If you’re a coffee enthusiast with dreams of owning a business in the coffee industry, you might be pondering whether to start an independent coffee shop or take the franchise route. Both paths offer advantages and drawbacks, but opening a coffee shop is a much different process than opening a coffee franchise. Here’s how each path to business ownership works, and the pros and cons of each.
Pros and Cons of Opening an Independent Coffee Shop
The U.S. love affair with coffee is strong, brewing new opportunities for entrepreneurs. Approximately 74% of Americans drink coffee every day and spent nearly $110 billion on coffee and related goods in 2022, according to the National Coffee Association.
One of the most enticing aspects of starting an independent coffee shop is having complete creative control. You can design the menu, decor, and ambiance. You’ll also have the flexibility to adapt and pivot your business model as you see fit. Experimenting with new coffee blends, menu items, and events can keep your shop exciting and relevant.
But as an independent coffee shop owner you’ll be navigating uncharted waters, potentially facing stiffer competition and economic uncertainties. Like any business venture, launching and running your own coffee shop requires substantial financial resources. Securing loans and funding can be challenging when your business model is untested, and you’ll need to manage all aspects of the business without guidance or support. Handling day-to-day operations, including inventory management, marketing, and staff training, is a hefty burden.
Pros and Cons of Partnering with a Coffee Franchise
Franchising, on the other hand, has its perks. You’ll step into a proven and successful business model. You’re leveraging the brand’s track record and expertise, reducing the inherent risks of entrepreneurship. Franchisors also provide comprehensive training, ongoing support, and a wealth of resources, including marketing guidance. You won’t be navigating the coffee business on your own, which can ensure a smoother and more efficient operation.
Acquiring a franchise typically involves initial franchise fees, ongoing royalties, and other financial commitments. While these costs may seem daunting, they often result in long-term profitability. As a franchisee, you’ll need to adhere to the franchisor’s established guidelines and operational procedures. For many franchisees, the support and guidance they receive from the franchisor limits stress and allows them to hit the ground running with their new venture.
The reputation of your coffee shop will be closely tied to the franchisor’s brand image. Any negative publicity or incidents within the franchise network can affect your business, but having a peer network to share best practices is an invaluable resource.
Beans & Brews Coffeehouse: Setting the Standard for Coffee Franchises
When considering the pros and cons of opening a coffee shop or becoming a coffee franchisee, you should know that Beans & Brews Coffeehouse offers a compelling franchise opportunity. We provide a balance between independence and support, allowing you to realize your dream of owning a coffee business while minimizing risks. Here’s how:
- We have a strong track record of success, making it a secure choice for prospective franchisees. With almost 30 years of experience, our coffeehouses are community favorites across Utah and beyond. We have 72 open locations, with an AUV of $883K among the top 60% of franchise locations.
- Your initial investment of $518,500 to $761,500 covers your coffee shop startup costs, as well as extensive training, operational support, and marketing assistance. Our franchise system is designed to simplify your business journey and increase your likelihood of achieving your financial goals.
- Our brand is known for its high-quality coffee, signature blends, and diverse menu offerings. You’ll be offering your customers top-notch beverages and treats that keep them coming back for more. Our lineup of energy drinks offers a coffee alternative and features natural caffeine, botanicals, super fruits, B vitamins, and amino acids.
- We place a strong emphasis on community engagement, fostering a sense of belonging and loyalty among customers. This community-oriented approach can set your coffeehouse apart from competitors.
Join Beans & Brews
Get started to connect with someone from our franchise team and learn more about our high-altitude roasted coffee brand.
* This is a historical representation of what some of Beans & Brews Coffeehouse’s franchised agencies earned, as described further in Item 19 of the FDD.
