Coffee Franchise Profitability?

[Grinder]

Hello everyone. I have read a lot of the posts and I am thoroughly impressed with the unselfish nature of everyone.
Has anyone heard of Saxbys Coffee? They are a new gourmet coffee house that is franchising out accross the country.
Does anyone have any advice on getting involved with franchising?
How about advice for getting into the retail coffee shop business?
This is a very real possibility for me right now and I would love to read anyone''s feedback.
Thanks for your time in reading this post.

 

[John P]

Read through this first.

http://www.coffeeforums.com/viewtopic.php?t=5571

 

[coffee4me]

Like most posts John P's redirect ends up like most frinchise vs inde coversations. The inde's direct the conversation about what a tough and long road the coffee business is. Heck if its so bad why would anybody want to be in the coffee business.

I personally have been involved with several franchises over the years and I am within days of signing on with a coffee franchise. It has been my experience that a well run franchise keeps you out in front of the independants, in any industry. If a new trend comes along the inde will still be researching while a good franchisee will have already implemented it.

Most posts tell us that it is stupid to pay a franchise fee when you can do it yourself. Heck I don't want to spend a year of more figuring out menues, recipes, suppliers, and advertising. A good franchise has all that figured out. By my calculation you can be up and running making money while the indes are still researching. Plus most franchises provide advertising assistance in the form of art, and marketing materials that cannot be purchased for the cost of the royalty.

Being with the right franchise will get you into locations an inde can't get to. Most franchises work with a realty group that can do thousands of dollars of demigraphic research that an inde can't afford to pay for. Good current demigraphic research costs $5000 min. Sign a franchise agreement and its included. Prime strip mall locations are usually leased before a building is built. A good franchise will get you into those locations before the inde even knows the land sold.

I'm not saying that indes don't have their place because they do. However, if you are like me I don't need a business that is more than just for fun. I need a business that provides predictable consistant growth and profits. Being with a franchise helps you focus on the big picture and not so caught up in managing the ball.

Keep in mind that I am not saying it won't be alot of work, because any new business is. What I am saying is that a good franchise, with the right product can put you ahead of the game. That's why the failure rate of a new franchised business is 20% when the failure rate of new business in general is 80%. I like the franchised odds better.

 

[chocoholic]

Thanks so much for this lengthy and specific post about franchising. I have done a lot of research, and it does seem that the franchise fee (and with some are minimal) is worth the headaches of all of the marketing research, real estate issues, build outs, what to buy, what NOT to buy, etc.

I have also spoken to some of the franchisees and they are completely happy with their decision to go with their certain company and felt that it was the right move for them. They were "up and running" much quicker than had they done it themself, they were happy with the products, and even though they know their competition, it is usually NOT the independents...it's Starbucks!

Lastly, I look at when I'm out of town, or just traveling within my area, unless I know the independent's reputation of quality food/atmosphere....I always go with the chain restaurants because I know what I'm getting.

So...for me, we'll see. Still lots of work ahead....and possibly looking for a partner (hopefully silent! haha)