We have to think anyway, so then why not think BIG. Are you looking forward to Investing in approximately £5 billion hospitality Industry? Hospitality is the next Big Thing. To make things simpler for you we provide you with the opportunity to explore the best Business options in the ocean of the hospitality Industry.
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 arelicensed 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.
ADVERTISEMENT
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 thatLicensees 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 average70 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-storesquarterly 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
[su_accordion]
[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]
[/su_accordion]
Table of Contents
ADVERTISEMENT
FAQs
How much profit does a Starbucks franchise make? ›
According to reports from existing Starbucks franchise owners, profits can range anywhere between $50,000 – $200,000 annually, depending on how well it's managed. The average revenue per store is roughly $1.2M.
How much does franchising Starbucks cost? ›Starbuck's Franchise (Licensing) Costs
A licensed Starbucks has an initial licensing fee/startup fee of around $315,000. That includes some of the equipment you'll need to operate your coffee shop. But your total investment tm open a new store will approach $1,000,000.
The number of Starbucks licenses that you have directly correlates with your income potential. For instance, an individual with one Starbucks license can earn more than $120,000 annually. An individual with up to 20 licenses for Starbucks could realistically earn more than $2 million annually.
How profitable is Starbucks UK? ›Starbucks UK Coffee Company (in GBP): Total revenues: £328m, up 35% driven by the recovery of sales in both Company owned stores and Licensed/Franchised stores from COVID-19. Gross profit: £95.1m increased due to COVID-19 recovery. Operating Profit: £16.5m, up from loss of £37.4m driven by increase in revenues.
How much profit does Starbucks make in the UK? ›Total revenues 2021 rose by 35% to £328m as sales recovered in its company-owned stores and franchised sites. The operating profit was reported at £16.5m, up from loss of £37.4m.
What is Starbucks current profit margin? ›Operating Margin as of March 2023 (TTM): 13.12%
According to Starbucks's latest financial reports and stock price the company's current Operating Margin is 13.12%. At the end of 2022 the company had an Operating Margin of 13.12%.
Starbucks annual/quarterly net income history and growth rate from 2010 to 2022. Net income can be defined as company's net profit or loss after all revenues, income items, and expenses have been accounted for. Starbucks net income for the quarter ending December 31, 2022 was $0.855B, a 4.82% increase year-over-year.
Does Starbucks have high profit margin? ›Starbucks Profit Margin (Quarterly): 9.81% for Dec. 31, 2022.
How does it cost to own a Starbucks? ›What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.
How much is a typical franchise fee? ›Franchise fees are typically between $25,000 to $50,000 on average. 2) Startup Costs: These are the expenses you'll incur to get your new business open and operating. Initial investment costs vary widely from franchise to franchise.
What are the costs of a franchise? ›
Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.
How much does a Starbucks make a month? ›The estimated total pay for a Starbucks-Barista at Starbucks is $2,986 per month. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $2,803 per month.
How much does 1 Starbucks store make a year? ›How profitable is an individual Starbucks cafe? For company owned and operated stores, roughly, about $108K per year, per store. This amount excludes licensed stores.
Why does Starbucks not pay tax in the UK? ›The company said the tax payment was low because “this dividend income has already been taxed in other jurisdictions before it is booked for accounting purposes as a profit in Starbucks EMEA Limited. As the income has been taxed already, it is exempt from further UK corporation tax charges.”
Is Starbucks big in the UK? ›The U.K. is Starbucks' largest market in Europe, the Middle East and Africa.
Is owning a coffee shop profitable UK? ›Coffee shops are incredibly profitable thanks to their high-profit margin and low cost of stock. With effective cost management, you can ensure your coffee shop will be a success! For example, a wholesale bag of beans will cost between £10-18 per kilo, which will hold 120-140 servings per bag.
Are Starbucks franchised UK? ›Starbucks operates more than 1,100 stores in the UK, the majority of which are franchised. In 2021, Southampton-based franchisee 23.5 Degrees, Starbucks' first franchise partner in the UK, secured £17m funding package from HSBC to expand its UK portfolio, with the company also targeting drive-thru outlets.
How many Starbucks franchises are there in the UK? ›There are 1,171 Starbucks stores in the United Kingdom as of January 25, 2023. The country with the most number of Starbucks locations in the UK is England, with 987 stores, which is about 84% of all Starbucks stores in the UK.
Is Starbucks expensive in UK? ›According to recently released findings, a cup of Starbucks coffee in London costs up to 9% more than in other UK cities. A Starbucks coffee in London costs 42% less than the price of a comparable beverage in Bern, Switzerland, ranking first on the chain's list for the most expensive drinks.
Does Starbucks have profit sharing? ›Since 1995, S.I.P. has provided Starbucks partners opportunities to purchase company stock each quarter at a discounted price through regular payroll deductions. Eligible partners may contribute 1% to 10% of their base pay each pay period. Partners become eligible after 90 days of employment.
What is the markup at Starbucks? ›
The cost to make a cup of coffee for Starbucks is $1. That single dollar includes direct labor for support staff, baristas, and cashiers, costing $0.01 per employee. But, what does that mean in terms of markup? Well, because Starbucks belongs to the higher-end brews, the markup is 80%.
What is the most profitable Starbucks in the world? ›Starbucks Corp.'s Shanghai Roastery has become the highest-grossing Starbucks in the world, reports Puget Sound Business Journal. The roastery averaged more than double the number of transactions as the Seattle Roastery and recorded a $29 average order.
How much does one Starbucks store make a day? ›On average, a single Starbucks store makes a profit of $ 520 in a day.
What are Starbucks biggest costs? ›Starbucks' (SBUX) main cost driver is its price per pound of coffee beans. The two most consumed coffee beans are Arabica and Robusta blends, which Starbucks sources from numerous continents to keep up with demand.
What is the profit margin per coffee? ›💸 The average profit for a cafe ranges between 2.5% (Chron estimate) and 6.8% (Specialty Coffee Association study), depending on where you're getting your data from.
How much profit does a franchise take? ›Franchise royalties range from 4% of your revenue all the way up to 12% or more. The amount has to do with the type of franchise business. For example, a food franchise is a high-volume business.
How much do franchises cost UK? ›The initial franchise fee is usually the most expensive fee you have to pay on your journey to becoming a franchise owner. This fee can usually range from anywhere between £300 all the way to £250,000 and up, depending on which franchise you decide to make an investment in.
Is franchise fee monthly or yearly? ›Royalty fees in a franchise usually are paid monthly or quarterly and might be calculated differently depending on the franchisor's needs and the terms of the agreement.
Do franchise owners keep profit? ›These overhead costs and franchise fees are generally baked into the final total selling prices for products and services rendered. Any left over is considered profit. That profit is often what franchise owners will take home, or use to invest further into the business.
What are 5 costs associated with operating a franchise? ›Other potential costs include inventory, equipment, insurance, employee training, business licenses, rent, landscaping, signage, etc. Franchise Fee: This amount can vary, depending on the franchise, but the average amount is typically $20,000 or $50,000, according to the Small Business Administration.
Do franchise owners get paid? ›
Most franchise owners don't receive a salary. Instead, your earnings as an owner come from the excess revenue after overhead costs to support the operation of the business are paid.
Can you buy a Starbucks franchise? ›You can't. Starbucks Coffee doesn't franchise. Even though franchising is a classic, successful growth strategy for myriad beloved, familiar brands, Starbucks does not grant franchises.
How to invest in Starbucks? ›Starbucks Corporation's Common Stock is traded on Nasdaq under the trading symbol SBUX. Starbucks stock may be purchased in two ways: Through a stockbroker, or. Directly through the Direct Stock Purchase Plan administered by our transfer agent, Computershare.
How does Starbucks licensing work? ›If you'd like to open a Starbucks in the US or Canada, you may do so as a licensee only. As a licensee, you would pay a license fee to use the Starbucks brand. Starbucks does this so the company can have more control over stores and quality of the product. Perfect for experienced entrepreneurs!
Is it profitable to own a Starbucks? ›Starbucks Franchise Costs and Profits
An average Starbucks franchise owner makes $120,000 in a year with one outlet and $2.4 million with 20 outlets. Of course, the success of your franchises depends on plenty of factors that affect sales and profits.
Unlike other food and beverage brands like Subway , Starbucks does not give away franchises to open a store to individuals. But people do have an option to apply for a licensed shop in locations like airports, universities and supermarkets. These individuals can pay a fee to 'rent' the Starbucks brand in India.
How much is a McDonald's franchise in UK? ›How Much Does a McDonald's Franchise Cost? Due to its popularity, the price of opening a McDonald's is steep. The cost falls between £400,000 and £800,000. Applicants must have a minimum of £150,000 in liquid assets for the initial costs and a one-off franchise fee of £ 30,000 loan.
What is Starbucks average profit margin? ›Current and historical gross margin, operating margin and net profit margin for Starbucks (SBUX) over the last 10 years. Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. Starbucks net profit margin as of December 31, 2022 is 10.09%.
Is Starbucks a franchise UK? ›Starbucks operates more than 1,100 stores in the UK, the majority of which are franchised. In 2021, Southampton-based franchisee 23.5 Degrees, Starbucks' first franchise partner in the UK, secured £17m funding package from HSBC to expand its UK portfolio, with the company also targeting drive-thru outlets.
What franchise is the most profitable? ›- Anytime Fitness. Anytime Fitness is a popular gym brand with a low-cost investment and high revenue potential. ...
- McDonald's. McDonald's franchise program is one of the most established in the fast food industry. ...
- UPS Store. ...
- Jersey Mike's Subs. ...
- Dunkin' ...
- Sport Clips. ...
- 7-Eleven. ...
- Papa John's.
Can you franchise Starbucks outside US? ›
Starbucks is one of the most popular and recognized brands in the coffee industry. The coffee shop chain has 10,000 stores worldwide with approximately 4,400 of them as licensed shops. Starbucks franchises are available overseas in countries excluding the United States and Canada.
How much is KFC franchise UK? ›On the Kentucky Fried Chicken UK website, the company states that aspiring franchise owners must have £5 million in assets and £2 million in liquid capital. The franchise fee, which is payable upfront, is approximately £38,000.
How much is a KFC franchise? ›Kentucky Fried Chicken Franchise Cost / Initial Investment / Kentucky. The franchise fee to become a KFC franchise owner is $45,000, with an estimated startup costs totals ranging between $1.2 million and $2.5 million.
How much is a Subway franchise UK? ›In the UK, a Subway franchise costs between £80,000 and £225,000. This figure includes a minimum franchise fee and other expenses like acquisition and conversion, equipment, insurance, training expenses, and opening ads. Here's a brief breakdown of the set costs involved: Franchise Fee: £8,500.