Coffee franchise opportunities in the United States of America

Despite this massive growth, the Covid-19 pandemic had an effect on the industry. We saw franchised revenues of $12.7 billion in 2019 dip to $10.8 billion in 2020. However, that did not spell an end to the industry, which has made a remarkable comeback. In 2022, we saw revenues return to $12.7 billion to pre-pandemic times, representing growth of 6.1%. And looking into the future, the value of the US coffee franchise market is expected to reach $14 billion by 2025. 

As for the number of coffee shops, we see a growth of 1,700 coffee shops around the country by the end of 2021. That means that the number of coffee shops increased from 35,600 to 37,300 in a very short space of time. If you want to get involved in this industry, it’s definitely time to consider your options with the various coffee franchises for sale.

Coffee industry trends in 2023

The year 2023 is the perfect time to open a coffee shop because it is expected that coffee shop franchises will be making a major comeback after the pandemic. This is why it’s important to be aware of the industry trends when considering coffee shop franchise opportunities. 

It is also important to distinguish between the different types of coffee companies in the United States (such as coffee franchises and small businesses that offer coffee) as well as the current retail environment in which they operate. 

For example, although demand for coffee is on the rise, some trends within the industry indicate that apart from seeking high quality coffee, many Americans are also looking for that extra special touch that comes with specialty coffee. That’s why some of the industry trends that a prospective coffee franchise owner should consider include the following:

• Customers are increasingly seeking variety and novelty in their coffees ranging from iced versions to flavored cappuccinos and coffee brewed with artisan beans;
• Pairing coffee offerings with sandwiches, cakes, other drinks, or treats and snacks is another important trend to look out for;
• Being environmentally-friendly, eco-conscious, and sustainable with the sourcing and selling of coffee is crucial, too;
• Plant-based milks such as oat milk are on the rise, enabling coffee shop franchises to cater to the lactose intolerant, weight-conscious, and environmentally-conscious consumer;
• A coffee chain should balance the product they sell with an experience such as creating great ambiance through music and furnishings, the friendliness of the staff, etc. 

Why you should consider a coffee shop franchise opportunity

With rising demand for great coffee and high competition in the industry, it’s worth considering different coffee franchise opportunities because you’ll be in business for yourself but not by yourself. Apart from all the levels of support you will receive from the franchisor, ownership of a coffee shop franchise comes with a plethora of benefits, including:

• Brand awareness of the established franchise brand, which attracts customers who have come to know and love the business.
• You get a fully created marketing plan that will ensure that the parent brand includes you in its marketing efforts. You can also benefit from printed materials and other marketing collateral. 
• Training programs will ensure that you are able to provide the same levels of service that your customers expect from the brand, wherever in the country or the world they may be. 
• Coffee franchises for sale also enjoy a much lower risk of business failure as opposed to independent start-ups due to the tried and tested business concepts and model. 
• With a coffee shop franchise, you are not expected to have prior experience in the coffee industry at all. The full training on how to run your successful business will be provided by the franchisor. 
• You will have access to ample brand resources. 
• Most coffee franchise opportunities will also offer you business and HR support to run your operations smoothly. 
• Access to an established supply chain for key ingredients at competitive rates that offer the best value for money. 
• The ability to get fast and strong returns on your investment and the ability to, in many cases, turn your profits around within the first year.  

How much does it cost to open a coffee franchise business?

With so much variety in terms of the ample coffee franchise opportunities available, the initial investments for such a venture will vary on the brand, location and the franchise fees. However, on average, your franchise fee and startup costs can range anywhere from $200,000 to $400,000 and upwards.