Pack a coffee shop franchise

How to package a coffee shop franchise
Coffee is becoming an increasingly popular drink in our country. There are consumers who understand varieties, roasting, and are constantly looking for new coffee shops that can surprise with their product and their service.
At the same time, more and more coffee shops and new brands are appearing.

It's no surprise that new franchises are popping up and new chains are growing in this growing market.

I wrote this article for entrepreneurs who would like to build their own coffee franchise.
I have packaged and sold franchises of various coffee shops and have gained some experience that I am ready to share with you.

Coffee franchise formats

Coffee franchises come in different formats

Who buys coffee franchises

Most coffee franchise buyers are new business owners or aspiring entrepreneurs. Often, office employees who have collected certain savings and want to invest them in opening their own coffee shop want to open a coffee shop.
Married couples also often send applications to purchase a coffee shop franchise. When working with beginners, you must be prepared to teach these people quite simple things.

It is a great success when the owner of the premises submits an application for the purchase of a coffee franchise. So, for example, I once sold a franchise to a man who owned a shopping center in one of the regions of Russia. This was a significant advantage because this franchisee had both experience and premises in a good location.

When packaging a coffee shop franchise, you should take into account the characteristics of these audiences and package the franchise specifically for these segments.

Benefits of a coffee franchise

  • Naturally, the main advantage of coffee franchises is their demand in the market. The audience is interested in coffee, coffee consumption is growing and new coffee shops are in interest and in demand
  • If we talk about “coffee to go” formats, but opening such a facility does not require a lot of investment; these investments will pay off very quickly.
  • Low cost. Coffee is a high-margin product. Naturally, a lot depends on the raw materials you choose, but in general the profitability is higher than the average for dishes.

Risks associated with coffee franchises

  • The business of a coffee shop primarily depends on a good location. They are ready to buy coffee only in a convenient location. It’s unlikely that many of your customers will want to travel a long way for a cup of coffee.
  • In addition to location, the coffee business depends on the barista. Only professionals can make quality coffee, which means that you will have to either hire or train such employees, and then stick with them.
  • If we are talking about a coffee shop with a full seating, waiters and a large room, then, naturally, we should expect high costs for the renovation of this room.
  • And of course, your coffee shop should have its say on the market. Why your coffee tastes better. Why is your service better than others?

Coffee franchise packaging process

The process of packaging a coffee shop franchise is not significantly different from packaging a catering franchise, but at the same time it has a number of features.

When packing a coffee shop franchise, the issue of barista training is of particular importance. A coffee shop is a business in which the final product is prepared directly on site. The taste of this product depends on what skills the barista has. Therefore, the founder of a coffee franchise always faces the question: how to train baristas and ensure that equally delicious coffee is prepared in each facility.

In addition to the hands of the barista, the final product is influenced by the quality of the grain and the equipment installed in the coffee shop. And this gives rise to the following questions that require solutions from the franchise founder:

- how to supply grain of the required quality throughout the country at a competitive price.

- how to supply equipment and achieve uniform configuration of this equipment.

In a coffee shop, service and communication between the barista and guests is also of great importance. The challenge for you as a founder is to achieve friendly service and reduce turnover to a minimum. Because there can be no talk of any communication if every day guests see a new person behind the counter.

steps to pack a coffee shop franchise

Our team has packaged several strong coffee franchises and in our experience, a franchise packaging project should include the following steps.

Studying the business and identifying the advantages of a particular coffee brand.

Analysis of business processes, as well as research of the consumer environment, provides an understanding of the essence of the business, its advantages, and product features.
The outcome of the entire project largely depends on how far we have progressed in the research stage.

It seems to many that the process of developing a franchise is carried out according to a template, duplicating the same materials over and over again. In reality, each franchise is a separate product that is launched by the company taking into account the strengths and characteristics of the business. In addition, like any product, a franchise satisfies the needs of a specific target audience and must have its own set of mandatory criteria that the consumer expects to receive.

Description of the financial model of the coffee shop business

In addition to studying consumers during the research process, the team describes the financial model of the business, which determines how the movement of resources within the enterprise occurs: what investments are needed when opening, what monthly revenue the business should focus on, what expenses the business assumes. Based on the financial model, the franchise buyer makes a conclusion: does the purchased business give him any advantages in the market or can he get the same numbers by simply launching his own start-up project.

Development of balanced franchise conditions

When developing franchise terms, it is important to remain neutral. It is tempting to consider only the interests and benefits of the customer when developing conditions. In reality, this “service” will result in damage to the company. The franchisee must make money through your franchise. In this case, he will bring his friends, he will open new and new points. Franchises “for the founder” are doomed to fail. Franchise establishments will demonstrate to a wide audience how your business is built. If franchise outlets develop and truly generate profits, then there will be more and more new people willing to purchase your franchise.

Development of a commercial concession agreement

The developed conditions form the basis of the commercial concession agreement. In reality, the agreement is designed to fix the main sensitive points of your business and establish sanctions for violating these red lines. Typically, a commercial concession agreement strictly fixes several points:

the level of product quality, the reduction of which poses a threat to the brand and the entire network.

privacy mode. Franchising is the transfer of business methods from one entrepreneur to another. If the partner disseminates the received information everywhere, then there is no point in this form of cooperation.

reputation protection. All objects of the franchise network look like a single whole to the consumer's eyes. If one of the points allows itself to do questionable actions or statements, this causes damage to the founder and the entire network.

You must understand that all of the above aspects of the agreement are in fact not entirely a bilateral agreement. Incorrect actions of a partner cause damage to the entire community of franchisees of this network, so the founder must strictly prescribe and regulate the rules of work within the network.

Description of the guide to doing business

All standards and rules for opening and managing a franchise business are described in a special document. This is a kind of methodological material that gives the partner an answer to any questions: how to open a facility, how to find premises, how to make repairs, how to select personnel, and so on.

Development of elements necessary for selling a franchise

The process of selling franchises for different business sectors differs significantly. During the franchise packaging process, we determine an effective path to buying a franchise and customize the actions of the founder and his team at each stage.

Challenges and Benefits of a Coffee Franchise

The main advantage of a coffee franchise is its demand. Many office workers want to get away from the corporate routine and open their own small cozy coffee shop. A coffee shop, being a cozy, warm business at first glance, can be considered a real “women's franchise.”

The main challenge of this business smoothly follows from the main advantage: how to brew coffee differently, how to differ from so many brands and why the consumer should choose us.

Franchise packaging must address the challenges listed and enhance the benefits described.
Benefits of implementing franchising
  • 1
    Expand the regional presence of the brand
  • 2
    Build a team of partners interested in results
  • 3
    Attract additional resources from contributions and royalties
  • 4
    Make a profit from deliveries
  • 5
    Gain federal recognition of the restaurant brand
  • Black Star Burger
    Franchise Development as Franchising Director, Franchise Package Creation, Sale of the First 20 Brand Franchises.
  • Bread and wine
    Franchise development
    Sale of the first franchise
    Support for the opening of the first restaurant of the iconic wine restaurant franchise.
  • True Cost
    Packaging of the fair price restaurant franchise of restaurateurs Alexander Kan and Iliodor Marych.
  • Good Food
    Packaging of the democratic fast food chain franchise
    Opening of 47 franchise locations.
  • Eat Market
    Food hall franchise development.
  • K-town
    Development of a restaurant franchise in the “real Korean barbecue” format
  • Mosautoshina
    Development of a tire center franchise.
    Sale of the first franchise.
  • Maxi Pizza
    Development of a Franchise for a Cozy Pizzeria from Stavropol
  • Pudel Shtrudel
    Description of the franchise of a unique format of confectionery for cats and dogs.
  • 2Dance
    Packaging of a dance studio franchise from Yekaterinburg.
  • Honey Bunny
    Packaging of a coffee shop franchise from Belgorod.
  • My Way Tattoo
    Development of a premium tattoo studio franchise program.
  • Cafeterius
    Development of a cult coffee shop chain franchise
    Sale, opening and support of the first 5 franchises.
  • АКB-centre
    Packaging of a car battery store franchise.