Franchise Information, advice and news.

If money makes the world go round then coffee is starting to speed it up, with coffee houses and speciality coffee shops springing up across the globe faster than you can say "espresso".

Although coffee has been a popular drink for centuries, it wasn't until the mid 1990s that the US and UK began to swap their cafes and bars for coffee houses – ably fuelled by US sitcom Friends, which introduced the world to the funky New York coffee house Central Perk.

Coffee is now the most popular hot drink worldwide, with 400 billion cups consumed each year. Britons alone consume 500g of coffee per person each year.

And, mostly over the last 15 years, coffee houses such as Starbucks, Costa Coffee and others have taken the lead in bringing speciality coffee to the masses on an unprecedented scale.

Although formed in the early 1970s, Starbucks really hit its prime in the 90s as the alternative drinking place for young, old and middle-aged Americans, seizing on the nation's love of coffee and quick snacks. However, contrary to popular belief, Starbucks is not a franchise.

But this does not mean there aren't plenty of fast-growing coffee franchises available for the savvy investor to grab a piece of the burgeoning market.

Running a coffee house requires the franchisee to become quickly aware of just how fast-paced an industry this is. Front-of-house work is hard and demanding, but franchisees will often find that a well-located, quality coffee house will quickly allow them to take a backseat just a few months after the initial start up.

A good knowledge of coffees and speciality drinks is a must, but this can be learnt on the job or by researching existing coffee houses. But beware, coffee drinkers will be able to spot a good house from a bad one with one step in the door, let alone a sip of the coffee. Franchisers will be able to provide the necessary training and expertise needed to pour the perfect cup, but it is down to the individual franchisee to make sure the customer is fully satisfied with their surroundings, drink and meal, or they won't be coming back.

However, as with many franchises, location is often the key to success. Set up a franchise in a busy area of a city, within stumbling distance of dozens of alternative bars, coffee shops, restaurants and cafes and it will be a lot tougher to make the franchise a success.

The best locations are often found in unlikely places where people need coffee and a place to relax, such as near amenities and transport links (such as train stations).

Setting up a speciality coffee franchise with a reputable coffee house can be a wise move, especially as the world's taste for the much-loved brown drink doesn't seem to be wavering. However, set up costs can be high, with large numbers of staff needed to make sure a fast turnover of customers and profit is achieved.

Potential franchisees are therefore urged to make sure they fully research all aspects of their chosen area, potential changes in the market and their business plan, before committing to a speciality coffee franchise.

Copyright Adfero Ltd 2006

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