Starbucks is known for being selective in approving individuals to open a Starbucks store. Currently, only a few countries in Europe are allowed to buy a Starbucks franchise. You must submit an application that proves you have the financial means and experience in the food and beverage industry to run the coffee store. There are many plus sides to operating a Starbucks cafe too. Here is an overview of the pros, cons, costs, and typical profits of a Starbucks franchise to help you make the right decision on whether or not to open a series of Starbucks stores:
- You’ll receive support from the Starbucks team when it comes to store design, marketing, store development, training, and performance measurement. They will offer business consultation if you need it as well.
- You’ll have access to the complete Starbucks menu.
- Necessary tools and manuals for successfully operating the store are included in the agreement.
- Owning 20 Starbucks locations is a lucrative opportunity.
- Starbucks is a trusted, popular brand.
- If you don’t live in Europe, then you will have to move to open a Starbucks. Moving into another country is a huge step to take as you must leave your friends and family behind, quit your job, and buy a new house.
- You need £500k of liquid assets to be accepted.
- You need to own or operate a multi-site business to be approved for franchise ownership.
- Starbucks will expect you to open 20 stores within the next 5 years upon approval.
One of the primary complaints people have about the Starbucks franchise opportunity is it’s only available in a few countries. Those who live in England and France are lucky to not have to move to a new country for opening a Starbucks cafe. A few Americans are also disgruntled that the opportunity is not available in the Unites States.
When applying for a license to open a Starbucks, you must prove you have £500k of liquid assets. You must also currently own or operate a multi-site business. A Starbucks store that is open seven days a week costs on average $1,770 per day to operate. In a year, that’s $646,000 in expenses.
Profit depends on numerous factors, such as location, so the profit you see with your Starbucks store may be either higher or lower than typical. You can usually expect to earn around $108,000 per year for each Starbucks cafe. Considering Starbucks wants its franchisee owners to operate 20 coffee shops within five years, your typical total annual profit after five years would be $2,160,000.
Running multiple Starbucks stores is a profitable opportunity for those who are passionate about the brand and able to live in one of the countries where Starbucks allows franchisee operations. If you’re unable to move into a country that accepts individuals to open Starbucks stores, then keep an eye out for news on Starbucks extending its opportunities to another country. They are still new to the franchise game, having only started a franchise business model in 2015.
If you are able to take advantage of the current opportunity, then keep in mind that there are strict guidelines for becoming accepted. Once you are approved, however, you will have access to Starbucks’ team and resources to help run successful Starbucks cafes.