When you are in the process of evaluating different coffee franchises, there are some key questions that are specific to coffee that you NEED to ask to make sure you are headed in the right direction. Here are a few:

1. Where is the coffee roasted and within what period of time from the date of roasting do you serve it to your customers?
   Green coffee beans begin to lose their quality after about a year. But ROASTED coffees lose their flavor after just 7 days. Did you know that? Many coffee franchises stockpile their roasted coffees for 6 months to a year and then sell those to customers (you know it … you’ve tasted it). If you want to stand out from the crowd, you better provide the very best product you can … it will keep people talking about you and coming back.
2. What is the wholesale cost of the roasted coffee’s to your franchise locations?
   Get the numbers of the wholesale cost to YOU and compare them to the wholesale costs of other franchises. The best product with the best wholesale cost will give you the highest profit for repeat customers.
3. What type of roasters do you use?
   There are several types. But like anything else, there are the top line roasters … and they produce the best coffee. Brands to look for are Probat, Diedrich, San Franciscan and Loring. Remember .. you shouldn’t have to buy one of these, you just want to know quality of the roasted coffees that you will be buying wholesale and reselling.
4. What is the cost of goods for each of your coffee drinks that are sold?
   Cost of Goods Sold is the manta in food and beverage. This is represented by a percentage, and should include all of the ingredients (coffee, milk, syrups, cups, lids, straws, etc) that go into making a single drink. Get a list from the franchisor for each drink on their menu and the COGS for each drink. If its above 35%, there is a problem (i.e. its hard for you to make money).
5. What steps do your baristas take in making a coffee for a customer?
   One end of the coffee house spectrum is what is called “push button”. Its the coffeehouse where the baristas push a button an a machine and it pulls the beans, grinds them and pulls the shot all automatically. The other end of the spectrum is not automatic, but rather each step is done manually by a barista. Why does this matter? Because weight, humidity, temperature, etc all can cause the very same shot of coffee to taste differently. There’s a reason that Budweiser employs brewmasters who taste every batch. A good coffeehouse trains you to do the same.

There are a ton of questions that need to be asked when purchasing a franchise, but these five will help you very quickly narrow down your list. The coffee business is the 2nd largest commodity sold on the planet … its not going away. And there are coffee houses everywhere. But to really win in this business, you have to be the best. So start yourself out on the right foot and get these questions answered solidly.

Did you get your answers and need more input? Just let us a comment and we’re happy to help!