Coffee Franchises For Sale

Coffee shops, cafes, and suppliers are one of the most popular options for entrepreneurs looking to open their own business using a franchise model.

In this guide, we’ll look at the types of coffee franchises you should consider, how much they cost (especially if you’re after a brand like Costa Coffee or Starbucks), and what you need to think about before signing a franchise agreement in the coffee industry.

What types of coffee franchises can I invest in?

- Coffee shop franchises

- Mobile coffee franchises

- Vending machine coffee franchises

How much does a coffee franchise cost?

The average coffee shop franchise usually has an investment fee of around £150,000 - £300,000, with that rising to £500,000 or more for brands that are considered household names.

When you initially enquire about investing in a coffee shop franchise, you’ll be given a rough bandwidth figure. The actual price will be confirmed once you decide where you’re opening, how much space you’re looking to operate in, and what brand you’re looking to franchise.

For example, opening a bricks and mortar store in London’s Oxford Circus will require a much higher investment than if you were to open a kiosk at your town’s local train station.

Are coffee franchises profitable?

There are plenty of franchisees that have been successful in launching a coffee business under a franchise business model, but that doesn’t mean there’s not risk. Your success will ultimately depend on numerous factors such as market conditions, location, brand recognition, operational efficiencies, and customer demand.

Remember that it will take time to reach a return on investment (ROI), so you want to have a solid financial plan in place prior to opening. Your chosen coffee shop franchise will likely help you with this, but it’s also important to get independent financial advice.

Coffee market advantages

Coffee has a high gross margin which means franchisees stand to make a good amount of revenue from every product they sell. Although prices have increased over the past decade, consumers have still been willing to pay for coffee because its price tag is a manageable luxury.

This demand has been encouraged by remote working; customers will set up workstations in cafes and often pay for multiple drinks throughout the day.

Consumers are often also incredibly loyal to coffee shops, which tend to operate loyalty schemes. This loyalty is especially beneficial for those looking to invest in an established and well-known franchise brand because there will be an established loyal customer base from day one.

Coffee market disadvantages

Coffee shop culture has spurred on franchises to open more locations, which means the market can be competitive.

Franchisees will have to work with their brand’s head office to ensure they’re cutting through to their target customers – an activity which often warrants an ongoing fee to the franchisor.

Creating a cafe space will also be reliant on gas and electric, bills which could increase to an unmanageable level, especially if you’re not getting much custom. This is why having a solid financial plan is so important.

What is the best coffee shop franchise business?

There are multiple successful coffee franchise businesses in the UK. However, the best coffee shop franchise for you will really depend on what you’re looking to achieve.

It’s important to invest in a coffee brand with aligns with you because you’ll otherwise feel restricted when it comes to following the franchise’s blueprint.

Try not to get distracted by coffee franchise behemoths such as Starbucks, Costa Coffee, and Caffe Nero, until you’ve thoroughly researched various brands. While a big brand may look like an easy win, there’s always a chance that a less recognised brand could be more lucrative in the location you’re trying to target.

Regardless of your choice, it’s crucial to be fully onboard with the brand before you commit.

What is a coffee shop franchise business?

Coffee shops and cafes are the most common form of coffee business. As a result, there’s a wide variety of brands for franchisees to choose from. (Some include: Paris Baguette with a minimum investment of £500,000; Coffee Planet with a total investment of £250,000; and Artigiano Espresso & Wine Bars with price upon enquiry.)

Serving up a variety of coffee-based drinks is at the centre of most businesses’ offering. However, menus often comprise of tea, soft drinks, and lunchtime snacks such as sandwiches and cakes, which helps broaden revenue streams.

A huge focus of coffee shop franchises is the environment they create for customers, which means ensuring that your location is comfortable and has amenities such as free Wi-Fi.

Remember, coffee shop culture attracts a broad range of people (they may visit to study, work, catch up with friends, or chill out) and your task will be creating an environment that suits those differing needs while serving quality drinks.

When you sign a franchise agreement with a coffee shop brand, you’ll be given access to supplies such as equipment, coffee beans, food products as well as branded kit for your store, including furniture and décor.

What is a mobile coffee franchise business?

Mobile coffee businesses will operate out of vans, bikes, cars, or moveable kiosks. They will set up their coffee shop stand in high footfall areas such as near office buildings, university campuses, and tourist areas. However, its location will be flexible and could change day-to-day.

Investments in mobile coffee franchise businesses are usually lower than brands who require a bricks and mortar store. For example: total investment in Coffee-Bike is £19,980; total investment in Cafe2U is £71,000; minimum investment in Coffee Blue is £16,950.

Franchisees investing in a mobile coffee business will need to consider how they can access facilities for coffee-making, what locations might work (are there toilets nearby?), and what council permits you’d need to operate on-the-go.

What is a vending machine coffee franchise business?

Vending machine coffee franchises are a very low investment and operational franchise option.

You’ll set up a vending machine which dispenses coffee in a high footfall area. You’ll be responsible for its maintenance and stock, but it won’t require any staff to run as the machine is automated.

As a result, investment costs are lower than other coffee franchise options, however revenue may also be lower than what a coffee shop would return.

Franchise brands in this space include InHouse Coffee and Seattle Coffee Company (Sodexo)

How to start a coffee franchise

1. Estimate financial need

The very first thing that you should do is get your financial situation figured out. It’s probably one of the most stressful steps, but it’s also one of the most necessary.

Your financial need will depend on which coffee shop business you choose. Some are more expensive than others, and you may find that you need financial assistance to get started.

Getting funding for your coffee franchise opportunity isn’t as daunting as it sounds. In fact, it may actually be a better decision to get some financial help so that you don’t completely drain your bank account by paying the franchise fee.

If you’re looking to intelligently plan your finances, we recommend stating the necessary fees for the franchise you’ve chosen first. After this, you should think about additional costs such as employee payments, maintenance costs, and emergency funds. You don’t want to run your bank account dry before you even open up shop.

2. Create a business plan

Now that you’ve sorted out your finances, you can look towards composing a business plan for your coffee shop franchise. Writing a coffee shop business plan is easier than you think, and many business owners actually love doing it.

Business plans are a way for you to show how passionate you are about your business and where you think you can take your business in the future. It just seems scary because it is a large document that requires some research and a lot of time.

The great thing about building a business plan is that it can actually be helpful outside of presenting your business idea to other individuals or other companies. It can actually help you make more sense of what you want to do and where you want to go with your business.

In fact, some of the components of a business plan are in the next few steps that you have to complete for your business. Your business plan is just a neat guide to sew everything together.

3. Finalise your coffee brand

You have to have an idea of what you want your brand to be before you open up your coffee franchise. Just because your coffee shop is going to be a part of a chain of shops doesn’t mean that you don’t have to worry about branding or individualism.

Many aspects of your business may already be predetermined, but there are still strides you can take to make your business different.

Branding isn’t just found in a business’s name or logo. It’s found in the kind of employees a business hires, the arrangement of seating they choose, and the quality of product they bring to the table.

For example, you may want your coffee shop to be known for having really nice baristas, fancy espresso machine, specialty coffee or cosy seating. Whatever your signature touch may be, don’t be afraid to show it. This is your coffee shop, and - ultimately - your investment.

4. Find your target audience

Before you dive into making and selling coffees, you need to figure out your target audience. This audience will likely depend on the kind of branding that you hopefully just decided on. When you’re thinking about your ideal customer, be as specific as possible. In fact, you should create a buyer persona.

The more specific you get with your target audience, the better you can actually communicate with that audience and tell them to come to your coffee shop. You can’t communicate with an audience that you don’t know about, so you need to do the research.

We recommend that you take this target audience and/or buyer persona with you when you’re making any changes, preparing any marketing campaigns, or generally making any rules for the store. Think about how that target customer would feel about any of those decisions and act based on those thoughts.

5. Handpick employees

If your franchise is allowing you to choose and hire your employees, take advantage of this opportunity. Being able to handpick your employees is important to your brand’s image and your shop’s success.

Don’t settle for anything less than you expect.

You should show grace, professionalism, and kindness. However, you shouldn’t expect the perfect human to walk through your shop’s doors.

Find out what your favourite quality is in an employee and look for that. Is it kindness or humour? Is it uniqueness or a nice smile?

Whatever you want your employees to be known for is what you should look for in employees. Take your time to get to know candidates before making a decision so that your coffee franchise’s branding is consistent and clear.

6. Prepare your coffee business

Now that you’ve constructed the basic building blocks of your coffee shop business, it’s time to get down to the small details of planning your coffee shop or coffee cart business. You’ve paid, you’ve hired, and now it’s time to get your working model down.

Before opening up shop, we recommend that you run through everything that your shop will need and train employees to meet these needs. Besides stocking up on supplies, you should ensure that you and/or your employees can run the shop smoothly before opening day.

You can practice orders, discuss how to handle customer traffic, and more. This is your time to get prepared before the masses start rushing into your store on opening day.

7. Start social media marketing

There’s still one more thing to do before officially opening your coffee franchise to the public. You need to create and start your social media marketing campaign for your coffee shop.

Even if you aren’t social media savvy, you need to build a social media strategy. This is the best way to bring in customers to your coffee shop. Plus, you can make an announcement about opening day before opening day even happens.

Creating a buzz around your coffee shop before you even open can help you rack up major business on actual opening day and plenty of days after that. Having this kind of exposure can make a difference in your first weeks’ success.

Even after launching your initial campaign, you need to stay consistent on social media. Like, comment, and reply to your customers so that they feel appreciated and wanted. They will keep coming back if they feel like they have a personal connection with your business.

8. Launch your business

Once you’ve prepared everything, it’s time to open up and let your customers flood in. Hopefully, you composed enough buzz about your business to make a great first day for you and/or your staff.

The first day is a great learning platform for any new coffee shop owner.

Use the first day to write down any mistakes you witness or improvements you think of. In fact, doing this for the first week can help your coffee shop exponentially improve in a very short amount of time.

You should also use this time to introduce yourself to customers and build relationships with them so that they are more likely to come back. Matching a face with your franchise will help you make more sales over time.

9. Organise your operations

Once you’ve got a few days of coffee making and selling under your belt, it’s time to reorganise anything that may need fixing. Remember to have your notes handy.

You may have noticed that some of the coffee creamers should be arranged differently or some of the tables are too close together.

Whatever you’ve noticed about your coffee franchise in the first few days should be fixed and experimented with until you feel that the problem has been fixed. This may take moving some chairs and tables around every few days.

10.Consider growth opportunities

Don’t be afraid to ask your staff or your customers where and how they think your coffee franchise can improve. They may have an idea for a new kind of coffee flavour or prefer you to get booths instead of tables.

Whatever the complaint, comment, or opinion is, take it kindly. Then, be sure to revisit the topic later and see about making some needed improvements.

Which coffee shop brands are actually franchises?

There are plenty of recognisable coffee shop chains on the high street, which many assume of franchises with investment opportunities.

However, some have expanded rapidly through corporate owned stores, which means it wouldn’t be possible for you to use the brand for your business.

Is Costa Coffee a franchise?

Yes, Costa Coffee is a franchise – and one of the UK’s fastest growing coffee shop franchises. You’ll need a minimum personal investment of £250,000 for the initial £800,000 investment. The initial fee depends on the desired location, which will need to be included in a letter of intent.

How much does a Starbucks coffee franchise cost?

Starbucks is a global brand with a presence in more than 50 countries around the world. As a result, its investment levels are high in comparison to other brands, with minimum investment starting at £500,000 and total investment price give upon application.

You can find more information on Starbucks’ franchise business model in the What Franchise directory.

How much is a franchise for Dutch Bros coffee?

It is no longer possible to sign a franchise agreement with Dutch Bros Coffee. In 2023, the brand announced that it would be stepping away from its franchise model, with all locations now company owned.

Is Blue Bottle Coffee a franchise?

Many people think Blue Bottle Coffee is a franchise due to its locations across United States, Japan, South Korea, and China. However, all the brand’s locations are corporate owned, so it would not be possible to sign a franchise agreement with Blue Bottle Coffee.

How to buy a Black Rock Coffee franchise?

Unfortunately, Black Rock Coffee is not offering franchise opportunities. All its locations are corporate owned so it’s no longer possible to sign a franchise agreement with the business.

Is Blank Street Coffee a franchise?

No, Blank Street Coffee is not a franchise. It has expanded internationally through corporate-owned stores, so it wouldn’t be possible for you to sign a franchise agreement with the brand.

Is Caribou Coffee a franchise?

Caribou Coffee is a franchise with multiple international locations. However, the UK is not one of these franchise locations, which means if you were considering bringing the brand to the UK you would need to approach the brand’s franchise team directly.

If this is a possibility, it’s likely they’d be looking for you to sign a master franchise agreement which requires a much higher investment level.

Is Coffee Republic a franchise?

Yes, Coffee Republic is a franchise and they actively recruit franchisees from across the UK. The total investment is estimated to be £250,000, but the franchise team will be able to confirm exact figures for you.

Is Philz Coffee a franchise?

The US-based coffee shop, Philz Coffee is not a franchise and has no presence in the UK. Although it has multiple locations, they are corporate-owned, which means it’s not possible for you to sign a franchise agreement.

Is Coffee Bean & Tea Leaf a franchise?

Coffee Bean & Tea Leaf is a franchise with multiple locations across the US, Singapore, and Malaysia. If you wanted to bring the brand to the UK you would need to contact the brand’s franchise team directly to see if this is a possibility.

Coffee Bean & Tea Leaf predominantly look for multi-unit operators which would mean a higher investment level and managing multiple territories.

Still want to buy a franchise? You can find the full list of current franchise opportunities in the UK in the What Franchise directory.