So, you want to own a coffee business, huh? In today’s competitive coffee market, there are a lot of options. Most people want to own a Starbucks, but the truth is, Starbucks does not franchise under the Starbucks brand, (which by the way, started out as an independent coffee house in Seattle).
You love a good cup of coffee and the atmosphere of your local independent coffee house, but you don’t know if owning a coffee business is right for you. Lucky for you, there are a myriad of options available for both franchised coffee concepts and independent coffee houses. There are advantages and disadvantages to both, it just takes a bit of time, patience, research, and some soul searching to determine what type of coffee business is the right fit for you.
There are a few misconceptions surrounding both types of coffee businesses. Some people feel that franchised concepts are “stifling” and “are too controlling.” While others feel that owning an independent coffee house is too time consuming to start up or won’t carry high-quality products. How do you determine what business model is right for you? Take a look at just a few common misconceptions about both types of coffee business models and decide for yourself.
“Franchises are just ‘cookie-cutter concepts’ with no real substance.”
Hmmm, well if that were true, then franchises such as Caribou Coffee, Maui Wowi Hawaiian, and Daz Bog Coffee would never have succeeded in helping thousands of people own their own businesses. In fact, some franchised concepts were independents at one time. These concepts worked hard to perfect their systems, nail down distribution issues and solidify marketing concepts that were easily and efficiently duplicated which can drastically reduce the top challenges associated with owning your own coffee business. And while most of the kinks have been worked out as far as product, supplies and distribution, at the end of the day, you still own your own business.
“Independent coffee houses are just so much cooler!”
Depending on the concept, this can be said for just about any coffee business. The key is finding the balance between branding, products and delivery. An independent coffee house will fit your lifestyle and personality because you created it! Do your research. What do your competitors do that is different? What types of products are they offering? What is the ratio of independent coffee houses to franchised coffee concepts? If you are willing to work hard, put in the time and effort to create a business plan, marketing plan, branding, and an exceptional product mix that is all your own – go for it! You may just create the next great coffee concept.
“I won’t have any freedom to do what I want with a coffee franchise!”
The coffee franchise business offers a lot of flexibility depending on the concept. Some concepts are strictly storefront locations. Some offer mobile units that allow you to take your business to where people gather And others offer a mixture of all different types of models so you can design your business to suit your lifestyle. Depending on the franchise agreement and the models offered by the franchisor, you have the option of selecting mobile units, mall kiosks, strip mall locations, drive through locations, concession trailers, locations within hospitals, catering units, and more! These same franchisors also offer construction and location assistance services and at times, you will be able to lease or purchase equipment on directly from other franchisees or the franchisor, which will help reduce your initial start-up costs. Yes, some coffee franchisors do have compliance and regulations you must follow, but think of the franchisor as your “brand watchdog” watching over the system to ensure consistency and great customer service throughout the franchise system.
“How do I choose between a coffee franchise or to go it alone?”
This is a hard question to answer. It all depends on your research, your tolerance for change, and your willingness to work hard. It doesn’t matter if you choose a franchised concept or not, you are the small business owner. You make the business decisions that guide your business toward profit or failure. Solicit as much free advice as you can from franchise owners, franchisors, independent coffee house owners, business consultants, anyone who can help you understand the nuances with both types of coffee concepts. Only after careful consideration and due diligence will you be able to make the leap as a coffee shop owner!
“I know my way around a coffee grinder. I want my own coffee house!”
For those of you who are dedicated to your coffee and have a keen understanding of all things “coffee bean” then by all means, go forth and create the independent coffee house of your dreams! And please, if it’s that good, then send us some for our own coffee pot!