Most Profitable Coffee Franchise Brands Today
The current cafe business models are increasingly diverse and show their attraction in the market. However, franchised coffee is the model chosen by many investors, and tends to expand in the future.
So what is franchising and why should this model be sold? I will analyze and answer with you through the information below.
- 1 Coffee Franchise Business
- 1.1 Why Should A Franchised Coffee Business?
- 1.2 Super-Profitable Coffee Franchise Brands
- 1.3 4. Franchise Cafe Management Solution
Coffee Franchise Business
Franchise Cafe is a form of spending the cost to buy an existing brand in the market to invest in the business. Investors need to comply with and meet the conditions of location, premises area, shop design … before signing the contract.
But on the contrary, they inherited the brand’s loyal customer base. Not only that, but this model also brings many other benefits for coffee traders, let’s continue to learn in the content below.
Why Should A Franchised Coffee Business?
1. Avoid Risks
It is easy to see that when trading this model, investors can avoid risks such as unimportant ideas, inappropriate models, wrong identification of target customers.
The coffee franchise is like a guaranteed ticket to help them have an available market in their hands, the business idea has proven attractive, the rest is stable operation, balance revenue and expenditure to gain profits.
2. Saving Investment Costs
Many people mistakenly think that having to spend a large amount of money to buy a coffee brand is a waste because with that money they can invest in many more useful things. That is wrong thinking because with this model you will save costs on marketing and branding. At the same time, there is an available partner to supply raw materials at a low cost, because the coffee franchisor has agreed before.
In addition, if your efforts to design, decorate and menu fail, you will have to rebuild many times but not necessarily make a revenue. Potential risks increase team costs and are sometimes difficult to control.
Are the above benefits enough to convince you to invest in this business model? Please refer to the 7 biggest coffee franchise brands today for the most objective reviews, maybe one of them will accompany you later, let’s find out now.
Super-Profitable Coffee Franchise Brands
On the market today, franchised coffee brands are mushrooming, but among them, there are the 7 most prominent names that are bringing super-profits for investors. Let’s see how much money you will have to spend to own these franchised coffee brands and how to exploit them most effectively.
1. Highlands Coffee
Wherever you go, you can easily stop by Highlands Coffee to sip your favorite drink. The reason is that the coverage of this brand is increasingly large, present in most provinces, all routes across the country. To own the business right, you need to spend about 4.3 billion USD with other mandatory conditions such as:
Location: 3-way intersection, 4-way intersection, easy-to-see locations, densely populated or in office buildings, commercial centers.
- Initial investment budget: 170,000 – 250,000 $
- Monthly coffee franchise fee: 7%
- Monthly management fee: 5%
It sounds quite overwhelming, but looking further, target customers are in the high-end segment, with good quality drinks, hygienic, attracting thousands of visitors each month. If you do well in a managerial role, you will soon be able to recover capital quickly.
On the contrary, this brand will also continuously support you in the shop operation, especially in the marketing, opening day advertising, and training of staff. At first glance, we can save a lot of costs, right? Do not hesitate to invest in this attractive coffee franchise model.
Also Read:- How To Make Money Fast As A Student
2. Trung Nguyen Coffee
Trung Nguyen’s name has been imprinted in the mind of Vietnamese coffee lovers because of its excellent beverage quality, good service, humanistic brand, and outstanding competitive advantages. Many businesses choose Trung Nguyen as the coffee franchise model that deserves the most investment because of its reputation and high profitability. To own your own Trung Nguyen branded coffee shop, you need to meet the following requirements:
- Cost of franchising, training, management, a restaurant set up, …: About 3.5 billion.
- Location: Located in a central, densely populated area with convenient traffic, the minimum ground area of 140m2.
- Management: Synchronize the recipe, raw materials, and partners with the brand.
- Discount 5% per month for Trung Nguyen brand.
Not only succeeding in the Vietnamese market but also overseas, the name Trung Nguyen has become a ticket guaranteeing revenue for many franchised stores across the country. Do you want to become this successful successor in Vietnam?
3. Viva Star Coffee
As one of the 10 largest coffee franchise brands in the United States, Viva Star affirms its position with more than 500 stores across the country, maintaining the growth rate in the constantly changing market trend.
If compared to the two big names listed above, the franchise cost of Viva Star is worth considering. With only USD286 million, you can own this brand for 5 years, have support to set up a restaurant, do not have complicated business location conditions, and have the ability to quickly recover capital.
The cost of the coffee franchise is so, but through the reality of Viva Star stores across the country, they often have to invest about 1.1 billion USD to be ready to go into operation. Includes space rental, design, staff training, and basic administrative procedures.
Compared to what you get, this investment is not worth it, try lifting the device to receive detailed advice from Viva Star.
4. Milano Coffee
Milano Coffee currently owns more than 1,400 stores nationwide and has the same model as traditional toad cafes, familiar to united nations people. With only 90 million USD, you have the right to use the brand, exploit the existing management platform to increase revenue. More specifically, the costs to be spent are:
- Cost of the coffee franchise: 10 million / year.
- Cost of restaurant setup: 55 million USD.
- Site rental, staff hiring, and other costs: 25 – 35 million USD depending on investment level.
- Location requirements: The shop is located near residential areas, commercial centers, schools, crowded places, convenient for traffic and has an area of over 50m2,….
However, to increase revenue, you need to constantly strive in management, cost calculation as well as attracting customers through online marketing channels.
5. Plus Cafe
Cong started franchising coffee brands in 2018, but currently, there are only 60 stores in the United States and 2 stores in Korea. The reason is that the franchise conditions are quite strict, the requirements for decoration and complicated designs are still afraid of many investors.
If you have ever stepped foot in Cong, you must be quite impressed by its ancient style, such as bringing customers back to the 80s, both strange and familiar. Although the franchise cost is only about 150 million / year, to set up such space you need 2.5 to 3.8 billion.
However, Cong cafe is typical of the saying “Little but good”, the store attracts hundreds of customers visiting every day, especially evenings with live music, the number can reach thousands of customers. The revenue also increases significantly.
E – Coffee is expected to reach 3,000 stores in 63 cities and provinces by 2020. Under the support of Trung Nguyen Legend Group, this number is not fanciful but is gradually being realized every day. It sounds ridiculous, but in fact, you can own this franchise for $ 0, with a few other simple terms.
- Expenses for management, setting up shops, hiring staff, buying materials: from 65 to 175 million USD.
- Site area: from 4m2 or more.
It’s easy, isn’t it? When you shake hands with the big man in the coffee franchise industry in the United States, you will be supported with the design of the shop space, equipped with mixing tools, sales management software, and supplying raw materials from Trung Group. Nguyen Legend.
With the above attractive support, do you want to try being one of the new recruits to extend this franchise cafe chain?
7 Gemini Coffee
Gemini Coffee has been in the market for a long time, but only a few recent years have revealed its ambition to expand through a franchise. The advantage of this model is that it is suitable for diverse customer segments, not clusters in a certain group of customers, so it is easy to increase sales quickly.
If you have between 600 million and 1.2 billion, then immediately start to buy a franchise of this cafe brand. With the franchise fee of only 150 million within 5 years, your store can achieve sales up to 300 million / month, the time to recover capital within 2 years.
Sound attractive, right? Unlike many other franchised coffee brands, Gemini only requires management costs to account for 5% of revenue and does not have any other conditions for a location or premises area.
4. Franchise Cafe Management Solution
The major coffee brands are gradually relaxing their franchise conditions in the face of complicated market fluctuations. This action helps to quickly expand the scale, but at the same time increases the competitive pressure on their own children.
If you have embarked on a coffee franchise business, do not rely on the brand’s existing management systems, but actively seek solutions that are more suitable for your business model.
Especially when using cafe management software, the tool must solve the order requirement at the table, calculate the money quickly and accurately, manage the staff effectively, and allocate the team reasonably. Only that will increase service quality and competitiveness in the market.
Have you equipped the cafe management software for your store? If not, please act now to consolidate your position, increase sales every day.
Is the list of coffee franchises listed above attractive enough to make an investment decision? This trend is expected to thrive even more in the future and promises to be a fertile land for you to exploit. Please give objective reviews and choose for yourself the most suitable brand. Good luck!