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As the famous saying goes, “Humanity runs on coffee”. What better comes to our minds when we desire to experience the authentic taste of Arabica beans in an exuberant and opulent ambiance than infamous picture of the “Twin Tailed Mermaid”? Yes, you pictured it right; Starbucks is a global coffee giant, which was founded in 1971 in Seattle’s Pike Place Market as a local coffee bean retailer. This is your one-stop destination to explore potential, investment and estimated profits for opening a Starbucks Franchise.
STARBUCKS FRANCHISE STATS
MINIMUM INVESTMENT
EUR 500,000
TOTAL INVESTMENT
N/A
FUNDING SUPPORT
NO
LICENSE FEE
USD 315,000
BUSINESS CATEGORY
FOOD & DRINK
TRAINING PROVIDED
YES
ABOUT STARBUCKS FRANCHISE
Starbucks is headquartered in Seattle and the company is now world’s biggest coffeehouse chain, comprising of approximately 25,000 worldwide. Since its inception in 1971, Starbucks has always believed and retained its quality products in the Coffee World. Starbucks believes in ethical Business practices and sources only the finest Arabica beans directly from the Coffee bean growers. At Starbucks, experience the finest taste of authentic Coffee beans roasted with deep care. Starbucks is prized for its variety and strength of flavour. It maintains its quality and sources the most authentic coffee beans directly from the coffee bean growers. Hence the potential of Starbucks is ever increasing in every part of the World.
STARBUCKS FRANCHISE COST, FEE INFORMATION
Starbucks unlike other common coffee cafe shops does not franchise to individuals. Having said that, in certain exclusive cases in which any other company has the ability and resources to provide an improved access to retail space (for example retail space at the airport), Starbucks may consider licensing its store to such a company. Out of all the Starbucks stores worldwide, approximately only 40.4% stores of them are licensed shops. It’s nearly impossible to open Starbucks store as franchise in US or Canada, but in other countries, especially UK there is always a possibility.
The minimum investment required to open a Franchise in UK is £500,000. Franchising is a way for Starbucks to help their coffee retail stores to grow, but obviously being a quality conscious brand, Starbucks, the coffee retailer prefers licensing instead of Franchising to keep more control over stores and product quality. Starbucks’s licensed store is directly operated by their corporate headquarters. The headquarters are responsible to hire top notched staff members such as General Managers. But these General Managers cannot claim the ownership of the assigned stores, yet they are simply the employees. Usually, the top notched hired staff by Starbucks like the GM is then responsible for daily hiring and management of its subservient staff at that assigned store. GM is also responsible for reporting back to corporate as to how the store is performing.
Since the Starbucks corporate is solely responsible for running the day to day operations of the licensed store, it is the prerogative of the Starbucks Headquarters to decide whether to close the store at any time or not. In a Franchise model, this is absolutely not possible to shut the store without taking Franchise into confidence. This is so because in a Franchise model, the corporate division of Starbucks is paid by the franchises through franchise fees. So until and unless the franchise does something gravely wrong to breach the franchise agreement they won’t usually be shut in such a harsh way, unlike a licensed store.
It must be crystal clear to those planning to get the license for opening Starbucks store that Licensees don’t own stores, unlike franchisees who claim the ownership of the stores; this is because for licensed stores, Starbucks is simply renting the Starbucks brand.
STARBUCKS FRANCHISE TRAINING AND SUPPORT
Starbucks believes in maintaining its Quality and hence to have an essence of standardization worldwide, it has a Comprehensive Franchise Programme. It provides you with the support right from the site selection approvals to the store opening assistance. It even provides initial training to the staff and management. One can rest assured for ongoing consultation. The Comprehensive Programme even provides employee training programs for new products and more. It nurtures your Franchise like its own child till it grows into a self-sufficient entity.
STARBUCKS FRANCHISE PROFIT ESTIMATES
The Gross Profit each store makes by the end of the year is approximately £132k-£136k depending upon its location, which forms approximately 25% of the total earned revenues and is pretty decent to start with.
Potential of Starbucks in the United Kingdom
According to a recent survey conducted in UK, it has been found out that the UK is now a nation of coffee geeks. On an average 70 million cups of coffee are consumed in the UK each day. The brand Starbucks needs no introduction to school kids, teens or to adults. It caters the Customized requirements of variant age groups. Hence Potentiality of Starbucks in the UK is beyond any question.
Requirements to Franchise Starbucks store in the UK
- To open a Franchise, one needs to reside in the UK and have at least £500,000 in liquid assets.
- One needs a minimum food and beverage experience of at least management level.
- One may also be required to open at least 20 stores in 5 years depending upon the terms and conditions in the deal signed.
As of now, Starbucks is not allowing any new Franchisees in the UK, but one must check https://www.starbucks.co.uk/business/franchised-stores quarterly to grab any new opportunities. Also one can write to Starbucks team to suggest new sites for Franchise at newsites@starbucks.com
Licensing a Starbucks store
If not Franchise, you can surely open a licensed Starbucks Store which allows you to offer customers customized Coffee and way beyond handcrafted beverages they love. Licensed Stores can be custom designed as per the desirability of the Licensee. Licensed stores are also provided with the robust ongoing assistance by the Starbucks Corporate. Licensed Stores allow you to delve every dear customer of yours to seek full coffeehouse experience they cherish and long for. You can mesmerize your esteemed customers with your original, unique and customized store designs along with popular seasonal promotions.
The approximate cost of opening a Starbucks licensed store is roughly $315,000.
Starbucks has quite a good number of licensed shops and the company prefers to use licensing in order to keep more control over its stores and invariably the quality of its products. Licensees don’t own the stores, as franchisees do; they basically rent the Starbucks brand by paying a licensing fee.
According to the recent survey, about one in five Starbucks stores in Europe, the Middle East, and Africa are company-run. In Asia, Starbucks’ current top region of growth, a little less than half are company-operated.
How to Acquire a Starbucks License in UK
In order to get a Starbucks license, the intended licensee has to follow the following procedures.
- Visit the link https://solutions.starbucks.co.uk/our-solutions/licensing and click on ‘Become a Customer.’
- After filling in your details, you will be asked to choose ‘which solution are you interested in?’ Choose ‘Starbucks – Licensing (Stores)’ and then press ‘Submit’.
- Next, you would be required to write a formal application and fill out your business location, assets, and liabilities including the net worth of your business and the cash you have at hand.
- You can now submit your application and wait for feedback from the Starbucks team.
Starbucks Franchise Contact Information
For any assistance for any particular department:
Contact Form: https://solutions.starbucks.co.uk/en/contact-form
Phone: 800-Starbuc (800-782-7282)
Live Chat: https://customerservice.starbucks.com/app/chat/chat_launch
[su_note]NOTE – It must be noted that all the email ids for every concerned department are available at: https://customerservice.starbucks.com/app/contact/ask/ [/su_note]
Frequently Asked Questions Related to Starbucks Franchise
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[su_spoiler title=”Can you open a Starbuck Franchise” open=”no” style=”default” icon=”plus” anchor=”” class=””]~ Yes, you surely can, provided the Company is having any openings for Franchise. For opportunities check: https://www.starbucks.co.uk/business/franchised-stores[/su_spoiler]
[su_spoiler title=”Can you open a Starbuck Franchise?” open=”no” style=”default” icon=”plus” anchor=”” class=””]~ Yes, you surely can, provided the Company is having any openings for Franchise. For opportunities check: https://www.starbucks.co.uk/business/franchised-stores[/su_spoiler]
[su_spoiler title=”If not Franchise then what?” open=”no” style=”default” icon=”plus” anchor=”” class=””]~ If not Franchise then surely one can license the store. Which may not allow the ownership of the store but you may pay license fee to run the store as per the Corporate’s terms and conditions.[/su_spoiler]
[su_spoiler title=”What is the bare minimum investment required to open a Franchise in the UK?” open=”no” style=”default” icon=”plus” anchor=”” class=””]~ Minimum £500,000 in liquid assets.[/su_spoiler]
[su_spoiler title=”Is it safe to invest in Starbucks?” open=”no” style=”default” icon=”plus” anchor=”” class=””]~ Of course, the UK is a country of Coffee geeks and potential of coffeehouses is ever increasing then why not invest in the most trusted and oldest Brand who has proved its authenticity and quality over these years since its inception.[/su_spoiler]
[su_spoiler title=”What is the minimum profit one can expect by the end of the year?” open=”no” style=”default” icon=”plus” anchor=”” class=””]~ Roughly Gross Profit margin must be around $170k or £84.03k per store / per year.[/su_spoiler]
[su_spoiler title=”What is the approximate cost for opening Starbucks License Store?” open=”no” style=”default” icon=”plus” anchor=”” class=””]~ Approximately $315,000.[/su_spoiler]
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