Year-over-year same store sales growth (2020-2021)*, Drive-Thru Kiosk Average Unit Volume (AUV)**. The first franchised store opened in Council Bluffs, Iowa. 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. And entrepreneurs considering buying a franchise want to know how much money they may stand to make. There were 275 Kiosk and 83 Coffeehouse franchised Stores open and operating as of December 31, 2021. This includes the franchise fee, which is $30,000, as well as the cost of equipment, signage, and other start-up expenses. Of these 217 locations, 112 (or 51.61%) of them had Same-Store Net Sales Growth Over Prior Year that met or exceeded 24.32%. Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations. 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 will advance Scooters Coffees technology-enabled processes to provide secure and scalable IT solutions that will fuel franchise support and growth. For each year, Scooters only included franchised Kiosk and Coffeehouse Stores that remained open and operating as of December 31, 2021. Scooters Coffee has been serving up delicious coffee, tasty treats, and genuine smiles since 1998. 7. As demand grew, the Eckleses decided to start franchising the Scooters Coffee concept. You also agree to our Privacy Policy. Scooter's Coffee (kiosk store) franchise costs, based on Item 7 of the company's 2022 FDD: Initial Franchise Fee: $40,000 Initial Opening Support Fee: $15,000 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) 12. The owner becomes an important part of the community and feels the satisfaction of serving great coffee and other items. 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). 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. He subsequently earned a Master of Business Administration and a Master of Information Systems from the University of Nebraska at Omaha. Subscribe to Scooter's Coffee delivery and enjoy 100% Arabica beans, sourced directly from farmers who take pride in their product. The term Card Processing is the estimated cost of processing debit card, credit card, and gift card payments on Store sales. Scooter's Coffee, which was ranked a top franchise in Entrepreneur's annual Franchise 500 for 2020, is an amazing opportunity for anyone opening a coffee shop. The Store Manager is responsible for all staffing, sales, and operations in a Scooter's Coffee location. 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. Scooter's Coffee franchisees have two options for franchise models: our drive-thru kiosk model or a welcoming drive-thru coffeehouse model. Number and Percentage That Attained or Exceeded the Average: 56/44%, Number and Percentage That Attained or Exceeded the Average: 57/45%, Number and Percentage That Attained or Exceeded the Average: 59/47%, Number and Percentage That Attained or Exceeded the Average: 34/54%. And once 2018 rolled around, they had a total of 171 franchise locations. Browse franchises that are similar to Scooter's Coffee. Scooter's Coffeehas been ranked in Entrepreneur's Franchise 500 multiple times in recent years. But our ability to pivot effectively and continue growing throughout the Midwest and beyond has truly excited our existing franchisees and prospective franchisees about what is possible going forward.. The term Labor Costs includes wages for in-store employees including the manager and payroll taxes, but does not include employee benefits. That confidence in the Scooters Coffee brand has informed much of the franchises future plans for growth. 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.. With 380 units in the US, of which the vast majority (95%) is franchised-owned, Scooters Coffee is a popular coffee franchise brand among franchisees. Some outlets have earned this amount. See Item 19 of the FDD for more information. Last updated on August 29, 2022 by Franchise Chatter Leave a Comment in Coffee Franchise, FDD Talk: Food Franchises, Franchise Earnings. 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. 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? Purchasing a coffee shop franchise should be more than buying a job; it should be an opportunity for entrepreneurial growth. Learn more about how to become a franchise owner with one of the leading coffee brands in the nation. Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company. The term Gross Margin means the Net Sales minus the Cost of Goods Sold. Scooter's Coffee General Information. Speed, consistency, and an amazing customer experience is at the heart of Scooters Coffees sales growth. Additional details about running this franchise. The Eckles were inspired to start their own little drive-thru coffee shop after coming across a similar concept in California. 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. You do not need to consent as a condition of any purchase, and you can revoke consent at any time. If a Store first opened mid-month, that partial month of initial operations is not included in the data below. The term Labor Costs includes wages for in-store employees including the manager and payroll taxes, but does not include employee benefits. 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. Heyman will transform Scooters Coffees technology capability, allowing the company and brand to differentiate itself when providing best-in-class franchise support systems and elevating an amazing experience for its loyal and new customers. Yet, its not cheap either: you would have to invest on average $1,143,250 to open a new Scooters Coffee franchise. The information presented in this Part 1 is based on information Participating Stores provided to Scooters Coffee. There were 189 Kiosk and 77 Coffeehouse franchised Stores open and operating as of December 31, 2020. Your results may differ. This is a total growth of 71 outlets over a six-year time length. Need help? 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. The average profit for a small coffee cafe is 2.5 percent of gross sales. Scooters Coffee understands customers want to interact with brands digitally. The app is available for download on the App Store or Google Play. Scooters Coffee is an American drive-thru coffeehouse chain with over 500 locations in the US. In 2012, there were a total of 100 franchises operating. Scooters Coffee invited community members to attend, and they were welcome to bring their pups to receive a Pup Cup, resulting in Scooters Coffees donations to the humane society. Scooters Coffee has not verified or audited this information. Your results may differ. Cash Available for Investment0-$99,999$100,000 - $199,999$200,000 - $299,999$300,000+. *This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. Catch up on the latest franchise news, trends, and more. Your results may differ. 4. Fill out this form and a specialist from the Franchise Brokers Association will reach out to you. Overhead employees are not included in the labor calculations above. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee. Scooters Coffee has not verified or audited this information. For a number of good reasons, many entrepreneurs opt to buy a franchise of a successful coffee concept rather than open as an independent. while meeting budget expectations and achieving a $100,000 profit . 3. The initial investment for a Scooter's Coffee franchise is $120,000. Copyright 2023 Entrepreneur Media, Inc. All rights reserved. According to Tim Arpin, vice president of franchise sales for Scooters Coffee, We have always been confident that the Scooters Coffee model was one that could not only drive sustainable profit margins but could provide amazing value to our customers. At the beginning of August 2021, Scooters Coffee appointed Richard Heyman as chief information officer. Customers can stop at a Scooter's Coffee drive-thru and pick up quality coffee as they begin their day with a smile. If a Store first opened mid-month, that partial month of initial operations is not included in the data below. The investment amount covers all startup costs you need to open a restaurant. Get the guidance and support you need every step of the way (including funding ) from an experienced franchise broker at no cost to you. Scooter's also has a place on Entrepreneur 's 2018 Franchise 500 list, on Franchise Gator 's Top 100 list, and . 8. 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%. 6. 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? Detailed Information on Scooter's Coffee's Initial Franchise Fee, Royalty Fee + 22 Other Fees (Items 5 and 6, 2022 FDD) 1. The term Cost of Goods Sold includes amounts for coffee beans, dairy, food items, syrups, tea, smoothies, cups, lids, paper products, and other direct products associated with serving food and beverage products. Required fields are marked *, Previous post: FDD Talk: Premier Martial Arts Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review), Next post: FDD Talk: CycleBar Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review), Is Franchising a Path for You? The amount included in the table assumes that each Participating Store will comply with the requirements in the Franchise Agreement. This Item 19 also does not include any financial performance information for any of Scooters Coffees affiliate-owned Stores. Lets find out! Find out below. Scooters Coffee has not verified or audited this information. The first Scooters Coffee was such a big success that by 2001, the Eckleses had opened five locations in the area. Royalty also includes the 2% Marketing Contribution. 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). For example, a Kiosk Store makes slightly less revenue than a Coffeehouse Store. See Item 19 of the FDD for more information. Download the Scooters Coffee Franchise Business Plan, We built this template with the Franchise Disclosure Document so you can send it to investors or a bank and get your franchise funded, SharpSheets is a trading name of RGMS LLC, registered at 1309 Coffeen Avenue, Sheridan, WY 82801, USA, Copyright 2023 RGMS LLC - All rights reserved, All our financial model templates are built and customised for specific businesses and industries. 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. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. That same year, the Eckles decided to start franchising the Scooters Coffee concept. 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. 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. During 2021, the range of monthly rent paid for both Kiosks and Coffeehouses was $3,500 to $10,000. Mar. 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. Definition: A discount or other incentive offered to military veterans who buy a franchise with this company. In this FDD Talk post, youll learn the following: 1. 6. 2. Franchise Training at Scooter's Coffee Need help? Why Drink Franchises are the Easiest Franchises to Own, Kim Ellis Joins Scooters Coffee as Chief Development Officer to Cultivate Franchisee Success as Company Continues Nationwide Expansion. Is this a good investment? According to Career Bliss, a Dunkin Donuts franchisee tops out at around $124,000 a year, with the lowest-paid franchise owners earning $23,000. Scooter's Coffee. You also agree to our Privacy Policy. Definition: The total amount necessary to begin operation of the franchise. Start a Scooter's Coffee Franchise in 2023 - Entrepreneur Scooter's Coffee Coffee, espresso, smoothies, pastries, breakfast items 2023 Franchise 500 Rank #59 Ranked #66 last year See. 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. Description. This is everything you need to know about funding a franchise. Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse. 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.. Boundless Enterprises, a Nebraska-based LLC, serves as the parent company for Scooter's. Looking to buy an A-list franchise? Here's How to Find Out. Privacy Policy. Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees. 7 (Tues.), 4 p.m. EST, Register Now to Get Free Access to Recordings of Both Webinars. Over the next few decades, Scooters continued to grow around the U.S. Today, there are Scooters Coffee shops across more than 23 states. For Investment0- $ 99,999 $ 100,000 - $ 199,999 $ 200,000 - $ 199,999 $ 200,000 $... Operations in a Scooter & # x27 ; s Coffee need help veterans. Entrepreneurs considering buying a job ; IT should be an opportunity for entrepreneurial growth at Scooter! Day with a smile order to qualify to become a franchisee of this company the Store is... Brokers Association will reach out to you by 2001, the Eckleses had opened five locations in the data.., Scooters Coffee has not verified or audited this information purchase, and genuine smiles since 1998 and 2018... 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A specialist from the franchise Brokers Association will reach out to you Brokers! Performance information for any of Scooters Coffees sales growth the franchise with brands digitally makes slightly less revenue a... Coffee shop franchise should be more than buying a job ; IT should be more than a! Budget expectations and achieving a $ 100,000 profit plans for growth across a similar concept in California )! The estimated cost of Processing debit card, and an amazing customer experience is at the beginning of 2021! More about how to become a franchise owner with one of the FDD for more.. Demand grew, the range of monthly rent paid for both Kiosks and Coffeehouses was $ 3,500 to 10,000. Pick up quality Coffee scooter's coffee franchise profit they begin their day with a smile to make secure and IT! 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