Hot Coffee Franchises Are Big Business
Starting a coffee or tea franchise from scratch will be tough when competing with many stable chain brands like Starbucks. Some larger franchises like Dunkin' are saturated in the market and are not typically seeking new investors. But several regional brands are expanding their markets, are looking for new franchisees and have loyal customer bases that generate recurring revenue.
Americans love their coffee so much it's almost an addiction!
What does it cost to get into the Coffee, Bakery and Snacks sector?
The average investment in the Coffee, Bakery and Snacks sector is $414,567. But, that doesn’t tell the whole story. There's a striking difference between the average and median.
Of all Coffee, Bakery and Snacks franchises, 54 have an investment lower than $325,000. The average initial investment is skewed because the most expensive franchise in this sector is $2,055,164.
When looking at franchise opportunities make sure you examine brands within your investment range. Search below for Coffee, Bakery and Snacks investments that fit your financial criteria. If you're not sure what you can afford, fill out our Franchise Affordability Calculator.
How much can I make in the Coffee, Bakery and Snacks sector?
How much money you can make from a Coffee, Bakery and Snacks franchise depends on several factors, including location and demand for your services.
One way to predict your profit potential is to evaluate the financial performance representations provided by a franchisor in Item 19 of their Franchise Disclosure Document. Franchisors are not required to disclose this information, some are more transparent than others.
In the Coffee, Bakery and Snacks sector, 52% disclose a financial performance representation. Of those, only 51% disclose some type of expense data on its franchisee operations.
Unlock our Coffee, Bakery and Snacks Sector Report to learn which franchises are profitable.
- Hot drink market is expected to grow by 2.9% over the next two years.
- Customers are loyal and repeat business is typical.
- Niche markets like espresso, bubble tea, or iced coffee are expanding.