultivating meaningful relationships as a result of their humble background and is proud of the strong connections they have made and continue to cultivate with local communities. Ziggi’s Coffee is most known for its unique double-sided drive-thru stations.
- The Human Bean franchise
- Founded in 1998
- Franchising since 2002
- Franchise costis $346,825 – $835,226
- Franchise fee is $30,000
- Royalty fee is 1%
- Franchise units are 103
This coffee house opened in 1998 and today is a chain of shops for coffee, cocktails, espresso, drinks for children, tea, etc. It aims to capitalize on the growing market for premium beverages in society.
- Ellianos Coffee franchise
- Founded in 2002
- Franchising since 2003
- Franchise cost is $397,500-$690,000
- Franchise fee is $25,000
- Royalty fee is 5%
- Franchise units are 25
Scott and Pam Stewart experienced entrepreneurs and coffee lovers, began planning for the first double-sided drive-thru specialty cafe because they loved coffee and were always seeking an ideal opportunity.
Ellianos Coffee Company was started in 2002 to deliver the greatest quality coffee beverages in a way that meets the demands of everyone, including busy Americans. Ellianos Coffee Company has become a dominant brand in the Southeast United States, with stores in Florida, Georgia, and Alabama, thanks to a significant amount of hard work, attention to detail, and assistance from others.
- Sweetwaters Coffee and Tea franchise
- Founded in 1993
- Franchising since 2004
- Franchise cost is $260,076-$393,174
- Franchise fee is $45,000
- Royalty fee is 6%
- Franchise units 7 as of 2017
Wei and Lisa Bee created Sweetwaters in Ann Arbor, Michigan in 1993. They both grew up in restaurant-owning families and saw not only the advantages of owning a business but also all the difficulties of running a full-service restaurant.
Sweetwaters has spent over 25 years establishing and perfecting a semi-absentee business strategy that is significantly more manageable than a full-service restaurant. Sweetwaters focuses on handcrafted limited food menus and drinks, resulting in a highly successful and scalable cafe model for franchise owners.
- Dunn Brothers Coffee franchise
- Founded in 1987
- Franchising since 1994
- Franchise cost is $125,750-$453,600
- Franchise fee is $32,000
- Royalty fee is 5%
- Franchise units 68
The bar for quality is boldly established by Dunn Bros Coffee. At the majority of its sites across the nation, Dunn Bros Coffee custom-roasts all batches of its product every day and maintains an extreme commitment to superior quality by using rigorous standards for perfection.
A franchise with Dunn Bros. Coffee is a definite business opportunity. The Dunn Bros Coffee support staff is highly skilled and experienced in all facets of profitable coffee shop operations, design, marketing, and franchising. They have franchisees on their staff, so they are aware of the requirements for others to be successful.
Best and Top coffee franchises in the United States and Canada
- Tim Hortons
- Biggby coffee
- Scooter’s coffee
- Dunn Brothers Coffee
- PJ’s Coffee
Best Upcoming Coffee Franchise Opportunities
- 7 brew Coffee
- Pj’s Coffee
- Caribou Cofee
- Biggby Coffee
Best coffee franchise opportunities under 10K
- Java Dave’s Coffee
- Dunn Brothers Coffee
- Corner bakery cafe
Best coffee franchise opportunities in terms of Net Worth
- Dunkin’
- Starbucks
- Tim Hortons
- The Coffee Bean and Tea Leaf
- Gloria Jean’s Coffee
Best Coffee franchise opportunities in terms of the Number of Outlets
- Starbucks
- Dunkin’Donuts
- Tim Hortons
- The Coffee Bean & Tea Leaf
- Scooter’s Coffee
Best Coffee franchise opportunities in terms of the AUVs
- Dunkin Donuts
- Starbucks
- Tim Hortons
- The Coffee Bean Tea Leaf
- Gloria Jeans Coffee
Most Profitable coffee franchise opportunities
- Scooter’s Coffee
- Caribou Coffee
- 7 brew Coffee
- Biggby Coffee
- Tim Hortons
Best coffee franchise opportunities in terms of the Franchise Rankings
- Dunkin Donuts
- Scooter’s Coffee
- Tim Hortons
- Pj’s Coffee
- Biggby Coffee
Best coffee franchise opportunities in terms of the Franchise Deck Ratings
- Dunkin’
- Tim Hortons
- 7 brew Franchise
- Scooter’s Coffee
- Pj’s Coffee
How to select the best coffee shop franchises for sale in 2023
Being well-cognized of the fact that going the franchise route holds a plethora of advantages over deciding to open an independent business, the big question that arises is how to select the best coffee shop franchise.
The answer to this lies in careful consideration of the following factors
- Franchise Cost and its worth for the profits
- Type of franchise model
- Brand reputation and awareness
- What do other coffee franchises’ reviews
- Comprehensive ongoing support
- Operating costs
- Coffee Franchise Growth, Success, and Failure Ratio
- Point of difference and innovation
- Scalability
- Personal experience
Best places to open a coffee shop in the United States
To find the best place to open a coffee shop, consider looking for the following coffee franchise formats
- High-Street locations
- Neighbouring businesses
- Accessibility to markets
- Corporate Building infrastructure
- Drive-thru coffee shops on freeways or busy streets.
| Analysis of Coffee Franchise Opportunities | ||||||
| Cost | Fran Fees | Royalty + Ad fees | Expected Profit | Recoup of Capital | FD Rating | |
| Black Rifle CoffeeFranchise | $500,000 | $25,000 | 5-7% | $60-90K | 4-6 Years | 3.9/5.0 |
| 7 Brew CoffeeFranchise | $790,800 to $1,582,000 | $45,000 | 4.5-7% | $250K | 4-6 Years | |
| Caribou CoffeeFranchise |
$249,000-$1,146,300 |
$25,000 to $50,000 | 8% | $100-$200K | 4-8 Years | |
| Tim Hortons franchise | $680,900 – $1,906,300 | $50,000 | 4-6% | $55K-$350K | 6-10 Years | 4.0/5.0 |
| Dunkin Donuts Franchise | $121,400-$1,787,700 | $10,000 to $90,000 | 5.9% | $50K-$350K | 6-8 Years | |
| Biggby CoffeeFranchise | $246,305-$564,626 | $20,000 | 6% | $55K-$175K | 3-5 Years | 3.5/5.0 |
| Pj’s Coffee Franchise | $192,000-$1,131,000 | $35,000 | 5% | $65K-$155K | 7-11 Years | |
| Scooters CoffeeFranchise | $512,400 to $1,046,000 | $40,000 | 6%+2% | $75K-$175K | 6-12 Years |
Conclusion: Is Coffee Franchise a good choice?
To conclude, it can be claimed that the coffee shop franchises mentioned above are, without a doubt, worth buying; but a lot is to be considered when choosing the perfect one for yourself. You must pay attention to the support and training being offered, brand reputation, successfulness of the franchise, and other crucial factors. Coupled with this, you must align your budget with the investment needs of the chosen brand. Think wisely before deciding on the coffee franchise that fits you the best!
Coffee shop franchises are a great business opportunity for entrepreneurs looking to get into the food and beverage industry.
Franchises can be a great way to quickly expand a business, as the franchisor already has a customer base and established vendor relationships.Coffee franchises are great business,enjoy you coffee and work also togther
Coffee franchises are a great way to get your own business off the ground quickly.
Many coffee franchises offer a turnkey business model, allowing owners to be up and running quickly.
Coffee franchises often have a strong customer base and can be a great way to make a steady income.
Many coffee franchises offer a wide variety of products and services, allowing customers to find their favorite drink or snack.
Coffee franchises offer a great way for entrepreneurs to enter the industry without having to invest in expensive equipment or learn complicated recipes.
Coffee franchises often provide excellent customer service and are a great way to build relationships with customers.
Coffee franchises can be a great way to bring people together and provide a place for people to socialize.
Coffee franchises offer a variety of drinks to appeal to a wide range of customers, from those who prefer a light latte to those who enjoy a bold espresso.
Coffee franchises are a great way to provide a steady stream of income with minimal overhead costs.
Coffee franchises typically provide good training and support for franchise owners, allowing them to learn the ropes quickly.
Coffee franchises can be a great way to network with other entrepreneurs and build relationships within the industry. Coffee franchises often offer low-cost entry points, allowing new owners to get their business off the ground quickly and efficiently. Coffee franchises can be a great way to bring a unique flavor and atmosphere to your community, allowing customers to experience something special.
Coffee shops are a great way to create a comfortable and inviting atmosphere for customers. Franchisees have the opportunity to open their own coffee shop and be their own boss. Coffee shop franchises offer a variety of different types of coffee and other specialty drinks. Many coffee franchises offer great customer service and an inviting ambiance. Coffee shop franchises can help businesses grow quickly and create jobs in the local community.
Franchises are a great way to expand a business quickly, while still providing quality products and services. Coffee shop franchises offer a unique business model with a range of benefits to franchisees. They provide a turn-key business model, with support from the franchisor and access to unique products and services. Franchisees benefit from increased brand recognition and access to a larger customer base. Coffee shop franchises are a great way to capitalize on the growing demand for coffee and specialty drinks.
Franchises are a great way to expand a business quickly, while still providing quality products and services. Coffee shop franchises offer a unique business model with a range of benefits to franchisees. They provide a turn-key business model, with support from the franchisor and access to unique products and services. Franchisees benefit from increased brand recognition and access to a larger customer base. Coffee shop franchises are a great way to capitalize on the growing demand for coffee and specialty drinks.