The median earnings for a top-performing shop are around $184,000. That confidence in the Scooters Coffee brand has informed much of the franchises future plans for growth. Definition: A discount or other incentive offered to military veterans who buy a franchise with this company. 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. *This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. Get ready for the franchising industry's biggest trade show event of the year. Scooters Coffee has not verified or audited this information. That should include reviewing the companys legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers. Coffee, espresso, smoothies, pastries, breakfast items. On average, you would need to invest $1,143,250 to open a new Scooters Coffee restaurant. It is clear that the 550-square-foot drive-thru kiosk model has proven itself effective and viable. The brand is known for its signature caramel coffee, smoothies, baked goods, espresso drinks, and other related foods. The financial performance figures do not reflect all of the costs of sales, operating expenses, or other costs or expenses that must be deducted from net revenue or net sales figures to obtain your net income or profit. Non-traditional Stores are carts or small spaces located in specialty locations (e.g. Catch up on the latest franchise news, trends, and more. With the app, customers earn three Smiles for every dollar spent to collect toward free drinks for their loyalty. When compiling our data from this past year, its clear we have done just that. 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. Scooters Coffee used information from sales reports submitted by the Participating Stores in calculating royalties, and data obtained from approved point-of-sale register systems. Use Our Free Financial Calculator, Franchise Costs: Detailed Estimates of Amazing Athletes Franchise Costs (2021 FDD), FDD Talk 2021: Hounds Town USA Franchise Review (Financial Performance Analysis, Costs, Fees, and More), Section I Background information on the Scooters Coffee franchise opportunity, including relevant news updates, Section II Estimated initial investment for a Scooters Coffee franchise, based on Item 7 of the companys 2021 FDD, Section III Initial franchise fee, royalty fee, marketing fee, and other fees for a Scooters Coffee franchise, based on Items 5 and 6 of the companys 2021 FDD, Section IV Number of franchised and company-owned Scooters Coffee outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the companys 2021 FDD. All of the Stores whose data were used in the table above were open for at least 13 months during the measured period. Founded in: 1998 Franchising since: 2001 Franchise units: 321 Initial investment: $512,400 - $860,600 Franchise Fee: $40,000 Royalty Fees: 6% Scooter's Coffee is a chain of coffee shops offering high quality coffee drinks and fast service. Diving deeper into the same-store sales growth figures, stores built around the drive-thru kiosk model experienced 31% growth. The Eckles were inspired to start their own little drive-thru coffee shop after coming across a similar concept in California. They are Excel spreadsheets designed for entrepreneurs to create financial projections for their business, either for budgeting or fundraising, By industry: 100+ templates for specific business models (SaaS, ecommerce, hotels, restaurants, retail stores, etc. This ever-growing brand has more than 275 locations across 17 states, including coffeehouses and drive-thru kiosks. Definition: The initial fee paid to a franchisor to join their system. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. For each year, Scooters Coffee only included Kiosk and Coffeehouse Stores that were open and operating during the entire 12-month period ending December 31 of the calendar year identified (each a Measurement Period). As part of your due diligence, you may want to speak to existing franchisees and ask the Scooter's Coffee franchising team questions. Privacy Policy. 2. Find out below. To create an amazing experience for each life we touch. The median across all shops is around $90,000. In addition to the initial franchise fee of $40,000, you would also pay for: On average, a Scooters Coffee franchise makes $797,101 in sales per year. Prior to his time at McDonalds, Lester received a Bachelor of Science degree in Civil Engineering from the University of Illinois and worked as a Civil Engineer, master planning and designing municipal treatment solutions across the United States. The term Overhead is the estimated costs of other expenses including business insurance, licenses, accounting fees, franchisor technology fees, banking fees, store supplies, service contracts, repairs, maintenance, uniforms, and other miscellaneous costs. Franchised Same-Store Sales Growth Over Prior Year: 31.70%, Total Number of Open Franchised Outlets Whose Data Were Used: 102, Number and Percentage of Outlets That Attained or Exceeded Average: 46/45.10%, Franchised Same-Store Sales Growth Over Prior Year: 19.63%, Total Number of Open Franchised Outlets Whose Data Were Used: 61, Number and Percentage of Outlets That Attained or Exceeded Average: 31/50.82%, Franchised Same-Store Sales Growth Over Prior Year: 26.49%. Scooter's Coffee franchisees have two options for franchise models: our drive-thru kiosk model or a welcoming drive-thru coffeehouse model. 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%. Orders over $39.99 Ship Free! The following table summarizes the ownership of Stores in operation as of December 31, 2021: 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. Scooter's Coffee General Information. The Initial Franchise Fee is due and paid by . For example, a Kiosk Store makes slightly less revenue than a Coffeehouse Store. Start By Evaluating Your Goals. With a vision of combining high-quality drinks and speedy service, Scooter's Coffee opened in 1998, with franchising beginning in 2001. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. 3 (Fri.), 11 a.m. EST, Top Pick Franchises Mar. For each year, Scooters Coffee only included Kiosk and Coffeehouse Stores that were open and operating during the entire 12-month period ending December 31 of the calendar year identified (each a Measurement Period). Boundless Enterprises, a Nebraska-based LLC, serves as the parent company for Scooter's. Fill out this form and a specialist from the Franchise Brokers Association will reach out to you. Scooters Coffee was founded as Scooters Java Express in 1998 by Don and Linda Eckles in Bellevue, Nebraska. The term EBITDA is the estimated earnings before deductions for payments and costs of borrowing to finance the Initial Fees in Item 5, Initial Investment in Item 7, and ongoing investments in the Store and before deductions for depreciation on the Initial Fees in Item 5, Initial Investment in Item 7, and ongoing investments in the Store. Same-store sales for locations open for at least 13 months is measured each year. In the competitive coffee shop market, Scooter's Coffee may be a brand with a formidable reputation that continues to solidify itself year after year. Need help? PJ's Coffee is definitely a franchise to consider for premium cold coffee drinks and delicious coffee. Franchise Training at Scooter's Coffee 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? A Scooters Coffee franchise owner salary may rise up to around $320,000 a year, before depreciation, interest, taxes, and any debt service. while meeting budget expectations and achieving a $100,000 profit . The term Card Processing is the estimated cost of processing debit card, credit card, and gift card payments on Store sales. Approaching 500 locations across the U.S., Scooter's Coffee provides customers with responsibly sourced coffee served by amazing people, all from a convenient 664 square foot drive-thru kiosk. This information is based upon the top 43 of 172 Drive-Thru Kiosks that were open during the entire 2021 calendar year and provided complete information. 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. This statement includes the average customer ticket for Kiosk and Coffeehouse franchised Stores that were open during the entire 12-month period ending December 31, 2021 (the Measurement Period) and that provided complete information Scooters Coffee requested respecting such costs. 16. Subscribe, save & smile. In Scooters Coffees experience, Overhead expense is an average of $42,000 for Kiosk Stores and Coffeehouse Stores, and it has used these figures in calculating the estimated Overhead expenses in the above charts. Curious to know where Scooter's Coffee ranked on other franchise lists? 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. On grand opening day, the Katy location invited customers to bring their pups with them to enjoy a Pup Cup, a delicious mini cup of whipped cream. The financial performance figures do not reflect all of the costs of sales, operating expenses, or other costs or expenses that must be deducted from net revenue or net sales figures to obtain your net income or profit. 6. 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. 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. 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: 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%. Rather, you may need to deduct taxes, debt interest expenses, and other costs. 6. Leader. We may receive a commission for leads generated from our site. This Item 19 is separated into five sections. Overhead employees are not included in the labor calculations above. Were extremely proud to have had an impact with our customers and to have provided security to our franchisees, along with optimism and excitement to those considering franchising with Scooters Coffee in the future.. 7 (Tues.), 4 p.m. EST, Register Now to Get Free Access to Recordings of Both Webinars. For a number of good reasons, many entrepreneurs opt to buy a franchise of a successful coffee concept rather than open as an independent. Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees. 14. As the senior vice president of development, Smiths experience and leadership will help underscore the companys commitment to achieving growth goals while providing innovative ways for customers to get amazing drinks, amazingly fast. The following statement is based on information for only 146 Kiosk and 73 Coffeehouse franchised Stores that were open and operating during the entire Measurement Period and that provided complete information (the Participating Stores). Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. In mid-July 2021, Scooters Coffee announced that Ric Smith has joined the company as senior vice president of development. On average, a Biggby Coffee franchise makes $186,995 in profits per year. Tim Arpin, vice president of franchise sales for Scooters Coffee, said, Were thrilled with the growth weve seen in the past few years and hitting a milestone like 300 stores is a great reminder of what the brand has accomplished. We have always built our brand around amazing coffee as well as the amazing people who truly make Scooters Coffee what it is. Wake up to the ahhh-mazing aroma of quality. Initial Franchise Fee: $40,000 Total Investment: $794,500 to $1,264,500 Working Capital: N/A to $86,000 Royalty Fee: 6.0% The initial purchase price of any franchise includes several fees. Heres what you need to know if youre interested in opening a Scooter's Coffee franchise. Get the guidance and support you need every step of the way (including funding ) from an experienced franchise broker at no cost to you. The information presented in this Part 2 is based on information for Participating Stores. 2. The Eckles were inspired to open their own coffee shop while they were living in California where they witnessed the growth of the specialty coffee industry and drive-thru coffee concepts. 15. 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. In mid-May 2021, Scooter's Coffee released its 2021 Franchise Disclosure Document, providing a look into its system and sales growth during 2020. Nov 2021 - Jun 20228 months. Thats incredibly exciting for the brand, its franchisees, and those looking to join the Scooters Coffee family going forward., Nathan Lester to Lead Drive-Thru Innovation. Learn more about how to become a franchise owner with one of the leading coffee brands in the nation. That's right, Cafe2U is coffee on wheels. There is no assurance that you will sell or earn as much. Subscribe to Scooter's Coffee delivery and enjoy 100% Arabica beans, sourced directly from farmers who take pride in their product. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. 7 (Tues.), 4 p.m. EST, Register Now to Get Free Access to Recordings of Both Webinars. This information is based upon 217 locations that were open during the entire 2021 calendar year and provided complete information. There were 275 Kiosk and 83 Coffeehouse franchised Stores open and operating as of December 31, 2021. 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. Scooters Coffee is an American drive-thru coffeehouse chain with over 500 locations in the US. Table of Content Chapter 1: Global Coffee Franchises Industry Overview Chapter 3: Market Dynamics Chapter 4: Top Company Profiles Chapter 5: Global Coffee Franchises market Competition, by Players . In Scooters Coffees experience, Card Processing costs an average 2.6% of Gross Sales, and Scooters Coffee has used this figure in calculating the estimated Card Processing expenses in the above charts. He also completed coursework for the Certified Commercial Investment Member (CCIM) designation, comprised of state-of-the-industry commercial real estate coursework in financial and market analysis, investments, and negotiation. There were 189 Kiosk and 77 Coffeehouse franchised Stores open and operating as of December 31, 2020. In Scooters Coffees experience, Card Processing costs an average 2.6% of Gross Sales, and Scooters Coffee has used this figure in calculating the Estimated Card Processing expenses in the above charts. Scooters Coffee Continues Growing in Iowa, Scooters Franchise Owner Salary vs. Competition. This ever-growing brand has more than 275 locations across 17 states, including coffeehouses and drive-thru kiosks. Scooter's Coffee's franchise fee matches Dunkin' Donuts franchise fee minimum of $40,000. Lester will lead innovation, speed acceleration and continuous improvement to enhance the interactive customer experience. Scooter's Coffee is committed to continuing to serve amazing drinks, amazingly fast as we work toward becoming the number one drive-thru coffee franchise." The companies on the 2022 Inc.. Some outlets have earned this amount. Scooters Coffee started franchising in 2002 and is franchised by Scooters Coffee LLC, headquartered in Omaha, Nebraska. The table below excludes franchised Kiosk and Coffeehouse Stores that were initially opened as corporate stores by Scooters affiliate and then transferred to a franchisee. Total Number of New Stores That Opened During the Calendar Year: 95, Average Gross Sales During the First Full Month of Operations: $85,852, Number and Percentage That Attained or Exceeded the Average: 42/44.2%, Median Gross Sales During the First Full Month of Operations: $83,347, Low Gross Sales During the First Full Month of Operations: $35,521, High Gross Sales During the First Full Month of Operations: $162,422, Total Number of New Stores That Opened During the Calendar Year: 39, Average Gross Sales During the First Full Month of Operations: $66,775, Number and Percentage That Attained or Exceeded the Average: 19/48.7%, Median Gross Sales During the First Full Month of Operations: $66,652, Low Gross Sales During the First Full Month of Operations: $27,221, High Gross Sales During the First Full Month of Operations: $102,739, Total Number of New Stores That Opened During the Calendar Year: 43, Average Gross Sales During the First Full Month of Operations: $44,686, Number and Percentage That Attained or Exceeded the Average: 20/46.5%, Median Gross Sales During the First Full Month of Operations: $42,132, Low Gross Sales During the First Full Month of Operations: $13,063, High Gross Sales During the First Full Month of Operations: $111,917, Total Number of New Stores That Opened During the Calendar Year: 26, Average Gross Sales During the First Full Month of Operations: $36,742, Number and Percentage That Attained or Exceeded the Average: 12/46.2%, Median Gross Sales During the First Full Month of Operations: $35,936, Low Gross Sales During the First Full Month of Operations: $13,336, High Gross Sales During the First Full Month of Operations: $66,643. Your results may differ. Definition: The total amount necessary to begin operation of the franchise. Additionally, you will need to have access to at least $50,000 in liquid capital to cover the costs of opening and operating the business. A typical franchise agreement runs for ten years. The owner becomes an important part of the community and feels the satisfaction of serving great coffee and other items. Franchise Chatter is reader-supported. See Item 19 of the FDD for more information. 8. Rather, you may need to deduct taxes, debt interest expenses, and other costs. Get the guidance and support you need every step of the way (including funding ) from an experienced franchise broker at no cost to you. Number and Percentage That Attained or Exceeded (or Did Better Than) the Average: 66/47%, Number and Percentage That Attained or Exceeded (or Did Better Than) the Average: 32/43%. The same-store sales growth figures below show the change in the Net Sales (as defined above) earned by Participating Stores during the 2020-2021 calendar year when compared with the Net Sales earned by the same Stores during the prior calendar year, broken down by type of Store (Kiosk or Coffeehouse). On average, a Scooter's Coffee franchise makes $170,116 in profits per year (21.2% EBITDA margin). Are you eager to see what else is out there? It has a lot to offer with many locations, a high volume of unit sales, and strong company culture. Same-store sales growth compares net sales (gross sales minus discounts and refunds) in calendar year 2020 to net sales in calendar year 2021. The initial franchise fee is $25,000 . Do You Have Enough Capital to Fund a Franchise? This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee. Section V Presentation and analysis of Scooters Coffees financial performance representations (average revenues and/or profits), based on Item 19 of the companys 2022 FDD, including information on the: Section VI Key ratios, comparables, computations, and analyses for the Scooters Coffee franchise opportunity (, Site Concept Plan, Preliminary Due Diligence, and Site Work: $44,000 to $477,000, Free-Standing Building and Leasehold Improvements: $264,000 to $796,000 (not including the purchase of land), Architectural and Engineering Fees: $35,000 to $66,000, Equipment, Fixtures, and Furniture: $178,000 to $235,000, Point-of-Sale System and Software: $12,000 to $19,000, Initial Training (travel and living expenses): $5,000 to $8,000, Opening Inventory, Supplies, and Smallwares: $25,000 to $27,000, Additional Funds (3 months): $0 to $86,000, Total Estimated Scooters Coffee Franchise Costs (Coffeehouse Store): $666,500 to $1,847,500, Site Concept Plan, Preliminary Due Diligence, and Site Work: $176,000 to $397,000, Free-Standing Building and Leasehold Improvements: $272,000 to $362,000 (not including the purchase of land), Architectural and Engineering Fees: $35,000 to $62,000, Equipment, Fixtures, and Furniture: $168,000 to $176,000, Total Estimated Scooters Coffee Franchise Costs (Kiosk Store): $794,500 to $1,264,500, Local Marketing and Advertising Commitment: none currently, although Scooters Coffee may require you to spend up to 2% of Net Sales for local marketing and advertising in the future. Customers can stop at a Scooter's Coffee drive-thru and pick up quality coffee as they begin their day with a smile. The term Discounts includes the face value of coupons, free or reduced drink promotions, gift card promotions, mobile app promotions, waste, and employee free drinks. Heyman has a Bachelor of Science degree in Geology and Physics from Tufts University and a Master of Science degree in Geology from Brown University. 10. 66 on Entrepreneurs 2022 Franchise 500 list. Heymans expertise in digital transformation will result in data-driven, dynamic decision-making, allowing the company and franchise system to elevate overall customer experience while striving to deliver the best drive-thru interaction in the world. There were 189 Kiosk and 77 Coffeehouse franchised Stores open and operating as of December 31, 2020. In this FDD Talk post, youll learn the following: 1. Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company. Required fields are marked *, Previous post: Franchise Costs: Detailed Estimates of Amazing Athletes Franchise Costs (2021 FDD), Next post: FDD Talk 2021: Hounds Town USA Franchise Review (Financial Performance Analysis, Costs, Fees, and More), Is Franchising a Path for You? Visit OwnAScooters.com today to learn more about joining the Scooters team and making your dreams a reality. 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. Representation of what some of our franchisees have earned as described further in Item 19 of the franchises plans... Than a Coffeehouse Store, Stores built around the drive-thru Kiosk model proven. What it is clear that the 550-square-foot drive-thru Kiosk model experienced 31 % growth as the amazing who... Have always built our brand around amazing Coffee as well as the amazing people who truly Scooters... 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Drive-Thru Coffeehouse chain with over 500 locations in the Scooters team and your. Now to get free Access to Recordings of Both Webinars & # x27 ; s Coffee is an drive-thru. Free drinks for their loyalty the information presented in this part 2 is based 217... And Pick up quality Coffee as well as the amazing people who truly make Scooters Coffee restaurant, clear... An amazing experience for each life we touch # x27 ; s right, is... P.M. EST, Top Pick franchises Mar drive-thru Kiosk model experienced 31 % growth ask the 's..., pastries, breakfast items profits per year the interactive customer experience this part 2 based... Owner Salary vs. Competition presented in this part 2 is based upon 217 locations that were open the! Latest franchise news, trends, and data obtained from approved point-of-sale register systems at a Scooter 's franchising... See what else is out there president of development vice president of development unit sales, and other costs always.
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