Starbucks Franchise Cost Complete Guide

Have you ever wanted to own a Starbucks franchise but weren’t sure how much it would cost or where to begin? If that sounds true to you, you’re in luck. I’ll tell you what you need to know about Starbucks franchise fees in this article.

We’ll focus on how much it costs to open a Starbucks franchise and everything else you need to know about the company. Apart from that, you’ll learn how to open a Starbucks chain, how much a Starbucks store earns in a year, and much more.

If you plan to start a Starbucks franchise this year, this guide will be invaluable.

Let’s get this party started.

Article Road Map

A Short History of Starbucks

Starbucks Corporation is a coffee company based in the United States and one of the world’s leading coffeehouse chains.

Jerry Baldwin, Gordon Bowker, and Zev Siegel formed it in 1971, opening the first store across the street from Seattle’s historic Pike Place Market.

Starbucks was named after Moby Dick’s first friend from Herman Melville’s classic novel.

In terms of ownership, Starbucks is owned by Starbucks.

As the company’s biggest shareholder, Howard Schultz can be referred to as the “owner” of Starbucks.

In 1982, Schultz became the head of retail and promotions for the Starbucks Coffee Company.

He briefly left Starbucks to start his own coffee business, the II Giornale Coffee Company, before returning in August 1987 with a group of investors.

Howard Schultz bought all of Starbucks Coffee Company’s holdings and became the company’s CEO, but he revealed at the end of 2016 that he would hand over the CEO position to Kevin Johnson.

Schultz now holds 33 million shares directly and 1.7 million shares indirectly by trusts in the group.

He increased the company’s revenue from $1 billion to $5 billion.

Kevin Johnson took over as CEO of the company from Schultz in 2017 and has remained so to this day.

Starbucks, the world’s largest coffeehouse, caters mostly to quality-conscious coffee drinkers, producing their coffees using automated espresso machines for performance.

The business now has 30,000 stores in over 77 countries, offering hot and cold beverages, as well as Through whole-bean and micro-ground instant coffee.

Starbucks also offers Caffe lattes, full- and loose-leaf teas from Teavana, espressos, Frappuccino drinks, Evolution Fresh juices, La Boulange pastries, and snacks like chips and crackers, among other things.

Read Also: How Old Do You Have to Be to Work at Starbucks?

Is Starbucks A Franchise?

No way!

Starbucks is not a chain of coffee shops.

While having over 24,000 outlets around the country, the company has failed to franchise its independent stores.

In an interview, Howard Schultz said, and I quote:

We believed very early that people’s interaction with the Starbucks experience was going to determine the success of the brand.

The culture and values of how we related to our customers, which is reflected in how the company relates to our employees, would determine our success. And we thought the best way to have those kinds of universal values was to build around company-owned stores and then to provide stock options to every employee, to give them a financial and psychological stake in the company.”

So, if you’re thinking of starting a Starbucks franchise, you may want to rethink because the business does not sell individual franchises.

Starbucks has a lot of other ways for existing companies to market Starbucks merchandise at their existing outlets.

However, the company may recommend leasing its activities to a master concessionaire or another company if you can have better access to suitable retail space (such as an airport or a train station) or other company controls.

However, there is also a good chance that your shop will be authorized, which means it will be owned by Starbucks.

Read Also: Waffle House Franchise Cost

How to Get Started With Starbucks Franchise Fees

There are a few items to consider when discussing Starbucks franchise payments and how to open one.

Starbucks will first decide whether or not the current enterprise is a suitable match for all of their services… If they are, they will be given permission to sell Starbucks items in their shops.

It’s also worth noting that operating a Starbucks-licensed store entails being operated by Starbucks.

Starbucks Coffee Company has no plans to franchise at this time.

As in a conventional franchise arrangement, Starbucks license arrangements assist store owners with certain facets of daily operations, such as store architecture, the Starbucks menu, supplies, food, training and support, sales, and onsite visits.

Starbucks does not have a standard requirement for recruiting applicants for a licensed shop, but entrepreneurs can get started by visiting the Starbucks Branded website and submitting an inquiry.

Before you can apply for a Starbucks license, you must first build an account on the website.

Sign up to your dashboard after you’ve signed.

After that, choose your business type from the drop-down menu that appears after the guide.

To begin your license application, choose the company that most closely matches your current business style.

When you’ve finished filling out the form that appears, scroll down to the bottom and press the send button.

Within a few days, you will be contacted by a Starbucks representative who will assess if your company is a good match for the Starbucks brand.

Since 1996, Starbucks has been spreading outside of North America. Today, the company has stores in at least 62 countries around the world, with over 12,000 of them outside of the United States.

It may also be of concern to note that, according to CNBC, a new Starbucks store opens every 15 hours in China.

In China, there are reportedly 3000 Starbucks locations, with plans to increase this number to 5000 by this year.

Starbucks is now looking to grow its footprint in India, where it already has 75 high-performing stores. This will aid Teavana, the company’s specialty tea brand, to thrive.

Starbucks has over 10,000 locations globally, with 4,400 of them already on registration.

Read Also: How old do you have to be to work at GameStop)

How Much Money Does a Starbucks Store Make a Year?

Statista claims that:

Starbucks made over $26.5 billion in gross sales in 2019, a gain of 7% (7%) over the previous year.

Starbucks’ worldwide sales from 2003 to 2019 was approximately 237.35 US dollars, according to the data.

Now, if you’re wondering how much a Starbucks shop earns in a year…

Unfortunately, the corporation would not share such detail with the public because it is against their policies. However, as a public corporation, they must disclose their annual revenue. This aids for investors to find a need to invest in them.

Starbucks does not report how much any of its stores earn  on a quarterly basis. However, we can approximate how much each store earns based on their total sales.

Read Also: 5 Reasons Why People Become Entrepreneurs

How to Start a Starbucks Franchise?

Franchising can help stores expand, Starbucks likes licensing because it gives them more power over their stores and product consistency.

The expense of a Starbuck license shop, on the other hand, is within $315,000 to $320,000.

Several people will now be wondering:

Is a Franchise a Good Investment?

Almost everybody nowadays wishes to quit their 9-5 work in order to be their own boss… And it seems that franchising is one of the options!

Franchises have recently had such a strong economic track record.

In reality:

Franchise employment growth has been 2.6 percent a year over the last five years, almost 20 percent more than other industry categories. This is according to the International Franchise Association.

Investing in a franchise is sure to pay off if you have the right attitude, experience, and discipline.

Alternatives of Starbucks Franchises

Read Also: Chipotle Franchise Profit Margin

Alternatives to Starbucks franchising.

The franchise business has been thriving for more than four decades, and it is now more dynamic than ever.

In reality:

The entrepreneur also released its 2020 Franchise 500 Ranking. This details the expense of each of the 500 most famous franchises.

Final Thoughts

Hopefully, you now know what is important about Starbucks franchise payments and how to open a Starbucks franchise.

As you can see, if you meet their expectations, the procedure isn’t too hard, and it’s also really lucrative. Simply follow the steps above and contact us if you have any questions.

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