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How To Open A Starbucks Franchise: The Complete Guide

Opening a Starbucks franchise can be an exciting opportunity to own a piece of one of the most recognizable brands in the world. With over 15,000 stores in the United States alone, Starbucks continues to see strong growth and profitability.

If you’re short on time, here’s a quick answer to your question: to open a Starbucks franchise, you’ll need to qualify financially, complete an application, undergo training, find a location, and pay franchise fees that total between $315,000 to $2 .5 million.

But there are many more in-depth steps and requirements involved.

In this comprehensive guide, we’ll walk you through everything you need to know to open your own Starbucks franchise location, from initial research and planning to opening day. You’ll learn about Starbucks’ franchise requirements, costs, training, site selection, and more. Let’s get started!

Starbucks Franchise Requirements

Meet the financial requirements.

Opening a Starbucks franchise requires meeting certain financial requirements. As one of the world’s most popular and successful coffee chains, Starbucks expects its franchisees to have a substantial amount of capital to invest in the business.

The exact financial requirements may vary depending on factors such as location and market conditions, but it is generally estimated that the initial investment required to open a Starbucks franchise ranges from $500,000 to $2 million.

This includes the franchise fee, which can be as high as $45,000, as well as costs for equipment, inventory, and leasehold improvements.

It is important for potential franchisees to have a strong financial background and access to funds to meet these requirements. This can be in the form of personal savings, loans, or partnerships with investors.

Financial stability is crucial to ensure the smooth operation of the franchise and to meet ongoing expenses such as rent, employee wages, and marketing.

Submit a Strong Franchise Application

Once the financial requirements are met, the next step is to submit a strong franchise application to Starbucks. The application process is competitive, as Starbucks carefully selects its franchisees based on various criteria.

These criteria include a proven track record of success in business, strong leadership skills, and a passion for the Starbucks brand.

The application should include a detailed business plan that outlines the potential location for the franchise, marketing strategies, and financial projections. It is important to demonstrate why opening a Starbucks franchise in a particular area would be a profitable venture and how you plan to contribute to the local community.

Additionally, Starbucks may conduct interviews and background checks to assess the suitability of potential franchisees. It is essential to showcase your skills, experience, and commitment to the Starbucks brand throughout the application process.

Complete Extensive Training

Once the application is approved, franchisees are required to complete extensive training provided by Starbucks. This training is designed to ensure that franchisees understand and adhere to the company’s standards for product quality, customer service, and overall brand experience.

The training program covers various aspects of operating a Starbucks franchise, including coffee brewing techniques, menu preparation, inventory management, and employee training. Franchisees will also receive guidance on store layout and design, as Starbucks places a strong emphasis on creating a consistent and welcoming atmosphere for its customers.

Completing the training program is crucial for the success of the franchise, as it equips franchisees with the knowledge and skills necessary to run a Starbucks store effectively. It also helps maintain the brand’s reputation for excellence and consistency across all its locations.

Opening a Starbucks franchise can be a lucrative and rewarding business venture for entrepreneurs who meet the financial requirements, submit a strong application, and complete the necessary training.

It offers the opportunity to be part of a globally recognized brand and tap into the ever-growing demand for high-quality coffee and unique customer experiences.

Starbucks Franchise Costs

Opening a Starbucks franchise can be a lucrative business opportunity, but it’s important to understand the costs involved. In this section, we will break down the various costs associated with opening a Starbucks franchise.

Initial Franchise Fee

One of the first costs you’ll encounter when opening a Starbucks franchise is the initial franchise fee. This fee covers the right to operate a Starbucks store and is typically around $315,000. It’s important to note that this fee may vary depending on factors such as location and market demand.

Royalty Fees

Once your Starbucks franchise is up and running, you will be required to pay royalty fees to the company. These fees are typically a percentage of your monthly sales and can range from 5% to 8%. The exact percentage will be outlined in your franchise agreement.

Marketing and Advertising Fees

As a Starbucks franchisee, you will also be responsible for contributing to the company’s marketing and advertising efforts. This is typically done through a monthly fee that is a percentage of your sales. The exact percentage will be outlined in your franchise agreement.

These funds are used to promote the Starbucks brand and drive customers to your store.

Other Ongoing Costs

In addition to the initial franchise fee, royalty fees, and marketing and advertising fees, there are other ongoing costs associated with running a Starbucks franchise. These may include rent, utilities, employee wages, inventory, and equipment maintenance.

It’s important to carefully consider these costs and factor them into your business plan.

For more detailed information on Starbucks franchise costs, you can visit the official Starbucks website at www.starbucks.com .

Site Selection and Build Out

When it comes to opening a Starbucks franchise, one of the most crucial steps is selecting the right site for your coffee shop. The site selection process involves working closely with Starbucks’ real estate team to identify prime locations and designing and building out your store.

Work with Starbucks Real Estate Team

Starbucks has a dedicated team of real estate experts who will guide you through the site selection process. They will help you analyze market trends, demographics, and other factors to identify potential locations that align with Starbucks’ brand values and customer base.

Working with this team ensures that you are making an informed decision when it comes to choosing the best site for your Starbucks franchise.

Prime Locations

Starbucks is known for its strategic location choices, which contribute to its success and popularity. When selecting a site for your Starbucks franchise, it is essential to consider factors such as foot traffic, accessibility, visibility, and proximity to other businesses.

Prime locations can include busy shopping centers, high-traffic areas in commercial districts, or near colleges and universities, among others. These locations provide a steady stream of potential customers and increase the chances of your franchise’s success.

Design and Build Out

Once you have selected the ideal site for your Starbucks franchise, the next step is designing and building out your store. Starbucks has a specific store design and layout that reflects its brand image and creates a welcoming atmosphere for customers.

The design process involves working closely with Starbucks’ design team to ensure that your store meets their standards and guidelines. Additionally, you will need to work with contractors and suppliers to complete the build-out, including installing equipment, furniture, and signage.

It is important to note that the cost of site selection and build-out can vary depending on various factors such as location, size of the store, and local regulations. Therefore, it is recommended to work closely with Starbucks and consult with professionals in the field to have a clear understanding of the associated costs and requirements.

Day-to-Day Operations

Running a successful Starbucks franchise requires efficient day-to-day operations. This section will cover key aspects of managing your franchise on a daily basis, including employees, inventory management, and store management systems.

One of the most important factors in the success of your Starbucks franchise is the team of employees you hire. Hiring and retaining talented and dedicated individuals is crucial. You should focus on hiring baristas who are passionate about coffee, customer service, and the Starbucks brand.

Training is also a vital part of your day-to-day operations. You need to ensure that your employees are well-versed in Starbucks products, recipes, and customer service standards. Ongoing training and development programs can help improve employee skills and keep them motivated.

Creating a positive work environment is essential for employee satisfaction and productivity. Encourage open communication, recognize and reward outstanding performance, and provide opportunities for growth within the organization. Remember, happy employees lead to happy customers.

Inventory Management

Efficient inventory management is crucial for ensuring that your Starbucks franchise runs smoothly. You need to keep track of your stock levels to avoid running out of popular items and to minimize waste. Utilizing a robust inventory management system can help you achieve this.

Regularly monitor sales data to identify trends and adjust your inventory accordingly. This will help you optimize your stock levels and ensure that you always have the right products available for your customers.

Additionally, establish relationships with reliable suppliers to ensure timely delivery of fresh ingredients and supplies.

Implementing a system for tracking expiration dates and rotating stock is also important to maintain product quality and prevent waste. Regularly conduct inventory audits to identify any discrepancies and address them promptly.

Store Management System

A reliable store management system is essential for streamlining your day-to-day operations. This system should include point-of-sale (POS) software, scheduling tools, and reporting capabilities.

A robust POS system allows for efficient order processing, payment processing, and inventory tracking. It should also provide real-time reporting on sales, customer preferences, and other key metrics. This data can help you make informed business decisions and identify areas for improvement.

Scheduling tools can help you manage employee shifts, vacations, and time-off requests. These tools can optimize staffing levels and ensure that you have enough employees to handle peak hours while avoiding overstaffing during slower periods.

By implementing an effective store management system, you can streamline your operations, improve efficiency, and enhance the overall customer experience.

Remember that these are general guidelines, and the specific day-to-day operations of your Starbucks franchise may vary. It’s always a good idea to refer to the official Starbucks franchise resources and consult with experienced franchisees for further guidance.

Opening a Starbucks franchise provides an opportunity to own a profitable business with strong brand recognition. But it requires hard work, strategic planning, and a substantial financial investment. By understanding the franchise requirements, costs, training, site selection, and day-to-day operations, you can make an informed decision about taking the plunge into Starbucks franchise ownership.

With passion for the brand, a great location, focus on customer service, and adherence to Starbucks’ proven system, your franchise has the potential for success. Just make sure to do thorough research and preparation first. Wishing you the best of luck on your Starbucks franchise journey!

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Starbucks Business Plan Sample

JAN.12, 2022

starbucks coffee business plan

Do you want to start Starbucks business plan?

Do you want to know “How was Starbucks created?“ If you are thinking of starting a coffee business or any other business, it is a great idea to study the business plan for Starbucks.

Studying the starbucks coffee business plan s created by professional business plans writers can be a great way to understand the complexities involved in planning out a business. Though you can study other business plans like business plan for seafood restaurant for reference, however, it is always a good idea to pay attention to successful businesses as well.

In this template, we will be explaining the details of Starbucks business plan and the components that should be a part of every good starbucks coffee business plan .

Executive Summary

2.1 the business.

Starbucks was started as a coffee bean store by Jerry Baldwin, Gordon Bowker and Zev Siegi in 1971. The business was then converted to a coffee shop which over the years gained significant attention and expansion across the United States. The main aim of the business is to offer a wide variety of products ranging from different types of drinks and food to merchandise like mugs and tumblers etc.

2.2 Management of Starbucks Company

To manage a business efficiently, you need to develop a strong business plan. A good Starbucks coffee business plan helps a company to manage its technical and financial resources and it contains all the details related to a business.

Starbucks franchise business plan contains all the details regarding Starbucks. For instance, it contains information about Starbucks strategic planning process or about how many franchises does Starbucks have etc.

When writing a starbucks coffee business plan , you can get assistance from this document that contains Starbucks market development details or a separate plan like business plan for a Mexican restaurant . Otherwise, you can also choose the route of using business consulting services for help in developing a business plan.

2.3 Customers of Starbucks Company

Considering the fame of the business, the customers of Starbucks belong to many different domains and age groups. However, the targeted customers of the company include:

  • Adults between 25-40
  • Young Adults in the age group 18-25
  • Generation Y
  • Affluent People

2.4 Business Target

The target of Starbucks according to their mission statement is to “inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time”.

The financial targets that Starbucks wants to achieve in the next 2 years are given below:

Starbucks Business Plans-3 Years Profit Forecast

Company Summary

3.1 company owner.

Kevin Johnson is the owner of Starbucks. He completed his Bachelor’s in Business Administration from the New Mexico State University. He joined Starbucks as a member of the board of directors and then made his way up through COO to the company’s CEO and president.

3.2 Why the Starbucks company is being expanded

As a COO, Kevin handled the company’s operation throughout the world spanning different geographical locations. He also assisted with supply chain, HR, technology and marketing for the company on all platforms. Due to his outstanding ideas and management, he assumed the position of CEO intending to scale the business when his predecessor retired.

3.3 How the Starbucks company will be started

Step1: Plan Everything

The first step of starting any business is to plan thoroughly. The planning of Starbucks was done through Starbuck’s business plan. A Starbucks coffee business plan tells not only what type of company is Starbucks but also answers questions like how long Starbucks has been in business. Every business plan contains base information like this whether it is for a coffee shop or a BBQ restaurant business plan template . So If you want to write a starbucks coffee business plan for a commercial business like a business plan for Subway franchise , you can refer to this plan.

Step2: Define the Brand

The next step is to advertise your additions and benefits to attract your target market. You can achieve this by developing a marketing plan that shows you management like strategic management Starbucks portion in the starbucks coffee business plan .

Step3: Establish Your Corporate Office

Kevin has decided to launch more branches across the US. Therefore, he talked to managers of different regions to get the work started. Next, he will assign the provision of inventory to the new branches to the COO.

Step4: Establish a Web Presence

Internet is a business’s best and worst friend. And Kevin knew that it is all about how you present yourself. To reach a wider audience with the new branches, Kevin decided to focus the main page of the Starbucks website on the expansion efforts.

Step5: Promote and Market

The final step of starting or expanding the business is to efficiently spread the word around through a marketing plan.

Starbucks Business Plans-Startup Cost

The first thing you need to decide when starting or expanding a business is the services you will provide your customers. Starbucks business plans contain this information. They also contain other pertinent analyses like Starbucks company analysis and Starbucks competition analysis. These components of a starbucks coffee business plan allow you to manage different strategies of the company. For instance, the business plan for Starbucks allows the company to figure out Starbucks corporate strategy.

Even though the starbucks coffee business plan for the expansion of the Starbucks chain might be a bit different from the business plan for a new company, you can still use this business plan of Starbucks coffee for reference.

The services that will be offered by the new branches will be:

  • Hot Beverages

Starbucks was started, first and foremost, as a coffee place. Therefore, the biggest product of Starbucks is hot beverages, primarily coffees in different sizes and flavours. Some of these include:

  • Hot Coffees
  • Cold Beverages

Some of the most famous products of Starbucks are cold beverages like:

  • Cold Coffees
  • Frappuccino Blended Beverages
  • Cold Drinks

Therefore, these will be some of the essential products in the new branches as well.

  • At-Home Coffee

When Starbucks was started, its primary goal was to sell packaged coffees of different flavours to customers. Keeping up with that tradition, the new branches will contain packaged coffee as well that people can buy.

  • Food Services

One of the relatively newer features of Starbucks is its food services. The new branches will offer food groups like:

  • Hot Breakfast
  • Bakery Items
  • Snacks & Sweets
  • Oatmeal and Yogurt
  • Merchandise

Like the current branches of Starbucks, the new additions will also sell Starbucks related merchandise like:

  • Water Bottles

Marketing Analysis of Starbucks Company

Starting a business of any kind will require you to know and understand the target market. You should be able to analyze the past, present and future trends of the market. This knowledge, along with your financial goals will allow you to set prices for your products and services that benefit you in the long term.

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You can study the marketing plan of Starbucks pdf and Starbucks growth strategy to understand these nuances. You can also take help from other business plans like cat café business plan to see how these concepts work with newer businesses.

However, if you aim to start a coffee brand like Starbucks, you should take a look at business plan for Starbucks and study the Starbucks corporate plan.

If you don’t know how to carry out marketing analysis and set prices for your products, read through the Starbucks franchise model presented in the business plan Starbucks coffee shops.

In the following part of Starbuck’s business proposal, we have detailed the market trends and potential customers of the new branches.

5.1 Market Trends

According to Statista, the coffeehouse industry carries a market share of $36 billion out of which Starbucks revenue worldwide amounts to $24.61 billion. The coffee house industry has a growth rate of 3% per year which means that there is a steady demand for more branches of the famous coffee house. Therefore, you can’t go wrong with an expansion.

5.2 Marketing Segmentation

The potential customers of Pro Cleaning Services are divided into the following groups:

Starbucks Business Plans-Marketing Segmentation

5.2.1 Adults Between 25-40

The primary customers of new Starbucks branches will be the adults of the surrounding areas with an age range of 25-40. These are expected to be our regular customers as they belong to the working class and require a caffeine boost daily.

5.2.2 Young Adults in the Age Group 18-25

Our second target customers will be the young adults enrolled in schools and requiring coffee regularly. We expect them to visit the stores almost regularly.

5.2.3 Generation Y

This will be our third target group of customers. These are the people who saw Starbucks become what it is today. And we expect them as returning customers.

5.2.4 Business Workers

Lastly, the final customer group will be wealthy and affluent who buy Starbucks regularly on the go. These may include business people and people with their sources of earning.

5.3 Business Target

  • To continue its status as the biggest coffeehouse chain in the world
  • To maintain service standards
  • To maintain customer satisfaction above 95%
  • To earn a net revenue of $120k/month in each branch

5.4 Product Pricing

Due to its flagship and custom drinks, the price of Starbucks products will be a bit higher as compared to its competitors. However, it will be offering more options and quality at that price.

Marketing Strategy

To gain attention amongst so much competition, your business plan for cafe should highlight your competitive advantages over other cafes in the market. You will also need to develop a good strategy like Starbucks strategy plan to market your products.

In this business plan of Starbucks, we are highlighting the Starbucks corporate strategy that makes Starbucks stand out amongst its competitors in the market. You can follow along to develop the marketing plan that can make you stand out.

6.1 Competitive Analysis

  • Starbucks has excellent customer care service
  • Through the Starbucks website and user-friendly mobile app, our customers can order drinks and utilize many different offers.
  • Starbucks doesn’t compromise on quality and thus provides the best quality products
  • Starbucks constantly innovates its drinks and adds new menu items

6.2 Sales Strategy

  • We’ll advertise our services through Google Local ads service, our website and social media.
  • We’ll offer a 50% discount to the first 50 customers.
  • We’ll offer a 25% discount on our new drinks for a week.

6.3 Sales Monthly

Starbucks Business Plans-Sales Monthly

6.4 Sales Yearly

Starbucks Business Plans-Sales Yearly

6.5 Sales Forecast

Starbucks Business Plans-Unit Sales

Personnel plan

Starbucks doesn’t compromise on the quality of its services therefore Starbucks corporate plan contains strict guidelines about the behaviour of the workforce and the expectations associated with them. These criteria are a part of the Starbuck Strategic plan. You can follow this Starbucks business plan pdf to get a hint into what your personnel plan should include.

7.1 Company Staff

  • 1 Manager in each branch to help in overall operations
  • 2 CIMS Certified Commercial Cleaners for each branch
  • 2 Technician to upkeep the machinery across all branches
  • 1 Web Developer/ Mobile App Developer to manage online sites
  • 2 Sales Executives to organize and promote sales
  • 1 Accountant
  • 5 Delivery People
  • 3 Receptionists at each branch

Financial Plan

If you do a financial analysis of Starbucks case study, you will understand that it takes a lot more than a good number of sales to make your business profitable. Starbucks financial strategy ensures that all the resources are being utilized efficiently so that the company doesn’t end up wasting money and going bankrupt. The Starbucks coffee business plan also carries out an analysis to figure out the prices of different items to keep the company accessible to customers and successful.

Here we’re providing the detailed financial plan made for Starbucks. So that you can get an idea of how to manage business finances.

8.1 Important Assumptions

8.2 break-even analysis.

Starbucks Business Plans-Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Starbucks Business Plans-Profit Monthly

8.3.2 Profit Yearly

Starbucks Business Plans-Profit Yearly

8.3.3 Gross Margin Monthly

Starbucks Business Plans-Gross Margin Monthly

8.3.4 Gross Margin Yearly

Starbucks Business Plans-Gross Margin Yearly

8.4 Projected Cash Flow

Starbucks Business Plans-Projected Cash Flow

1. What is the business plan of Starbucks?

Business plan Starbucks coffee shops details the different management aspects that go into starting a business. You can take a look at the Starbucks original business plan to get an idea of how the company management was planned in the beginning.

2. How much does it cost to start a Starbucks business?

Depending on the scale and nature of your business, it requires different costs to start a business. You can look at the above project report on Starbucks to understand how much costs are involved in opening chain stores. You can also take a look that theStarbucks marketing strategy pdf to make your business successful.

Download Starbucks Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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The Franchise King® | Learn How To Become A Franchisee

Starbucks Franchise Cost (2024) Can You Handle The Truth?

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Let’s talk about Starbucks franchise cost . And whether or not you can buy one.

Opening A Starbucks Franchise: Can You?

Here’s the truth about opening a Starbucks franchise .

Official Starbucks Franchising Information From Starbucks corporate :

“Thank you for your interest in the Starbucks Coffee Company franchising programme.

We have a number of excellent Franchise Partners on board and are therefore not currently recruiting any further franchisees . We will update this page should the situation change , so we recommend you check the website on a quarterly basis.

Thank you from the Starbucks Team.”

But if you could open a few Starbucks franchises, can you imagine how much money you’d make?

Heck, you have to figure that the revenue numbers from a Starbucks store must be off the charts, right?

And speaking of big numbers, can you imagine the revenue this Starbucks coffee shop in Chicago ( shown in the video below ) must bring in on a daily basis?

Starbucks: A Latte History And A Timeline

1971 : A wild idea brews ( pun intended )! The first Starbucks opens in Seattle’s Pike Place Market. Originally, they sold high-quality coffee beans and equipment. Not a single latte in sight!

1980s : Howard Schultz enters the scene. After a trip to Italy, he’s like, “ Hey, why don’t we turn this bean shop into a place where people can actually DRINK coffee? You know, like Italians do !” He buys Starbucks in 1987, and the true coffee revolution begins.

1990s : Starbucks goes on a wild expansion spree! By the end of the ’90s, they have more than 2,500 locations. That’s more stores than there are cat videos on the internet…well, almost.

New ! If you’d like to know some little-known facts about Starbucks Coffee and it’s people, the well-produced video below is definitely worth a watch!

2000s : Starbucks enters the international market. Soon enough, the green mermaid is seen from Paris to Beijing. They introduce cool stuff like the Frappuccino. It’s basically dessert pretending to be coffee, but nobody’s complaining!

2010s : Sustainability becomes the buzzword! Starbucks pledges to design, build, and operate 10,000 “ greener ” stores globally by 2025. Oh, and mobile ordering becomes a thing. Because who wants to wait in line when there’s an app for that?

2020s : The pandemic hits, but Starbucks adapts like a champ. Drive-thrus, mobile pick-ups, and uber-fancy AI drive-thru lanes keep the caffeine flowing.

Here are a couple more facts about Starbucks.

Starbucks coffee opened its first store in March of 1971 at Seattle’s Pike Place Market. As of today, there are over 33,000 stores in 80 countries.

Starbucks Franchising Does Kind Of Exist Across The Pond

Fun fact : Starbucks opened its first Starbucks franchise in the world in February of 2013. Where?

In Liphook, a large village in the East Hampshire district of Hampshire, England.

That said, as of this writing, there are 45+ franchisee-owned Starbucks coffee shops in the U.K. And, they’re owned by only 9 franchisees .

So much for that idea. You have to admit it franchising a Starbucks was a nice visual.

What About Opening A Starbucks Licensed Store?

If you own what Starbucks corporate deems to be a desired location, you may be able to open a Starbucks licensed store. Of course Starbucks would earn License fees and royalties based on your store’s revenue. Licensing Information

A recent Press Release stated the following:

“ While Starbucks does not offer options for franchising, the company does offer the ability to open a licensed store. For those who already own a particular location or business, Starbucks can help them open up a new Starbucks in that location .”

Starbuck’s Franchises: Licensing Costs

A licensed Starbucks has an initial licensing fee/startup fee of around $315,000. That includes some of the equipment you’ll need to operate your coffee shop. But your total investment to open a new store will approach $1,000,000.

In addition, to qualify, you’ll need to have liquid capital available. How much? About $700,000.

And speaking of licensed stores, around 40% of the coffee shops in the U.S. are licensed store locations.

How To Open a Starbucks Franchise In Europe If They Ever Become Available Again

Here are some of the things you’ll need to do if the Starbucks franchise development team approves your formal franchise application to own a Starbucks in Europe:

  • Sell your house
  • Sell your vehicle
  • Pack up all of your belongings
  • Quit your job
  • Leave your extended family behind
  • Purchase a new house
  • Purchase a new car
  • Become an official European citizen

There are probably a few other things you’ll have to do, but let’s leave that list just like it is for now.

Of course, you’d only have to tackle that list of things to do if you were actually awarded a few Starbucks franchises.

How Much Is A Starbucks Franchise? Who Cares?

A better question is “ How much was a Starbucks franchise in Europe ?”

Starbucks Franchising Investment – You’ll need to demonstrate £500k of liquid assets.

Experience in food is needed. Plus, you’ll need to have food and beverage experience and currently own or run a multi-site business.

Role – Hands-on at first

coffee shop employee opening up starbucks

Next…

If you’re approved to own a Starbucks in Europe, you’ll ( with the help of their development team ) secure an optimum location.

Once your location is approved, you’ll start the Starbucks immersion program which will allow you to learn the ins and outs of running your own Starbucks operation.

One more little thing:

They want you to open 20 stores within the next 5 years .

That’s right; they only want multi-unit franchisees .

Finally, if you live in the states, and you want to be in business now, Dunkin’ Donuts is always looking for capable business folks to open franchises.

Dunkin’ Donuts?

Their coffee is pretty good.

Check Out These Starbucks (Not A Franchise) Quotes

quotes about starbucks

Here are a few interesting quotes about Starbucks.

“ Before it became a ubiquitous part of urban life, Starbucks was, in most American cities, a radically new idea .” – Virginia Postrel

“ Before Starbucks, there wasn’t as much of a coffeehouse routine; we generally drank really cruddy diner coffee.” – Andrew Yang

“ I think Starbucks created a platform and, ultimately, a runway for many other companies to emulate. I suspect if we had not achieved what we have, there would have been many regional brands that would have succeeded. But I’m not sure there would have been a national brand of the scope of Starbucks .” – Howard Schultz

“ I’ve always thought legal addictions are a great way to create a business. Starbucks is a wonderful example .” – Nolan Bushnell

“ I don’t actually like coffee. But I’m addicted to Starbucks. “ – Mike D’Antoni

Starbucks Coffee Shop News Updates

Here’s a link for the latest Starbucks news .

Finally, since I don’t believe in aspiring franchise owners wasting their time, please read this next sentence.

Don’t waste another minute fantasizing about a starting a “ Starbucks Franchise .” Because you aren’t going to be able to buy one.

Instead, look for franchise opportunities that are actually available to everyday people.

Or these business opportunities

( Main image courtesy of Jack Kennard )

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Starbucks Franchise – Costs, Fees & Earning Stats

Starbucks franchise

Liquid Capital: 

Net Worth Requirement: 

Investment: 

Franchise Fee: 

Units in Operation: 

Franchising Since: 

$228,620 to $2,888,700

Are you thinking about investing in a Starbucks franchise? If so, you’re probably wondering how much it will cost and what kind of return on investment you can expect.

In this blog post, we’ll look at the costs and fees associated with opening a Starbucks franchise and some earnings statistics. With this information, you’ll be able to make a more informed decision about whether or not franchising is right for you. Thanks for reading!

  • Key Takeaways
  • Starbucks does not operate using a traditional franchise model, but they do give rights to their trademarks to Starbucks-licensed stores.
  • There are 34,879 Starbucks locations worldwide as of February 2020.
  • Opening a licensed Starbucks store can range from $228,620 to $2,888,700. This includes licensing fees, construction and build-out expenses, equipment and signage, initial inventory, and training expenses.
  • No Starbucks franchise fee is required anymore after the company transitioned from traditional franchises to corporate-owned with an assortment of licensed stores. However, a licensing fee for Starbucks-licensed stores averages around $315,000 plus additional net worth requirements.
  • According to reports from existing owners, profits can range between $50,000 -$200,000 annually, depending on how well it’s managed.

Is Starbucks a franchise model?

Who owns starbucks, how many starbucks locations are there, how much does a starbucks franchise cost, what is the starbucks franchise fee, how much money can you make owning a starbucks, the wolf’s take 🍟, ending summary.

Starbucks is one of the world’s most recognizable brands in the whole food and beverage industry. Still, many may be surprised that Starbucks does not operate as a traditional franchise model.

While Starbucks has certainly revolutionized how people think about getting their cup of joe, the company chooses to own and operate its Starbucks stores directly rather than franchising them out to potential franchisees looking to invest in the Starbucks brand.

However, Starbucks does give the rights to its trademarks to a Starbucks-licensed store, giving store owners a sense of autonomy while Starbucks still maintains firm control over the standards and procedures for making Starbucks coffee.

business plan franchise starbucks

Starbucks is a global coffee powerhouse and one of the most recognized brands in the world. But who actually owns Starbucks? Interestingly enough, it does not have a single corporate parent. Instead, it is part of an innovative three-tier ownership structure that is relatively unique among major companies.

This system consists of Starbucks Corporation, which licenses its brand and operates retail stores; Starbucks Coffee Company, a wholly-owned subsidiary of Starbucks Corporation that primarily purchases and roasts coffee beans and provides retail support services; and parent company Ethos Brands LLC.

In 2020, Ethos was acquired by the Japanese conglomerate group, Yasumi Emoto Holdings Ltd., making them the highest shareholder of the enterprise. Despite this change in hands, there has been no visible disruption to the company’s major operations – a testament to how successful this multi-layer ownership structure has become.

Many people familiar with the world-renowned Starbucks coffee shop may be curious to know just how large their footprint is. The answer to this question is amazing: as of February 2020, Starbucks has a jaw-dropping 34,879 coffee shops throughout 81 countries worldwide.

This number will only continue to grow and expand in the coming years – proof that Starbucks’ success and popularity have been recognized across the globe. With such an impressive number of locations worldwide, it’s easy for anyone to find one nearby for a cup of their favorite coffee!

The cost to open a licensed Starbucks store can vary greatly depending on a number of factors, including the location, size of the store, and other expenses.

According to a disclosure document filed by Starbucks in 2020, the total initial investment for a traditional Starbucks cafe can range from $228,620 to $2,888,700.

This includes various costs such as construction and build-out expenses, equipment and signage, initial inventory, and training expenses. It’s worth noting that these estimates do not include real estate costs, which can vary significantly depending on the location.

business plan franchise starbucks

No Starbucks franchise fee is required anymore after the company transitioned from traditional Starbucks franchises to corporate-owned with an assortment of licensed stores.

The Starbucks franchise fee used to be $40,000 when the company was still franchising its stores. However, this is no longer applicable, so it’s no longer a factor in owning a Starbucks store.

A licensing fee is required for Starbucks-licensed stores. The average licensing cost required to open a Starbucks is a $315,000 licensing fee and a net worth requirement of at least $700,000.

Owning and operating any business involves risk and reward. If you were to open a Starbucks cafe, the potential rewards are high, but so is the amount of risk involved.

According to reports from existing Starbucks franchise owners, profits can range anywhere between $50,000 – $200,000 annually, depending on how well it’s managed. The average revenue per store is roughly $1.2M.

Overall, with proper management and dedication to developing your business model run successfully, you could potentially earn returns that are very lucrative.

Starbucks, unfortunately, does not franchise its stores anymore. While they did many years ago, and high-profile athletes such as Magic Johnson were able to get involved, the opportunity to buy a Starbucks franchise is currently not available. While you cannot franchise a Starbucks, there are potential licensing opportunities available.

Many Starbucks licensed store locations are inside airports, hotels, retail stores, etc. Still, the stand-alone stores and ones you find in metropolitan areas are almost universally owned by Starbucks corporate. 

Given that Starbucks is the largest coffee chain worldwide and publicly traded, we can glean some insights. Hence the revenue and initial investment estimates are provided above. 

If Starbucks does ever franchise in the future, it is sure to be a sought-after opportunity – but for now, you can review other large, up & coming coffee franchises such as Dunkin’ Donuts, Tim Hortons, and Biggby Coffee !

business plan franchise starbucks

Owning a Starbucks franchise may no longer be an option, but there are still many opportunities to own and operate coffee franchises. With the right management skills and dedication to developing your business model, you can potentially realize returns of up to $200,000 annually from owning a coffee shop.

Before investing in any type of franchising opportunity, it’s important for potential entrepreneurs to thoroughly research their options so that they make the best decision possible. By understanding the costs involved and researching other large or emerging coffee chains, prospective owners will have all the information they need before undertaking such an endeavor. Good luck!

Disclaimer:  This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

business plan franchise starbucks

Learn About the Structure of Starbucks

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Don Daszkowski is an experienced entrepreneur who has trained individuals to become Certified Franchise Consultants.

In 1971, three partners who met in college opened the first Starbucks in Seattle, Washington. They were inspired by coffee roaster Richard Peet and sold fresh-roasted gourmet coffee beans in addition to teas, spices, and other coffee-making supplies, naming their store after the coffee-loving first mate "Starbuck" in Herman Melville's classic novel "Moby Dick." The early Starbucks did not sell brewed coffee and sourced their green coffee beans from Peet's . Starbucks purchased Peet's in 1984 just as sales of specialty coffee were beginning to take off, and quickly grew.

Howard Schultz: Man With a Vision

In 1987, Howard Schultz, vice president and general manager of Hammarplast USA, noticed that Starbucks was purchasing quite a few of his company’s espresso machines. This attracted his attention, so he decided to take a look at the business for himself. When he arrived in Seattle he discovered that four locations were in operation under the ownership of Gerald Baldwin and Gordon Bowker.

Shortly after his visit, Schultz joined the owners’ team, offering his finely tuned marketing and business expertise. A year later, while vacationing in Europe, Schultz realized that in Italy, sipping coffee at coffee shops and outdoor cafés was an important part of people’s daily social lives. In a word, Schultz realized that drinking coffee was an "experience." Right then and there, he decided he wanted to replicate the feel of an Italian coffeehouse (and the coffee experience) back in the U.S.

Schultz decided to leave Starbucks to open one of his own coffee shops that would closely mirror the Italian cafe that was so prevalent abroad. However, he later found out that the Starbucks owners were interested in selling their stores. Schultz wasted no time and purchased the chain for $3.8 million and combined their stores with his own coffee shop. Starbucks had its initial public offering (IPO) on the stock market in 1992.

The Structure of Starbucks

Schultz quickly set out to overhaul the entire operation through several strategically planned adjustments. First, he expanded the items that Starbucks would offer to include more gourmet-type drinks such as espresso, café latte, and iced coffee. Even more importantly, he enhanced the company’s interaction with its employees by training the employees to provide top-notch customer service. His goal was to turn Starbucks into an enjoyable place to work, offering many perks and benefits. He also made the decision to create comfortable living-room-style seating at all Starbucks.

His efforts paid off. The company experienced tremendous growth throughout the 1990s and became the country’s No. 1 specialty coffee retailer. With well over 16,000 locations worldwide, many people believe that Starbucks is a franchise. It is not. In reality, it is considered the world’s leading coffee chain.

North American Operations

Most Starbucks stores in North America are company-operated. The company does sometimes enter into licensing arrangements with companies that provide the right to use particular locations that would otherwise not be accessible, such as airports, grocery chains, small colleges, and large universities. Starbucks calls these locations their special market arrangement coffee and tea "programs." It will also consider other qualified high-volume or high-traffic retail locations as potential operations for the Starbucks "program," as long as they don't veer from the finely tuned Starbucks image.

What Starbucks Does Franchise

Since 2003, Starbucks’ wholly owned subsidiary Seattle’s Best Coffee does franchise the operation of its cafes and kiosks. This subsidiary has over 540 cafés in the U.S. as well as nearly 100 espresso bars, with retail stores and grocery sub-stores in 20 states and provinces and the District of Columbia. Sub-stores can be found within many other businesses and on college campuses, including in Subway restaurants.

A Good Concept and Well-Executed Business Model

Although Starbucks is not considered a franchise, it is still thought of as a valuable example of a well-thought-out franchising concept because of its business principles and business model. Clever marketing, a consistent product and image, superior customer service, and good old-fashioned hard work have led to its success as a multibillion-dollar business. It is the epitome of the entrepreneurial spirit—one man with a vision sees an opportunity and fills a void.

The Starbucks company demonstrates that it is possible for a small business operating on the right principles to become very large and extremely successful. As Howard Schultz wrote about the company in his book, “There was something magical about it, a passion and authenticity I had never experienced in business. Maybe, just maybe, I could be part of that magic. Maybe I could help it grow.”

And grow it has. The coffee juggernaut generates annual revenues of over $22 billion, operating over 25,000 stores in six continents. And considering that Starbucks is opening new stores in China at a rate of one shop every 15 hours, it is showing no sign of taking a breather. Starbucks currently operates 3,000 stores in China and intends to have 5,000 outlets there by 2021.

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Starbucks Coffee Franchise Review: Are Starbucks Franchised?

starbucks franchise

What is the Starbucks Coffee?

Is starbucks a franchise , journey of starbucks coffee, starbucks franchise requirements, how much does a starbucks franchise cost in the united states, starbucks training & support offered, starbucks operations & support, how is starbucks territory granted to licenses, what is starbucks franchise term of agreement and renewal, does starbucks provide financial assistance to franchises, pros of owning starbucks, cons of owning a starbucks, what is starbucks’ franchise profit, starbucks franchise owners reviews, franchise deck analysis and overview, conclusion , frequently asked questions (faqs).

Starbucks Coffee is a well-known and popular franchise with many locations across the United States. The Starbucks Coffee business model is a well-developed and successful one. Starbucks franchises are popular with many people because of the quality of the coffee and the atmosphere of the stores.

The Starbucks franchise business model is very easy to operate and manage, profitable and has a long history of success. Starbucks is a world-renowned coffee retailer with over 28,000 stores in over 60 countries. This coffee brand offers a unique coffee experience with high-quality drinks and food.

The Starbucks system is profitable but requires a high level of commitment and involvement from the business owner. The USP of Starbucks is its loyal and passionate customer base. Starbucks has a well-developed system for training and developing new and existing franchises. This article will take you through the Starbucks journey, its business opportunity and review, cost, and profit.

starbucks franchise

Howard Schultz , the founder of Starbucks, believes that franchising connects them with owners. Starbucks, on the other hand, has a long history of franchising. It broke its promise to not franchise in Europe several years ago, and now has franchises “in certain international markets.”

In 2003, the company also acquired Seattle’s Best Coffee, which it briefly franchised. The company also offers great training and support for franchisees and partners. The franchise rights to Seattle’s Best have since been transferred to Focus Brands, which only franchises the brand “on certain military bases and in certain international markets. Starbucks has retained Seattle’s Best whole bean and ground coffee production.

For decades, Starbucks has resisted the temptation of franchising, instead expanding its network through licensed partnerships. Coffee shops are one of the restaurant industry’s fastest-growing segments. 

In the years preceding the pandemic, coffee shops in China grew at a 7% annual rate. Every one of the country’s 24,000 coffee shops sells an average of 230 cups per day. In 2019, the US coffee shop market was worth $47.5 billion, up 3.3% from the previous year. Coffeehouses increased from 35,600 to 37,300. This expansion benefited franchises, with Dunkin’ Brands Group opening 1,500 new locations in five years. COVID-19 had a significant impact on coffee shops.

Franchised revenues of over $11.5 billion in 2019 fell by 24.1% to $8.8 billion in 2020. 7.3% of coffee and tea shops were expected to close over the year.

Facts That Nobody Told You About Starbucks

Starbucks is the largest coffee company in the world and the largest franchisor of coffee shops. The company was founded in 1971 by three college friends, Gordon Biersch and Jerry Baldwin, and Zev Siegl. The company has more than 22,000 stores worldwide and employs more than 230,000 people.

Facts you should know about Starbucks

  • It is a well-known and popular franchise with a strong brand name.
  • Starbucks offers a wide variety of coffee and tea drinks, as well as pastries and food items.
  • Starbucks is relatively easy to operate and maintain.
  • Starbucks has a strong financial foundation, which allows it to grow and expand rapidly.
  • The Starbucks franchises are profitable and have a low barrier to entry.
  • Starbucks franchises are owned and operated by independent business owners.
  • The Starbucks system is based on a proven business prototype model that has been in operation for over 25 years. The system is competitive and requires a significant investment.

business plan franchise starbucks

  • Starbucks began as a small coffee shop in Seattle in 1971.
  • In 1984, Starbucks acquired Peet’s Coffee . 
  • In 1992, Starbucks launched its IPO 
  • In 1996, Starbucks acquired The Coffee Connection.
  • In 1997, Starbucks opened its first store in Germany.
  •  In 2001, Starbucks opened its first store in China.
  • In 2003, Starbucks acquired Seattle’s Best Coffee.
  • In September 2006, Diedrich Coffee sold its COCO coffee shops to Starbucks.
  • In 2007, Starbucks opened its first store in South America.
  • In March 2008, Starbucks acquired a brewing equipment company named Coffee Equipment Company .
  • In July 2008, Starbucks shut 600 stores during The Great Recession.
  • Starbucks launched a mobile ordering app in 2013.
  • In 2015, Starbucks opened its first store in Italy.
  • In 2017, Starbucks opened its first store in Saudi Arabia.
  • Starbucks has over 23,000 stores in over 65 countries.
  • In 2021, Starbucks earns an estimated $27 billion per year with around 33,883 stores in the world.

To be a Starbucks franchisee or licensee, you’ll need to meet certain requirements, such as a good business plan and a strong retail presence.

The Starbucks business plan requirement is fairly standard. You’ll need to submit a detailed business plan that outlines your franchising aspirations, your financial resources, your projected sales and marketing strategies, and your company’s history and culture.

Starbucks also requires that you have at least two years of retail experience. This experience can come from owning or managing a retail business of your own, or from working in a retail set-up experience.

The Starbucks franchise requirements include

1. Leadership and communication abilities.

2. Quick pace and good comprehension

3. A positive outlook.

4. Excellent customer service.

5. Management abilities and experience

6. liquid initial investment of $700,000

starbucks franchise

How much does a Starbucks franchise cost

Even though different locations require different investments?

The cost of this license is approximately $315,000. To be eligible for this opportunity, you must also have $700,000 in liquid assets on hand. Starbucks chooses to license to maintain control over its locations and product quality.

The below tables will help you understand its requirements to get started and know the detailed cost to franchise Starbucks.

It does not offer any type of franchise opportunity other than store locations. So, if Starbucks opens a store near you, you will be trained and orientated to the company’s policies and procedures.

Starbucks employees receive the majority of their training. The company invests heavily in the development of its employees in order for them to instill the Starbucks culture in their customers.

It will provide their franchise with all basic ongoing and marketing support. They frequently host webinars and phone calls to ensure that business processes run smoothly and to answer franchisee questions. 

A representative or franchise manager will be assigned who will visit the store regularly to provide hands-on support in the field. Training videos and materials will always be available to assist them. They also offer franchise support 24 hours a day, seven days a week. They will also provide a variety of marketing assistance such as digital marketing, social media, promotional distribution, and so on. To maintain customer loyalty, introduce new specialty items.

A franchise or licensee can only operate in a single location. The option of the exclusive territory is not available to franchise owners. Other franchisees, franchisor outlets, or other business channels may compete for your business. Franchisees are not granted a maximum or minimum territory in which to operate. If a franchisee performs well in a specific area, they are permitted to serve from their designated location.

starbucks franchise

The initial term length of the Starbucks franchisee is 10 years. if the franchisees are doing an expected performance, they are eligible for the renewal process. The renewal process has an option for additional ten years for existing franchise owners.

You must have at least liquid assets and a stable financial situation to be considered for a Starbucks business. The company does not provide financial assistance, but it does provide business advice and assistance to ensure your franchise’s success.

Pros & Cons of Starbucks Franchise

There are many pros and cons to owning a Starbucks license. The pros of owning a Starbucks franchise include the following

1. Establish a community gathering spot for Starbucks core customers while they are on the go, at work, or at play.

2. Offer handcrafted espresso and blended beverages that customers adore.

3. Offer high-quality, delectable food items that make perfect pairings and can increase ticket averages.

4. Take advantage of ongoing product and operational innovation.

1. Does not provide direct financial assistance

2. A diverse business model can cause difficulties in-store operations.

starbucks franchise

How much do Starbucks franchise owners make?

One of the main benefits of owning a Starbucks franchise is that it can increase your income significantly. The average Starbucks license owner earns an income that is double the national average. In addition, Starbucks franchises are some of the most successful businesses in the world, which means that there is a high potential for long-term earnings.

Another benefit of owning a Starbucks license is that it can increase your profits. The average Starbucks franchise earns a profit of over $2 million per year.

Starbucks has been a popular global brand for over 25 years. With more than 33,000 locations in over 80 countries, Starbucks is one of the most successful franchises in the world.

Starbucks franchise profit is calculated by subtracting costs such as rent, wages, and operating costs from revenue. Franchisees are typically paid a royalty based on their share of total revenue. Starbucks franchisees have a positive impact on local economies. 

When it comes to coffee, Starbucks is one of the most popular franchises out there. The company has over 33,000 locations worldwide, making it one of the largest coffee chains in the world. 

Starbucks is known for its high-quality coffee and its delicious pastries and beverages. The company has a well-rounded menu that includes items like coffee, tea, pastries, and sandwiches. 

One of the best things about Starbucks is that it is a great place to work. The company is known for its excellent employee benefits, including paid maternity leave and sick days. Starbucks also has a great career development program that helps its employees grow their skills.

Before deciding to own a Starbucks franchise or license owner, you meet other existing franchises or licensees of Starbucks in your neighborhood. You should ask them these questions in your Starbucks franchise reviews.

As a franchisee, collaborating with a large and profitable company like Starbucks can provide significant benefits. The dedicated and experienced support services will assist and advise you in all key areas of building a successful enterprise. The supporting partners will assist you in managing staff training and marketing strategy, while the retail design team will collaborate with you to create a store design and layout that is appropriate for the environment in which your business operates.

Most importantly, Starbucks wants you to succeed and stay in touch as your business grows. In the form of quarterly business reviews, the company will provide accessible financial information and monitor the performance of your franchise. With experts in business consultation at your fingertips, it’s no surprise that the Starbucks license program is so popular among aspiring business owners in the United States.

Starbucks, the world’s most famous coffee brand, is a franchise that also sells individual licenses. This premium brand has achieved success with over 4400 locations worldwide. high-quality, delectable food items that pair well and have the potential to increase ticket prices Above all, Starbucks wants you to be successful and stay connected as your business grows. Through quarterly business reviews, the company will provide accessible financial information and monitor the performance of your franchise.

Entrepreneurs who want to open a franchise  in the coffee  franchise opportunities category can look at 

  • Biggby Coffee Franchise
  • Pj’s Coffee Franchise
  • Scooters Coffee franchise 
  • Dunkin Donuts Franchise
  • Caribou Coffee Franchise 
  • Tim Hortons Franchise 
  • Black Rifle Coffee Franchise
  • Dutch Bros Coffee Franchise
  • 7 Brew Coffee Franchise
  • Gloria Jeans Coffee Franchise
  • Waves Coffee Franchise
  • Peet’s Coffee Franchise
  • Is the Starbucks franchise profitable?

Yes, Starbucks is a profitable franchise. 

  • Can you make money owning a Starbucks?

Yes, you can make money owning Starbucks

  • Is Starbucks a franchise?

Yes, Starbucks is a franchise as well as licensed.

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Starbucks is a popular global coffee franchise that has a strong presence in many countries.The company has been around since 1971, when the first Starbucks store opened in Seattle, Washington. Starbucks offers a wide selection of coffee and tea beverages, as well as food items, snacks, and other merchandise. Starbucks has become a go-to destination for many coffee and tea drinkers around the world.

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The company also offers a variety of seasonal and limited-edition beverages. Starbucks also offers a rewards program that allows customers to earn points for purchases and redeem them for discounts. The company has also diversified into other areas, such as music, books, and mobile applications. Starbucks has a strong corporate social responsibility program and is committed to sustainability initiatives.

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The company has also partnered with other organizations to provide educational opportunities for its employees. Starbucks has become a symbol of quality for coffee and tea drinkers around the world. The company has also become a global brand, with stores in over 70 countries.Starbucks is a great example of how a business can expand and diversify to become a global success. The company provides a great experience for its customers, with friendly baristas and a pleasant atmosphere. Starbucks is a great place to grab a cup of coffee and relax with friends.

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Incredible points. Outstanding arguments. Keep up the great spirit.

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How Much It Costs To Own a Starbucks Franchise

Epsom London UK, March21 2021, Starbucks Coffee Shop Branding Logo With No People.

Starbucks doesn’t technically offer franchises , as all of the brand’s worldwide stores are company-owned. But if you’re interested in a Starbucks franchise, you’re not completely out of luck. 

The company does license some of its stores, which from an operational standpoint is quite similar to being a franchise owner. Better yet, the Starbucks licensing opportunity is actually fairly large. Out of the more than 35,000 Starbucks outlets throughout the world, 17,458, or about 49%, were licensed as of 2023. If you choose to go this route, here are some of the costs — and hurdles — you should anticipate.

Initial Start-Up Funding

The average cost to license a Starbucks store is $315,000. You’ll also need $700,000 in liquid assets to be considered.

What Is the Concept Behind Licensing Instead of Franchising?

The idea that Starbucks would license rather than franchise its stores comes from its CEO Howard Schulz. The progressive and popular founder has long believed that the complexities of providing a quality Starbucks experience for customers, from the explanation of its products to the actual presentation and operation of its stores, was best controlled by the company itself. Thus, franchises are not part of the company’s business model.

But the philosophy doesn’t end there. The company also leverages its licensing model by maintaining certain requirements meant to increase sales for the business. More specifically, it doesn’t simply offer licenses to anyone who applies. Rather, the company only accepts licensees who currently have thriving businesses in good locations that Starbucks can capitalize on. For example, the company actively seeks to add licensed Starbucks locations to these types of existing industries:

  • Fine dining
  • Government or military facility
  • Hotel and lodging
  • Travel and recreation

Reading through the list, it’s obvious how the Starbucks model makes sense. Adding a Starbucks to a high-traffic business or university destination, or a hotel in a popular tourist destination is almost a sure-fire way for the company to generate additional revenue. Plus, the company has the added benefit of working with a licensee who already has a proven track record in operating a business.

Is a Licensing Package Similar to Franchising?

For the start-up fee, along with ongoing expenses, Starbucks helps licensees operate a successful business. After all, that is why the company doesn’t offer franchises in the first place — it wants control over how the business appears, giving a consistent experience to customers everywhere. So, if you successfully get a Starbucks license, you can expect the company to help you with some or all of the following:

  • Store design
  • The Starbucks menu
  • Training and support
  • Onsite visits

In other words, you’ll receive a lot of the same type of support as a franchise owner with another company would.

What Is the Process for Licensing a Starbucks?

The details of obtaining a Starbucks license are extensive, but the basic outline of how to apply is simple. Here are the steps:

  • Visit the Starbucks website and register yourself as a potential licensee.
  • Complete a formal application.
  • Indicate your preferred business location.
  • Supply the company with your current cash position, along with your assets and liabilities.
  • Add any supplemental information about why your location is particularly appropriate for a licensed Starbucks store.
  • Submit your application and wait to hear back.

Obviously, these are simply the first steps in the process. If the company shows interest, you can expect a site visit and a detailed examination of your financials and your business process, along with associated paperwork.

A Crack in the System

While Starbucks doesn’t offer any franchises in the U.S., or indeed any part of North America, it does have a limited number of franchise outlets overseas, particularly in the U.K. If you reside overseas and are a successful business owner, there is a chance you may qualify for a Starbucks franchise that way. However, qualification standards are high. In addition to being an owner or high-level manager, generally in the food and beverage industry, you must have liquid assets of at least £500,000 (around $624,200), a stable financial situation and be willing to open numerous locations in a short period of time. In other words, unless you are a wealthy and successful business owner who lives overseas, has extensive experience in the industry and the capital required to open multiple locations, you’re likely out of luck. 

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  Laura Beck contributed to the reporting for this article.

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Starbucks Franchise Lays Off Workers in Mideast Amid Gaza-Tied Boycotts

Store traffic has dropped off in the Middle East and Southeast Asia as customers protest perceptions of Starbucks’ stance on the Israel-Hamas conflict.

  • Share full article

Customers  sitting a tables at a coffee shop with a Starbucks logo in the window.

By Liz Alderman

  • March 5, 2024

Starbucks franchise operators across the Middle East and Southeast Asia are losing significant business amid boycotts linked to the Israel-Hamas war, and at least one has started laying off employees.

Alshaya Group, a Kuwait-based franchise operator that owns the rights to operate Starbucks in the Middle East, confirmed on Tuesday that it planned to cut 2,000 jobs across the region “as a result of the continually challenging trading conditions over the last six months.”

Since the Israel-Hamas war began, Starbucks has been forced to deflect perceptions that the company has supported and even funded the Israeli government and the Israeli military. It issued a lengthy statement in October describing the claims as false, but that has not cooled the calls for boycotts in numerous regions.

Alshaya Group, which operates over 1,900 Starbucks shops in the Middle East and North Africa that employ 19,000 workers, said in a statement that it would provide affected employees and their families with “the support they need.”

The cuts added to drama playing out in the United States, where Starbucks management and a union of Starbucks workers sued each other after the union expressed solidarity with Palestinians.

Boycotts have also been hurting sales at Starbucks franchises in Malaysia, a majority Muslim country. Berjaya Food Berhad , a Malaysia-based investment company that develops and operates restaurant and cafe chains across Southeast Asia, reported last month a 38 percent slump in quarterly sales as consumers turned away from its 400 Starbucks stores. The company’s stock has fallen over 20 percent since early October.

The company’s founder, Vincent Tan, appealed to customers in Malaysia to stop the boycotts in an interview with reporters on Monday, saying it was mainly hurting Malaysians.

“I think all those who are boycotting Starbucks Malaysia should know that it is a Malaysia-owned company,” he said. “We don’t even have one foreigner working in the head office. In the stores, 80 to 85 percent of employees are Muslims. This boycott doesn’t benefit anyone.”

The website for Starbucks in Malaysia issued a blog post saying that the company had no political agenda and did not use profits to fund any government or military operations. “It is important to note that Starbucks does not have any stores in Israel,” the post added, noting that the company ended a partnership in Israel in 2003. A similar post was published on the site for Starbucks in the Middle East.

In January, Starbucks cut its global annual sales forecast as the Israel-Hamas war hurt the business of its licensees in the Middle East. The company’s chief executive, Laxman Narasimhan, said the company had suffered “a significant impact on traffic and sales in the region” because of protests and boycotts. He said that the effects could also be felt in the United States, “driven by misperceptions about our position.”

Demands from some people for the company to take a stance on the war can be seen on social media and increasingly outside Starbucks stores in the wake of the Hamas-led attack on Israel in October. In its statement at the time, Starbucks denied that the company or its former chief executive, Howard Schultz, provided financial support to Israel.

Starbucks said it would continue to grow its business in the Middle East, including working with Alshaya Group in developing plans for the region. But those plans appear to be challenged, at least for now.

Liz Alderman is the chief European business correspondent, writing about economic, social and policy developments around Europe. More about Liz Alderman

Our Coverage of the Israel-Hamas War

News and Analysis

Aid officials have warned that Palestinians in Gaza could be on the brink of famine  unless relief is substantially stepped up. The situation is particularly dire in northern Gaza, as aid to that part of the territory has been limited .

Vice President Kamala Harris, who has emerged as one of the leading voices for Palestinians in closed-door meetings, pressed for a pause in fighting in Gaza  with a member of Israel’s war cabinet, Benny Gantz, at the White House.

Israel’s reluctance to fill the current leadership vacuum in northern Gaza  formed the backdrop to the chaos that led to the Gaza aid delivery that ended in bloodshed , analysts and aid workers have said.

Shifting Ties: Israel’s ultra-Orthodox Jewish minority has long lived apart from the nation’s secular mainstream, but the war in Gaza has both widened that divide and in some ways helped to bridge it .

A Winding Path: The U.S. airman who lit himself on fire outside the Israeli Embassy in Washington to protest the war had left an isolated Christian community for the Air Force before turning to leftist and anarchist activism .

Setting Their Sights on Politics: Inspired by the unity they experienced in the military, thousands of Israeli reservists returning from the front line in Gaza are organizing for political change .

In the West Bank: Right-wing ministers in the Israeli government are agitating to settle more land in the occupied West Bank. Homesh, a re-established settlement, symbolizes their resolve .

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Starbucks Middle East franchisee AlShaya to cut over 2,000 jobs, sources say

Business retail.

  • Travel & Tourism

The cuts, which began on Sunday, amount to about 4% of AlShaya's total workforce

2019-04-22T033606Z_945120071_RC1B7D2BE6F0_RTRMADP_3_STARBUCKS-RESULTS-(Read-Only)

Gulf retail giant AlShaya Group, which owns the rights to operate Starbucks in the Middle East, plans to lay off over 2,000 people, according to an exclusive Reuters report quoting people familiar with the matter.

The cuts, which began on Sunday, amount to about 4 per cent of AlShaya's total workforce of almost 50,000 people and are mostly concentrated in its Starbucks franchise in the Middle East and North Africa, said the people, who declined to be named as the matter is not public.

"As a result of the continually challenging trading conditions over the last six months, we have taken the sad and very difficult decision to reduce the number of colleagues in our Starbucks MENA stores," Alshaya said in a statement.

"We will ensure that we give our colleagues leaving the business, and their families, the support they need," said the company, adding that it remained committed to the region.

The boycotts against Western brands have started showing effect across the world. All have been hit by a largely spontaneous, grassroots boycott campaign that went global with the ongoing Gaza war which started on October 7, 2023.

In the wake of the boycotts, Starbucks in October said it was a non-political organisation and dismissed rumours that it had provided support to the Israeli government or army.

Starbucks said in January that the Israel-Hamas war has hurt its business in the region as it missed market expectations for first-quarter results.

It said sales were significantly impacted due to the conflict, in the Middle East and in the U.S., as some consumers launched protests and boycott campaigns asking the company to take a stance on the issue.

Established in 1890 in Kuwait, AlShaya is one of the biggest retail franchisees in the region with rights to operate businesses of popular Western brands including The Cheesecake Factory and Shake Shack.

It has owned rights to operate Starbucks coffee shops in the Middle East since 1999. The Starbucks unit runs around 2,000 outlets in 13 countries, across the Middle East and North Africa, and central Asia.

U.S private equity firm Apollo Global Management Inc (APO.N), has been in talks to buy a stake in AlShaya's Starbucks business, three sources close to the matter told Reuters last month.

In January, AlShaya announced it was scaling back operations in Egypt due to the country's ongoing economic troubles including multiple currency devaluations and record inflation.

It did not comment on which stores it would be closing or when they would shut.

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Starbucks' Middle East Franchise Fires 2,000 Workers After Being Targeted In Israel-Hamas War Boycott

Associated Press

Last Updated: March 06, 2024, 10:19 IST

New Delhi, India

Alshaya runs about 1,900 Starbucks branches in Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Turkey and United Arab Emirates. (Representative image)

Alshaya runs about 1,900 Starbucks branches in Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Turkey and United Arab Emirates. (Representative image)

Since the beginning of the war on Oct. 7, Starbucks has found itself alongside other Western brands targeted by pro-Palestinian activists over the war.

The Middle East franchisee of Starbucks said Tuesday it has begun firing around 2,000 workers at its coffee shops across the region after the brand found itself targeted by activists during the ongoing Israel-Hamas war in the Gaza Strip.

The Kuwait-based Alshaya Group, a private family firm holding franchise rights for a variety of Western companies including The Cheesecake Factory, H&M and Shake Shack, issued a statement acknowledging the firings at its Middle Eastern and North African locations.

“As a result of the continually challenging trading conditions over the last six months, we have taken the sad and very difficult decision to reduce the number of colleagues in our Starbucks MENA stores,” the statement read.

Alshaya later confirmed it was firing about 2,000 employees, as first reported by Reuters. Many of its employees in the Gulf Arab states are foreign workers hailing from Asian nations.

Alshaya runs about 1,900 Starbucks branches in Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Turkey and United Arab Emirates. It had employed more than 19,000 staff, according to the Seattle-based company. The layoffs represent just over 10% of its staff.

Since the beginning of the war on Oct. 7, Starbucks has found itself alongside other Western brands targeted by pro-Palestinian activists over the war. The company prominently has been trying to counter what it describes as “ongoing false and misleading information being shared about Starbucks” being spread online.

“We have no political agenda,” Starbucks said. “We do not use our profits to fund any government or military operations anywhere — and never have.”

In October, Starbucks sued Workers United, which has organized workers in at least 370 U.S. Starbucks stores. over a pro-Palestinian message posted on a union social media account.

Starbucks said it was trying to get the union to stop using its name and likeness, as the post also drew protests from pro-Israel demonstrators. Boycotters also felt the company wasn’t adequately supporting Palestinians in the Gaza Strip.

Starbucks revenue rose 8% to a record $9.43 billion for the October-December period. But that was lower than the $9.6 billion analysts had forecast, likely in part because of activist boycotts.

Starbucks isn’t the only brand targeted by activists in the war. Others have called for a boycott of McDonald’s after a local franchisee in Israel announced in October that it was providing free meals to Israeli soldiers.

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Starbucks Mideast stores to lay off 2,000 amid boycott calls over Gaza war

business plan franchise starbucks

A franchise operator that runs Starbucks outlets in the Middle East and North Africa region said Tuesday that it will lay off 2,000 workers amid calls for boycotts of the American coffee giant linked to the ongoing war in Gaza .

“As a result of the continually challenging trading conditions over the last six months, we have taken the sad and very difficult decision to reduce the number of colleagues in our Starbucks MENA stores,” the Kuwait-based Alshaya Group said in a statement, using the acronym for the Middle East and North Africa. The news was first reported by Reuters .

What’s BDS, the movement to boycott Israel with a new social media following?

“Alshaya Group has been the licensed partner for Starbucks in MENA for over 25 years and we are extremely proud of the business we have built, with over 1,300 coffee shops and 11,000 colleagues,” the company said, adding that the affected employees will be provided with support.

The American coffee giant became embroiled in boycott calls on TikTok after it sued Workers United, a union of Starbucks employees, in October for trademark infringement over a since-deleted social media post from the union’s account that retweeted an image of a bulldozer breaking through the barrier between Israel and Gaza. The post added the comment, “Solidarity with Palestine!”

The company said it condemns violence in the region and described the post as “reckless and reprehensible.” The union has countersued.

Calls for the boycott of companies associated with or seen as aiding Israeli policies, particularly in the occupied West Bank, have found renewed support amid Israel’s punishing war in Gaza, where local health officials say more than 30,000 people have been killed.

In an earlier statement , Starbucks had said neither the company nor its former chairman or CEO provide financial support to Israel’s government or army, highlighting that it works with partners in the region to provide thousands of jobs to locals. “Starbucks has been and remains a nonpolitical organization,” it said.

How did McDonald’s become a new flash point in the Israel-Gaza war?

But some customers, particularly in Muslim-majority countries, have heeded these boycott calls.

The Starbucks franchise operator in Malaysia is also feeling the heat.

“I think all those who are boycotting should know that Starbucks Malaysia is owned by BFood, which is a Malaysian company. We don’t even have one foreigner working in head office or stores. So, I think this boycott doesn’t benefit anyone,” Vincent Tan, founder of the conglomerate that owns Berjaya Food Berhad, said this week .

Local media had reported a 38 percent decline in the company’s revenue in 2023 from a year ago on the heels of the Starbucks boycott sentiment.

Israel-Gaza war

Israel-Gaza war: The latest round of talks on a deal that would pause fighting and release hostages for Israeli-held Palestinian prisoners remains underway in Cairo. Hamas said Wednesday that it will continue to negotiate through mediators .

Middle East conflict: Tensions in the region continue to rise. As Israeli troops aim to take control of the Gaza-Egypt border crossing, officials in Cairo warn that the move would undermine the 1979 peace treaty. Meanwhile, there’s a diplomatic scramble to avert full-scale war between Israel and Lebanon .

U.S. involvement: U.S. airstrikes in Iraq and Syria killed dozens of Iranian-linked militants , according to Iraqi officials. The strikes were the first round of retaliatory action by the Biden administration for an attack in Jordan that killed three U.S. service members .

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Starbucks' Franchisee AlShaya To Lay Off 4% Workforce Due to Gaza Conflict Aftermath: Report

Zinger key points.

  • AlShaya Group plans layoffs due to Gaza war-related boycotts.
  • Starbucks franchise operations impacted; layoffs affect AlShaya's 4% of workforce.

Gulf retail giant  AlShaya Group , known for its  Starbucks Corp   SBUX franchise in the Middle East, is reportedly set to lay off more than 2,000 employees due to business setbacks linked to Gaza war-related boycotts.

This decision affects about 4% of AlShaya’s workforce, mainly concentrated in Starbucks outlets across the region, reported Reuters.

The boycotts, triggered by Israel’s conflict with Gaza, have created challenging trading conditions, leading to the reduction in staff, the report added.

The company reportedly assures support for departing employees and expresses commitment to the region.

AlShaya, founded in Kuwait in 1890, holds retail franchise rights for various Western brands, including Starbucks, since 1999.

With around 2,000 Starbucks outlets across the Middle East, North Africa, and central Asia, the company faces significant challenges amid the ongoing conflict.

Additionally, U.S. private equity firm  Apollo Global Management Inc   APO has reportedly shown interest in acquiring a stake in AlShaya’s Starbucks business.

The war-related boycotts have adversely impacted Western brands, prompting adjustments in business strategies.

The Starbucks chain clarified its non-political stance amidst the conflict and  expressed disappointment over missed market expectations.

AlShaya’s decision in January to scale back operations in Egypt due to economic challenges further underscores the regional impact of geopolitical tensions, as per the report.

Also Read :  Coffeehouse Compromise: Starbucks Shareholder SOC Pulls Director Nominations Amid Breakthrough In Labor Relations

Price Action : SBUX shares are trading higher by 0.47% at $91.65 in premarket on the last check Wednesday.

Disclaimer :  This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Mideast Starbucks franchisee firing 2,000 workers after being targeted in Israel-Hamas war boycott

business plan franchise starbucks

FILE - A Starbucks location is seen Tuesday, April 26, 2022 in Havertown, Pa. The Middle East franchisee of Starbucks said Tuesday, March 5, 2024, it had begun firing staff at the coffeeshops across the region after the brand found itself targeted by activists amid the ongoing Israel-Hamas war in the Gaza Strip. (AP Photo/Matt Rourke)[ASSOCIATED PRESS/Matt Rourke]

DUBAI, United Arab Emirates (AP) — The Middle East franchisee of Starbucks said Tuesday it has begun firing around 2,000 workers at its coffee shops across the region after the brand found itself targeted by activists during the ongoing Israel-Hamas war in the Gaza Strip .

The Kuwait-based Alshaya Group, a private family firm holding franchise rights for a variety of Western companies including The Cheesecake Factory, H&M and Shake Shack, issued a statement acknowledging the firings at its Middle Eastern and North African locations.

“As a result of the continually challenging trading conditions over the last six months, we have taken the sad and very difficult decision to reduce the number of colleagues in our Starbucks MENA stores,” the statement read.

Alshaya later confirmed it was firing about 2,000 employees, as first reported by Reuters. Many of its employees in the Gulf Arab states are foreign workers hailing from Asian nations.

Alshaya runs about 1,900 Starbucks branches in Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Turkey and United Arab Emirates. It had employed more than 19,000 staff, according to the Seattle-based company. The layoffs represent just over 10% of its staff.

Since the beginning of the war on Oct. 7, Starbucks has found itself alongside other Western brands targeted by pro-Palestinian activists over the war. The company prominently has been trying to counter what it describes as “ongoing false and misleading information being shared about Starbucks” being spread online.

“We have no political agenda,” Starbucks said. “We do not use our profits to fund any government or military operations anywhere — and never have.”

In October, Starbucks sued Workers United , which has organized workers in at least 370 U.S. Starbucks stores. over a pro-Palestinian message posted on a union social media account.

Starbucks said it was trying to get the union to stop using its name and likeness, as the post also drew protests from pro-Israel demonstrators. Boycotters also felt the company wasn’t adequately supporting Palestinians in the Gaza Strip.

Starbucks revenue rose 8% to a record $9.43 billion for the October-December period. But that was lower than the $9.6 billion analysts had forecast, likely in part because of activist boycotts.

Starbucks isn’t the only brand targeted by activists in the war. Others have called for a boycott of McDonald’s after a local franchisee in Israel announced in October that it was providing free meals to Israeli soldiers.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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Starbucks has a new accessible store design. Take a look inside

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  • Starbucks opened a new cafe designed to be more accessible and inclusive for customers and employees with disabilities.
  • Changes include tweaks to the stores' lighting and acoustics, as well as lower counters.
  • All future company-owned locations will follow a similar framework.

In this article

Starbucks has unveiled a new store design focused on accessibility and inclusion, with fresh light fixtures and open floor plans.

The coffee giant opened the first location with the new design on Friday in Washington, D.C.'s Union Market.

"Designing for disabilities is just good design for everybody," said Sara Trilling, president of Starbucks North America.

She added that designing a more accessible cafe took about two years and that the company solicited input from Starbucks baristas.

The Union Market cafe has power-operated doors so customers can use less effort to enter the cafe. Once inside, they can place their orders with baristas using a new point-of-sale system that has an adjustable angle stand, voice assist, screen magnification and photos of menu items.

"Imagine somebody who doesn't speak English as a first language, and you're trying to make sure that you're getting [the order] right and providing great service. You'll have an opportunity through some visual cues to make those confirmations," Trilling said.

The counters are also lower, making them more accessible for wheelchair users, for example.

Behind the counter, Starbucks' new Clover Vertica system for brewing drip coffee has a more accessible design, with a large dial and protruding buttons.

"You can actually feel the settings by touch or using light to indicate when brewing cycles and other things have been completed," Trilling said.

Digital status boards show customers when their drinks are ready to pick up, in addition to baristas calling out their names.

Starbucks also changed the store lighting to minimize glare, shadows and backlighting that can make it more difficult to see. Insulation has been improved, too, so stores aren't as noisy.

And Starbucks designed the overall floor plan of the store to be free of obstacles and to have open sightlines.

All future company-owned locations will follow a similar framework. Starbucks plans to open more than 600 new stores this year, increasing its U.S. footprint by 4%, including licensed locations.

Building more accessible stores won't be materially more expensive than using current designs, according to Trilling.

"I think about it as something that's going to help us in terms of customer connection. It's going to help us in terms of employee engagement," she said.

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Starbucks Franchise Business Plan

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Resources On Starbucks Franchise

  • Financial Model
  • Value Proposition
  • One-Page Business Plan
  • SWOT Analysis
  • Business Model
  • Description
  • Additional Information

Executive Summary

Products & services, market analysis, marketing plan.

  • Management Plan
  • Financial Plan

The Starbucks franchisee aims to address the problem of a lack of premium coffee shops in local communities in Houston, Texas. Customers have to travel far distances to get access to high-quality coffee and food products, and the franchisee aims to fill this gap in the market by bringing the world-renowned Starbucks coffee experience to their doorstep. The franchisee aims to provide convenient and comfortable spaces for customers to work, study, or socialize, meeting an identifiable need in the market for cozy atmospheres with premium coffee and food options.

The product offered by this Starbucks franchise is premium coffee and food products, along with merchandise and beverages. The problem this franchise aims to solve is the lack of a world-renowned coffee experience in local communities. By bringing in a well-established brand like Starbucks, the franchisee aims to provide high-quality products at affordable prices, while creating a comfortable and welcoming environment for customers. The franchisee's skilled employees, effective marketing strategies and strong brand reputation will ensure that customers receive an exceptional coffee experience every time they visit this Starbucks franchise.

Target Market

Competition.

The coffee industry in Houston, Texas is highly competitive, with several well-established coffee chains and independent cafes operating all over the city. The market is rich in alternatives, with competitors offering unique coffee experiences and a variety of food options.

Starbucks franchisee will be competing with established brands like Dunkin' Donuts, Tim Hortons, and McDonald's, which have a strong presence in Houston. Independent cafes like Blacksmith, Catalina Coffee, and other local coffee shops are also fierce competitors, known for their unique coffee blends and homemade pastries.

To overcome the competition, the franchisee will focus on providing exceptional customer service, premium-quality products at affordable prices, a comfortable and welcoming atmosphere, and effective marketing and promotional strategies to attract new customers and retain existing ones. The franchisee will also offer unique blends of coffee and food options that cater to the diverse tastes of Houston's coffee enthusiasts.

Financial Summary

Key highlights of the financial plan for the Starbucks franchisee business plan include:

  • The initial investment cost for the franchisee is $500,000, which will cover franchise fees, equipment, and inventory
  • The franchisee aims to achieve a steady revenue stream, with an estimated revenue of $750,000 in the first year
  • The cost structure includes franchise fees, rent and utilities, employee salaries and benefits, maintenance and repairs of equipment, and raw material costs
  • The franchisee aims to achieve a return on investment of 25% within five years of opening
  • The financial plan is designed to ensure profitability while providing exceptional service to customers and maintaining the overall brand image of Starbucks

Funding Requirements

The Starbucks franchisee requires funding of $500,000 to cover the initial investment costs required to start the business. The funding will be used to cover expenses such as franchise fees, equipment, and inventory. The following is a brief outline of the funding requirements:

  • $200,000 for franchise fees
  • $150,000 for equipment such as coffee machines, grinders, and furniture
  • $100,000 for inventory of coffee beans, food products, and merchandise
  • $50,000 for miscellaneous expenses such as legal and accounting fees, marketing and advertising costs, rent, and utilities

The franchisee aims to secure funding from a mix of investors, including banks, venture capitalists, and angel investors, and plans to achieve a return on investment of 25% within five years of opening. With a positive cash flow projection in the first year and a strong business model in place, this Starbucks franchisee presents a lucrative investment opportunity for potential investors.

Milestones and Traction

Our Starbucks franchisee business plan has a roadmap that outlines specific milestones we plan to hit. As of now, we have secured a location in Houston, Texas, and have begun the process of obtaining permits and licenses. Our next step is to hire an experienced management team and staff, followed by an extensive training program to ensure consistent quality and service at all times.

Once our team is in place, we will focus on marketing and advertising through various channels, including online marketing, community networking events, and alliances with nearby businesses. Our goal is to achieve a positive cash flow in the first year of operation, with an estimated revenue of $750,000.

After achieving stable revenue streams, we plan to expand the business by opening additional Starbucks franchises in nearby areas. Our ultimate goal is to establish a strong presence in Houston and become a go-to destination for coffee lovers and enthusiasts, individuals seeking a convenient space to work or socialize, and families and groups looking for a cozy atmosphere.

Problem Worth Solving

Our solution: products & services.

Our Starbucks franchise will provide a range of premium coffee, tea, and food products, along with merchandise and beverages. We aim to offer the local community an unrivaled coffee experience that is synonymous with the Starbucks brand. Our menu will include signature drinks, such as the Caramel Macchiato and Frappuccino, along with a broad selection of iced and hot coffee varieties. We will also offer tea, pastries, sandwiches, and salads, all prepared to the highest quality standards.

We understand that our customers are looking for a comfortable and welcoming environment when they visit our store, and that's why we'll place a great emphasis on creating a cozy atmosphere. Our stores will feature comfortable seating areas, free Wi-Fi, and a relaxed ambiance that our customers will find conducive to work or socialize.

Our franchisee will not just provide a place for customers to grab a cup of coffee on their way to work. Instead, we aim to create an environment where coffee lovers and enthusiasts can come together and share their love for coffee. We will provide a gathering space for families and groups and offer an exclusive Starbucks experience that our customers will want to revisit time and again.

Validation of Problem and Solution

The Starbucks franchisee business plan aims to bring the world-renowned coffee experience to local communities and provide a comfortable and welcoming environment for customers. The popularity of coffeehouses in Houston has been increasing rapidly over the past few years. A survey conducted by the National Coffee Association found that 62% of Americans drink coffee daily, and more than 80% of the population visits a coffeehouse once or twice a week.

As a result, Starbucks has a strong customer base in Houston, Texas. The franchisee aims to provide an exceptional coffee experience to customers and compete with other coffeehouses. Several focus groups and surveys were conducted to validate the need for a Starbucks franchise in the area. The results showed that there is a high demand for a Starbucks in the area, and customers are willing to pay premium prices for high-quality coffee and food products.

Additionally, the franchisee will follow standard operating procedures provided by Starbucks to ensure quality and consistency across all locations. The franchisee will also ensure that all employees are skilled and trained in providing high-quality customer service, thereby ensuring customer satisfaction and loyalty.

Product Overview

Our Starbucks franchise will offer a range of premium coffee, tea, and food products, along with merchandise and beverages. Our customers can expect to enjoy handcrafted beverages, refreshing tea, and delicious food options made with high-quality ingredients.

Our products are designed for coffee lovers and enthusiasts who appreciate a superior taste, individuals seeking a comfortable and convenient space to work or socialize, and families and groups looking for a cozy atmosphere. Our coffee experience is more than just a drink; it's a sense of community and connection that we offer to our customers.

We believe in providing our customers with the best coffee experience possible. That's why we ensure that all our products are made with premium ingredients and follow the Starbucks standard operating procedures. Our products are not just about the taste, but also about the ambiance and customer service we provide to our customers.

Our goal is to offer a diverse range of products that cater to all our customers' preferences and dietary requirements. We take pride in offering products that are both delicious and wholesome, providing our customers with a guilt-free indulgence. Our customers can enjoy our products in-store or opt for a takeaway option.

Our product and service offerings are designed to provide our customers with a memorable and satisfying coffee experience that they can't find elsewhere. We aim to be the go-to choice for coffee lovers and enthusiasts in Houston, Texas, and beyond.

Roadmap: Products & Services

As a franchisee, the Starbucks franchise will offer the world-renowned coffee experience to local communities, providing high-quality beverages and food products at affordable prices.

The following table outlines the steps taken so far and the future steps that we plan to take in establishing and growing the business:

By following this roadmap, the Starbucks franchisee will be able to establish a successful and profitable business, providing exceptional service to customers and generating a steady revenue stream.

Market Segmentation

The potential customer segments for our Starbucks franchisee can be divided based on specific characteristics. These segments include:

Target Market Segment Strategy

Our ideal customer segment consists of coffee lovers, individuals seeking a comfortable and convenient space to work or socialize, and families and groups looking for a cozy atmosphere. We aim to appeal to a wide range of customers by offering premium coffee and food products at affordable prices, providing a comfortable and welcoming environment for customers to relax and enjoy their beverages, and organizing community networking events to engage local residents and businesses. By focusing on customer experience, we aim to create a loyal customer base and establish a strong presence in the local market.

Key Customers

The ideal customer archetype for our Starbucks franchisee business is the coffee lover and enthusiast who appreciates quality products and experiences. This person values the convenience of having a comfortable and welcoming space to work, socialize, or relax while enjoying premium coffee and food products. Our goal is to create loyal customers who will not only frequent our establishment, but also serve as advocates for our brand, helping to generate buzz and attract new customers to our franchise.

Future Markets

As a Starbucks franchisee, we will face competition from other coffee shops and cafes in the local area. The following table outlines some potential competitors:

While these competitors offer similar products and services, we aim to differentiate ourselves by providing the world-renowned Starbucks coffee experience and a comfortable and welcoming atmosphere for our customers.

Marketing and Sales Plan

Our marketing strategy aims to build brand awareness and attract customers to our Starbucks franchisee. Our advertising channels will include in-store marketing, social media, online marketing, community networking events, and alliances with nearby businesses. Our goal is to achieve a 10% increase in sales within the first year of operation. Our estimated marketing costs will be:

Location and Facilities

The Starbucks franchise will be opened in Houston, Texas, which is the fourth largest city in the United States. The franchisee plans to find a suitable location in an area with high foot traffic, ideally in a shopping mall or a busy street corner. Several potential locations have already been identified and negotiations with the landlords are currently underway.

The cost of operation will vary depending on the final location selected. The franchisee has allocated a budget of $50,000 for rent and utilities per year, which is in line with industry standards. The franchisee also plans to invest in high-quality equipment and furnishings to provide customers with a comfortable and welcoming experience.

As a Starbucks franchisee, we pride ourselves on incorporating new technologies to enhance our customers' experiences. Utilizing advanced point-of-sale systems, we can streamline our transactions and increase the speed of our service. Our mobile ordering app allows customers to place orders and make payments on their smartphones, making their Starbucks experience even more convenient. Additionally, we plan to implement digital signage in our stores to showcase our products and promotions more effectively.

Equipment and Tools

Opening a Starbucks franchisee requires having the proper equipment and tools to provide an outstanding customer experience. Here is an outline of the equipment and tools required to start your franchisee:

It is crucial to have the correct equipment to produce high-quality products and provide excellent customer service. Some equipment is essential, like coffee brewers and espresso machines. And some equipment, like furniture and decorative lighting, helps set the ambiance for the store and contributes to the overall customer experience.

The costs provided above are just estimates and can vary depending on the specific location, size, and scope of the Starbucks franchisee. However, it is critical to prepare a budget and acquire the required equipment and tools before opening the store.

Management and Organization

Organizational structure.

Our Starbucks franchisee will have a hierarchical organizational structure with clear roles and responsibilities. The flow of information between levels of the organization will be smooth and transparent, enhancing communication and decision-making processes. Below is an overview of the structure:

Management Team

As the owner of the Starbucks franchisee, I anticipate bringing on a strong management team to ensure the success of the business. The following table outlines potential candidates for high-level management roles:

Each candidate brings a unique set of skills and experiences that will contribute to the success of the Starbucks franchisee. I am confident that together we can create a welcoming and high-quality coffee experience for the local community.

Management Team Gaps

At this time, we do not currently have candidates to fill the roles of marketing and social media manager, as well as a financial analyst. We are actively seeking qualified individuals to join our team to ensure the success and growth of our Starbucks franchise. It is important for us to have a well-rounded and diverse management team to effectively manage our daily operations and achieve our goals.

Personnel Plan

In order to run our Starbucks franchisee effectively, we will require the following potential positions:

We will ensure that all personnel are properly trained in Starbucks' operating procedures and customer service standards, and will provide ongoing training and development opportunities to maintain high levels of job satisfaction and performance.

Company History and Ownership

The Starbucks franchisee is owned and operated by XYZ Group, a company with extensive experience in managing and operating successful businesses in the food and beverage industry. XYZ Group has been in operation for over a decade and has a proven track record of successful business ventures. The decision to open a Starbucks franchise in Houston, Texas is based on an in-depth analysis of the local market, consumer behavior, and industry trends. The company has a strong understanding of various local communities and their preferences, which will guide its operations of the franchise. The aim is to provide a unique and authentic Starbucks experience that caters to the diverse needs and preferences of the local customers, while also adhering to the high brand standards of Starbucks Corporation.

As part of our management and organization plan, we have defined specific goals and objectives to achieve in order to manage and steer our Starbucks franchisee business towards success:

These milestones will help us stay on track and achieve our business goals and objectives in a timely and organized manner.

Key Metrics

As a franchisee of Starbucks, it is important to keep track of key performance indicators (KPIs) that help gauge the overall performance and health of the business. Some important metrics include:

  • Sales revenue: This metric measures the total amount of money generated from the sales of coffee, tea, food products, merchandise, and beverages. Tracking this metric helps to identify which items are popular and where there might be potential for growth.
  • Customer satisfaction: Measuring customer satisfaction through surveys, feedback forms, and online reviews can provide insight into areas where improvements can be made to enhance the coffee experience and improve overall customer retention.
  • Employee turnover: Keeping track of the number of employees leaving and the reason for their departure can help identify potential issues and lead to changes that make the workplace more attractive for employees. It also helps estimate costs associated with hiring and training new employees.

By monitoring these key metrics, the Starbucks franchisee can make data-driven decisions to improve the business and ensure continued growth and success.

Financial Plan and Metrics

Sales forecast.

Below is a table representing the projected sales for the first three years of the Starbucks franchisee's operation:

The sales forecast shows a steady increase in revenue over the course of the first three years of operation, with a total estimated revenue of $1,762,500. This projection takes into account the growing demand for coffee, tea, and food products, as well as the effectiveness of marketing and promotional strategies employed by the franchisee.

Starting and operating a Starbucks franchisee requires several expenses. The following tables outline the estimated startup costs and operational expenses:

Startup Costs

Operational expenses.

Note: The above values are estimates and may vary depending on the location, size, and business conditions of the Starbucks franchisee.

Projected Profit and Loss

The projected profit and loss statement for the first three years of the Starbucks franchisee business plan is as follows:

The Starbucks franchisee business plan aims to achieve a positive cash flow in the first year, with estimated revenue of $750,000. The franchisee aims to achieve a return on investment of 25% within five years of opening. The profit and loss statement indicates that the franchise expects to make a profit in all three years. The profit percentage is also expected to increase over the years, which indicates growth and sustainability.

Projected Cash Flow

As a franchisee, we have built a projected cash flow statement for the first three years of operations. The table below outlines the expected cash inflows, outflows, net cash flow, and cumulative net cash flow for the years 2023, 2024, and 2025.

The projected cash flow statement indicates that the franchisee is expected to generate a net cash flow of $100,000 in the first year and $50,000 in the second year. However, the third year is expected to see a slight increase in net cash flow to $100,000. This indicates steady growth and stability in revenue streams. Furthermore, the cumulative net cash flow shows that the franchisee is expected to achieve a return on investment within the first three years of operation.

Projected Balance Sheet

This projected balance sheet displays the assets, liabilities, and equity of the Starbucks franchisee business plan for three years (2023-2025). The balance sheet shows that the total assets will increase steadily over time, while the liabilities will decrease. The owner's investment and retained earnings will grow over the years, leading to an increase in the total equity. This balance sheet helps identify the financial position of the franchisee business and can guide decisions on investments, financing, and other financial activities.

In order to ensure high-quality customer service and efficient business operations, the Starbucks franchisee will hire a team of skilled and trained employees, including baristas, shift supervisors, and assistant managers.

The compensation for employees will be competitive and aligned with industry standards, and will include a comprehensive benefits package. Employees will fit into business operations by adhering to the standard operating procedures provided by Starbucks and participating in ongoing training and development programs.

Hiring will be done through various channels, including online job postings, in-store recruitment, and referrals. The franchisee will prioritize diversity and inclusivity in their hiring process to ensure a welcoming and inclusive work environment.

Use of Funds

Below is an explanation of how funds will be used:

This table will be shared with investors and lenders to provide transparency on how the funds are being used in the franchisee business plan.

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