Who hasn’t heard the name of Starbucks? Think about good cafes and the major popular cafes strike you. Starbucks always holds a place in these few coffee chains that comes to everyone’s minds. Starbucks has great brand equity, no one can deny that! Considering this if you are wishing to open a cafe business, why not go for the best option available? And what can be better than Starbucks? The craze of Starbucks coffee is indeed next level. You won’t have much issues in running the cafe, provided you fulfil some conditions like good staff, location, quality service etc. But the problem is that most people are confused with the initiation process of opening Starbucks franchise. This article aims to clear all your doubts regarding it. So, continue your reading journey to know all about it!
What Starbucks expects from you
By convention, you cannot own a Starbucks franchise particularly when you wish to open it in an area with lesser Starbucks franchises. However, you can definitely run a licensed Starbucks store!
Even though there are some criteria which Starbucks asks you to fulfil, you don’t really have to stress as it is not as difficult as you might think. The basic conditions to be fulfilled to open a licensed Starbucks store include:
• A good location which is not only able to actively attract a wide customer base but which adds to its demographic stretch at the same time. Setting up a Starbucks store at a place where there are already many stores existing is not desired as it doesn’t add up to its global reach goal.
• You have to follow the guidelines as provided on the Starbucks Licensing website. This website aims to help variously licensed stores in maintaining the same global standards by assisting in aspects related to the menu, infrastructure deployment, training to staff, services to be provided, promotion of employees etc.
• Starbucks, being a brand, expects all its licensed stores to retain its brand image by providing the same standard of services along with a similar coffee taste as is expected. Thus, deploying staff with good learning potential and willingness to get trained is important.
All in all, if you have the money and resources to satisfy the above-stated conditions and commit to handling the operations wisely, you are ready to launch your licensed Starbucks store.
How to open a Starbucks franchise
1. Find a Suitable Location
Starbucks wants to expand its reach globally to wherever it would find a good customer base. Therefore, if you have a unique location idea where there is not any other Starbucks store nearby, it can be an option for you. However, in order to be sure about it, you must know your target consumers. You must ensure that the location has easy accessibility so as to attract maximum traffic. For instance, the location can suitably be a mall or a hotel or a supermarket depending upon their footfall per day. The attributes of location must satisfy standards set by the Starbucks franchise.
2. Know your Financial Status
Starting a Starbucks licensed store requires a huge sum of investment in various aspects. Building a memorable atmosphere, equipped with modern equipment and furniture, along with trained staff, among many others, all require money. Thus, before taking the procedure further you must study your spending capacity. Only if you know that you will be able to manage both current assets as well as non-current assets is when you should make your decision final. But making this decision in a hurry is not at all recommended. Know about your current spending capacity and creditworthiness and then take an informed decision.
3. Get a License
As the name itself suggests, you cannot begin your functioning as a licensed store owner without getting an authentic license. The license can be applied for, online by registering with Starbucks’ Branded Solutions website. After this, the application process commences. The form will require general details like your name, residence, contact number and specific details like why you want to open a licensed store and what all services you are thinking to offer. You would also have to answer questions like why they should entrust you and provide you with permission to start a licensed store. Starbucks will go through your answers in detail. Only if the answers seem satisfactory to them is when they will revert and let you know whether they will grant you a license or not.
4. Paying the Licensing Fees
Once you have been selected as a licensed store owner of Starbucks, you will have to pay the license fee asked for. The fees may vary depending upon where you reside. This is also accompanied by signing a contract after agreeing to all the terms and conditions provided. Once the agreement has been duly signed, it becomes valid. This begins the journey of your licensed store!
5. Arranging the Equipment
Starbucks aims at adhering to its standards at all times. This is what you will have to ensure too. You need to invest in the latest equipment needed to brew coffee beans and prepare coffee carrying the same rich taste. You will also have to ensure that you have a stock of good-quality coffee grains as prescribed by the company. Only providing good coffee is not all, you also have to beautify the store in such a way that it gives a nice coffeehouse vibe. The customers will revisit only when they have a good overall experience. Thus, it becomes a very crucial step to make your business profitable.
6. Staff Training
Starbucks has clearly mentioned in its licensing rulebook that the staff needs to be trained proficiently so that they are in the position to produce the desired output. As a prerequisite, the barista hired must have basic knowledge related to coffee making followed by additional comprehensive training schedule, the manager must know how to handle customers and the order taker must know how to converse with the customers. Starbucks itself provides training to the staff members so that the overall customer experience is satisfactory. This is because maintaining a good brand image globally becomes very important for a company so widely spread. Even one bad word spread around can destroy the image of the company.
Starbucks also wants to keep its crew contented by giving them promotions or simply a hike in salary. The licensed store is expected to adhere to these provisions as stated by the main company. For instance, if the manager observes a barista to be working diligently, they can be given a hike in salary or commission or even a promotion to, say, the post of the head barista. Knowing that there is such a provision, workers feel motivated and work with more efficiency. Thus, it proves to be beneficial for both the staff as well as the store.
If you have the required resources and a unique location idea with a clear vision, there is no need to wait. At least, now you know that the process is not as complicated as you always believed it to be. Just believe firmly in what you want to do and no one can stop you. We hope this article was helpful to you. Our best wishes for the newly inaugurated Starbucks store!