STARBUCKS Franchise Fee, Revenue, And Profit Margin
Is Starbucks a franchise? How much does it cost to open a Starbucks licensed store? Have you presently considering becoming a franchisee with an existing successful coffee store franchise?
Do you know more about Starbucks franchise cost 2017 – 2020? If truly you want to build a successful business as a franchisee, then you need to consider joining the Starbucks franchise.
When you mention Starbucks, the name is almost synonymous with coffee. The company can be considered as one of the notable coffee shops in the whole of the United States and the rest of the world, if not the most popular. With this piece of information in mind, you might want to know how much is a Starbucks franchise
THE STARBUCKS SUCCESS STORY
The success that Starbucks coffee has achieved in the business can be attributed to a whole lot of factors, of which one is accessibility: You will always see a Starbucks Coffee Shop at every location that has huge traffic. They are notably found around malls, grocery stores, book stores, and so on.
Since the coffee shop experience has been introduced to the public, it has become a major trend with customers and they utilize the medium to hang out with family, friends, and associates.
FRANCHISE INFORMATION ABOUT THE COMPANY
Starbucks was established in the year 1971 at the Pike Lace Market in Seattle. It began as a single store and it has expanded into a worldwide phenomenon. Starbucks Company opens an average of 2 stores daily and it is believed that there are about 1,500 stores opened yearly in the United States.
Today, Starbucks can boast of about 25,000 stores located in about 67 countries in the world.
PRODUCTS OFFERED BY THE COMPANY
In the year 1994, Starbucks purchase a company: The Coffee Connection. This gave them the right to make, use and market the patented Frappuccino beverage, which was unveiled to the public under the Starbucks brand in the year 1995 and by the year 2012, the company has made over $2 billion in annual sales on Frappuccino alone.
Other products by the company are Franta, fruit flavored beverages, sodas, Verismo, and so on.
IS STARBUCKS A FRANCHISE?
Starbucks is not a franchise. what the company offers that is similar to franchising is flexible coffee programs created for different markets, which include universities, colleges, hotels, health centers, resorts, and restaurants. The company will also consider a location that has a high volume of traffic.
However, in a situation whereby another company has access to a desirable space with good traffic, Starbucks will be so much willing to give such consideration and offer the license to operate to that company.
HOW MUCH DOES A STARBUCKS FRANCHISE COST
The Starbucks franchise cost is nonexistent since the company does not offer a franchise opportunity. However, if the company considers your store for a Starbucks location, you will need to incur some costs to set up the store, in terms of promotions and publicity.
STARBUCKS FRANCHISE FEE
Every new franchisee buying into a company’s franchise is expected to make a mandatory franchise fee payment.
This grants them the license to operate under the company’s brand. Since Starbucks does not sell a franchise, there is no Starbucks franchise fee.
The only alternative is to open a licensed shop. For instance, Starbucks franchise cost in India is around $320,000.
HOW MUCH DOES A STARBUCKS FRANCHISE MAKE
There are no Starbucks franchise owners and so the average income made by a franchisee with the company is not available
WHY STARBUCKS DOESN’T SELL FRANCHISE
Franchising is one of the major growth strategies companies use all over the world. Most of the top companies in the United States and the rest of the world have used these tactics to expand and spread their tentacles abroad.
However, although Starbucks has more than 25,000 location spread across the world, they have refused to sell franchise opportunities to the public.
According to the CEO of the company, Howard Schultz, the success of the company is based on the culture and value of the company and there is no believe that the company could have achieved so much in a franchise system, which is dominated by people that are not working directly for the company.
The CEO claimed that franchise owners are more like middlemen that will come in between them and their customers. They didn’t want this as the company takes so much passion in offering the customers the best values and it is believed that this value could only come directly from the company.
TRAINING AND SUPPORT
Since Starbucks does not offer any form of franchise opportunity except store locations. So if you have a store set up by Starbucks, you will be trained and given orientation about the company’s policy and standards of doing things.
Most of Starbucks training goes to their staff members. The company expends so many funds in the development of the staff for them to be able in to inculcate that Starbucks culture and then pass it on to the customers
HOW TO OPEN A STARBUCKS FRANCHISE
It is now a known fact that the company does not offer any form of franchising, so information on how to open a Starbucks franchise may not be available.
However, if you are lucky and the company considers your store for a Starbucks location, you will be provided with merchandise and marketing that well suits your location. Starbucks can boast of superior customer service, which gives the customers the confidence that they will be served with the best.