Spilling the beans about coffee franchises

Posted 09/08/2017 : By: Debbie Dennis

Coffee franchises are big business. Gone are the days of instant coffee, consumers nowadays are connoisseurs wanting to experience the latest artisan blend.

This article featured in Elite Franchise Magazine spills the beans...

'From baristas serving up steaming cappuccinos to franchisees selling lattes out of vans, there certainly seem to be plenty of opportunities to make a killing peddling coffee in the UK. “We’ve seen an explosion in coffee shops,” says Carl Reader, affiliate forum chairman of the bfa, author of The Franchising Handbook and director at Selling a Franchise, the franchise-purchasing website. And the numbers back him up: Allegra World Coffee Portal, the consultancy researching the global coffee industry, recently estimated that coffee shops are poised to outnumber pubs by 2030, effectively making them the new local. And this trend has been spearheaded by franchises. “They’ve changed the public expectation from paying 50p or £1 for coffee served in a really small cup to a £4 experience,” says Reader.

However, franchises like Starbucks and Costa Coffee would have been unable to transform the UK’s dietary preferences if the market hadn’t been ripe for disruption in the 1990s. “If you’d swung by a traditional café back then your options would’ve been between tea and bad-tasting instant coffee,” says Reader. Coffee does have a long history on these shores with the first coffee house opening as early as 1651. Nevertheless, tea became the warm brew of choice because few colonies occupied by the British Empire could grow the beans. This left Britons with a poorer coffee culture than the ones enjoyed by their neighbours on the continent. Fortunately, it also provided the perfect opportunity for franchises to deliver the shot of creativity that would wake up the market. “Costa in particular deserves a lot of credit for changing this,” says Reader. “The way it franchised allowed Costa to open lots of stores with revolutionary, great-tasting coffee fast and quickly build massive brand awareness.”

But an industry cannot change an entire nation’s beverage of choice by simply providing a place for people to meet. To be truly successful vendors have to be close to their customers, which is something franchising lends itself particularly well to. “Franchising allows companies to scale much faster to where their customers are than brands that just grow organically,” says Reader. While coffee shop franchises excel at rapid expansions, mobile franchises like Coffee-Bike and Cafe2U have taken it one step further by literally bringing their stores to customers. “And they also benefit from franchising because the franchisee is usually the one operating the bike or the van,” Reader says. “That means that they are far more motivated to complete their rounds than regular employees would be.” Given their ability to grow exponentially and the drive of their franchisees, it’s hardly surprising that franchises have had such an impact.'

Full article: http://elitefranchisemagazine.co.uk/analysis/item/...