There's something alluring about owning and operating a coffee shop. Perhaps it's the seductive idea of spending your days amid the hiss of espresso machines and aroma of freshly-brewed coffee. It makes good business sense too. That the USA and Canada are coffee-centric is shown by the fact that industry annually grosses over $10 billion. And coffee is a relatively low-overhead business with a high profit potential. Plus you get regular repeat customers. Some rely on you to help them start their day; others spend hours relaxing on your premises. And all the time they’re ordering cups of your coffee, or other drinks or snacks, all of which have a big mark-up. It's a great business, but you just found out that you are not going to be offered a Starbucks coffee franchise.
Not to worry. You'll be pleased to know that there are an abundance of other successful coffee companies that do offer franchises. What's more, they've got an individuality that Starbucks lacks, and they're surprisingly affordable and offer some intriguing benefits.
Take for example, Sonoma Coffee Café (SCC). A newcomer to the coffee franchising scene, SCC offers a simplified, turnkey package with a relatively low franchise fee of $25,000 and royalties of %4. SCC outlets also offer smoothies, teas, cocoas and frozen coffee drinks, along with the standard hot brews.
With a required investment of $180,000 and up, Sonoma Coffee offers a full range of franchising assistance including finance, site selection, complete equipment and interior décor package installation, along with in-store training and ongoing marketing support.
If you prefer a coffee shop with a concept, take a look at Jazzman's Cafe. This Allentown, Pennsylvania-based enterprise opened its first location in 2000 and has since expanded to over 200 locations in 39 states (as of September 2007). Nations Restaurant Reviews awarded them the Hot Concepts! award for innovation in 2004.
Jazzman's Cafe offers franchisees their own proprietary roasted coffees. These come certified from the major world sources such as Fair Trade, Rainforest Alliance and USDA Organic.
Jazzman's Cafe franchises require a cash investment of $100,000 and a total investment of $323,825 - $456,100 for a full-service cafe. This figure does not include real estate and land development. The franchise fee is $19,500 and the royalty rate is 5%. Passive ownership is allowed but owner operators are preferred.
The franchisor provides three weeks of training with a certified trainer together with two weeks of on-site support. For promotions, each franchise location gets quarterly promotions that include recipes, procedures, point of sale materials, banners, handouts.
These are just two of the many quality coffee shop franchises available. Take a look online and find one that appeals. Then contact the franchisor for more information. You’ll surely find something that suits you taste and budget.
Owning and running a coffee shop is a rewarding business with great profit potential. Doing it through a franchise helps you get set up in the quickest and easiest way. So enjoy a coffee at Starbucks but remember for your franchise success, there are many quality companies ready and willing to help you get started.
Chris Delacy is the founder of RedHotFranchises.com
He has over 15 years experience in franchising both as a franchisor and as a franchisee. Currently he serves as the CEO and driving force behind RedHotFranchises.com. Visit RedHotFranchises.com to find all the hottest franchises including the best and latest deals for coffee shop franchises .
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