The cost to open a coffee shop franchise ranges widely, from $60,000 for a small stand to over $400,000 for a large shop with seating and drive-thru. The average cost for a single location with seating is $80,000-$300,000. A coffee food truck or kiosk costs around $60,000. Franchise fees average $35,000, with a total investment of around $227,000 on average.
Factors Affecting Coffee Shop Costs
Your choice of coffee shop franchise will depend on brand alignment, initial and ongoing franchise costs. Prime locations come with higher rental prices, which can fluctuate depending on city, state or country. Coffee shops need supplies like coffee beans, milk, sugar, cups, lids and napkins. Supply costs depend on sales volume and supplier prices. Required licenses and permits like a business license, health permits and food handling permits vary in cost by location.
Operating Costs and Profitability
Once running, a coffee shop has operating costs like utilities, labor, and inventory. Some franchise fees are $35k and need $100k in liquid cash. The total investment into a coffee franchise averages $227k, up to $326k. Opening a coffee shop with seating and drive-thru can cost $200,000 – $400,000. A small stand might cost $60,000.
Are coffee franchises profitable?