On average, you would need to invest $1,143,250 to open a new Scooters Coffee restaurant. Watch Our Webinar Live or the Recording Later, Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool), How Much Franchise Can You AFFORD? Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company. If a Store first opened mid-month, that partial month of initial operations is not included in the data below. 4. There is no . In mid-February 2021, Scooters Coffee reported that despite the ongoing challenges of the COVID-19 pandemic, the brand continued its upward trend in 2020 by surpassing a major milestone with its 300th franchise location. Despite being one of the biggest names in coffee shop chains, with more than 31,200 stores globally, Starbucks Franchise does not fall into the discussion of attractive coffee franchises because Starbucks does not grant franchises so there is no opportunity for entrepreneurs to get involved. Katy is one of our first locations to offer a dual-lane drive-thru to really enhance the speed in which our customers are getting through the drive-thru from start to finish. There were 189 Kiosk and 77 Coffeehouse franchised Stores open and operating as of December 31, 2020. 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%. As a result, non-traditional Stores operate differently from Kiosk and Coffeehouse Stores, as they generally do not have a drive-thru or significant customer seating available, may not have standard hours of operation, and typically are not located in freestanding locations that are visible to the public from outside. 10. This ever-growing brand has more than 275 locations across 17 states, including coffeehouses and drive-thru kiosks. And once 2018 rolled around, they had a total of 171 franchise locations. Scooter's Coffee is an American chain of coffee stores specializing in quick service of espresso drinks, smoothies, and baked goods founded in 1998 and has grown to about 250 stores in the United States. The past year threw so many challenges everyones way, especially in the foodservice industry. Browse franchises that are similar to Scooter's Coffee. Scooters Coffee has not verified or audited this information. 16. 7. Need help? Cash Available for Investment0-$99,999$100,000 - $199,999$200,000 - $299,999$300,000+. The investment amount covers all startup costs you need to open a restaurant. All of the Stores whose data were used in the table above were open for at least 13 months during the measured period. As the name suggests, Scooter's Coffee is where coffee connoisseurs can "scoot in and scoot out" as they enjoy its premium coffee products. Is a Scooters Coffee franchise a good investment? Purchasing a coffee shop franchise should be more than buying a job; it should be an opportunity for entrepreneurial growth. Exceeding 400 stores is significant and reflects an important moment for the brand as Scooters Coffee advances toward a goal of 1,000 stores by 2024. It was founded in 1998 in Bellevue, Nebraska, by Don and Linda Eckles. The franchise grew by almost 50 locations in 2020, while experiencing historic same-store sales growth. Same-store sales for locations open for at least 13 months is measured each year. Learn more about how to become a franchise owner with one of the leading coffee brands in the nation. Your results may differ. Initial Franchise Fee: $40,000. At the beginning of July 2019, Scooter's Coffee gave its franchisees a powerful new way to help customers cool down and power up anywhere and everywhere with the company's first-ever canned Cold Brew beverages. It is clear that the 550-square-foot drive-thru kiosk model has proven itself effective and viable. Potential profit from a Scooters Coffee franchise is well above the average for the industry. Speed, consistency, and an amazing customer experience is at the heart of Scooters Coffees 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. Heres what you need to know if youre interested in opening a Scooter's Coffee franchise. You also agree to our Privacy Policy. Smith has held a wide array of development team leadership roles with Starbucks Coffee, opening 350 stores in six states; Potbelly Sandwich Works; and Qdoba Mexican Grill, spearheading development and implementation of national corporate and franchise restaurant growth strategies for the 650-location chain across 42 states. In mid-May 2021, Scooter's Coffee released its 2021 Franchise Disclosure Document, providing a look into its system and sales growth during 2020. 4. This statement includes average Gross Sales of Participating Stores (both Participating Kiosk Stores and Participating Coffeehouse Stores) for each of calendar years 2014 to 2021. For each year, Scooters only included franchised Kiosk and Coffeehouse Stores that remained open and operating as of December 31, 2020. Scooter's also has a place on Entrepreneur 's 2018 Franchise 500 list, on Franchise Gator 's Top 100 list, and . Everyone watched their spending last year, and yet so many customers saw our products and service worthy of their dollar. May vary, with recurring contributions up to 3% of Net Sales. Lets find out! The following charts are based on information for only 186 Kiosk and 78 Coffeehouse franchised Stores that were open and operating during the entire Measurement Period for 2021 and that provided complete information (the Participating Stores). Indeed, despite its relatively small size, a Scooters Coffee restaurant makes $797,101 in turnover per year on average. As you can see, revenue per franchise increase 2 fold in the last 8 years. Scooter's Coffee was founded in 1998 by Don and Linda Eckles in Bellevue, Nebraska. According to the latest FDD, startup costs vary based on the format of restaurant you choose: the Kiosk Store costs on average $794,500-$1,264,500, whereas a Coffeehouse store costs $666,500-$1,847,500 instead. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems. Non-traditional Stores are carts or small spaces located in specialty locations (e.g. As president and CEO of Credit Union Liquidity Services, Smith managed daily activities of a $250-million portfolio owned by a financial institution, including geographically diverse loans and U.S. real estate holdings. Scooters Coffee is an American drive-thru coffeehouse chain with over 500 locations in the US. 2. The following are statements of Sales, Expenses, and Earnings for Participating Kiosk Stores and Participating Coffeehouse Stores based upon reported results and actual and estimated expenses. Initiatives included voice-activated drive-thru capabilities, predictive production management, robotic/automated cooking equipment and more that drove better business efficiencies and performance. He was enlisted in the United States Air Force where he was a computer programmer, served on the base Honor Guard, and completed a tour of duty in Kuwait. Arpin added, We wouldnt set such ambitious goals for growth if we didnt see proof of the models success and sustainability. Your individual results may differ. To create an amazing experience for each life we touch. Source: Franchise Disclosure Document 2022 Yet, this adjusted EBITDA does not mean you will earn 21.2% of the total revenue as the net profit. In mid-May 2021, Scooters Coffee released its 2021 Franchise Disclosure Document, providing a look into its system and sales growth during 2020. The term Net Sales means sales of all services or products from or through your Store, including any sale of services or products made for cash and/or on credit, regardless of: (i) collection of charges for which credit is given, (ii) whether such sale is conducted in compliance with the Franchise Agreement, and (iii) whether such sale is at the Franchised Location or off-site, but exclusive of discounts. Leader. There are hundreds of Scooters Coffee franchises throughout the United States. Scooter's Coffee franchise fees for 2023: Initial Investment: $794,000 - $1,264,500 Net Worth Requirement $500,000 Cash Requirement $200,000 Veterans incentive: Yes Royalty Fee 6% Financing options: Yes Initial Franchise Fee: $40,000 Is Scooter's Coffee a Semi Absentee Franchise with a Passive Ownership Opportunity? The Store Manager is responsible for all staffing, sales, and operations in a Scooter's Coffee location. Those are exciting numbers for entrepreneurs looking at a Scooters Coffee franchise, especially in light of the relatively low investment required to launch a location. There is no assurance you will earn as much. 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 includes the franchise fee, which is $30,000, as well as the cost of equipment, signage, and other start-up expenses. 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. Your results may differ. ), Franchises: 150+ templates built specifically for franchisees, from restaurants, gyms, home services and more, 104 on-the-job hours and 56 classroom hours, Scooters Coffee franchises pros and cons. Nathan Lester, senior director of drive-thru innovation at Scooters Coffee, said, At Scooters Coffee, we are constantly striving to create the best possible experience for our customers, and a part of that is through new technology and innovation. Curious to know where Scooter's Coffee ranked on other franchise lists? You do not need to consent as a condition of any purchase, and you can revoke consent at any time. Over the next few decades, Scooters Coffee has expanded beyond the Midwest and there are now locations in more than 28 states. 7 (Tues.), 4 p.m. EST, Register Now to Get Free Access to Recordings of Both Webinars. According to StartMyCoffeeShop.com, the average coffee franchise owner will take home $66,000 a year. Is this a good investment? while meeting budget expectations and achieving a $100,000 profit . The term Gross Margin means the Net Sales minus the Cost of Goods Sold. In each section, the franchised Stores that meet the criteria in this Item 19 are referred to as Participating Stores (for all such franchised Stores), or for a particular type of Store, Participating Kiosk Stores or Participating Coffeehouse Stores.. LEARN MORE WHO ARE WE SEEKING? When compiling our data from this past year, its clear we have done just that. Drive-thru coffee kiosks are growing in popularity all around the country. Royalty also includes the 2% Marketing Contribution. However, their liquid capital requirement is only $100,000 compared to Dunkin's $250,000 minimum. Only then you can pay yourself dividends. The Initial Franchise Fee is due and paid by . 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. 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 . Visit OwnAScooters.com today to learn more about joining the Scooters team and making your dreams a reality. At C2 Education, a national chain of 200 specialized tutoring centers in 14 states, Smiths department led all aspects of store development, including strategic planning, site selection, legal, lease management, construction, and facilities. This statement includes average customer ticket sales of Kiosk and Coffeehouse franchised Stores that were open during the entire 12-month period ending December 31, 2020 (the Measurement Period) and that provided complete information Scooters Coffee requested respecting such costs. Scooter's Coffee General Information. See Item 19 of the FDD for more information. Targeting mostly businesses and special events, Cafe2U serves customers from a van, which is staffed with baristas. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high. Your results may differ. Smith will lead the franchise sales, real estate, and construction functions. The initial investment for a Scooter's Coffee franchise is $120,000. Scooters Coffee ranked No. Need help? A Scooters Coffee franchise owner salary may rise up to around $320,000 a year, before depreciation, interest, taxes, and any debt service. 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. Franchise Training at Scooter's Coffee For the profits, we used net profits instead of EBITDA here, which we assume to be 15% of sales (which makes sense given EBITDA is around 21%, in line with similar restaurants). Details can be found in Item 12 of the FDD. Catch up on the latest franchise news, trends, and more. Entrepreneur and its related marks are registered trademarks of Entrepreneur Media Inc. See Item 19 of the FDD for more information. 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. 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. 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 Coffeehas been ranked in Entrepreneur's Franchise 500 multiple times in recent years. Mar. During 2020, the range of rent paid for Kiosks was $3,600 to $52,401, and the range of rent paid for Coffeehouses was $12,000 to $112,441. 1. Nov 2021 - Jun 20228 months. Single day sales records for franchise of Hart Family Coffee, and as . Last updated on August 29, 2022 by Franchise Chatter Leave a Comment in Coffee Franchise, FDD Talk: Food Franchises, Franchise Earnings. During 2021, the range of monthly rent paid for both Kiosks and Coffeehouses was $3,500 to $10,000. Opening a Scooter's Coffee franchise could be a strategic move if owning a well-regarded beverage franchise is your dream. This information is based upon 217 locations that were open during the entire 2021 calendar year and provided complete information. Number and Percentage That Attained or Exceeded the Average: 90/48%, 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: 36/46%, 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%. For example, a Kiosk Store makes slightly less revenue than a Coffeehouse Store. The company is seeking to expand its reach even further, potentially making it an intriguing option for entrepreneurs. According to FranchiseChatter.com, a unit of The Human Bean yields average profits of at least $100,000 with a caveat. 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. In each section, the franchised Stores that meet the criteria in this Item 19 are referred to as Participating Stores (for all such franchised Stores), or for a particular type of Store, Participating Kiosk Stores or Participating Coffeehouse Stores.. Since Scooter's Coffee hit the market, the brand has maintained a solid reputation among customers who depend on its commitments to quality. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. Section V Presentation and analysis of Scooters Coffees financial performance representations, based on Item 19 of the companys 2021 FDD, including information on the: The following table summarizes the ownership of Stores in operation as of December 31, 2020: This Item 19 does not include financial performance information for any of Scooters Coffees franchised nontraditional Stores as Scooters Coffee currently is not actively marketing non-traditional Stores, and they operate differently from Kiosk and Coffeehouse Stores. 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. Royalty also includes the 2% Marketing Contribution. Rather, you may need to deduct taxes, debt interest expenses, and other costs. Entrepreneur Franchise 500 Rank: 11 th. Franchisees may be entitled to renew their agreement if they meet the Scooter's Coffee brand requirements. Net Sales also includes the fair market value of any services or products you receive in barter or exchange for your services and products. Definition: The initial fee paid to a franchisor to join their system. PJ's Coffee. As a result, non-traditional Stores operate differently from Kiosk and Coffeehouse Stores, as they generally do not have a drive-thru or significant customer seating available, may not have standard hours of operation, and typically are not located in freestanding locations that are visible to the public from outside. In mid-July 2021, Scooters Coffee announced that Ric Smith has joined the company as senior vice president of development. Download the Scooters Coffee franchise business plan, Updated with Franchise Disclosure Document. We are excited to continue this innovation across all locations nationwide.. 103 on Entrepreneurs 2021 Franchise 500 list. Initiatives included digitizing supply chain processes, automating business practices, designing/building the first global sustainability data collection/reporting solution, and leading the implementation of its Automated Order Taking initiative. The following statement is based on information for the Kiosk and Coffeehouse franchised Stores that were open and operating during the entire Measurement Period and that provided complete information (the Participating Stores). Lester also oversaw McDonalds innovation restaurants, implementing breakthrough practices in live environments. It has a lot to offer with many locations, a high volume of unit sales, and strong company culture. Fill out this form and a specialist from the Franchise Brokers Association will reach out to you. 14. Reminder: Your username and password are case-sensitive. There is no assurance that you will sell or earn as much. 9. 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