Coffee is more than just a beverage; it’s a daily ritual for millions of people. In the 2022/2023 fiscal year, U.S. coffee consumption reached over 26.3 million 60-kilogram bags, underscoring the nation’s enduring love affair with coffee.
From cozy cafés to bustling drive-thrus, coffee shop franchises offer exciting opportunities for entrepreneurs looking to tap into this thriving market. Whether you dream of creating the perfect cup for your community or want to invest in a well-established coffee brand, the coffee shop franchise business presents endless possibilities.
If you’re curious about the different franchise models available, you’re in the right place. Let’s explore the top coffee franchise business models you can begin within 2024.
Why Franchise a Coffee Shop
Franchising a coffeehouse offers a unique blend of opportunity and support that is difficult to find in other industries. The coffee franchise business model provides franchisees with a proven system designed to ensure success.
From the moment you decide to invest, you gain access to:
- comprehensive training,
- marketing tools,
- and a robust support network that sets you up for long-term success.
Franchise partners benefit from a built-in customer base, trusted brand recognition, and the backing of a company that’s committed to excellence.
Whether you’re investing in a brand like Dunn Brothers Coffee, which emphasizes community involvement, or The Human Bean, which focuses on drive-thru convenience and a wide beverage selection, there’s a franchise opportunity to suit every business style.
Biggby Coffee, known for its high-quality coffee and community connections, has also established itself as a key player in the competitive U.S. market, catering to varying customer preferences.
One of the major advantages of owning a coffee shop franchise is the ability to offer exceptional customer service while serving a product people love. Coffee shops have become social hubs where communities gather, connect, and share moments over a perfect cup of coffee.
Whether it’s in a cozy café or a fast-paced drive-thru, having the right location plays a critical role in a franchise’s success.
Current franchisees will tell you that choosing the perfect location for your café or drive-thru is essential for building a loyal customer base. Franchise disclosure documents provide detailed insights into the total investment needed and what you can expect throughout the process, offering you clarity before you even begin.
Now, let’s take a closer look at five popular coffee shop franchises that offer exciting opportunities in 2024.
5 Coffee Franchises to Start this Year
Now that you understand the benefits of franchising in the coffee industry, let’s explore four popular coffee shop franchise models. Each offers unique opportunities for success, allowing you to choose the business style that best fits your goals and market.
1. Traditional Coffee Shops (Café Model)
The traditional café model is perfect for franchise owners who love creating warm, welcoming spaces. These coffee shops are all about ambiance, offering customers a place to relax, connect, and enjoy a variety of coffee beverages, from espressos to pour-overs. Many cafés also serve light meals like…
- pastries,
- sandwiches,
- and desserts,
adding an extra touch to the experience.
For those who want to foster community spirit, a traditional coffeehouse is an ideal choice.
One of the coffee shop franchise opportunities in the US, such as PJ’s Coffee has perfected this café model. Franchisees benefit from ongoing support, comprehensive training, and a system designed to help them succeed.
Whether you’re starting your business in a bustling city or a quiet neighborhood, this model provides the flexibility and support needed to thrive.
Estimated Costs
Starting a traditional café-style coffee franchise generally requires an initial investment between $100,000 and $500,000, depending on factors such as location, size, and equipment. This investment typically covers:
- franchise fees,
- leasehold improvements,
- furniture, and
- the necessary equipment to operate the business efficiently.
Additionally, costs may include initial inventory and marketing expenses to help launch your coffee house successfully.
2. Coffee Bar or Coffeehouse
Coffeehouses have evolved into trendy spots where customers seek specialty drinks and a modern atmosphere. These locations cater to customers who enjoy unique brews like cold brews, espresso-based drinks, and single-origin coffee. The seating is often cozy and communal, attracting a younger crowd and professionals who enjoy working from cafés.
Scooter’s Coffee has successfully captured this coffeehouse model, offering a diverse menu that appeals to all age groups. Franchisees receive training on coffee preparation and customer service, ensuring they can meet the demands of an increasingly sophisticated coffee market.
With the right branding and customer-focused service, coffeehouses create a memorable experience for each visitor.
Estimated Costs
The initial investment for starting a coffeehouse franchise ranges from $200,000 to $600,000, depending on factors like the size of the store and the market you’re entering. This includes the initial franchise fee, which grants you access to the brand’s business model and support system.
Ongoing marketing and royalty fees should also be factored in, as they contribute to the continued success and growth of your franchise.
3. Drive-Thru Coffee Franchise
The drive-thru coffee franchise model is all about convenience. These coffee houses are designed to serve customers quickly while still offering high-quality coffee. With a simple menu focused on popular coffee drinks, this model appeals to busy individuals who want to grab their coffee on the go.
Drive-thru locations thrive in high-traffic franchise locations, making them ideal for franchise owners looking for a fast-paced, high-volume business.
Brands like Dutch Bros Coffee have embraced this model, proving that you can deliver great coffee with speed and convenience. Franchisees who opt for the drive-thru model benefit from streamlined operations and a steady flow of customers.
Estimated Costs
The initial investment for a drive-thru coffee franchise can range from $50,000 to $250,000, depending on the location and equipment needed. This investment typically includes the initial franchise fee, which grants the franchise company owner access to the established business model, training, and support.
Franchise disclosure documents provide detailed information on ongoing royalty fees, marketing expenses, and other costs that ensure the continued success of your franchise.
4. Grab-and-Go Coffee Kiosks
For those looking for a smaller, more flexible coffee franchise opportunity, grab-and-go coffee kiosks are an excellent option. These kiosks are often located in high-traffic areas like…
- shopping malls,
- airports,
- or office buildings,
where customers can grab their coffee quickly without waiting in line. The simplicity of the kiosk model allows franchise owners to focus on high-quality coffee while keeping overhead costs low.
The kiosk model offers franchise owners the chance to create a real difference in how they serve their customers. Whether it’s through exceptional customer service or offering unique coffee blends, kiosks allow for a fast, efficient business operation.
Estimated Costs
Starting a grab-and-go coffee kiosk requires a smaller initial investment, ranging from $50,000 to $200,000. This covers kiosk setup, equipment, and initial inventory. Ongoing royalty fees are typically lower than larger café models.
Reviewing the Franchise Disclosure Document (FDD) offers a clear breakdown of investment costs, helping you understand all financial commitments before starting your coffee franchise.
5. Mobile Coffee Shop
Mobile coffee shops have gained popularity for their convenience and flexibility, allowing franchise owners to serve high-quality coffee on the go.
These setups cater to customers seeking quick access to their favorite brews at:
- events,
- office complexes,
- or busy city streets.
Mobile coffee shops often offer a diverse menu, including cold brews, espresso-based drinks, and specialty blends, all delivered in a fast and efficient manner. The mobile model attracts a wide range of customers, from professionals grabbing coffee between meetings to event attendees looking for a convenient caffeine fix.
Franchise companies like The Human Bean have successfully adopted the mobile coffee shop model, focusing on drive-thru and mobile service, offering franchisees the ability to create a versatile, on-the-move coffee experience.
With comprehensive training and ongoing support, franchisees are equipped to deliver excellent customer service while navigating the mobile coffee market.
Estimated Costs:
The initial investment for starting a mobile coffee franchise ranges from $50,000 to $150,000, depending on factors like the type of vehicle or mobile setup, equipment, and the region you’re operating in.
The initial franchise fee and ongoing royalty and marketing expenses should also be factored into the total investment.
Conclusion
Franchising a coffee shop provides an exciting opportunity to enter the thriving coffee market with the support of a proven business model. Whether you want to open a traditional café, a trendy coffeehouse, a quick-service drive-thru, or a grab-and-go kiosk, the right franchise can offer you the tools and support to succeed.
Brands such as PJ’s Coffee, Scooter’s Coffee, and Dutch Bros Coffee have showcased the enormous potential of the coffee franchise industry, providing established models for success.
However, these are just a few of the numerous coffee franchise opportunities available across the U.S., each presenting exciting growth prospects for aspiring entrepreneurs.
Ready to take the next step? Talk to a franchise consultant today to explore the perfect coffee franchise opportunity for you. Your future in the coffee industry awaits, and the right franchise model is out there to help you begin your journey!
