Stroll down a high street in any western country and you’re likely to see members of the public holding takeaway cups of coffee. A boom in independent coffee shops, coffee houses, and coffee franchises has meant that obtaining quality coffee is easier than ever. With the global coffee market valued at $465.9bn in the year 2020, it’s no surprise that savvy entrepreneurs are seeking out exciting coffee shop franchise opportunities.
Granted, the popularity of coffee can mainly be found in European countries and North America, but countries such as Japan, the Philippines, and other Asian nations are seeing more and more major coffee franchise brands seeking out a franchise partner to take their concepts to these escalating, non-traditional locations.
What’s behind the growing popularity of coffee?
A proliferation of well-known coffee brands has been identified as one of the reasons why coffee awareness has spread across the world, with companies such as Dunkin’ Donuts, Costa Coffee, Starbucks and other concepts setting up shop in cities and towns across the world, making a cup of Joe more easily attainable than ever.
Also, consumers are becoming more knowledgeable when it comes to coffee, with movements and requirements like organic, artisan, ethically sourced, specialty, and Fairtrade now becoming prerequisites when ordering a quality coffee. A cup of instant coffee just won’t suffice for modern-day coffee drinkers anymore, with more and more coffee businesses ensuring that quality and ethically sourced hot drinks are on offer to keep up with public demand.
It’s not just beautifully brewed coffee that consumers are demanding when visiting well-known establishments, either. Clued-up brands have diversified their product offerings to ensure that they are not only providing consumers with their caffeine fix, but are providing them with alternative food and drink options, too.
In fact, when Starbucks recently expanded to South Korea, it tweaked its branding and concept to emphasize the bakery aspect of its business proposition. To reflect local tastes and cultures, Starbucks also offered a dedicated bar for tea drinkers.
How to invest in your own coffee franchise
With the rise in consumer demand that the coffee industry is experiencing, it’s no wonder why so many would-be franchisees are eyeing up the profitable business opportunity that many coffee concepts offer. According to the most recent British Franchise Association / NatWest Franchise Survey, Costa Coffee UK began with just 170 franchise units and now boasts over 2,400 stores in operation – this underlines the piping hot business opportunity, with more and more British investors opting to buy a coffee franchise.
While the initial investment is high for many high street coffee franchises like Dunkin’ Donuts and Starbucks – especially when it comes to master franchise opportunities – there are still affordable coffee franchise opportunities that don’t require an extortionate initial investment. In fact, a typical mobile coffee franchise investment in the U.K. is roughly £7,500, which is around $10,600.
5 coffee franchises to invest in
Esquires Coffee
If you’re looking for a coffee franchise for sale that’s piquing the attention of investors worldwide, then look no further than Esquires Coffee.
Founded in British Columbia, Canada, in 1993, the brand has 45 locations in the U.K., 15 units in Ireland, as well as franchises in China, Saudi Arabia, Bahrain, Kuwait, U.A.E, Egypt, Indonesia, Jordan, Portugal, Romania, and Pakistan.
The brand is renowned for its ethical, artisan coffee, and is promoting several different investment packages that could offer the perfect franchise opportunity for first-time franchisees or seasoned industry experts alike. Current investment options include a single-unit franchise, a multi-license franchise, or regional developer and master franchise licenses.
Costa Coffee is the second-largest coffee chain in the world, and the largest in the U.K., with over 2,467 outlets in Britain and 1,413 stores in 32 countries overseas. The Coca-Cola Company, which now owns Costa Coffee, acquired the business in 2019, and has continued to grow it at a phenomenal rate. While the Costa Coffee franchise is a proud, British franchise story, the organization is currently not looking to grow its U.K. footprint any further, prompting many eager investors to ask: ‘Is Costa a franchise at all?’.
Costa Coffee
That being said, the coffee franchise powerhouse is currently growing its international arm, so this could be a good opportunity to invest in this well-known brand and leader in the coffee industry; who knows, you could be the person responsible for launching Costa Coffee U.S.A.
Awesome coffee is just one of the reasons why people love Gloria Jean’s. An Australian concept, the Gloria Jean’s business model has allowed it to harness international growth with aplomb, boasting over 800 coffee house franchise locations worldwide.
Gloria Jean’s
The brand specializes in servicing delicious, bean-to-cup coffee, with baristas making quality, hand-crafted hot drinks, as well as iced coffees and fruit chillers on site.
The initial franchise fee cost for a U.S-based store ranges from $7,500 to $15,000, and the overall estimated investment total ranges from $178,900 to $494,000, depending on the size of the store and other factors. Looking to take the brand abroad? Gloria Jean’s is currently looking for master franchisees, so get in touch and request a Franchise Disclosure Document and other information.
If you’re looking for a franchise opportunity that delivers customers a great cup of coffee while providing a European coffee culture feel, look no further than Michel’s Patisserie. The brand is renowned for serving scrumptious speciality cakes, pastries, treats, and, of course, its award-winning coffee.
Michel’s Patisserie
Not only is the franchise brand renowned for its gastronomic goods and premium coffee beans, but its store layouts are revered for being at the forefront of café and retail design, with a strong emphasis placed on its French-inspired heritage.
The Michel’s Patisserie brand has over 25 years of experience, 12 different brand systems, and its own coffee roasting business, making it a very strong coffee business for a master franchise partner to invest in. Want to bring a business with a European-orientated, independent coffee shop feel to your local area? A Michel’s Patisserie business could be the cafe franchise for you.
Founded in Sydney, Australia, Cafe2U is purported to be the world’s largest mobile coffee van brand, with a presence in New Zealand, South Africa, and the U.K.
Cafe2U
A mobile coffee business is a fantastic option for entrepreneurs who crave an on-the-go lifestyle, with Cafe2U franchisees assigned their own designated territory that includes destinations and events that are expected to generate high coffee consumption, including workplaces, sporting occasions, and special events.
If you’re based in the U.K. and find the idea of running your own coffee van business appealing, a Cafe2U franchise costs from £10,000 (excluding VAT), which includes an exclusive territory license, full training, launch support, and a marketing pack.
