STARBUCKS Franchise Startup Cost, Profit Margin, Revenue and Locations
Is Starbucks a franchise? How much does it cost to open a Starbucks licensed store? Have you presently consider becoming a franchisee with an existing successful coffee store franchise? Do you know more about Starbucks franchise cost 2018? If truly you want to build a successful business as a franchisee, then you need to consider joining Starbucks franchise.
Do you consider the smell of fresh-made coffee one of man’s greatest inventions? Or even wonder how people live without coffee? Then you are not alone. Even Jackie Chan says “coffee is a language in itself”. Starbucks is the place of coffee.
Starbucks Franchise Information and History
Founded in the year 1971 in Seattle, Washington, Starbucks Coffee Franchise has grown to stamp its signature in the beverages industry; with revenue of over $16 billion, and over 185,000 employees.
Though founded originally with the agenda of roasting coffee, Starbucks offer nice drinks varying from Frappuccino to Venti Moccha between a taste, quality, and customer experience that sets it apart from other coffee servers.
Howard Schultz, the President and CEO of Starbucks Corporation, once made the comment “Starbucks has a role and a meaningful relationship with people that is not only about the coffee”; by the way Howard “can’t imagine how to live without coffee”.
Starbucks is a place where you can live with only a few syllables that make five words “Large coffee with milk, please”. Actually we can add seven words, “How do I buy a Starbucks franchise?”
Some of the Starbucks market includes colleges and universities, healthcare, hotels and resorts, and existing restaurants. They also will consider high volume or high traffic retail locations.
Prior to February, Starbucks does not accept franchise agreements. However, by February, in Liphook, eastern district of Hampshire, Starbucks Franchise International opened its first franchise-owned store. Now something you must know about Starbucks franchise is that you must reside in Europe, preferably England and France.
So one can tentatively summarize the processes involved in securing franchise as follows: Leave your house, Purchase a new house in Europe, and probably become an official European citizen.
So what are is the associated Starbucks royalty fee?
How Much is a Starbucks Franchise
To buy a Starbucks franchise, the following requirements must be met:
• You should own a liquid asset of say $600,000 that you are willing to invest. This franchise cost would go in for setting up the structures, which is usually a storey building with nice armchairs, suitable for relaxation, and solitude.
• You should have a good deal of experience about the food and beverage industry, and even preferably own or involved in running a business with several locations. Being a reputable company, they would never attempt to jeopardize their name.
They recommend for this reason that you have enough experience in the area of managing a restaurant, one at least almost matching the size the Starbucks for you to be a franchisee.
• Starbucks have goals and aspirations, and one of them is that every street should have one of its coffee franchise shops. For this reason, Starbucks prefers multi-unit franchises; one in which you would be willing to open several locations; I must make it known that their first 45 franchised locations where owned by 9 franchisees only, that’s an average of 5 Starbucks locations per owner, and they always intend to maintain that average.
In this light, you should be ready to open at least 20 locations in a period of 5 years (I cannot say if one is legally bound to do so). However, consider the benefits of doing so, and the accomplishment; let it challenge you.
• Their standard architectural structure of their stores should also be considered by you when setting up your location. Once you have succeeded in sorting all the financial necessities, Franchise of Starbucks sends a development team. They would assist you in getting a good location.
Then afterwards, you commence a program that tutors you on the ins and outs of operating a Starbucks store, they would spearhead your orientation regarding Starbucks and the general coffee world; the goal is to ensure you expertise in coffee is established in order to maintain their already built reputation in the industry. This is the Starbucks immersion program.
In view of these terms, Taste Holdings a South African, a business franchise group that licenses a portfolio of franchises within sub-Saharan Africa, recently entered a franchise deal with Starbucks—specifically a 25 year deal. So Starbucks would be entering the African continent, and of course in many locations.
How much does it cost to buy a Starbucks? Why is Starbucks not a franchise? Is Starbucks a franchise in the UK? Relax. By the way, Starbucks already has over 10,000 locations worldwide, in India, the Philippines, Indonesia, especially in America where it was founded, then also in South America, especially in Mexico. Do you know how many Starbucks stores are there in the US?
It will help to speak with a franchise business consultant before commencing to purchase a franchise; or you could visit any nearest Starbucks franchise store close to you.
HOW MUCH DOES A STARBUCKS FRANCHISE COST?
Do you know how much franchising a Starbucks cost? Starbucks is a foremost American coffee company and coffeehouse chain. It was established in the year 1971 in Seattle, Washington. As at the year 2016, Starbucks already had 23,768 locations at different parts of the world, with the most stores located in the United States of America. As a popular Coffee Chain with great success story, a lot of people have sought for information on how much is a Starbucks Franchise?
HISTORY OF THE STARBUCKS COMPANY
Since its establishment in the year 1971, the Starbucks Corporation has been at the top of coffeehouse chain business in America. It has been able to distinguish itself from other chains through the provision of quality, tasteful coffee and also offering an outstanding customer service across its stores, not only in the United States, but across the rest of the world.
In every Starbucks location, you are certain to get served hot or cold perfectly brewed coffee, depending on your choice. They also serve hot and cold drinks, espresso, caffe latte, fresh juices and teas. They also serve pastries and snacks which may include stuffs such as crackers and chips.
The company’s ability to serve a whole lot of varieties of drinks and food items have made them a choice firm among franchisees. A lot of people want to associate with the company and so will love to have a 1st hand information on the cost of owning a Starbucks Franchise
Some of their stores also serve pre-packed foods, sandwiches and even wares such as tumblers and mugs imprinted with the Starbucks Logo and brand.
SALES AND EXPANSION AT THE STARBUCKS CORPORATION
In the year 1984, the founder of Starbucks decided to purchase a company called Peet’s. Earlier before then in the United States, the total sales of coffee were falling, but despite that the sales of speciality coffee sprang up.
In the year 1987, Starbucks was sold by its original founders to a former manager of the company, who later on rebranded his own II Giornale coffee outlets into Starbucks and then it began to expand.
Over the years, the Starbucks Corporation increased in sales and they expanded to many locations across the United States and other parts of the world. As at the year 2013, the Company improved technology-wise and about 10% of its in-store purchases were being completed on the customers’ phones through the use of the Starbucks app.
The company later expanded their usage of the mobile platform when it decided to launch the “Tweet-a-Coffee” campaign in October 2013. The campaign was promoted on twitter and by December 2013, it was reported Starbucks had made $180,000 from just that campaign and about 27,000 people participated in the campaign.
CAN YOU PURCHASE A STARBUCKS FRANCHISE?
With the good records of the Starbucks Corporation, a lot of entrepreneurs have sought information on how they can buy into the Starbucks Franchise. Now the question is does Starbucks sell Franchise? The answer is yes and no depending on your location and what you consider personally to be a franchise.
Every Starbucks location is being managed by the corporate headquarters, they do not operate on any form of franchise model. In the United States and Canada, you cannot get a Starbuck Franchise. What you can get that is close to that is Starbucks giving you the License to use their name if they consider your store to be in a very viable location, they would then hire a General Manager for the store.
The General Manager will be responsible for the business activities that take place at the store and will also take charge of hiring and management of the employees at that store and at the end of the day gives report back to the corporate headquarters on how the store is fairing.
OWNING A STARBUCKS LICENCE
As stated earlier on, you cannot get a Starbucks Franchise, especially if you are in the United States. You can only be given a License as a licensee. What this means is that you basically rent the Starbucks brand by paying them a license fee.
The Starbucks Corporation has close to 10,000 stores in different locations of the world. It will interest you to know that 4,400 of these stores are licensed shops.
HOW TO GET A STARBUCKS LICENSE
If you have finally decided to go for the Licensee option since it will not be possible to get a Starbucks Franchise in the United States. These are the processes that you will need to follow
- Visit the Starbucks website and look out for the icon Apply for a Licensed store
- Choose from the drop-down the title that best describes your business and then click on submit
- You will be required to fill some financial information about your business. Such as business location, assets and liabilities, net worth of your business and funds available to invest in the Starbuck retail store
- Click on “SUBMIT” to forward your application to the Starbucks Management for evaluation and possible feedback.
HOW TO BUY A STARBUCKS FRANCHISE
If you are located outside of the United States and Canada, you can be lucky enough to get a Starbucks franchise and you can only buy Starbucks Franchise in Europe. Once the company approves your application, you will immediately start the Starbucks Training program, which is set to give you and your staff the orientation about the process of managing a Starbucks store.
You will be expected to open at least 4 different stores in a year and then a total of 20 stores under the 5 year period of initial agreement.
WHAT IS THE COST OF A STARBUCKS FRANCHISE?
Once you have been able to meet the requirements expected to own a Starbucks Franchise, the next thing to be concerned about is what is the cost of a Starbucks Franchise? Simple, you are expected to have close to £500,000 of liquid assets, that is about $750,000
When you mention Starbucks, the name is almost synonymous to coffee. The company can be considered as one of the notable coffee shops in the whole of United States and the rest of the world, if not the most popular. With this piece of information in mind, you might want to know how much is a Starbucks franchise
SEE: CAFE BARBERA COFFEE FRANCHISE
THE STARBUCKS SUCCESS STORY
The success that Starbucks coffee has achieved in the business can be attributed to a whole lot of factors, of which one is accessibility: You will always see a Starbucks Coffee Shop at every location that has huge traffic. They are notably found around malls, grocery stores, book stores and so on.
Since the coffee shop experience has been introduced to the public, it has become a major trend with customers and they utilise the medium to hang out with family, friends and associates.
FRANCHISE INFORMATION ABOUT THE COMPANY
Starbucks was established in the year 1971 at the Pike Lace Market in Seattle. It actually began as a single store and it has expanded into a worldwide phenomenon. Starbucks Company opens an average of 2 stores daily and it is believed that there are about 1,500 stores opened on a yearly basis in the United States.
Today, Starbucks can boast of about 25,000 stores located in about 67 countries of the world.
PRODUCTS OFFERED BY THE COMPANY
In the year 1994, Starbucks purchase a company: The Coffee Connection. This gave them the right to make, use and market the patented Frappuccino beverage, which was unveiled to the public under the Starbucks brand in the year 1995 and by the year 2012, the company has made over $2 billion in annual sales on Frappuccino alone.
Other products by the company are Frenta, fruit flavoured beverages, sodas, Verismo and so on.
IS STARBUCKS A FRANCHISE
Starbucks is not a franchise. what the company offers that is similar to franchising is flexible coffee programs created for different markets, which include universities, colleges, hotels, health centres, resorts and restaurants. The company will also consider a location that has high volume traffic.
However in a situation whereby another company has the access to a desirable space with good traffic, Starbucks will be so much willing to give such a consideration and offer the license to operate to that company.
HOW MUCH DOES A STARBUCKS FRANCHISE COST
The Starbucks franchise cost is nonexistent since the company does not offer franchise opportunity. However if the company considers your store for a Starbucks location, you will need to incur some costs to set up the store, in terms of promotions and publicity.
STARBUCKS FRANCHISE FEE
Every new franchisee buying into a company’s franchise is expected to make a mandatory franchise fee payment. This grants them the license to operate under the company’s brand. Since Starbucks does not sell franchise, there is no Starbucks franchise fee
HOW MUCH DOES A STARBUCKS FRANCHISE MAKE
There are no Starbucks franchise owners and so the average income made by a franchisee with the company is not available
WHY STARBUCKS DOESN’T SELL FRANCHISE
Franchising is one of the major growth strategies companies use all over the world. Most of the top companies in the United States and the rest of the world have used this tactics to expand and spread their tentacles abroad.
However, despite the fact that Starbucks has more than 25,000 location spread across the world, they have refused to sell franchise opportunities to the public.
According to the CEO of the company, Howard Schultz, the success of the company is based on the culture and value of the company and there is no believe that the company could have achieved so much in a franchise system, which is dominated by people that are not working directly for the company.
The CEO claimed that franchise owners are more like middle men that will come in between them and their customers. They didn’t want this as the company takes so much passion in offering the customers the best values and it is believed that this value could only come directly from the company.
TRAINING AND SUPPORT
Since Starbucks does not offer any form of franchise opportunity except store locations. So if you have a store set up by Starbucks, you will be trained and given orientation about the company’s policy and standards of doing things.
Most of Starbucks training goes to their staff members. The company expends so much funds in the development of the staff for them to be able in inculcate that Starbucks culture and then pass it on to the customers
HOW TO OPEN A STARBUCKS FRANCHISE
It is now a known fact that the company does not offer any form of franchising, so information on how to open a Starbucks franchise may not be available.
However if you are lucky and the company considers your store for a Starbucks location, you will be provided with merchandise and marketing that well suits your location. Starbucks can boast of superior customer service, which gives the customers the confidence that they will be served with the best.
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