The world of franchising gets bigger by the day. Today, there are lots of options to choose from, including education, home care, food, and fitness franchises. If none of those are your cup of tea, you may want to consider a coffee franchise, like the Costa Coffee franchise.
Brits drink a whopping 95 million cups of coffee every day, and a significant number of those are purchased from coffee shops. There are 25,486 coffee outlets in the UK serving thirsty customers every day and the largest of these is Costa Coffee.
Brewing Success in the UK
In the year 1971, Bruno and Sergio Costa launched Costa Coffee in London, when they began selling roasted beans to cafes, restaurants, and other outlets.
In 2019, Coca-Cola bought the company, which now has over 3,400 outlets in Great Britain, making it a firm favourite with coffee lovers and franchisees alike.
Nowadays, whether you’re on the high street, in garages, cinemas, or supermarkets, you can’t go far without coming across a Costa Coffee branch With an annual turnover of of £975.9 million, Costa is a bonafide success.
Does Costa Coffee Franchise in the UK?
Yes, Costa Coffee operates an expansive franchise network in the UK. A considerable number of Costa’s UK outlets are, in fact, owned by franchisees, all of whom have taken up the baton of operating a Costa Coffee franchise.
That said, Costa is not currently looking to open other franchise outlets in the UK, as they are busy focusing on ‘new partnerships.’
It’s not all bad news, though; if you want to contribute to Costa’s annual turnover and you live outside of the UK, franchise opportunities are still available.
Costa is actively looking to expand in international territories and has a wish list of desired locations which is available on request.
Costa Coffee Prices in the UK
We’ve got more unfortunate news. Costa Coffee franchises aren’t just hard to secure– they’re not cheap.
The typical Costa Coffee franchise cost for your start-up fee is £800,000 (£250,000 of which must be a personal investment).
Of course, the numbers do make sense. Considering Costa Coffee’s wide customer base and proven reliability, franchising is a near-guaranteed success.
How Does Franchising Work?
While Costa Coffee may not be a realistic place to start, franchising is still worth your time. For many, the term can seem intimidating, however, it’s simpler than they think.
Franchising is a way of carving out a slice of the business world for yourself without the costs and risks associated with going it alone. Let’s face it, starting a new business comes with many dangers.
Conversely, franchising allows you to buy into a large, established company. When a franchisee buys a piece of a franchise, they receive access to the company’s branding as well as training, ongoing franchisor support, and a primed customer base.
Breaking Down Franchising
Sounds great, but how does one get started?
To get started, you’ll pay a fee to the franchisor, which will give you access to everything you need for your business to get off the ground. This fee varies widely and can be anything from a couple of hundred pounds to fees like Costa Coffee’s £800,000.
Once your business is up and running, you’ll pay a monthly fee to the franchisor – usually a percentage of either your sales or your profits. You’ll continue to pay this monthly fee until your franchise contract ends, at which point you can choose whether to renew your contract or end it.
After a certain length of time, the successful franchisee will be able to buy further franchises of the business to make their own empire.
Begin Your Franchise Journey Today
While Costa Coffee’s success may seem like a great starting point, buying into the franchise is unrealistic. The company is limiting their current franchising growth in the UK. Outside, the rates are exorbitant.
This doesn’t mean stop. Franchising is an increasingly popular way of exiting the rat race, starting out in business for yourself, and a coffee franchise is a really good bet. If you can’t stretch to forking out £800,000 for an international Costa Coffee franchise, don’t worry; plenty of other options are available.
At Franchise Local, we offer the best in franchises. We’ll help you find affordable franchise options, in an assortment of industries. Peruse our Cafe & Coffee options for other companies in this realm. While they may not have the smashing success of Costa Coffee, they offer a great, reasonable place to start.
When looking for a franchise opportunity, be sure to shop around to make sure that you’re getting the best possible deal, and always ask a solicitor to look over the contract before signing on the dotted line.
Remember, franchising isn’t an impossible task. With soaring growth rates and annual turnovers, you’re bound to find success.