Beverage franchises can be some of the easiest franchises to open and run, making them great investments for first-time business owners and seasoned entrepreneurs.
The outlook for the beverage industry is positive. The National Coffee Association reveals at least 67% of Americans had a coffee in the past day, and 57% had a specialty coffee in the past week. Coffee isn’t the only beverage in high demand. Energy drink sales jumped 73% from 2018 to 2023, with healthier options driving growth, according to Mintel. Tea, juice, smoothie, and soda pop franchises are also helping the beverage industry thrive.
Pros and Cons of Beverage Franchises
To determine whether a beverage business is the right option for you, Beans & Brews Coffeehouse is ready to help you understand the pros and cons of the industry.
PROS
Drink franchises typically require less space and fewer employees than full-service restaurants, lowering ongoing operational costs and your initial investment. Unlike full-service restaurants that need to manage vast inventories of ingredients and a large menu, beverage shops benefit from streamlined operations.
Beans & Brews Coffeehouse has prototype designs to fit the available real estate in your community. We offer a kiosk-style design, endcap with a drive-thru, and freestanding options. Our smaller designs can operate efficiently in a compact space with a small, skilled team.
CONS
The beverage market is crowded and dominated by a few global players. Finding a niche and building a loyal customer base can be challenging in a saturated market. Having a unique selling proposition, like Beans & Brews’ high-altitude roasted coffee, can be a game-changer.
Depending on the size of your location, you may only be able to serve a limited number of food items. A diverse menu can help you reach a broader audience and generate higher average ticket prices. The Beans & Brews menu offers various breakfast and snack items to attract customers at multiple dayparts.
Important Questions to Find the Right Drink Franchise
Not all beverage brands are created equal. Finding the right fit can be challenging. To help you get started, we’ve put together some questions you need to ask as you explore different opportunities:
- What is the brand’s market presence? Understand the brand’s reputation, its market presence, and how it is perceived by consumers to gauge its potential in your area.
- What support does the franchisor offer? A good franchise opportunity will offer comprehensive support, including training, marketing, and operational guidance to navigate the competitive landscape. Beans & Brews’ franchisees receive 66 hours of classroom training and 81 hours of on-the-job training.
- Does it fit my budget? To make an informed decision, it’s important to understand the initial investment, ongoing fees, and financial performance of existing franchises. The franchise disclosure document (FDD) can provide insights into the financial health and viability of the brand, as well as details about the franchise agreement.
- Does the brand have a devoted customer base? A franchise with a loyal customer base offers a significant advantage. We cultivate a strong following by creating a community atmosphere in our coffeehouses. Our high-quality menu items and seasonal options help drive repeat business.
Join the Beans & Brews Family!
Beans & Brews debuted in 1993 in the heart of Salt Lake City. Our coffeehouse menu offers a full lineup of coffee choices, energy drinks, teas, sodas, frozen beverages, and healthy food options. Since opening our doors nearly 30 years ago, we’ve expanded across six states, with 80 locations open and 112 under development.
If you’re searching for a beverage business, Beans & Brews offers a proven brand focused on nationwide expansion. Get started to learn more about bringing mountain-roasted coffee to your neighborhood.
