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!

With 110 franchise systems, there are several great business opportunities that fit your investment range.
Several large brands like Dunkin' Donuts or Starbucks are staples in America. Yet, with over $28 billion in annual revenue, there is room for several other regional competitors that carve out niche markets across the country that do quite well.
Sector Report
Sample research stats taken from our data in the Coffee, Bakery and Snacks sector
Initial Investment

What does it cost to get into the Coffee, Bakery and Snacks sector?

The average investment in the Coffee, Bakery and Snacks sector is $418,315. 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 $331,248. 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.

Initial Investment
$2,055,164 Highest
$24,050 Lowest
Figure 1: Initial Investment required for a franchise in the Coffee, Bakery and Snacks sector
Financial Transparency
Provides Item 19 Data
Figure 2: 52% of franchises in this sector have Item 19 in their FDD.
Discloses Expense Data
Figure 3: Of franchises with an Item 19, 51% disclose expense data

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.

These statistics are a sample drawn from just two of seven grade sections we research and analyze. For a full sector report, contact us.
Why buy a Coffee, Bakery and Snacks franchise?
Niche brands are creating loyal followings for iced coffee, bubble tea, or specialty tea. Location is key for walk-in and drive-thru traffic and is one key factor to consider.
  • 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.
Coffee bakery why buy
Want a more detailed analysis of the Coffee, Bakery and Snacks sector?
Finding the best franchise means comparing several brands to determine the ideal fit for you. Franchise Grade is dedicated to research and education, helping you make confident franchise investment decisions.
Review our stats, check out the featured franchises below, browse all the franchises within this sector, unlock the full Sector Report, or contact us — we have several franchise experts ready to help you understand and analyze the data (FREE).