Franchise Spotlight: Café & Coffee Shops
With coffee culture booming, this is a sector that is successfully franchised and looks set to grow.
Whether it be meeting friends for a chat, or a morning pick-me-up, coffee has always been a long-standing staple of American culture. With more and more people working from home (or a local café) and opting to hold meetings in more relaxed, informal settings, café & coffee shops have fast become a social and economic hub for professionals, millennials and families alike. With statistics showing the average American spends $21.32 on coffee per week, it is a thriving industry boasting many franchises.
Some of these franchise brands include: Dunn Brothers Coffee, Dunkin’, Tim Horton’s, Scooter’s Coffee, Aroma Joe’s, The Coffee Bean and Tea Leaf and more.
Café & Coffee Shops industry analysis
Coffee shops tend to focus on providing a wide range of coffees and teas, whilst also serving snacks and, in some cases, a small selection of lunch opportunities. Café’s emphasis is more on breakfast and lunch menus, whilst also offering a selection of beverages to accompany. Both these business models benefit from early opening and closing hours, making it family friendly and ideal for franchisees looking for a good work/life balance.
The franchise model offers up a less risky business opportunity than perhaps an independent coffee shop. Franchisees can rely on a tried and tested business model, benefiting from the support of the franchise and the established branding, loyal customers and quality suppliers that comes with it. It can be a great opportunity for someone looking to run a coffee shop and be their own boss, but without those initial start-up pains.
Analysis shows an expected fall in industry revenue, by the end of 2020, as the pandemic has meant that people have been unable to meet in the same way socially. However, those franchises that can offer takeaway, drive-through or delivery services are far more likely to weather the storm and indeed capitalize on the need for convenient and trusted products at affordable prices. Despite this dip, the long-term future of the industry looks bright and is one that is sure to expand over the coming years as coffee culture grows and trusted brands grow with it.
Offering good value for money under the banner of a recognized brand, this is a sector that offers many benefits for potential franchisees.