question about Royal Gourmet coffee routes

[waterman]

hello all..tried searching and found nothing archived. Sorry if this has been brought up before.
There''s a co. advertising routes in my area, they appear to be legit but have not been in this city before. For example, for $18k you can buy a route and it will be approx. 20-25 accounts, some commercial, some retail, that will generate roughly $42k p/year income. All you have to do is deliver the coffee and collect the money. The co. uses a consulting agency that sends it''s worker bees out and establishes the accounts for you, although you can do that also.
I''ve done as much checking into this co. as I am able with limited internet skills. They do appear to be based in a house in Longwood, Fl. (thanks to google earth), they say they roast their own beans, have bought into a hedge fund that guarantees them against rising prices, but I am still skeptical. It seems like a perfect match for what I''m looking for. Can anyone shed some light on this co. and make or ruin my day? thanks

 

[CCafe]

Look at it this way. If you have to pay money to make money then its most likely a scam. If you could make a million dollars simply by investing in to a book with some cd's would you do? Probably not. Besides if it makes that much money then why is the company selling the route when they could mine it out themselves.

Here's another thought. Even if you did put down the $18K for the hypothetical job whats to say 25% of the business you service don't close up shop. Last time I checked selling coffee was just about as hard as selling a vacuum cleaner. Everyone has one and why should they buy a new one?

 

[waterman]

CCafe, good point about everyone already having a coffee or two. And there are a million choices.
I'm hoping someone who has experienced this particular company, for good or bad, has something to say about it.
If no one has ever heard about it, that will tell me something , too, because they have supposedly been in business for 10 years..

 

[Bill Laine]

I don't know anything about this company. I have a few thoughts based on their presentation, as you relate it:

If you are on this forum because you are a specialty coffee enthusiast I think you might be disappointed. Usually office coffee service is about marketing, not quality. Marketers take "whatever" products and give them the sizzle. "Gourmet" in the name is a clue.

They get the accounts for you: Lots of people dream about having their own business. Not so many have the sales gene. They think "it would be great to drive around and service accounts if only I didn't have to try and convince anyone." Those people are the target for this pitch, in my opinion. I don't have hands on experience with this type of situation but I am that person and I have examined a number of these pitches in my time. Give them money and I will have a good job handed to me. Unlikely, I think. If you want to have some kind of stocking route you have to sell your accounts.

They roast their own beans: This sounds like a positive but what if it is a combination cost cutting measure and marketing hook. They roast mediocre beans cheap and give "we roast" to the marketing department.

If you are really serious about these guys you want to see their system in action. Talk to other route owners. Visit their customers. The company could be reluctant to give you contacts and the ones they do give you have a good chance of being shills. Be very wary and if you smell anything fishy back out fast.

In the franchise/vending field I think there are more predators than sincere operators. Especially if they are targeting wannabee entrepreneurs in their marketing. Look out for yourself.

Bill
New Orleans

 

[cgldcgtrme]

royal gourmet coffee

hEY

 

[brianf]

Curious?

I too am in the process of evaluating Royal Gourmet Coffee. Can you share why you feel it is a scam? I did speak with 2 references that my contact there provided to me. Both seemed to check out quite well.

Real interested in hearing more.

 

[matt1976]

OK, I sent my money to them already and they are not calling me. Waterman, will you please contact me?

 

[jimb]

royal gourmet coffee

I am also checking out Royal Gourmet Coffee to become a distibutor. It almost sounds to good to be true. I have contacted them several times and only once has my call not gone to an answering service. I would love to hear from anyone else that has dealt with them and is now or was a distributor.

 

[Jacey]

Royal Gourmet Coffee route

I too would like more information. I am in the process of signing up to become a distributor.
I disagree with the poster who said if you have to pay to make money, then back out. I do not know of any distributorship where you do not have to pay money to own a distributorship. Also, they don''t require you to find your own accounts because you pay a fee for that. You don''t have to do that if you choose to locate and secure your own accounts. There is also a guarantee with the locator for two years. If the accounts aren''t producing, they will locate you new accounts for two years.
I have never once had my phone call go to an answering machine and was even given the cell phone number of the gentlemen I spoke with.

They have a good rating with BBB- I don''t know what that says, if anything. I would like details of people being scammed before I send my check PLEASE. A lot is riding on this for us.

They also secured an agreement with Walmart and Sam''s Club. I think they''re a legit company. BUT, I am very anxious to hear any experiences anyone has.
If you''re getting answering machines after you send money - how do they know it''s you - have you tried calling from a different #? (if you think they are purposefully avoiding you w/Caller ID or something)

They told me they have 280 distributors in 32 states and in Canada. If you talk to other distributors aren''t you really only going to hear the good? I heard about them through someone that was selling their distributorship because of a move and divorce. They are handling the sale. They offer to let you ride w/the route owner etc. Would they really do that if it was a scam?

Please someone who has been ''ripped off'' as you put it, give the rest of us details. Have you started your business? Did you use the locator service to secure your accounts?
Looking forward to hearing more. Thank you!!!

 

[CCafe]

We need to clarify the word Distributorship. The common definition goes something like this,

A distributorship involves entering into an agreement to offer and sell the product of another, without being entitled to use the manufacturer's trade name as part of the agent's trade name. Depending on the agreement, the distributor many be limited to selling only that company's goods or may have the freedom to market several different product lines or services from various firms. Copied from http://www.entrepreneur.com/encyclopedi ... 82298.html

As such I buy tax free and resell with tax added. I think what waterman and a few others are talking about do not fall under a distributorship but more as a delivery route.

The last time I went down a road like this it was laid out before me. They said that in a sense I would be buying all my product from the business on credit terms. After it was loaded on the company truck all the product on the back was technically considered mine until delivery and sign off. I was to pickup the payment on delivery or I could be held accountable for the goods that were dropped off.

Even though I was to distribute the goods from the company and the company considered them my goods when they were loaded on to the truck, I never dealt with anything else. No ordering, selling, heck I didn't even own the truck. So in a sense I was a delivery man who they were trying to offload all accountability on too. Thats why I never went to work for them. Its to much like a scam. If you get in to a wreck with that business your the one who is left footing the bill.

In waterman's case I think he was paying for a delivery trade route and nothing more.

 

[Jacey]

Royal Gourmet Coffee route

Thank you for your reply. It has taken a while for my first post to be approved and I've been anxious to post!

Reading through their terms, it states clearly that the relationship is that of a distributor, but a distributor is defined as a purchaser of goods from the seller. You are basically purchasing coffee and their displays and additional monies must be for the "right" to do so?

The wording on their 'contract' which is not a contract, but a "Terms and Condtions of purchase and sale" states that they do NOT help locate accounts. They do however provide a locator service - who I have spoken to briefly. Some choose not to use the service as they have other products that they already sell and accounts set up.
The problem for me is that the locator service will not talk to me in detail until I sign with the company - for obvious reasons. They did tell me about their guarantee etc.

For the person who wasn't getting returned calls? From who - the company (RGC) - or the locator?

Anyone else who has info to share - it would be greatly appreciated!

 

[jimb]

I was able to reach Evens Consulting on the first try and had a short but helpful conversation with Dave Evens. He confirmed the arrangement they have with RGC Distibutors as it was described by Bill Porter at RGC.
Bill has so far answered all of my questions to my satisfaction, and when I have called and received the answering service, he had called back the same day.
I am a bit concerned where I have read in this forum that 2 individuals have sent in their investment money but not received the stands or product. I wonder how much time they gave it. I was told thta your first order could take 3 to 4 weeks.
Please continue your posts so we all can learn.
Jimb
Green Bay

 

[Jacey]

Royal Gourmet Coffee route

Jim,
I too spoke with Dave Evans, albeit very briefly. Do you know if they will give anything in writing before you send your money to RGC?
My concern is being left out in the cold. My conversations with RGC were very much that of a "team" concept even though their purchase agreement does not reflect that at all.
Did your conversation with Bill clarify more about the commercial accounts. BTW- Bill is not the account mgr we've been speaking with.
We were led to believe that RGC gets the commerical accounts. Evans gets the retail. Were you told the same? I need to know more about the warranty that Evans gives. I know they give 2 years in which they will replace any account that does not produce at least 4 sales per day, but I don't know the time frame of when they will find replacement accounts. Were you able to get that kind of information?

Jacey

 

[showtime23]

Updates?

Hi,

I am also potentially thinking of doing this but I am holding off in terms of sending a check after have read this forum.

Does anyone have any updates in regards to RGC?

Someone posted that they have secured rights to sell in Walmart and Sams Club, has anyone seen the products in these stores or have called the stores to confirm it?

Thanks

 

[crwcontroller]

Royal Gourmet Coffee

Hi All

I am thinking also about purchasing an account. I am in Pittsburgh and talking to Vincent Pastone about Royal coffee. There is one other that I have been told that did just purchase an Distributorship a week ago in Pittsburgh. I have asked if I can get there phone number and call and see
how things are going. I have talked to Dave Evans also and they do the retail and Vencent told me they do the commercial accounts. Dave will not be getting you stores like walmart. He said they just talk to the stores that have managers that can make decisions about putting the product in the store. Not large chains they have to much purchasing power over what they can get. Dave also said if you want more stores he can help you at 175$per store. The 18000$ I was told has enough supplies for your first 20 stores and 10 more. 3500 is deducted from the 18000 which Dave said you pay him with 2 enstallments.
Hope this helped let me know if you all find anything else out.