Five Advantages of Running a Coffee Franchise

Lily Sweeney, writer

Published at 31/07/2019, Updated on 04/05/2022 , Reading time: 5 min

Five Advantages of Running a Coffee Franchise — Photo © cafe-business.jpg

If you’re interested in running a franchise, the coffee sector could be a fantastic place to start. With constant consumer demand and a varied structure to the working day, franchising with a coffee company could be the perfect career for you. Here are the five biggest advantages of running a coffee franchise.

Franchising can be demanding, and jumping into the industry might seem intimidating, but really, franchising is a lower-risk way to be your own boss and run your own business, using a proven business model.

As a franchisee, you’re very likely to succeed. One of the best ways to ensure your own success is to research ahead of time, and find the right sector for you. Is that the coffee shop sector? Find out below.

What are the five advantages of running a coffee shop franchise?

1. You’ll become a part of the local community

Coffee is the number one most popular drink across the world, and roughly two billion cups are consumed every day [British Coffee Association]. There’s a clear and established audience for your product when it’s something with as much widespread appeal as coffee.

And one of the biggest benefits of opening up a coffee shop? You’ll become a part of your local community. Coffee shops and cafes are a base for people to connect, socialise, or even enjoy a moment of peace with a good book and a warm cappuccino. As a coffee shop owner, you’ll have the chance to cement your franchise as a community cornerstone, providing a warm and inviting location for people to gather.

Coffee houses now play such a vital role in many people's daily lives. Not only have coffee shops become a place to meet and hang out with friends (some might say they've taken over the place of the pub as the "local"), they’ve also become hubs for business and work meetings and also places of work for solo entrepreneurs. —Fiona Simpson, Forbes

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2. You’ll always have room for growth

Starting up and running a coffee franchise, you’ll have many different opportunities to evolve and develop your business as it grows. Start small, nail every one of your food and drink offerings, and then expand as you go, gaining customer confidence along the way.

Don’t be afraid to learn as you go. Let your product range, and even the business itself, develop naturally alongside your customer base. You’ll always have room to build on your business, and could even one day become a master franchisee.

3. You’ll be taking fewer risks

In 2018, 93% of franchisees claimed profitability, and 60% of franchised units turned over more than £250,000. Less than 1% of franchises closed citing commercial failure [British Franchise Association]. These statistics should show that the risks for franchisees are lower than the risks for independent new business owners.

You can minimise these risks even further by:

1. Doing all the research you can before deciding on a franchise to invest in

2. Checking your franchise agreement, once it’s been drafted, with the help of a legal professional, to ensure that everything is above board

3. Ensuring your expectations are correct by asking the franchisor and fellow franchisees any queries or questions that occur to you about the process of starting or running your franchise

Owning a recognised coffee franchise has its own benefits. Along with a loyal consumer base, you will also get an established business model. The business model plays a vital role in the success of any company. —Entrepreneur

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4. You’ll benefit from the use of a recognised brand name

Recognised brand names come with credibility and built-in customer loyalty and trust. They can do a lot for you that you wouldn’t be able to benefit from if you were a new business owner, rather than a franchisee. Enjoy these benefits, and make use of them wherever you can.

Yes, investing in a coffee franchise won’t always come cheap. Particularly for the most well-established and well-recognised brands, it will likely be quite expensive. But in the long term, this expense will pay off, as you’ll have access to:

An established customer base
Consistent marketing and advertising support
Comprehensive initial and ongoing training for you and your employees

The current state of the food service industry

Statistics in the coffee sector show that the amount of coffee consumed by Brits has continually increased, year on year. Right now, roughly 95 million cups are consumed daily across the UK [British Coffee Association]. For this sub-sector of the food service industry, the demand is there and remains strong, confirming that a coffee franchise is a low-risk, high-reward investment option.

The impact of the pandemic on the food service industry has varied greatly depending on the type of food service a franchise offers, the location in which a franchise is based and the size of the franchising operation. For example, some mobile franchise units in the food service industry have experienced increased demand, while many restaurant franchise units have suffered in the past year.

Regardless of the sub-sector, though, the food service industry is making a comeback. And as restrictions continue to lift across the UK and the public head out into the world again, demand for everything from three course meals to cups of coffee is sky high. What better time to make your investment?

Start your own coffee franchise

Having discovered the biggest five advantages to running a coffee franchise, and having learned the current state of the sector, you should have a pretty good picture of whether or not starting a coffee franchise feels like the right move for you. If you are interested, this is the perfect time to take that plunge and invest in a coffee franchise.

If not, there are other options out there for you. Say, for example, you’re interested in the lower-risk business ownership opportunity that franchising provides, but you’re not sure the food service industry is the right place for you: You can discover franchising options across a huge range of industries via Point Franchise’s UK franchise directory.