Joel Libava
Let’s talk about Starbucks franchise cost. And whether or not you can buy one.
Can You Franchise A Starbucks?
Let me get this out of the way.
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 real-live franchise of Starbucks, 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?
Starbucks Facts
Here are a couple of 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.
Fun fact: Starbucks opened its first Starbucks 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 it franchising a Starbucks was a nice visual.
What About Opening A 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.”
Starbuck’s Franchise (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 tm 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 Open a Starbucks Franchise In Europe If They 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 franchise.
How Much Is A Starbucks Franchise? Who Cares?
A better question is “How much was a Starbucks franchise in Europe?”
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.
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?
Buying A Franchise?
You're Going To Need This!
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
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 on “Starbucks Franchises.”
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 Jack Kennard)
