Are you interested in Coffee franchises under 10k? Do you want to know which are the biggest coffee franchises? Find out more.
Coffee is one of the most popular drinks on earth, with close to 2 billion cups taken daily. 9 ounces is the average size of a coffee cup and it is estimated that coffee drinkers will consume about 3 cups of coffee every day.
The average cost for a cup of brewed coffee is 1.38 USD. The average price for a cup of espresso coffee 2.45 USD.
According to recent research, the US coffee market will double in size over the next 10 years. For the past decade, the coffee market has averaged a 15% growth rate, and it looks to expand to 10,000 new sales points, with a projected turnover of over 3billion USD, in 7 to 10 years.
Coffee shop owners are shaping up to take advantage of a largely successful market. Many opportunities exist to enter the coffee market through franchising.
For example, mobile coffee ventures are also appearing, in response to the inability of some individuals not having access to a retail site or main street business.
With the coffee market expanding, the present offers opportunities for the savvy investor to cash in on the advantages of a coffee franchise opportunity.
BEST COFFEE FRANCHISING OPPORTUNITIES FOR BEGINNERS
In 1998, Don and Linda Eckles, Co-Founders of Scooter’s Coffee, were convinced that they could build a successful business model that combined the specialty coffee industry and the introduction of the drive-thru coffee concept.
Scooter’s Coffee, established in 1998, began operations on this business model, backed up with some key business principles.
The keys to success were simple but profound: Secure a great location and stay dedicated to high-quality drinks, speedy service delivery, a neat store, and a welcoming smile. The formula worked and since 2001, when Scooter’s Coffee began franchising, it presently runs 135 stores in 15 states in the USA.
Financial Requirements for establishing a Scooter’s Coffee franchise
Initial Investment: 272,500 – 393,500 USD
Net-worth threshold: 500,000 USD
Liquid Cash Obligation:100,000 USD
Initial Franchise Fee:40,000 USD
Other fees include monthly payments on royalty and advertising, but at 6% and 2% of revenue.
Also, the intending Scooter’s Coffee franchisee will be required to have a net worth of 500,000 USD and an operating (liquid) capital of 150,000 USD.
Dunkin’s Donuts one of the most notable names in the coffee service industry. The company offers a variety of franchise opportunities in different markets in and around the USA.
here’s even the opportunity to open a combination of franchises, comprising both Dunkin’
Donuts and Baskin Robbins, in business collaboration.
Today, Dunkin’ Donuts stores have a presence in over 32 countries, which serve over 70 varieties of doughnuts, as well as variations in coffee drinks, bagels, sandwiches, cakes, and other baked pastries.
Requirements of potential Dunkin’ Donuts Franchisee
- The candidate should possess a food service or retail or multi-store service background.
- The drive and understanding to engage the immediate community and carry out effective local marketing.
- A good understanding and a willingness to grasp the rudiments of the real estate development process.
- The candidate must have a passion and show commitment to adhering to operational standards of excellence.
- The ability to organize and effectively manage a goal-driven team
- The candidate must display the drive and commitment to run multi stores in the future
- The candidate will be required to have the standard capital base needed to run a Dunkin’ Donut coffee franchise.
The initial investment for establishing a Dunkin Donut Franchise is put at between 217,000 TO 1,637,000 USD. The candidate should have a minimum net worth of 250,000 USD, with liquid capital of 125,000 USD. Ongoing payment to the Franchise will include royalty fees of 5.9% and an advertising fee between 2 to 6%.
- The Human Bean Franchise
The Human Bean Coffee Franchise, unlike nearly all other franchises, does not charge percentage royalty fees or marketing fees. Franchisees are only mandated to purchase supplies of coffee and other consumables from the parent company, which is the source of revenue.
At The Human Bean franchise structure, franchisees are treated as part of a team and hence are not burdened with the payment of high royalties and marketing fees that adversely impact from their bottom line.
The goal is for Human Bean franchisees to obtain the returns from their investment while enjoying the benefits of being part of the franchise.
The cost of a Human Bean Franchise is put at 20,000 USD. Start-up costs may range from 152,750-617,000 USD, the final figure depending on the site development specifications of the potential franchisee’s site location. If the applicant chooses to procure land, these costs will rise.
Other coffee franchising opportunities include:
- Duck Donuts
- Cafe Barbera
- Classic Rock Coffee
- Hard Bean Cafe
- Biggby Coffee
- Coffee Beanery
- Dunn Brothers Coffee
These are the best coffee franchise opportunities for smart investors at the moment.