What determines success in the coffee business? Forget location. The new mantra for a successful coffee business is “Dedication, Dedication, Dedication.” No matter the concept, if you want to be a superstar in the coffee business, you need to have the desire to shuck all the nonsense you have heard about the right location being the end all, be all, and take your desire to own your own business and run with it!
What, you are crazy! (Yes, we can read minds.) Of course location plays a big part, but if you don’t have the will to survive the coffee business, location isn’t going to help you. As with all things in business, there are few steadfast rules to follow to be a successful coffee franchisee. (We gotcha with those rules, didn’t we?) So, here you go, here’s everything you wanted to know about becoming a successful coffee franchisee.
Rule #1: Know your financial position and what options are available to you. Face it, you may have all the try in the world, but if you don’t have the cash to invest in a business, you may need to take a step back and examine what type of coffee business you want to start. Initial investment costs vary according to the franchise, so know your tolerance for risk and take a good read on your finances before you start searching for a coffee franchise.
Rule #2: Don’t be an absentee owner. Many people get into a franchise thinking that they can leave their business up to a manager and still be a success. Sure, you can hire managers, wait staff and accountants for your coffee business, but you still need to be an active participant in the business. From watching the bottom line to making sure that your employees are happy, productive and accountable, the most successful coffee franchisees know they need to stay on top of their business to maximize profits.
Rule #3: Get help when you need it. One of the biggest mistakes most coffee franchisees make is not taking advantage of the wealth of the support available from the franchisor. Think of the corporate office as your “back-of-house” support system. From on-going training, regular product updates and communications on best practices, the franchisor wants you to be a success just as much as you do.
Rule #4: Participate in your franchisor’s marketing campaigns. There is a reason there is a marketing department. Use the marketing materials and participate in national and local advertising campaigns. A lot of coffee franchisors offer national coupons, social media promotions and direct mail. Think about it. Your franchisor runs a national coupon, a customer comes into your location wanting to redeem it, but you are not accepting those coupons. Guess what? You just lost a customer and they will definitely not keep that information to themselves. Utilize your marketing department. It’s a win-win no matter which way you look at it.
Rule #5: Be an active member in your coffee franchisee network. A coffee franchise is like one big, busy family. And what do big, busy families like to do? They like to help each other out. Many coffee franchisors offer discussion boards, annual conferences and other vehicles to foster networking and effective communication across the entire system. From internal memos to just a quick phone call to ask a question, coffee franchisees like to help each other out. Become an active participant in your franchise system and watch your business grow as you learn best practices from those franchisees that have “been there, done that.” Pretty soon, you will be sought after for your advice as well.
Rule #5: Know the products you are serving. Your customers are looking to you as their expert on coffee. In today’s competitive coffee world, customers want to know where their coffee beans came from, if the roast is considered a light, medium or dark, and they want to know what makes your product better than the other guy’s coffee. Make sure that your baristas and staff are properly trained. Nobody wants to spend $4.00 on a cup of mediocrity.
Rule #6: Know the competition. Any successful coffee franchise owner knows that if you don’t know your competition, you are dead in the water. What other concepts are nearby? Visit, taste and shop their locations. What do they do better? Figure it out and do it better.
Rule #7: Find the right location. We know, we know, we are contradicting ourselves. Location does matter, but realize that there are coffee franchises that do not have a set location. Some are in mobile concession trailers at parks, zoos, fairs, festivals, sporting venues, and amusement parks. Picking the right event is the key to success for the mobile coffee franchisee. The same rules apply, especially in knowing your competition.
So there you have it. Follow the rules and break a few. It’s your coffee business – enjoy!