How to create a network of 256 coffee bars with an annual turnover of 600 million rubles in three years - “Thirst”

September 20, 2018
Franchises
Ulyana Romanova

Surely every person is familiar with the Coffee Like chain of coffee shops. After all, this is the largest chain of outlets in Russia that sells everyone’s favorite drink to take away. The founder of Coffee Like is Ayaz Shabutdinov, a young 26-year-old entrepreneur who is developing 9 businesses in 178 cities of the CIS. A lot can be said about this man, as well as about the coffee shop itself. But now we will talk only about the most interesting and important facts.

Biography

The founder of Coffee Like, Ayaz Shabutdinov, was born in Izhevsk on October 21, 1991. He lived in the village of Kueda and received his education with a degree in state and municipal administration at the Udmurt State University.

But before that, he had already tried himself in business. In the village of Kueda, he opened a joke department at the age of 14. And at 15 he created, as he himself says, a primitive website for selling his own poems. The guy advertised it, and customers came.

By the way, this idea was inspired by his love of reading. His whole family spent their evenings reading books.

Then, in 2008, Ayaz entered the event industry. He did everything: organized events for nightclubs, was a screenwriter and presenter, was part of the “8 people” creative group belonging to the Art Premier agency. He also played in the KVN team “Team Izhevsk”. It should be noted that Ayaz devoted a lot of time to this.

Since 2012, the guy headed the lemonade shop, whose annual turnover was barely 1,000,000 rubles. And then an idea came to his mind: set a goal for himself - to earn 2 million in 12 months and write about every step on the VKontakte blog.

Then 11 people read it. As of today - over 666,000. In this blog, Ayaz, since January 3, 2013, talks about how he is moving towards his goals and how he achieves them. It’s interesting to scroll to the very beginning and find out where the millionaire started. Now, by the way, he has a new goal - 1 billion rubles “net” in a year.

The emergence of an idea

Ayaz talks in detail about how the idea to start making coffee came about. In 2013, he met an interesting girl who told him so many interesting facts about this drink and so impressed him with her expertise that he literally became interested in the topic.

Very soon the young man decided to start doing this business. It was at that time that the “to-go” format was gaining popularity. Ayaz had already analyzed his competitors and was preparing to launch, but then another aspiring entrepreneur, Zufar Garipov, contacted him.

It turned out that he also decided to launch a similar business. That’s why he immediately proposed two formats of cooperation: either the guys would fight or do business together.

History of the Coffee Like coffee shop

Like Coffee
The first coffee shop of this franchise appeared in 2013 in Izhevsk. Its founders are young guys - Ayaz Shabutdinov and Zufar Garipov, who decided to work together instead of competing.

Their coffee bar opened its doors to visitors in November and is still operating in the same location near Udmurt State University. Young entrepreneurs were able to cover all opening costs in just two weeks. Now the first coffee shop of the Coffe Like franchise has been given the status of a bar-museum. This way, her appearance won't change to remind her of where it all began.

The establishment is known for the fact that it was here that a bonus program popular for many cafes appeared - every sixth glass of coffee is free.

Coffee house-museum in Izhevsk

Interesting information. Already on December 1, the first Coffee Light franchise was acquired in another city. Its owner was an entrepreneur from Yekaterinburg.

Start of the project

The founders of Coffee Like opened the first location in Izhevsk. It happened on November 13, 2013. They decided to open a coffee bar on Universitetskaya Street. Interestingly, it was later given the status of a museum.

The opening cost the young people about 100,000 rubles. The equipment was provided free of charge by the coffee supplier.

Then the entrepreneurs, having gained experience, “packed” all their knowledge into a franchise, after which they began selling it through a blog. Together with Zufar and the team, Ayaz managed to make Coffee Like incredibly popular. At the time of August 2020, for example, the network made revenue that amounted to RUB 72,290,126.

History of the Coffee Like brand

The company already has 5 years of successful work behind it. The first coffee bar was opened in November 2013 in Izhevsk. And this outlet became so popular among visitors that just two weeks after opening it reached the break-even point!

The coffee shop was one of the first to introduce the “a glass of drink as a gift” promotion. So, when you buy five cups of coffee, the sixth is free.

The project turned out to be so successful that the Coffee Like franchise was launched in December 2013. In the first quarter of 2014, the number of coffee bars reached 62, and the total revenue for the period in March amounted to 1 million rubles. By the end of 2014, the number of franchises sold exceeded one hundred.

To improve the quality of service, since 2020, the brand’s management has introduced a method of checking the service using “secret visitors.”

At the end of 2015, coffee shops of the chain were represented in more than 70 cities in Russia, as well as neighboring countries - in Belarus and Kazakhstan. At the moment, the network consists of 497 coffee bars with total revenue for 2020 of over 1.37 billion rubles.

What is a franchise?

The aforementioned Allegra portal in November 2020 ranked the brand in 13th place among the 20 best coffee chains represented in Europe:

Brand development

Already on December 1, 2013, the founders of Coffee Like entered into an agreement with the first franchisor. Just 2 weeks after opening! Their first partner was an entrepreneur from Yekaterinburg.

By the end of the year, nine such coffee bars had already been opened across the country. To provide partners with consumables (straws, holders, cups, etc.), entrepreneurs created.

The company’s first partners were subscribers who read Ayaz’s blog on the VKontakte social network. These included young people aged 19-25 who had no experience in business management. Unfortunately, not all partners “survived” because of this. During the first year of operation, 164 points were opened. Only 120 left.

How to buy a Coffee Like franchise

The business is in a stage of active growth and promotion, so you can buy a Coffee Like franchise in an expedited manner by leaving an application in the online form on the website, filling out only three proposed fields and waiting for the manager of a retail chain in a particular region to contact the applicant.

Coffee Like franchising is developing uniform requirements for the network's franchisee partners. The most relevant of them are:

the untarnished reputation of the future businessman, the absence of cases of bankruptcy of previous businesses;
availability of finances to implement the project. It is advisable that all or most of the required amount be the applicant’s own assets;
the need to strictly follow the business and financial plan of the network developed by the franchisor, and recommendations for personnel selection. The main aspect of business success is the highest possible speed of customer service;
obligatory observance of production and commercial secrets of the Coffee Like coffee shop chain. In particular, these include a unique technology for roasting coffee beans.

To buy a Coffee Like franchise, you must comply with other conditions for entering the industry. These include the purchase of branded products and equipment: coffee grinders, coffee machines, ovens and refrigerators. Training of bartenders is carried out using special technology from the parent company.

Popularization of the project

The principle of every successful business is a strong competitive advantage. How did Coffee Like attract more and more new customers? First there was the “6th glass free” promotion. Back then there were no stamps on the check, no cards, no stickers. The person simply called his phone number, and information about bonuses appeared.

More and more points opened up. Already in March, the network’s revenue amounted to about 1,000,000 rubles. And in May, Ayaz and Zufar organized the first meeting of partners. At this event, the company's mission and values were announced. An answer was found to a valuable question for entrepreneurs: who are they?

People who don't stand still. Those who take good, tasty coffee with them and head towards their goal. People drinking it on the way to work and university. Those who wake up in the city first. Travellers, romantics, initiators, discoverers - people whose lives are a whirlpool of bright events. They are individuals who are not afraid to challenge themselves. These are people who drink Coffee Like drinks and strive to make the world a better place.

By August, the network’s revenue exceeded 10,000,000 rubles. In September, 14,692 free, bonus coffees were given out. And in November, the 100th partner joined the franchise.

About the franchise

There are currently 407 bars open in 6 countries. The network’s revenue since the beginning of 2020 amounted to almost 883,000,000 rubles. Over the same less than 9 months, almost 5,300,000 glasses of the invigorating drink were sold.

Created by Ayaz, Coffee Like is the main beneficiary of the growing demand for this format. The vast majority of modern people take the drink with them.

Why this company? Because the brand decides a lot. It generates traffic. A recognizable name that has earned respect and has a certain authority is already 90% of success. Everyone knows Coffee Like.

The same fact determines the quick start of a business. A recognizable brand requires minimal “promotion”—you just need to advertise the opening. Instant popularization is the key to quickly receiving “net” profit.

In addition, the founders of Coffee Like, being broad-minded people, provide their partners with the opportunity to choose a format that is convenient for them. And this is worth talking about in more detail.

Establishment formats

The founders offer 5 formats:

A counter inside a hypermarket, business center or shopping center. It can be wall, corner and island. If you want, you can add a waiting area with chairs and a bar table. There are 195 points open in this format. Approximate monthly revenue is 285,500 rubles.
Pavilion. Since it stands on the street, it attracts special attention. Largely thanks to the glowing bright lightbox and original design. Pavilions with an internal waiting area are especially good, especially in winter. 118 such cafes have already been opened. Approximate monthly revenue is RUB 326,500.
Built-in room on the 1st floor with a separate entrance. A cafe, to put it simply. 88 points are open. Approximate monthly revenue is 268,500 rubles.
Coffee house. There are only 2 points open in this format. Monthly profit is about 900,000 rubles.
Mobile format. Ideal for serving mass events. Because a food truck is very easy to transport and takes up a small area.

Most importantly, there are formats for any, as they say, wallet. A coffee shop can be opened by a respectable businessman with impressive capital. And a food truck will be affordable for a novice entrepreneur.

How the business works

As one of the founders, Zufar, assures: “Revenue depends on traffic - on how many people a day collide with our sign.”

The shopping center has the best results. The worst ones are at points located at train stations. Yes, there is huge traffic, but there is no Coffee Like target audience.

Interestingly, there is no advertising fund online. In this case, according to Zufar, marketing is not needed at all. “Coffee to go” is a spontaneous purchase. The man wanted it - he went and made an order. No one will go to another part of the city for a drink after seeing an interesting banner.

Business Features

The procedure for opening a coffee bar takes, on average, two months. During this period, repairs are made, the bar counter is made, the coffee machine is set up and personnel is recruited. It is worth noting that the franchise agreement prohibits entrepreneurs from developing interior design and signage themselves without assistance from the parent company. A coffee shop in the “coffee to go” format can be opened in shopping and business centers, as well as just on the street. As practice shows, organizing a coffee bar in a shopping center is much cheaper than on the street. The main expense item is the purchase of necessary equipment: a good coffee machine and coffee grinder cost up to 220,000 rubles, and installation of shelving, display cases and a bar counter will cost the entrepreneur from 200,000 to 450,000 rubles, depending on the region and the format of the coffee shop.

One of the clauses in the agreement with the franchisee allows the businessman to additionally open an unlimited number of coffee bars without re-paying the lump-sum fee. Today, the average number of open coffee bars for each franchisee partner is 2.7 points.

The Moscow company is engaged in roasting coffee beans according to pre-agreed specifications and supplying them to franchisees. All “consumables” (cups, straws, etc.) are purchased by partners through the Coffee Like central office and delivered.

An interesting point: the revenue of an individual coffee bar depends solely on the traffic of the target audience, and not on the chosen outlet format. When the weather is bad outside, the best results in terms of revenue are shown by coffee bars opened in shopping centers. Street locations are most profitable on clear days. As for points located in business centers, demand there is stable in any weather and depends only on the days of the week - on weekdays it is higher than on weekends. Paradox: coffee bars opened at train stations quickly went out of business, despite the huge traffic. This was due to the small number of representatives of the target audience in the crowd.

Visitor reviews

By the way, what do customers themselves say about the quality of drinks? Mostly only good things. And this makes us happy, because a satisfied visitor always returns to the place he liked. Here's what most people like:

Diversity. The range of drinks offered is really large.
Low prices.
Opportunity to watch the coffee making process.
Huge variety of syrups.
Availability of a summer menu: cold coffee, mojitos, lemonades.
Delicious desserts.
Friendly baristas.
The famous promotion “6th coffee for free”.

Profit

Above, approximate revenue figures for establishments of various formats were given as an example. But it is still worth considering the issue of profit in more detail.

It’s interesting that even though after the fall of the ruble the cost of raw materials for making coffee doubled, the retail prices for the finished drink did not change. Because this is an extremely high-margin product. Before the crisis, the cost of a cappuccino was 23 rubles. After – 28 rubles. And Coffee Like still sells it for 80 rubles.

The business pays off in a period of 6 to 18 months. Operating profit begins to flow in the first month. It ranges from 18 to 70 thousand rubles. The indicators strongly depend on the location of the coffee outlet and the city.

As practice shows, it is most profitable to open several points at once. If, for example, an entrepreneur has 3 such coffee places, then the monthly profit of each bar located in different city locations will be 180-200 thousand rubles. some time after launch. In addition, you can work according to the imputed tax system.

In general, you can really make money in this business. Some points bring a monthly profit of at least 500,000 rubles.

Coffee Like franchise cost

The cost of a Coffee Like franchise belongs to the franchise segment with minimal investments (cost) of the project for the franchisee and favorable partnership terms. To open a business as part of a franchise, an initial investment of 500 thousand is required for the equipment of one business outlet. Subsequently, the cost of the franchise will decrease with each new point added by the franchisee:

The regional component of the franchise cost should also be taken into account. The same stand in different regions can differ by an average of 30 thousand rubles.

The cost of a franchise, in addition to the franchisee’s expenses for opening and maintaining a business, includes:

250 thousand rubles to open the first coffee shop;
200 thousand rubles to open a second coffee shop;
150 thousand rubles to open a third coffee shop.

Prices and conditions

It is impossible to say exactly how much the Coffee Like outlet will cost an entrepreneur. The franchise offers various conditions - much depends on the city and the chosen format.

But according to sources, the entrance fee is 330,000 rubles. Plus, a monthly 4.5% royalty is added for using the patent. In addition to money, a potential partner is required to:

Focus on results.
Having serious intentions.
Willingness to invest time and money in brand development.
Loyalty to the company.

And here's what the entrepreneur himself gets:

A step-by-step guide to starting a business from the very beginning.
Detailed business plan.
Help in choosing a place to open a point.
Marketing, accounting and legal support.
Training partners and barista specialists at the notorious academy.
Transfer of design standards, equipment, assortment and service.
Connecting to a personal ERP system.
Supply of branded consumables and coffee blend.
Designing a retail outlet on an individual basis.
Quality control of design, products and service.

In simple terms, the investment is minimal, but the help is tangible. Therefore, many claim that even beginners who have just begun to study the topic of business will be able to open a Coffee Like outlet. Shabutdinov Ayaz himself started small - why can’t it work out for someone else?

Coffee Like franchise in Russia

Since Coffee Like is initially a Russian project, it first began to develop Russian markets. There are no regional preferences or advantages for opening a coffee shop within the Coffee Like franchise in Russia. An application can be submitted by an entrepreneur from any region, and it will be considered. This explains the broad business promotion strategy covering the whole of Russia. Today, new points are opening in many cities and regions as part of the company's franchising. The cost of a franchise, in addition to the franchisee’s expenses for opening and maintaining a business, includes:

Economic plan from the franchisor for its outlet.
Training and a well-functioning payment system.
Accounting and legal online support for the project.
An established supply system for raw materials, products, and equipment. The purchasing price of raw materials is lower than average wholesale prices due to the effective pricing policy of the franchisor.
Corporate style of the Coffee Like company, advertising, reputation and recognition of the project.

What's the first step?

Everything is quite simple. You need to visit the official franchise resource and submit an application through it. To do this you will need to fill out a form. It includes the following questions:

FULL NAME.
Age.
Information about education.
General work experience.
Phone and email address.
In which city would you like to open a point?
How much does the entrepreneur have to invest?

After that, you just have to wait for feedback. When the entrepreneur receives it, he will be told individually what the next steps are.

Reviews from partners and visitors

And we need to talk about them a little. Reviews about working with the Coffee Like franchise are mostly positive. Here are the nuances that the company’s partners pay attention to:

The coffee-to-go business is very clear. The strategy is simple: you need to invest money and start making a profit. And then, if possible, open a few more cafes.
This company has a very high-quality and detailed franchise package.
The entire company is aimed at achieving large-scale results. Therefore, the company is open to its partners in terms of providing assistance.
The franchise has a “Knowledge Base” - an incredibly convenient and informative online platform that contains all the tools necessary to successfully run this business.
The company's model is working. The management does not exaggerate the timing and does not deceive in numbers.
The costs are recouped in a few months.

But, of course, the “all at once” principle will not work in this case. As everywhere else, however. And every person mentions this in the review they leave about working with the Coffee Like franchise.

This is business. It requires financial, time, as well as emotional investments. It needs to be developed, it needs to be dealt with constantly. If a person is ready for this, he will receive both profit and success.

Visitors recommend this network. They note the convenient location of the outlets, the excellent taste of the coffee, low prices, speed of service, and cleanliness of the premises. The reviews also mention a wide variety of syrups and toppings.

Coffee Like franchise price

The price of a Coffee Like franchise consists of several components: a lump-sum (introduction) fee for joining the network in the amount of 250 thousand rubles, an initial package of investments - another 250 thousand rubles and a regular monthly royalty in the amount of 3% of the total turnover of the company, which must be paid, starting from the third month of the company's operation.

The profit of a new outlet opened within the Coffee Like franchise starts at 30 thousand rubles. The rate of return is 150%. Considering the low initial investment, the price of the franchise pays off within 5 months from the opening of the outlet, subsequently demonstrating a high profit margin.

The investment package as part of the franchise price is spent on:

rental and refurbishment of space – 35%;
purchase of coffee shop equipment, commercial equipment, cash register – 15%;
purchase of raw materials, products, consumables (cups, napkins, etc.) – 20%;
staff remuneration – 20%;
organizational expenses – 10%.

Important information! As part of the franchise price, the entrepreneur's total expenses: rent, arrangement, utility bills, purchase of raw materials and finished products amount to 60%.