The Initial Franchise Fee for an individual Scooter's Coffee Store, regardless of the type of Store you purchase, is $40,000 for each Store. 16. Of these 31 Drive-Thru Kiosks that compile the top quartile: (1) 17 of them (or 40%) had an AUV that met or exceeded $1,179,980, (2) 19 of them (or 44%) had a Net Profit Margin and EBITDA that met or exceeded the average. Some outlets have earned this amount. The term Cost of Goods Sold includes amounts for coffee beans, dairy, food items, syrups, tea, smoothies, cups, lids, paper products, and other direct products associated with serving food and beverage products. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. The Midwest-based drive-thru coffee franchise reached the 300-store mark after seeing increases in average unit volume across the system in recent years, including 43 new stores in 2020. This role builds and leads a friendly, service-oriented barista team, sets a high-energy work pace, drives sales, increases profit, and demonstrates an engaged . Mar. The same-store sales growth figures below compare the Net Sales (as defined below) earned by Participating Stores over the course of a calendar year with the Net Sales earned by the same Stores during the prior calendar year. The term Average Customer Ticket means the total amount of Gross Sales during the Measurement Period, divided by the total amount of customer transactions. 5. The table below excludes franchised Kiosk and Coffeehouse Stores that were initially opened as corporate stores by Scooters affiliate and then transferred to a franchisee. The average profit for a small coffee cafe is 2.5 percent of gross sales. 12. The first Scooters Coffee store was a success and by 2001, there were five shops in operation. Of these 217 locations, 112 (or 51.61%) of them had Same-Store Net Sales Growth Over Prior Year that met or exceeded 24.32%. Do You Have Enough Capital to Fund a Franchise? Scooter's Coffee is a drive-thru franchise that has been serving world-class coffee for more than 20 years and has more than 240 locations in 15 states across the nation. What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. Scooters Coffee is an American drive-thru coffeehouse chain with over 500 locations in the US. Smith will lead the franchise sales, real estate, and construction functions. Franchise Chatter is reader-supported. Earnings Before Depreciation, Interest, Taxes, and Debt Service: $138,202 (21.3%), Earnings Before Depreciation, Interest, Taxes, and Debt Service, Earnings Before Depreciation, Interest, Taxes, and Debt Service: $112,737 (15.9%), Your email address will not be published. For every Pup Cup provided on April 22, the Katy location donated $2 to the Houston Humane Society. Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company. Heres what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business. DESCRIPTION. Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company. And while dine-in options were severely hampered, Scooters Coffee stores built as coffeeshop models still saw growth as well compared to the year before. The sales number is the annual median sales of 358 franchised restaurants operating in 2021. 14. How do you narrow thousands of possibilities down to the one perfect franchise for you? On grand opening day, the Katy location invited customers to bring their pups with them to enjoy a Pup Cup, a delicious mini cup of whipped cream. On average, a Biggby Coffee franchise makes $186,995 in profits per year. See Item 19 of the FDD for more information. Description. The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. 9. Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations. The Gross Sales, Discounts, Cost of Goods Sold, Labor Costs, and Rental Expenses are based upon the reported results for the Participating Stores during the Measurement Period. Assets include cash, stocks, retirement accounts, and real estate. Its signature drink is the Caramelicious, and the menu features an array of specialty espresso beverages, single-origin coffee, fruit smoothies, Red Bull Infusions, Cold Brew, baked-from-scratch pastries, and savory breakfast options. Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses. Whats more is that Scooters Coffee franchises revenues have been growing steadily over the years. Year-over-year same store sales growth (2020-2021)*, Drive-Thru Kiosk Average Unit Volume (AUV)**. Number and Percentage That Attained or Exceeded the Average: 59/42%, Number and Percentage That Attained or Exceeded the Average: 44/44%, Number and Percentage That Attained or Exceeded the Average: 42/50%, Number and Percentage That Attained or Exceeded the Average: 39/56%, Number and Percentage That Attained or Exceeded the Average: 28/55%, Number and Percentage That Attained or Exceeded the Average: 23/56%, Number and Percentage That Attained or Exceeded the Average: 18/49%, Number and Percentage That Attained or Exceeded the Average: 38/51%, Number and Percentage That Attained or Exceeded the Average: 32/51%, Number and Percentage That Attained or Exceeded the Average: 27/50%, Number and Percentage That Attained or Exceeded the Average: 22/42%, Number and Percentage That Attained or Exceeded the Average: 19/49%, Number and Percentage That Attained or Exceeded the Average: 17/53%, Number and Percentage That Attained or Exceeded the Average: 16/52%. Earnings Before Depreciation, Interest, Taxes, and Debt Service: $170,116 (21.23%), Earnings Before Depreciation, Interest, Taxes, and Debt Service, Earnings Before Depreciation, Interest, Taxes, and Debt Service: $172,443 (19.48%), Your email address will not be published. Leader. The first franchised store opened in Council Bluffs, Iowa. This statement includes average Gross Sales for the first full calendar month of operations for all franchised Kiosk Stores and Coffeehouse Stores that opened for operation in each of calendar years 2018 to 2021. The onset of a public health crisis introduced challenges levied on businesses of all shapes and sizes. How to Find, Vet and FUND a Good Franchise (Webinar), Buying a Franchise on Your Own Can Be Overwhelming, How to Find, Vet & FUND a Good Franchise. This information is based upon the top 43 of 172 Drive-Thru Kiosks that were open during the entire 2021 calendar year and provided complete information. The same-store sales growth figures below compare the Net Sales (as defined below) earned by Participating Stores over the course of a calendar year with the Net Sales earned by the same Stores during the prior calendar year. Franchise Chatter is reader-supported. In this FDD Talk post, youll learn the following: 1. The term Gross Margin means the Net Sales minus the Cost of Goods Sold. These brands have been the strongest for the longest. There are hundreds of Scooters Coffee franchises throughout the United States. Here's How to Find Out. Why Drink Franchises are the Easiest Franchises to Own, Kim Ellis Joins Scooters Coffee as Chief Development Officer to Cultivate Franchisee Success as Company Continues Nationwide Expansion. This is a total growth of 71 outlets over a six-year time length. Nationwide trends indicate that consumers want easy access to specialty coffee and quality service. Here's how franchisees can tap into consumer behaviors using strategic messaging and offers that speak to clients wants and needs. The franchise grew by almost 50 locations in 2020, while experiencing historic same-store sales growth. By requesting information, you agree that Scooter's Coffee may call and/or text you about your inquiry, which may involve the use of automated means. . This Item 19 also does not include any financial performance information for any of Scooters Coffees affiliate-owned Stores. For each year, Scooters Coffee only included Kiosk and Coffeehouse Stores that were open and operating during the entire 12-month period ending December 31 of the calendar year identified (each a Measurement Period). Subscribe, save & smile. To be part of the Scooter's Coffee team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. Founded in 1998 in Ashland, Oregon, The Human Bean franchise is a drive-thru coffee concept with 79 locations 66 are franchised, and 13 are corporate locations in 10 states. Operator and franchisor of a specialty coffee chain based in Omaha, Nebraska. This statement includes average Gross Sales of Participating Stores (both Participating Kiosk Stores and Participating Coffeehouse Stores) for each of calendar years 2014 to 2020. With the app, customers earn three Smiles for every dollar spent to collect toward free drinks for their loyalty. Start By Evaluating Your Goals. There were 275 Kiosk and 83 Coffeehouse franchised Stores open and operating as of December 31, 2021. According to Tim Arpin, vice president of franchise sales for Scooters Coffee, We have always been confident that the Scooters Coffee model was one that could not only drive sustainable profit margins but could provide amazing value to our customers. Dunkin'. Scooters Coffee Continues Growing in Iowa, Scooters Franchise Owner Salary vs. Competition. Setting up a Scooter's Coffee franchise begins when the franchisor and franchisee enter into a legal agreement that allows you to operate a store and use the brand's image and products. Founded in: 1998 Franchising since: 2001 Franchise units: 321 Initial investment: $512,400 - $860,600 Franchise Fee: $40,000 Royalty Fees: 6% Scooter's Coffee is a chain of coffee shops offering high quality coffee drinks and fast service. 3 (Fri.), 11 a.m. EST, Top Pick Franchises Mar. When compiling our data from this past year, its clear we have done just that. Email franchisechatterblog@gmail.com, Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful. (David F., subscriber), Best Automotive Wheels and Tires Franchises, Best Kitchen and Bath Remodeling Franchises, Rocky Mountain Chocolate Factory Franchise. DESCRIPTION: The Store Manager is responsible for all staffing, sales, and operations in a Scooter's Coffee location. The remaining Kiosk and Coffeehouse franchised Stores open as of December 31, 2021 are not included in the statement below because they were not open during the entire Measurement Period or did not provide complete information requested. He subsequently earned a Master of Business Administration and a Master of Information Systems from the University of Nebraska at Omaha. The median earnings for a top-performing shop are around $184,000. Franchise Winners, Survivors and Losers Last Year. Were most proud of the fact that it emphasizes the trust our brand has with customers. Number and Percentage That Attained or Exceeded (or Did Better Than) the Average: 66/47%, Number and Percentage That Attained or Exceeded (or Did Better Than) the Average: 32/43%. Arpin added, We wouldnt set such ambitious goals for growth if we didnt see proof of the models success and sustainability. Lester will lead innovation, speed acceleration and continuous improvement to enhance the interactive customer experience. Is a Scooters Coffee franchise a good investment? $19.99. To help celebrate this amazing day in Scooters Coffees franchise history, the Katy location debuted Scooters Coffees latest technologies and processes. 16. *This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. 2. Total Number of New Stores That Opened During the Calendar Year: 39, Average Gross Sales During the First Full Month of Operations: $66,775, Number and Percentage That Attained or Exceeded the Average: 19/48.7%, Median Gross Sales During the First Full Month of Operations: $66,652, Low Gross Sales During the First Full Month of Operations: $27,221, High Gross Sales During the First Full Month of Operations: $102,739, Total Number of New Stores That Opened During the Calendar Year: 43, Average Gross Sales During the First Full Month of Operations: $44,686, Number and Percentage That Attained or Exceeded the Average: 20/46.5%, Median Gross Sales During the First Full Month of Operations: $42,132, Low Gross Sales During the First Full Month of Operations: $13,063, High Gross Sales During the First Full Month of Operations: $111,917, Total Number of New Stores That Opened During the Calendar Year: 26, Average Gross Sales During the First Full Month of Operations: $36,742, Number and Percentage That Attained or Exceeded the Average: 12/46.2%, Median Gross Sales During the First Full Month of Operations: $35,936, Low Gross Sales During the First Full Month of Operations: $13,336, High Gross Sales During the First Full Month of Operations: $66,643, Total Number of New Stores That Opened During the Calendar Year: 18, Average Gross Sales During the First Full Month of Operations: $36,266, Number and Percentage That Attained or Exceeded the Average: 9/50.0%, Median Gross Sales During the First Full Month of Operations: $35,865, Low Gross Sales During the First Full Month of Operations: $12,572, High Gross Sales During the First Full Month of Operations: $53,444. Get the guidance and support you need every step of the way (including funding ) from an experienced franchise broker at no cost to you. 1. Table of Content Chapter 1: Global Coffee Franchises Industry Overview Chapter 3: Market Dynamics Chapter 4: Top Company Profiles Chapter 5: Global Coffee Franchises market Competition, by Players . Indeed, despite its relatively small size, a Scooters Coffee restaurant makes $797,101 in turnover per year on average. In 2012, there were a total of 100 franchises operating. Use Our Free Financial Calculator, Franchise Costs: Detailed Estimates of Amazing Athletes Franchise Costs (2021 FDD), FDD Talk 2021: Hounds Town USA Franchise Review (Financial Performance Analysis, Costs, Fees, and More), Section I Background information on the Scooters Coffee franchise opportunity, including relevant news updates, Section II Estimated initial investment for a Scooters Coffee franchise, based on Item 7 of the companys 2021 FDD, Section III Initial franchise fee, royalty fee, marketing fee, and other fees for a Scooters Coffee franchise, based on Items 5 and 6 of the companys 2021 FDD, Section IV Number of franchised and company-owned Scooters Coffee outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the companys 2021 FDD. Initial investments: $794,000 - $1,264,500 Net Worth Requirement: $500,000 Liquid Cash Requirement: $200,000 Estimated Initial Investment With more than 11,300 restaurants worldwide (more than 8,500 in the United States), Dunkin Donuts franchise certainly is among the best-known brands in coffee franchises. Scooter's Coffee may offer a starting point and a brand built on outstanding performance. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee. See Item 19 of the FDD for more information. Scooter's Coffee Ranked a Top Franchise for Veterans by Entrepreneur Magazine 23 Jan, 2023 Press FOR IMMEDIATE RELEASE Contact: Mary Lindsaye Boyd 919 Marketing mboyd@919marketing.com 919-459-8160 Scooter's Coffee Ranked a Top Franchise for Veterans by [ Read More ] Scooter's Coffee Continues Growing in Texas 23 Jan, 2023 Press Scooter's Coffee has the franchise fee of up to $40,000, with total initial investment range of $794,000 - $1,264,500. In working across the retail spectrum, he brought a business focus to IT, making it a value-driver that resulted in significant growth for organizations. As the name suggests, Scooter's Coffee is where coffee connoisseurs can "scoot in and scoot out" as they enjoy its premium coffee products. The Store Manager is responsible for all staffing, sales, and operations in a Scooter's Coffee location. Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse. But, ultimately, a coffeehouse or drive-thru coffee kiosk is a business. Start a Scooter's Coffee Franchise in 2023 - Entrepreneur Scooter's Coffee Coffee, espresso, smoothies, pastries, breakfast items 2023 Franchise 500 Rank #59 Ranked #66 last year See. Initiatives included voice-activated drive-thru capabilities, predictive production management, robotic/automated cooking equipment and more that drove better business efficiencies and performance. The Eckles were inspired to open their own coffee shop while they were living in California where they witnessed the growth of the specialty coffee industry and drive-thru coffee concepts. That's right, Cafe2U is coffee on wheels. 5 Tips for First-Time IFA Convention Attendees, How Franchisees Can Use Technology to Change Consumer Behavior. Rather, you may need to deduct taxes, debt interest expenses, and other costs. Your individual results may differ. The term Rental Expense includes the total amount of payments to the franchisees landlord, including base rent, common area maintenance, real estate taxes, and insurance. We may receive a commission for leads generated from our site. Is this a profitable business? AMAZING PEOPLE, AMAZING DRINKS AMAZINGLY FAST!. Heyman will transform Scooters Coffees technology capability, allowing the company and brand to differentiate itself when providing best-in-class franchise support systems and elevating an amazing experience for its loyal and new customers. Over the last 7 years, Participating Stores in the Scooters system has experienced same-store sales growth that breaks down as follows: Franchised Same-Store Sales Growth Over Prior Year: +24.32%, Total Number of Open Franchised Outlets Whose Data Were Used: 217, Number and Percentage of Outlets That Attained or Exceeded Average: 112/51.61%, Franchised Same-Store Sales Growth Over Prior Year: +26.49%, Total Number of Open Franchised Outlets Whose Data Were Used: 163, Number and Percentage of Outlets That Attained or Exceeded Average: 79/48.47%, Franchised Same-Store Sales Growth Over Prior Year: +11.62%, Total Number of Open Franchised Outlets Whose Data Were Used: 154, Number and Percentage of Outlets That Attained or Exceeded Average: 78/50.65%, Franchised Same-Store Sales Growth Over Prior Year: +7.63%, Total Number of Open Franchised Outlets Whose Data Were Used: 135, Number and Percentage of Outlets That Attained or Exceeded Average: 56/41.48%, Franchised Same-Store Sales Growth Over Prior Year: +3.59%, Total Number of Open Franchised Outlets Whose Data Were Used: 124, Number and Percentage of Outlets That Attained or Exceeded Average: 64/51.61%, Franchised Same-Store Sales Growth Over Prior Year: +8.40%, Total Number of Open Franchised Outlets Whose Data Were Used: 94, Number and Percentage of Outlets That Attained or Exceeded Average: 50/53.19%, Franchised Same-Store Sales Growth Over Prior Year: +16.0%, Total Number of Open Franchised Outlets Whose Data Were Used: 79, Number and Percentage of Outlets That Attained or Exceeded Average: 42/53.16%, Franchised Same-Store Sales Growth Over Prior Year: +13.39%, Total Number of Open Franchised Outlets Whose Data Were Used: 59, Number and Percentage of Outlets That Attained or Exceeded Average: 38/64.41%. 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