Franchise or Independent – Which Coffee House Business Plan is Right for You?May 10, 2022 (Published: March 28, 2012)
Specialty coffee is a great business for entrepreneurs. Coffee is the second most-traded commodity in the world, trailing only oil. And coffee shops continue to grow in popularity as more consumers demand great-quality coffee.
However, opening a coffee shop may be harder than you think. And starting a business without a plan is a recipe for failure. That’s why you should develop a coffee shop business plan before getting started.
There are a few different business concepts to choose from when deciding to open a coffee shop. The first step is to decide what kind of coffee business you want to run. Each concept for a coffee shop business has unique advantages and disadvantages.
One option is to buy a coffee shop franchise which allows you to own and operate a coffee shop as part of an existing chain. With this option, everything is set up for you, from the location of your coffee shop to the equipment you purchase and the uniforms of your staff.
Buying a coffee shop franchise also allows you to benefit from corporate branding and marketing. However, you’ll probably pay substantial franchise fees for these benefits. You won’t have control over the name or location of your business, the drinks you serve, the layout of your shop or many other aspects of your business. Many coffee shop franchises don’t have widespread consumer recognition, so you’ll still need to devote a lot of time and effort to marketing your store. And, you may be required to sign a multi-year agreement and to complete paperwork on an ongoing basis as you report to the corporate franchise organization.
You can also choose to open an independent coffee shop. This is a great business plan for people who are looking for a more flexibility when it comes to store name, location, operating hours and product. Entrepreneurs who open independent coffee shops can offer a wide choice of coffee beans from different growers. And they can put their own unique stamp on the coffee shop’s name and ambiance.
A lesser-known coffee shop business plan lies somewhere in the middle. There are some coffee producers that will allow you to sell their coffee. They provide everything you need to be successful, including secret latte recipes and more! This allows you to start a coffee shop that is not tied to the strict guidelines and regulations of a corporate franchise while still benefiting from brand-name recognition. This coffee shop business plan provides an excellent combination of flexibility and security.
Through our 7 Steps to Coffee Shop Success process, Crimson Cup helps independent coffee shop owners establish thriving businesses. What sets Crimson Cup apart from many other coffee business consultants and coffee shop franchises is that Crimson Cup does not charge for our services. No contract. No franchise fees. In fact, we don’t even require that you buy Crimson Cup products. Though, after tasting our amazing coffee, we’re confident that you’ll want to. Hundreds of thriving independent coffee shops across 30 states have followed our 7 Steps process and now proudly serve Crimson Cup products.