Start A BusinessFranchiseWhy are coffee franchises so popular?

Why are coffee franchises so popular? [ + 5 brands to consider]

Investors everywhere are enamored with the idea of building a coffee franchise business. There are many reasons for this, but the bottom line boils down to the fact that so many among us love coffee, especially those that own and operate coffee franchises. While loving your product or service is a great reason to go into a particular business, many other factors must be considered first. With that in mind, many of the following reasons contribute to the wide popularity of the coffee franchise in the United States.

  • Low Overhead

While this certainly isn’t true of all coffee franchises, many emerging coffee franchises allow business owners to invest in their franchises and build upon the capital of their good names for well under the costs of other industries. This is huge in the world of franchises, with more popular franchises selling in excess of one million dollars for the first restaurant or store.

Profits are the goal when investing in a coffee franchise or any other business venture. The less money spent on expenses equals more significant profit. This is yet another great reason to look to the wonderful product of the coffee bean upon which to build your business.

  • High Profit Potential

When you consider the cost of a cup of coffee at your average coffee franchise store, the return on the investment is phenomenal. People spend more on a cup of coffee than they will spend on a gallon of gasoline at today’s prices and consider it money well spent for the pleasure a good cup of joe provides. The costs involved in creating that cup of coffee are relatively low compared to the price of a fast food hamburger, yet the cost of the cup of coffee is generally much higher.

  • Product Popularity

Businesses around the world are adopting fika, the Swedish practice of taking a group coffee break, to boost productivity and lower stress.

Coffee is popular with millions of drinkers worldwide, and new people turned on to the historically rich world of coffee each and every day. Not only are we looking at a world of growth as a business, but coffee drinkers are growing younger than in years past. Coffee is a part of pop culture these days and seems to be a fad that is here to stay. You will need very little advertising to get your message across. Your biggest concern will be to continue providing excellent products and service so that customers will return day after day.

  • Pop Culture Appeal

As mentioned above, coffee houses, stores, and cafes have become a part of pop culture. This is appealing to many would-be business or franchise owners and a huge reason that the coffee franchise has become prominent across the country in big towns and small communities alike. It is an opportunity to become a part of a generation’s popular culture, and that is the momentum that many business owners would love to capitalize upon.

A coffee franchise may be the perfect solution if you are considering buying into a franchise business. Examine carefully your reasons for wanting to do so and take the time to put pen to paper before buying in to make sure you are getting the best value for your investment dollar.

5 lucrative coffee franchises to consider

1. Dunkin’

Dunkin’ is a famous American franchise chain founded in 1950 and has since grown to become one of the world’s largest coffee and baked goods chains. Dunkin’ has over 8,500 restaurants in 41 states in the U.S. alone. The brand is known for its signature coffee, donuts, bagels, and breakfast sandwiches and has expanded its menu in recent years to include a range of offerings for those with dietary restrictions. The company’s success is mainly attributed to its focus on providing fast and convenient service, high-quality products, and affordable prices.

Total initial investment:
Ranges anywhere from $97,500 to $1,717,103. You’ll need to have a minimum of $250,000 in liquid assets and a net worth of $500,000 per restaurant.
Agreement length: 
Typically 20 years
Learn more:
Dunkin’ franchising

2. Scooter’s Coffee

Scooter’s Coffee is a specialty coffee franchise that offers a wide range of coffee-based drinks, smoothies, teas, and pastries. The company was founded in 1998 and has since expanded to almost 500 locations in 20 states, primarily in the Midwest and West regions of the US. Scooter’s is known for its high-quality, handcrafted coffee made from sustainably-sourced beans and its commitment to providing exceptional customer service. The company offers drive-thru and sit-down locations and has a loyal following of coffee lovers who appreciate its unique flavors and commitment to sustainability.

Total initial investment: $200,000 liquid capital
Agreement length: 10
Learn more:
Scooter’s Coffee franchising

3. Biggby Coffee

Biggby Coffee is a popular coffeehouse franchise founded in Michigan in 1995. The company has since expanded to over 300 locations, primarily in the Midwest and Great Lakes regions. Biggby Coffee offers a wide variety of coffee and tea drinks, including signature lattes, cappuccinos, baked goods, sandwiches, and snacks. The company is known for its vibrant, welcoming atmosphere and commitment to supporting local communities through charitable giving and community involvement.

Total estimated investment: Ranges from $276,000 – $439,000
Agreement length: 10 year
Learn more:
Biggby Coffee franchising

4. Gloria Jean’s Gourmet Coffees

Gloria Jean’s Gourmet Coffees is known for its premium, handcrafted coffee made from high-quality beans sourced from around the world. The company offers a wide range of signature blends, flavored coffees, teas, baked goods, and gift items. What sets Gloria Jean’s apart is its focus on creating a warm, welcoming atmosphere in its cafes, where customers can relax and enjoy their coffee in a comfortable environment. The company also has a strong commitment to sustainability, ethical sourcing, and community involvement, which helps build customer loyalty.

Total estimated investment: Anywhere from$300,000 to $400,000
Agreement length: 10 years
Learn more:
Gloria Jean’s Gourmet Coffees franchising

5. Dunn Brothers Coffee

Dunn Brothers Coffee is unlike the other coffee franchises on our list. The company roasts its coffee on-site in small batches to ensure freshness and uses only sustainably-sourced beans. The company’s cafes have a cozy, welcoming atmosphere that encourages customers to stay and relax. In addition, Dunn Brothers strongly emphasizes community involvement and local sourcing, helping foster and support customers in the community.

Total investment: $501,620 – $739,232. This includes construction, equipment, other start-up costs, and the initial license fee of $40,000.
Agreement length: 10 years
from the date the shop opens
Learn more:
Dunn Brothers Coffee franchising

ASBN Small Business NetworkASBN, from startup to success, we are your go-to resource for small business news, expert advice, information, and event coverage.

While you’re here, don’t forget to subscribe to our email newsletter for all the latest business news know-how from ASBN.

Anna Delvillar is the editorial coordinator and a staff writer at ASBN. She graduated with a B.A. in English Composition from Georgia State University and has five years of experience developing content strategy and writing for automotive, tech, and small business media.

Related Articles