Starbucks coffee shop franchise: conditions, price, features

In the modern world, probably everyone dreams of running their own business that will make a profit. The only main thing is to choose the right niche in business that brings in a constant, stable income. Starbucks is a world-famous coffee chain that has gained great popularity due to its high-quality coffee and reasonable prices. The first coffee shop was opened in the early 1980s in the USA. Back then it was a small shop that roasted and sold coffee. Later it turned into a small cozy coffee shop, which immediately gained great popularity among consumers thanks to its incredibly delicious coffee.

Today, there is probably not a single country where Starbucks does not operate. Coffee shops are located in elite areas of large cities. The premises have an attractive and cozy interior. The staff is always polite and neatly dressed, which ensures high quality customer service.

Currently, there are 40 coffee shops open in Moscow, however, the urgency of opening new establishments is quite high, since Starbucks is very popular among Muscovites. Regardless of seasonality, there are almost never free tables in the hall. Therefore, many businessmen are thinking about opening a Starbucks franchise.

Franchise: what is it?

Before we talk about how to buy a Starbucks franchise and run a coffee shop, let's first understand what a franchise is. It represents the right to use the brand name, its business model and technological processes. Thus, by purchasing a franchise of a brand, you receive a ready-made working business model, professional support, assistance in promoting a coffee shop, and undergo professional training.

general information

Today, thousands of Starbucks coffee shops operate around the world, but the company itself owns only 30 percent of all establishments; all other coffee shops operate as franchises. At the same time, despite the quick payback of coffee shops, opening a new establishment is quite difficult.

The main principle of the company is to always maintain the brand. Therefore, opening a coffee shop under this logo is very problematic, since the company’s management is very picky about the choice of location and premises. If you want to buy a Starbucks franchise, then be prepared to have every little detail perfected. And this applies not only to the premises, but also to the quality of products, music, interior design and lighting.

The history of the development of the popular Starbucks coffee shop

There is a whole story about how the Starbucks coffee shop was born. It cannot be mentioned, because it was the history of its creation that generated enormous interest in Starbucks coffee shops. It took forty years to turn from a small shop selling coffee and equipment for roasting it at home into a world-famous chain with a recognizable brand in almost every part of the planet.

The creation of a coffee tycoon began with three people in 1971, when they decided to open their own shop and sell coffee and equipment for its preparation. Further, the network developed at a slow pace. The name of the company was taken from Herman Melville's Moby Dick (the name of a mate on a whaling ship). In 1987, a small chain of stores was bought by its hired leader, Howard Schultz. Popularity is growing rapidly around the world.

Starbucks is known for pursuing an aggressive policy against competitors in its market. Due to the large number of players, the rivalry could be won using only tough advertising campaigns, which is what the Starbucks chain did, despite the fact that the cost of products in coffee shops exceeds the average price of competitors.

In Russia, Starbucks is also remembered for the history of its appearance. A certain woman illegally opened the first coffee shop under this brand, after which she had long legal proceedings with the founder and owner of the brand. The original coffee shop opened in Russia only in 2007 in Moscow.

Problems of the Russian market

The owner of the Starbucks franchise in Russia is not very willing to sell the rights to use the name of his brand. The reason for this was an incident that occurred in 2004, when a company of the same name was opened in our country, which had absolutely nothing to do with Starbucks. As a result of a lengthy trial, the opening of new coffee shops was postponed for quite a long time.

Starbucks price

Opening a Starbucks coffee shop in Russia is a lot of work. Firstly, it is very expensive to buy a license. This is justified by the fact that initially there was a conflict with this brand; they put forward huge demands on the buyer.

The Starbucks franchise is not registered in Russia. Therefore, it is very difficult to promote coffee shops in Russian spaces. If a businessman wants to open an establishment in Russia, he must personally negotiate this with his American partners. Well, as you know, there is an individual approach to everyone.

The franchise price is $2,000 - $2,500 per square meter of improvement. On average, a franchise will cost you $170,000 – $20,000. This will include renovation of the premises, delivery of all necessary products, installation of equipment and advertising. It will all pay off in 1 – 1.5 years. This is due to the fact that Starbucks is very popular among Russians.

Benefits of buying a franchise

Starbucks is one of the most popular and recognizable brands among consumers, so opening a franchise business provides many advantages. The biggest advantage is that you don’t have to spend a lot of money on marketing and advertising the establishment, since consumers already know this chain of coffee shops. In addition, you do not have to independently establish work processes, look for suitable equipment, deal with interior design and solve many other issues. You will get everything you need with the Starbucks franchise.

Terms of cooperation

Starbucks values ​​its own reputation extremely highly. To be able to consider an application, you must meet four fairly stringent requirements:

• have 10 million personal funds that will be used to open a business;
• manage enterprises that have been successfully operating on the market for several years;
• own (or have the opportunity to rent) premises that are located in a place with high traffic (preference is given to large shopping centers).

However, even meeting all of the above requirements does not guarantee that the submitted application will be approved as a result of consideration.

How to get a franchise?

To get a Starbucks franchise, you need to do the following:

1. Go to the company’s official website, go to the section with contact information, and then to the section with information about the company.
2. In the “Choose a general topic” field, select “Franchising”.
3. In the message text entry field, you need to write about your desire to purchase a franchise, indicating the name of your company, experience in this industry and the amount you are willing to invest in opening a coffee shop.
4. Check the box next to your willingness to listen to Starbucks' commercial proposal, indicating in the appropriate fields contact information where you can be contacted.

It is worth noting that you must check all the boxes, because otherwise you will not be contacted and you will not be able to purchase a Starbucks coffee shop franchise.

Franchise information card

How much does a franchise cost?

As for the cost of the franchise, this is a real mystery, since no open source provides such information. There can be two explanations for this. Firstly, the cost of a franchise can be calculated individually for each coffee shop, and secondly, it can be a corporate secret.

But even if you don’t pay attention to the price of a Starbucks franchise, the payback of which is quite quick, then furnishing one square meter of premises to the company’s standards will cost approximately $2,500.

Based on the average market value of other franchises, a Starbucks franchise would cost approximately $150,000. Despite such a high cost, as statistics show, the investment pays off very quickly.

Payback forecast

Starbucks does not provide information on the timing of return on investment. However, according to statements by businessmen, the payback on the franchise and all related expenses is 18-24 months.

Buying a brand license is beneficial only in two cases: if you really want to have your own Starbuck coffee shop; when the functioning of several other companies operating under well-known brands is fully established. In all other cases, it is recommended to pay attention to other companies, for example, MC Donald's. Obtaining their licenses is much easier and cheaper, and the profit will be approximately comparable.

What criteria must be met to buy a franchise?

Starbucks has a very strict and demanding selection of businessmen who want to buy a franchise.

To open an establishment under this brand, you must meet a number of criteria:

• Availability of the necessary amount of money to pay for the franchise and equip the premises to generally accepted company standards.
• The premises in which the coffee shop will be located should be located in a place with a lot of people traffic.
• Having a thoughtful and well-written business plan that will interest management.
• Have specific and successful experience in the catering industry.

It is very important that the layout of the building meets certain requirements. The coffee shop should have good lighting, but the sun should not prevent visitors from enjoying delicious and aromatic coffee. A Starbucks franchise for a potential buyer will most likely remain a dream if the rules are not followed. They will simply refuse it.

Cost and initial investment

The cost of the license and the amount of monthly payments are calculated by the brand owners individually, after the businessman contacts the company and presents them with a detailed business plan.

In addition to the costs of the license and payments to the brand holder, a significant amount will be required to open an establishment under a big name.

Based on the recommended sizes from 60 sq. meters, the amount of starting investments will range from 120 to 150 thousand dollars . Costs include: renovation and decoration of the hall, equipping workplaces with branded equipment, as well as purchasing food and drinks.

Reviews from businessmen about the Starbucks franchise

Before opening a coffee shop under the Starbucks brand, it would be useful to study the reviews of entrepreneurs who already have experience working with this company. This will help you find out the nuances of cooperation that are not mentioned in the commercial proposal. The advantages of purchasing a Starbucks franchise, the reviews of which are very controversial, are quite obvious. But one part of businessmen claims that its cost is too high, while the other is completely satisfied with cooperation with this company. However, despite the rather high financial costs required to open a coffee shop, the investment fully pays for itself in just 2 years, which indicates the effectiveness of the Starbucks business model. And, as we all know, you have to pay for quality.

Franchise Description

There are more than a hundred coffee shops operating under franchise in Russia, most of which (70%) operate in Moscow, and 10% in the northern capital. Establishments are also regularly opened in other million-plus cities in the country.

To purchase a franchise, you must have an impeccable reputation, own a premises with certain requirements and officially confirmed funds for opening. Potential partners are carefully checked, but if all their requirements are met, the partner receives the right to work under a famous brand with great advantages. An impeccable reputation is most important. Experience in bankruptcy in the past, credit histories, experience in managing a catering company, and much more are taken into account. Practice shows that Starbucks cooperates only with large businessmen. But small entrepreneurs can also try their luck by sharing their project development plan with the corporation. Business processes and other details must be carefully thought out and described step by step. Don't be afraid to offer your ideas; they may be of interest to network managers. Next, it remains to confirm the availability of the required amount of financial resources to open a coffee shop.

If you want to try your luck, we advise you to go to the website of the coffee shop itself, in the “Contact Us” column you should find the “Company Information” section and find the Franchising option. Describe yourself in detail, your past life, the amount of capital available. The letter must be in English. Errors are unacceptable, so double-check the letter with professional translators.

Interesting facts about the Starbucks franchise

Undoubtedly, buying a Starbucks franchise in Kazakhstan or any other country is a profitable investment that will bring good profits. We have already talked about the features of receiving, let's now find out some interesting facts.

Starbucks does not sell franchises in the traditional way that other brands do. Instead, a new coffee shop is opened that is publicly owned by the company and the franchise buyer. At the same time, Starbucks fully controls the process of opening an establishment and monitors strict adherence to standards during operation.

The buyer of the franchise is obliged to purchase with his own financial resources everything necessary for the full functioning of the establishment and service to visitors, and must also pay once a month a certain amount of money, which is specified in the Starbucks franchise agreement.

A significant influx of clients from Russia wishing to purchase a franchise began in 2007. Both businessmen and consumers appreciated the cozy atmosphere that reigns in the coffee shops of this brand, the incredibly tasty and aromatic coffee, as well as the expanded menu. Before Starbucks appeared on the Russian market, no coffee shop had previously offered anything like this.

Today, Starbucks coffee shops welcome visitors in Moscow, Yaroslavl, Sochi, St. Petersburg, Tyumen, Rostov-on-Don, and Yekaterinburg. The total number of coffee shops is 75 establishments, most of which operate in the capital of our country. And this is not surprising, because Moscow is the economic center of Russia, so people come to it not only from all over the country, but also from all over the world.

The company's great success is due to its aggressive marketing. Competition in the coffee shop market is very high, so Starbucks management is forced to use tougher methods to combat its competitors. Thus, every year the number of coffee shops around the world is increasing at an incredible pace. Other international networks have not shown such rapid growth for a long time.

Working conditions

When working with private investors, Starbucks gives preference not to the number of open coffee shops, but to their quality. This forces management to put forward rather stringent requirements for cooperation.

Farming as a business – pitfalls and features.
How to correctly calculate profit or loss before tax?

What income is not subject to taxation?

The head office strictly monitors all areas of the establishment’s work, from the interior of the coffee shop and the work of the staff to the selected musical repertoire.

Basic conditions and requirements for potential franchisees:

1. Possibility of significant financial investments.
2. Availability of suitable premises with an area of ​​about 70 m². It is desirable that the property be located in a building of social significance or on the territory of a shopping center.
3. Working out all the details of the future project and offering favorable conditions that may interest Starbucks representatives.
4. It is preferable that the future owner of the establishment has a good reputation and is a fairly large businessman.
5. An optional but important condition is the location of the entrance doors. It is preferable that they face east or south, but in no case north. This allows visitors to enjoy sunlight without being in their face or blinding their eyes.

If the investor meets all the requirements and is ready to comply with the company’s basic conditions, then he can contact Starbucks representatives through the company’s official website and discuss the purchase of a franchise.

For businessmen who want to invest in opening a Starbucks coffee shop, it is important to know that there is no single sales system for Russia.

That is why the initial size of the starting investment is negotiated with each franchisor purely individually. In addition, the investor will have to promote the brand himself. An example of brand promotion in the USA is in this video: