Curious about opening a Caribou Coffee franchise? Research the costs and fees associated with it compared to one of its top competitors, Beans & Brews Coffeehouse.
At least 78% of U.S. coffee drinkers consume two or more cups per day, and 20% get to-go coffee daily, according to Statista. The coffee shop industry is booming — and it’s not just about the coffee. Coffee shops serve as community hubs, workspaces, and meeting places, making them integral parts of American life. And with the rise of remote work, coffeehouses are increasingly becoming alternative workspaces, further driving demand. Technological developments to optimize ordering, such as app-based ordering, drive-thru, and curbside pickup, are helping drive sales and are timesavers for on-the-go customers. The coffee and snack shop market size hit $63.6 billion in 2022, and growth is outpacing other segments of the restaurant and hospitality sector. With the coffee industry showing no signs of slowing down, now is the perfect time to invest in a coffee shop franchise.
To determine if Caribou Coffee or Beans & Brews Coffeehouse is the right choice, check out this side-by-side comparison of each franchise’s costs and fees.
Caribou Coffee* | Beans & Brews Coffeehouse* | |
Franchise Fee | $15,000 – $50,000 | $20,000 – $55,000 |
Initial Investment | $268,100 – $1,229,000 | $305,000 – $761,500 |
Royalty Fee | 4% – 6% | 5.5% |
Ad Royalty Fee | 3% | 3% |
*Source: Caribou Coffee and Beans & Brews Coffeehouse Franchise Disclosure Documents
Caribou Coffee: Focused on Multi-Unit Growth
Caribou Coffee originated in Minnesota. Its mission revolves around creating day-making experiences that spark a chain reaction of good, and they only serve 100% Rainforest Alliance Certified coffees. Founded in 1992, Caribou Coffee provides handcrafted coffee-forward beverages and a limited food menu in more than 750 coffeehouses worldwide. The chain is part of Panera Brands with Panera Bread® and Einstein Bros.® Bagels.
If you’re a budding entrepreneur trying to gain a foothold in the coffee market, a Caribou Coffee franchise is not the right choice. The chain is only interested in experienced, multi-unit operators. Caribou Coffee offers both a drive-thru only and traditional model but will only consider candidates who want to open 10 or more locations and have $3 million in cash or liquid assets. Beans & Brews Coffeehouse offers both single and multi-unit franchise opportunities.
Our Beans & Brews franchise qualifications do not require candidates to have foodservice experience, but they do need a desire to make a difference in their community. We have all the tools to train and educate you on the various aspects of operating a coffeehouse business. We provide 66 hours of classroom training and approximately 81 hours of on-the-job training to all new franchise partners.
Beans & Brews Coffeehouse: A Local Staple
The first Beans & Brews Coffeehouse opened in 1993, next to Salt Lake City’s Liberty Park. We specialize in high-altitude roasting, which gives our coffee a smooth flavor and a slightly higher caffeine content for that extra energy boost. Our focus is on more than just serving a delicious cup of coffee — Beans & Brews aims to create a community with our “come as you are” attitude. We also strive to initiate meaningful community programs that promote positive change. This year’s “Brew Good” program supports charities that champion animal welfare.
The initial investment to open a single Beans & Brews Coffeehouse location ranges from $518,500 to $761,500. We offer multiple options to maximize real estate opportunities and rent rates in your area. We offer in-line and standalone prototypes with drive-thrus as small as 1,500 square feet and have existing drive thru only locations with an even smaller footprint. We also offer an express kiosk option available for certain markets. Our Beans & Brews app is fully integrated with our restaurant systems creating a seamless ordering experience for our guests plus a powerful marketing loyalty platform to drive sales.
If a single-unit or small multi-unit investment with a strong community focus and a truly distinctive beverage and food menu that stands out from the crowd appeals to you, get started to learn more about Beans & Brews Coffeehouse.
