Detail Information about Starbucks Franchise:
Coffee and tea are the most demanding beverages consumed by people. Most of the people will not able to start their day without coffee. It is an essential part of people’s life and even any meeting; family get together is incomplete without coffee. If we discuss for coffee then we could not skip the name of Starbucks.
Starbucks is the popular and trusted name in the coffee industry and serving to people for years. It is the leading coffee chain in the world. Starbucks is continuously increasing its network by opening its outlet. No one can beat the demand of Starbucks. So if you are interested in coffee business and want to set-up your own outlet then Starbucks Franchise is ideal choice for you.
In this blog we are going to provide the detail information about Starbucks Franchise. So, please read this blog before making any decision and regarding franchise.
Starbucks Company History & Details:
Starbucks is an American based coffee store. Jerry Baldwin, Zev Siegl, and Gordon Bowker established Starbucks in 1971 at Seattle’s Pike Spot Market. They sold out the company to Howard Schultz in 1980s. Schulz extended the company rapidly – first in Seattle, then, at the West Coast, prior to going countrywide and, at last, worldwide.
The company has experienced Orin Smith, Jim Donald, Schulz once more, and Kevin Johnson. In April 2022, Howard Schulz becomes the CEO of Starbucks for the third time. Within November 2021 the Starbucks Company has 33833 outlets in 80 countries. 8900 stores are operated by the Starbucks directly and rest stores are license based or franchise type.
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Starbucks Franchise Business Model:
Every company has its own business model and they are strictly follows that. Starbucks has no traditional franchise model. You must know the business model before planning for the Starbucks business. No one individual can open a Starbucks outlet independently. Anyone can apply for the franchise of the outlet; if the application will be accepted then they can get franchise from the company. After getting the franchise and fulfill all the criteria they can open an outlet.
Advantages of Starbucks Franchise:
You know that you can’t take franchise a Starbucks. You can get Starbucks franchise. Here few advantages are given below-
- Customized outlet design
When you are granted for a franchise to open a Starbucks outlet, you can design the outlet as per your style. Starbucks is not like other company where the parent company strictly gives you the format or store design. You can apply different plans that would suit the local taste. You can choose the one design for your outlet out of the 18 design studios that Starbucks will give.
- Awesome food menu and whole beans
You can get Starbucks’ select bakery products range, Starbucks signature drinks recipe and include in your menu. You will likewise get the Starbucks whole beans so you don’t have to worry about where to get your stock of coffee to sell.
- Consultation & support
Starbucks won’t leave you after you have set up an outlet. Starbucks will counsel and support consistently. The company always ready to support to run your outlet properly. They time to time guide and give suggestion to sustain in the market.
- Exclusive Hardware package
You do not know which coffee making machine is the best one to utilize or what other equipment you will require when you get franchise of Starbucks store. You won’t have to stress over that because the company provides you the equipment they have approved for use. Starbucks always looks after you from the starting day.
- The Starbucks brand name
One of the significant advantages of owning a Starbucks franchise is its brand name. Your store name is already popular. You need not make new client base for your outlet because Starbucks has already trusted consumers. It gives you different appeal that could not possible with any general coffee shop.
Starbucks Franchise in India:
Starbucks does not offer traditional franchises, it does grant licenses for locations within hospitals, colleges, and other businesses. These licensed locations operate differently from franchises and are subject to different requirements. As of October 2017, there were over 13,000 Starbucks stores in the US, with about 41% of them being licensed locations.
To operate a licensed Starbucks location, the licensee must have a location that meets Starbucks’ criteria, and they must have the resources to open and run the store. While Starbucks provides support for licensed stores in terms of design, menu, equipment, training, and support, operating a licensed Starbucks may not be the best option for everyone, especially new operators looking to open their first business or make their first big investment.
Eligibility Criteria for a Starbucks Franchise:
Starbucks is the world-class brand and very well known in India. Investors can take franchise to start the store. Let’s see the eligibility of Starbucks franchise are-
- The investor must have leadership and communication abilities.
- He / She must be passionate for the business, positive attitude, and a good marketing knowledge.
- He should know how to manage the client and ready to provide excellent customer service.
- Always choose the place where maximum people can come.
- Need to think big, must have faith in self, good mindset, financial skills and always positive for your business.
- The investor should have experience in running a multi location store.
Requirements for a Starbucks Franchise:
If you want to start your Starbucks Franchise then you must have following requirements-
- You should hire 4-6 employees to operate the outlet.
- The owner and the employees must go through the training provided by the company.
- Required 300-500 sqft. area for a proper outlet in the prime location.
- The investor must be able to pay 2-3 crores for the franchise in India.
- You need Starbucks franchise approval to run the outlet.
- You must have the following documents- Aadhar card, PAN card, food license, bank details, and passport size photos.
Starbucks Franchise Cost:
Starbucks nowadays does not offer franchise, they provide franchise to open a Starbucks store. The expense to open a Starbucks store can differ according to country and area. It includes location, size of the store, and other expenses.
As per a disclosure report by Starbucks in 2020, the complete investment to open a store can ranges from $228,620 to $2,888,700. That means INR 1,88,90870 to INR 2,38,55281. This includes different expenses like development and work out costs, machines and equipment, initial stock, and training cost. It’s important to know that these expenses do not include land costs, which can vary area to area.
A franchise fee has to pay by the investor. An average franchise fee to open a Starbucks outlet as per the trusted source is $315,000 means INR 2,60,28450. The Starbucks franchise is very costly so the investor must have enough funds to own this franchise .
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Space Required for Starbucks Franchise:
If you want to open a small stall then it requires 100-150 sqft area. If you want to start a proper outlet with parking facility within a mall, in a prime location or any popular places then it requires 300-500 sqft area. Always keep in mind that the location should be in a clean place because people want to spend some time in a pleasant place.
Starbucks Franchise Profits & margin:
There are no specific figures or measurements available to know Starbucks’ profit margin. A person who gets the Starbucks franchise, then he will gain enough profit. This is because of Starbucks’ brand value, high quality products and service, large client base. Joining these components gives 100% assurance that anybody investing his fund into the company would get handsome profit.
According to some reports from existing Starbucks franchise owners, the profits can range anywhere between $50,000 – $200,000 yearly that is INR 41,31,500- INR 1,65,26000 depending on location and how properly it is managed.
The investor can get his entire invested fund that is return on investment within 12-18 months from a medium-sized outlet.
Challenges of the Starbucks Franchise:
In any business there are some positive things and some challenges come. You must know both things before planning for any start-up. In Starbucks brand it is very popular in India but there are some challenges those must know an investor. Some common challenges are as follows-
- The main challenge is Starbuck’s investment amount. Unless you are running a stable and secured business then this investment is little risky for you.
- If you want to open an outlet in India then you have to careful about the price of the menu. The price of every food item is costly as compared to other companies. So, to meet the price it can be little challenging for the owner.
- Starbucks always accepts the application whose location is quite good. If the location is not up to the mark then the company will reject the application form.
- It is really a challenge to meet the client’s requirements. Every client has own choices. People like the food they have been consuming and if the store does not meet the requirement then there might be a chance of disappointment from the store.
Starbucks Franchise Training & Support:
There are required training, seminars and workshops provided by the Starbucks Company to their franchise holders. Let’s see the details-
- According to the Starbucks the investor or a control person should go to the training program given by the Company in selected location. In this training the investor can get knowledge how to operate the outlet.
- Under the Starbucks direction and guidance, staffs of the store should go to the training program and should finish it positively.
- All the training programs are planned for the betterment of business and according to the need.
- All Starbucks training programs are designed for investors, managers and staffs to provide proper guidance. They have to meet the standard of Starbucks and no compromise in service and product quality.
- The company always supports the franchise holder from the day one and provides help whenever required.
How to apply for the Starbucks Franchise ?
First of all Starbucks does not offer separate franchises. However, it is possible to operate a company-licensed store in a specific area, where the individual would not be the owner of the outlet. In India, there is no application form available for a Starbucks franchise. However, interested individuals can contact the company using the information provided on their official website: https://www.starbucks.in/
For those looking for employment opportunities with Starbucks, the company has a specific sub-domain website for job openings, internships, store managers, retail and non-retail vocations, and other opportunities. More information about employment opportunities at Starbucks can be found by visiting this link: Careers in India’s Starbucks.
Disclaimer: Tata Starbucks Pvt. Ltd. is the only authorized entity to own and operate Tata Starbucks restaurants in India, and they do not offer franchise opportunities. Unfortunately, there have been reports of fraudulent individuals claiming to be agents or employees of Tata Starbucks and requesting payments from unsuspecting investors in exchange for a non-existent franchise.
We advise everyone to be cautious of such scams and only engage with authorized representatives of Tata Starbucks.
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Starbucks Franchise Contact Details:
If you want to take Starbucks Franchise and you have any query related this franchise then you may contact to the company via given details as I’ve mentioned below:
Tata Starbucks Private Limited:
4th Floor, New Excelsior Building, Amrit Keshav Nayak Marg, Fort, Mumbai 400 001
Contact No.: 022-66113939
Franchise Email – email@example.com
In conclusion, Starbucks does not offer franchise opportunities in most countries, including the United States and India. The company prefers to own and operate its own stores, allowing for greater control over the quality of the products and the customer experience.
While there may be some exceptions in certain regions or circumstances, it is important to note that any offers for a Starbucks franchise should be carefully scrutinized to ensure their legitimacy. Overall, those looking to invest in the coffee industry should consider other options outside of a Starbucks franchise.
FAQ(Frequently Asked Question):
Q. Who has the right to operate Starbucks Franchise in India ?
Ans: Tata Starbucks Pvt. Ltd. has sole and exclusive rights to own and operate Tata Starbucks Restaurants in India.
Q. How much does it cost to open a Starbucks franchise ?
Ans: There is no information available on the cost of owning a Starbucks franchise. However, there are certain expenses associated with operating a Starbucks outlet, such as space for the store, employee salaries, interior décor, general food license, and others.
Q. Can I get a Starbucks franchise in India ?
Ans: Starbucks does not offer franchises or franchise to individuals. However, anyone can apply to run a Starbucks franchise outlet by visiting their official website.
Q. Does Starbucks provide ownership ?
Ans: No, Starbucks does not offer ownership of its stores. The company prefers to maintain complete control over the management and quality of its products.
Q. What kind of support Starbucks Franchise provide ?
Ans: When anyone takes a Starbucks franchise, the company provides them with Starbucks products, and training for the staff.
Q. What are some other coffee shop franchises to invest in ?
Ans: Starbucks is the leading name in the coffee industry, and there are many other coffee shop franchises to invest in, such as Dunkin Donuts, Gloria Jeans, and Cafe Coffee Day.
Q. How do I use my Starbucks Card ?
Ans: You can use your Starbucks Card to purchase any item like – Food, Beverage, Retail coffees, Ready to Drink, Ready to Eat, Merchandise, etc .at all participating Starbucks stores in India any Starbucks stores across India. The value of your Starbucks Card c
Q. How many Starbucks locations are there in India ?
Ans: There are more than 140 Starbucks outlets in various cities in India.
Q. How much profit can I earn from a Starbucks franchise ?
Ans: It is not possible to determine the actual profits of a Starbucks franchise, but according to some reports, a single Starbucks outlet can earn over ₹ 93,000 per day in India. This amount can sum up to ₹ 27.9 lakhs as monthly earnings and ₹ 3 crore per year.
Q. Is Starbucks a privately held company ?
Ans: Starbucks stores in India are not privately owned because the company does not offer franchises in the traditional sense.
Q. What are the expenses involved in setting up a Starbucks franchise ?
Ans: The expenses for setting up a Starbucks franchise depend on various factors such as location, rent, and other costs associated with operating a store.
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