Specialty Coffee Retailer

Specialty Coffee Retailer August 2012

Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.

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or her success long-term, and we're always available. Small or large, we'll never lose sight of that. Although the brand and company will grow as we expand nationally over the next fi ve to 10 years, we'll never lose sight of what got us there—including our personal relationships with our franchisees. or commodity brands, at CC's Community Coff ee House, no one's a stranger and everyone's a friend, and that's exactly how the licensed opportunity is presented, Th e same rings true at CC's. "Unlike some larger national " specifi c attention to the local site, local ownership and local success," Bauer says. "Th e smaller franchise off ers the franchisor the opportunity to personally participate in the success of the individual site. Each franchisee has their challenges specifi c to the market. Having a small franchise allows the franchisor to be more interested in the success of each location rather than the growth of the overall franchise structure. " KEY QUESTIONS Before taking the proverbial plunge to become a franchise owner or operation, you need to ask yourself some key questions, including: • How long has the parent company been in business? • What is the perception of the brand in existing markets? • Is this a proven business model, and will it bring about an opportunity that is key to the evaluation of the franchise operation, and successes of the franchise from other franchisees is critical. and setup of the site, including equipment and methodology. "Without this guidance and philosophy, the franchise location cannot maintain consistency and branding," Bauer says. "Training in franchise methods for success is key. Th e franchisor has a proven method for success and unless the franchisor transfers that information, the franchisee cannot expect the same success." It's also vital that the franchisee understands they are a personal experience is important to the evaluation of the overall franchise operation and philosophy. Th e franchise should give franchisee guidance on location " Bauer says. "Getting perspective of the challenges " Bauer notes that the opportunity to get a franchisee's "Th e prospective licensee has a better chance of testing the reputation in the brand's existing markets." Bauer agrees. "A small franchise off ers personal attention— " Verges says. CC'� C�������� C����� H���� ���� ��������� ����������� ��������� ���� �� ��� ������ ���������� ��� ��������� �� ��� ������ �������-��� �����. truly care about this. We also must protect the integrity and quality of the brand name and the product we serve. with site selection and negotiation, construction, grand opening, employee training, fi nancial consulting, brand building and marketing of stores. WE DRIVE, YOU WIN "We tell our franchisees that it's our job to drive people to your store," Graeve says. "It's your job to win them as a long- From a practical standpoint, Scooter's assists franchisees " enjoyment and fulfi ll my pre-determined goals? "Being able to personally talk with the other franchisees is term customer. As franchisor, we seek to equip our franchisees with the tools they need to win long-term customers and engender loyalty. Th e franchisee's role is to operate the store with excellence and focus on hiring high-quality people. As the franchisor, we give the franchisee tools to achieve operational excellence, but at the end of the day, the franchisee must be prepared to implement at store-level daily. of franchisees include failure to self-evaluate goals, ensure adequate fi nancing, choose the proper industry category, or conduct proper due diligence on the concept. "Th ey may also fail to look for recession-resistant segments, visiting the prospective licensor's corporate home-offi ce or existing units, and fi nally making a decision that represents a win-win scenario for both parties," Verges says. "Best advice— have a passion for what you choose to do. small business owner. "Th ey must run the franchise as a business—from maintaining franchise methodology to assure success of a proven system to setting individual goals for the business—sales and marketing, business planning, and profi tability, the fi lters of product quality, unit profi tability and customer experience. "As the franchisor, we have an obligation to help them fi nd their very best chance for success, At Scooter's Coff ee & Yogurt, they view all things through " Bauer says. " Graeve says. "We franchise will sell itself. "A franchise is like any other business," she says. "You need to have a plan and execute that plan. You need to engage your own business instincts and act upon prior business knowledge. Bauer warns that potential franchisees shouldn't assume the " a franchise business that you enjoy, can make a living at, and is sustainable. "Incomplete research and diligence on the front end can be a big mistake that produces a poor decision," Graeve says. "Also, investing in an inexperienced or fi nancially week franchisor can be a mistake. Know the strength, experience, leadership and sustainability of the franchisor, which oſt en dictates ultimately the strength or weakness of the franchise system and its stores." SCR Graeve points out that at the end of the day, it's about buying " August 2012 • www.specialty-coffee.com | 21 As with many business initiatives, some common mistakes "

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