Joel Libava
Let’s talk about Starbucks coffee franchises, their cost, and whether or not you can buy one now.
The Truth About Opening Starbucks Coffee Franchises
Here’s the truth about opening Starbucks coffee franchises. And you’re not going to like it. In other words, can you franchise a Starbucks?
Official Starbucks Coffee Franchising Information From Starbucks corporate:
“Thank you for your interest in the Starbucks Coffee Company franchising programme.
We have a number of excellent Franchise Partners on board and are therefore not currently recruiting any further franchisees. We will update this page should the situation change , so we recommend you check the website on a quarterly basis.
Thank you from the Starbucks Team.”
Sorry.
But if you could open a few Starbucks franchises, can you imagine how much money you’d make?
Heck, you have to figure that the revenue numbers from a Starbucks store must be off the charts, right?
And speaking of big numbers, can you imagine the revenue this Starbucks coffee shop in Chicago (shown in the video below) must bring in on a daily basis?
Unleashing the Potential of the Coffee Franchise Industry
The coffee franchise industry is bustling with opportunities, driven by several dynamic trends that continue to gain momentum. It’s an industry that not only responds to the global love for coffee but also caters to evolving consumer preferences in compelling ways.
Some of the key trends shaping the industry include:
- Rising Demand for Ethical Coffee Options
Consumers are increasingly seeking fair trade and organic coffee options, reflecting a global shift towards sustainability and ethical consumption. This presents exciting opportunities for franchises to differentiate themselves by offering responsibly sourced products. - Growing Popularity of Coffee Culture
Coffee is not just a beverage; it’s an experience. The café culture has resulted in spaces where people can work, meet, and relax, contributing to the sustained growth of coffee franchises. By offering unique ambiances and experiences, franchises can attract diverse customer bases. - Interest in Innovative Food Pairings
The integration of gourmet breakfast and brunch menus alongside traditional coffee offerings appeals to modern palates. This trend allows franchises to maximize their offerings throughout the day, increasing potential revenue streams.
The Challenges and Opportunities
Coffee franchises that successfully capitalize on these trends can set themselves apart from the competition. The key is to provide a harmonious blend of high-quality coffee and enticing food options, while maintaining strong ethical standards. Strategic Opportunities include:A. Partnering with local farmers and roasters to ensure quality and support community businesses.
B. Introducing innovative marketing techniques to reach a broader audience, such as leveraging social media and hosting community events.
Moving Forward
The potential for growth in the coffee franchise industry is substantial. As consumers become more conscientious and lifestyle-oriented, franchises that align with these values are poised to outshine traditional competitors. By staying ahead of trends and focusing on what customers value most—quality, ethics, and experience—coffee franchises can definitely thrive in today’s competitive market.Starbucks Coffee Franchises: A Latte History And A Timeline
1971: A wild idea brews (pun intended)! The first Starbucks opens in Seattle’s Pike Place Market. Originally, they sold high-quality coffee beans and equipment. Not a single latte in sight!
1980s: Howard Schultz enters the scene. After a trip to Italy, he’s like, “Hey, why don’t we turn this bean shop into a place where people can actually DRINK coffee? You know, like Italians do!” He buys Starbucks in 1987, and the true coffee revolution begins.
1990s: Starbucks goes on a wild expansion spree! By the end of the ’90s, they have more than 2,500 locations. That’s more stores than there are cat videos on the internet…well, almost.
New! If you’d like to know some little-known facts about Starbucks Coffee and it’s people, the well-produced video below is definitely worth a watch!
2000s: Starbucks enters the international market. Soon enough, the green mermaid is seen from Paris to Beijing. They introduce cool stuff like the Frappuccino. It’s basically dessert pretending to be coffee, but nobody’s complaining!
2010s: Sustainability becomes the buzzword! Starbucks pledges to design, build, and operate 10,000 “greener” stores globally by 2025. Oh, and mobile ordering becomes a thing. Because who wants to wait in line when there’s an app for that?
2020s: The pandemic hits, but Starbucks adapts like a champ. Drive-thrus, mobile pick-ups, and uber-fancy AI drive-thru lanes keep the caffeine flowing.
Here are a couple more facts about Starbucks.
Starbucks coffee opened its first store in March of 1971 at Seattle’s Pike Place Market. As of today, there are over 33,000 stores in 80 countries.
Update: Starbucks Coffee Growth Plan Update, 2024
According to CNBC, Starbucks say it plans to expand it’s footprint to 35,000 locations outside of North America by 2030. But not with Starbucks coffee franchises. With company owned stores instead.
Currently, Starbucks has around 20,200 international cafes. The coffee company has a goal of having 55,000 locations open globally, by 2030. That’s up from its current count of more than 38,000. Wow!
Starbucks Coffee Franchises Kind Of Exist Across The Pond
Fun fact: Starbucks opened its first Starbucks coffee franchise in the world in February of 2013. Where?
In Liphook, a large village in the East Hampshire district of Hampshire, England.
That said, as of this writing, there are 45+ franchisee-owned Starbucks coffee shops in the U.K. And, they’re owned by only 9 franchisees.
So much for that idea. You have to admit, franchising a Starbucks was a nice visual.
Update: Starbucks is Changing. Big-Time
According to a recent CNN Business article, Starbucks, which used to be known as a “third place,” – a place you could hang out and relax for a few hours between work and home, isn’t that place anymore. Why?
The customer-welcomed growth of drive-thru’s and mobile ordering from Smartphones.
That said, it took a while for the suits at Starbucks to buy into losing some of their well-known plush seating options inside their cafe’s.
“Starbucks warmed to the option, finding that many customers preferred the convenience of drive-thrus on their way to work. By 2005, nearly 15% of Starbucks’ roughly 7,300 stores were drive-thru locations. For the first time that year, more than half of new Starbucks stores were drive-thru locations. Today, 70% of Starbucks locations have a drive-thru option.”
So much for sitting around and enjoying coffee and conversation.
Maybe Covid-19 helped this new trend become a reality.
With that in mind, let’s get back to you potentially owning something with the Starbucks name on it.
Open A Licensed Starbucks Licensed Store
If you own what Starbucks corporate deems to be a desired location, you may be able to open a Starbucks licensed store. Of course Starbucks would earn License fees and royalties based on your store’s revenue. Licensing Information
A recent Press Release stated the following:
“While Starbucks does not offer options for franchising, the company does offer the ability to open a licensed store. For those who already own a particular location or business, Starbucks can help them open up a new Starbucks in that location.”
Starbucks Coffee Franchises Licensing Costs
A licensed Starbucks has an initial licensing fee/startup fee of around $315,000. That includes some of the equipment you’ll need to operate your coffee shop. But your total investment to open a new store will approach $1,000,000.
In addition, to qualify, you’ll need to have liquid capital available. How much? About $700,000.
And speaking of licensed stores, around 40% of the coffee shops in the U.S. are licensed store locations.
How to Franchise a Starbucks in Europe if They Ever Become Available Again
Here are some of the things you’ll need to do if the Starbucks franchise development team approves your formal franchise application to own a Starbucks in Europe:
- Sell your house
- Sell your vehicle
- Pack up all of your belongings
- Quit your job
- Leave your extended family behind
- Cash out
- Purchase a new house
- Purchase a new car
- Become an official European citizen
There are probably a few other things you’ll have to do, but let’s leave that list just like it is for now.
Of course, you’d only have to tackle that list of things to do if you were actually awarded a few Starbucks franchises.
On Starbucks Franchise Costs And Starbucks Franchise Fees
A better question is “How much was a Starbucks franchise in Europe?”
Starbucks Franchising Investment– You’ll need to demonstrate £500k of liquid assets.
Experience in food is needed. Plus, you’ll need to have food and beverage experience and currently own or run a multi-site business.
Role– Hands-on at first
Next…
If you’re approved to own a Starbucks in Europe, you’ll (with the help of their development team) secure an optimum location.
Once your location is approved, you’ll start the Starbucks immersion program which will allow you to learn the ins and outs of running your own Starbucks operation.
One more little thing:
They want you to open 20 stores within the next 5 years. 20 Starbucks coffee franchises.
That’s right; they only want multi-unit franchisees.
Finally, if you live in the states, and you want to be in business now, Dunkin’ Donuts is always looking for capable business folks to open franchises.
Dunkin’ Donuts?
Why not?
Their coffee is pretty good.
Check Out These Starbucks (Not A Franchise) Quotes
Here are a few interesting quotes about Starbucks.
“Before it became a ubiquitous part of urban life, Starbucks was, in most American cities, a radically new idea.”
– Virginia Postrel
“Before Starbucks, there wasn’t as much of a coffeehouse routine; we generally drank really cruddy diner coffee.”
– Andrew Yang
“I think Starbucks created a platform and, ultimately, a runway for many other companies to emulate. I suspect if we had not achieved what we have, there would have been many regional brands that would have succeeded. But I’m not sure there would have been a national brand of the scope of Starbucks.”
– Howard Schultz
“I’ve always thought legal addictions are a great way to create a business. Starbucks is a wonderful example.”
– Nolan Bushnell
“I don’t actually like coffee. But I’m addicted to Starbucks.“
– Mike D’Antoni
Starbucks Coffee Shop News Updates
Newsflash: Starbucks is replacing its CEO with the head of Chipotle!
The coffee giant announced that Brian Niccol, who has led the burrito chain since 2018, will take over the coffee giant starting next month.
Laxman Narasimhan, who took over as Starbucks’ CEO in March 2023, is leaving.
Here’s a link for the latest Starbucks news.
Finally, since I don’t believe in aspiring franchise owners wasting their time, please read this next sentence.
Don’t waste another minute fantasizing about a starting a “Starbucks Franchise.” Because you aren’t going to be able to buy one.
Instead, look for franchise opportunities that are actually available to everyday people.
Or these business opportunities
(Main image courtesy of Jim G on Flickr)
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