Net Sales are measured by taking Gross Sales and subtracting customer discounts and refunds to customers. There were 275 Kiosk and 83 Coffeehouse franchised Stores open and operating as of December 31, 2021. Why Drink Franchises are the Easiest Franchises to Own, Kim Ellis Joins Scooters Coffee as Chief Development Officer to Cultivate Franchisee Success as Company Continues Nationwide Expansion. The Initial Franchise Fee for an individual Scooter's Coffee Store, regardless of the type of Store you purchase, is $40,000 for each Store. Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees. As a result, non-traditional Stores operate differently from Kiosk and Coffeehouse Stores, as they generally do not have a drive-thru or significant customer seating available, may not have standard hours of operation, and typically are not located in freestanding locations that are visible to the public from outside. This role builds and leads a friendly, service-oriented barista team, sets a high-energy work pace, drives sales, increases profit, and demonstrates an engaged management style. Net Sales also includes the fair market value of any services or products you receive in barter or exchange for your services and products. With over 200 franchise commitments to build new stores, the company plans to open many additional stores in 2020. Here's How to Find Out. . Founded in 1998 in Ashland, Oregon, The Human Bean franchise is a drive-thru coffee concept with 79 locations 66 are franchised, and 13 are corporate locations in 10 states. Is a Scooters Coffee franchise a good investment? Is this a profitable business? Total Number of Open Franchised Outlets Whose Data Were Used: 145, Franchised Same-Store Sales Growth Over Prior Year: 23.83%, Number and Percentage of Outlets That Attained or Exceeded Average: 75/51.72%, Total Number of Open Franchised Outlets Whose Data Were Used: 72, Franchised Same-Store Sales Growth Over Prior Year: 25.21%, Number and Percentage of Outlets That Attained or Exceeded Average: 38/52.78%, Franchised Same-Store Sales Growth Over Prior Year: 24.32%. Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. 10. Scooter's Coffee General Information. Definition: The total amount necessary to begin operation of the franchise. Scooters Coffee is an American drive-thru coffeehouse chain with over 500 locations in the US. For each year, Scooters Coffee only included Kiosk and Coffeehouse Stores that were open and operating during the entire 12-month period ending December 31 of the calendar year identified (each a Measurement Period). Scooters Coffee was founded as Scooters Java Express in 1998 by Don and Linda Eckles in Bellevue, Nebraska. The senior director of drive-thru innovation is a key strategic position at Scooters Coffee as the company strives to achieve growth goals and provide innovative ways for customers to get amazing drinks, amazingly fast. Find out below. For each year, Scooters only included franchised Kiosk and Coffeehouse Stores that remained open and operating as of December 31, 2020. Scooter's Coffee was founded in 1998 by Don and Linda Eckles in Bellevue, Nebraska. Speed, consistency, and an amazing customer experience is at the heart of Scooters Coffees sales growth. Your results may differ. The information presented in this Part 1 is based on information Participating Stores provided to Scooters Coffee. Wake up to the ahhh-mazing aroma of quality. Additionally, you will need to have access to at least $50,000 in liquid capital to cover the costs of opening and operating the business. Yet, this adjusted EBITDA does not mean you will earn 21.2% of the total revenue as the net profit. Heres what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business. Over the next few decades, Scooters continued to grow around the U.S. Today, there are Scooters Coffee shops across more than 23 states. Smith earned a Bachelor of Arts degree in Political Science and Business from SMU in Dallas, Texas. As demand grew, the Eckleses decided to start franchising the Scooters Coffee concept. Katy is one of our first locations to offer a dual-lane drive-thru to really enhance the speed in which our customers are getting through the drive-thru from start to finish. Scooters Coffee has not verified or audited this information. This includes the franchise fee, which is $30,000, as well as the cost of equipment, signage, and other start-up expenses. Same-store sales growth compares net sales (gross sales minus discounts and refunds) in calendar year 2020 to net sales in calendar year 2021. Use Our Free Financial Calculator, FDD Talk: Premier Martial Arts Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review), FDD Talk: CycleBar Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review), Section I Estimated initial investment (franchise costs) for a Scooters Coffee franchise, based on Item 7 of the companys 2022 FDD, Section II Initial franchise fee, royalty fee, and marketing fee for a Scooters Coffee franchise, based on Items 5 and 6 of the companys 2022 FDD, Section III Number of franchised and company-owned Scooters Coffee outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the companys 2022 FDD, Section IV Background information on the Scooters Coffee franchise opportunity, including relevant news updates. The onset of a public health crisis introduced challenges levied on businesses of all shapes and sizes. The term Card Processing is the estimated cost of processing debit card, credit card, and gift card payments on Store sales. Same-store sales for locations open for at least 13 months is measured each year. Over the next few decades, Scooters Coffee has expanded beyond the Midwest and there are now locations in more than 28 states. With a vision of combining high-quality drinks and speedy service, Scooter's Coffee opened in 1998, with franchising beginning in 2001. The company serves as a drive-thru coffeehouse and offers specialty lattes, espresso beverages, blended smoothies, teas and pastries through its franchises. Learn more about how to become a franchise owner with one of the leading coffee brands in the nation. Here are 7 affordable coffee franchises that made the list in Entrepreneur's Franchise 500 for 2022: Dunkin'. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee. Indeed, despite its relatively small size, a Scooters Coffee restaurant makes $797,101 in turnover per year on average. In the competitive coffee shop market, Scooter's Coffee may be a brand with a formidable reputation that continues to solidify itself year after year. The first franchised store opened in Council Bluffs, Iowa. This statement includes average Gross Sales for the first full calendar month of operations for all franchised Kiosk Stores and Coffeehouse Stores that opened for operation in each of calendar years 2018 to 2021. Launched new store with 22 days lead time. Dunkin'. The amount included in the table assumes that each Participating Store will comply with the requirements in the Franchise Agreement. He was enlisted in the United States Air Force where he was a computer programmer, served on the base Honor Guard, and completed a tour of duty in Kuwait. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high. 9. Scooters Coffee ranked No. As president and CEO of Credit Union Liquidity Services, Smith managed daily activities of a $250-million portfolio owned by a financial institution, including geographically diverse loans and U.S. real estate holdings. Drive-thru coffee kiosks are growing in popularity all around the country. On grand opening day, the Katy location invited customers to bring their pups with them to enjoy a Pup Cup, a delicious mini cup of whipped cream. With more than 11,300 restaurants worldwide (more than 8,500 in the United States), Dunkin Donuts franchise certainly is among the best-known brands in coffee franchises. If a Store was transferred between affiliate and franchisee during any measurement period in the representation above, its classification as affiliate-owned or franchisee-owned was based upon the majority of time owned and operated by affiliate or franchisee during the measurement period. 7 (Tues.), 4 p.m. EST, Register Now to Get Free Access to Recordings of Both Webinars. It has a lot to offer with many locations, a high volume of unit sales, and strong company culture. That's right, Cafe2U is coffee on wheels. Copyright 2023 Entrepreneur Media, Inc. All rights reserved. Browse franchises that are similar to Scooter's Coffee. To create an amazing experience for each life we touch. Start By Evaluating Your Goals. 11. Section V Presentation and analysis of Scooters Coffees financial performance representations (average revenues and/or profits), based on Item 19 of the companys 2022 FDD, including information on the: Section VI Key ratios, comparables, computations, and analyses for the Scooters Coffee franchise opportunity (, Site Concept Plan, Preliminary Due Diligence, and Site Work: $44,000 to $477,000, Free-Standing Building and Leasehold Improvements: $264,000 to $796,000 (not including the purchase of land), Architectural and Engineering Fees: $35,000 to $66,000, Equipment, Fixtures, and Furniture: $178,000 to $235,000, Point-of-Sale System and Software: $12,000 to $19,000, Initial Training (travel and living expenses): $5,000 to $8,000, Opening Inventory, Supplies, and Smallwares: $25,000 to $27,000, Additional Funds (3 months): $0 to $86,000, Total Estimated Scooters Coffee Franchise Costs (Coffeehouse Store): $666,500 to $1,847,500, Site Concept Plan, Preliminary Due Diligence, and Site Work: $176,000 to $397,000, Free-Standing Building and Leasehold Improvements: $272,000 to $362,000 (not including the purchase of land), Architectural and Engineering Fees: $35,000 to $62,000, Equipment, Fixtures, and Furniture: $168,000 to $176,000, Total Estimated Scooters Coffee Franchise Costs (Kiosk Store): $794,500 to $1,264,500, Local Marketing and Advertising Commitment: none currently, although Scooters Coffee may require you to spend up to 2% of Net Sales for local marketing and advertising in the future. Of those franchised Stores, 172 Kiosk and 75 Coffeehouse Stores were open and operating during the entire 12-month period ending December 31, 2021 (the Measurement Period). You do not need to consent as a condition of any purchase, and you can revoke consent at any time. The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. If a Store first opened mid-month, that partial month of initial operations is not included in the data below. **This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. This statement includes average customer ticket sales of Kiosk and Coffeehouse franchised Stores that were open during the entire 12-month period ending December 31, 2020 (the Measurement Period) and that provided complete information Scooters Coffee requested respecting such costs. The initial investment for a Scooter's Coffee franchise is $120,000. Cash Available for Investment0-$99,999$100,000 - $199,999$200,000 - $299,999$300,000+. Never miss a beat when you sign up to receive our newsletter. 66 on Entrepreneurs 2022 Franchise 500 list. The Store Manager exemplifies Scooter's Coffee . But, ultimately, a coffeehouse or drive-thru coffee kiosk is a business. In Scooters Coffees experience, Overhead expense is an average of $42,000 for Kiosk Stores and Coffeehouse Stores, and it has used these figures in calculating the estimated Overhead expenses in the above charts. Whats more is that Scooters Coffee franchises revenues have been growing steadily over the years. 6. This represents a 29% profit margin (adjusted EBITDA margin). There is no assurance that you will sell or earn as much. Do You Have Enough Capital to Fund a Franchise? There is no assurance that you will sell or earn as much. Over the last 7 years, Participating Stores in the Scooters system has experienced same-store sales growth that breaks down as follows: Franchised Same-Store Sales Growth Over Prior Year: +24.32%, Total Number of Open Franchised Outlets Whose Data Were Used: 217, Number and Percentage of Outlets That Attained or Exceeded Average: 112/51.61%, Franchised Same-Store Sales Growth Over Prior Year: +26.49%, Total Number of Open Franchised Outlets Whose Data Were Used: 163, Number and Percentage of Outlets That Attained or Exceeded Average: 79/48.47%, Franchised Same-Store Sales Growth Over Prior Year: +11.62%, Total Number of Open Franchised Outlets Whose Data Were Used: 154, Number and Percentage of Outlets That Attained or Exceeded Average: 78/50.65%, Franchised Same-Store Sales Growth Over Prior Year: +7.63%, Total Number of Open Franchised Outlets Whose Data Were Used: 135, Number and Percentage of Outlets That Attained or Exceeded Average: 56/41.48%, Franchised Same-Store Sales Growth Over Prior Year: +3.59%, Total Number of Open Franchised Outlets Whose Data Were Used: 124, Number and Percentage of Outlets That Attained or Exceeded Average: 64/51.61%, Franchised Same-Store Sales Growth Over Prior Year: +8.40%, Total Number of Open Franchised Outlets Whose Data Were Used: 94, Number and Percentage of Outlets That Attained or Exceeded Average: 50/53.19%, Franchised Same-Store Sales Growth Over Prior Year: +16.0%, Total Number of Open Franchised Outlets Whose Data Were Used: 79, Number and Percentage of Outlets That Attained or Exceeded Average: 42/53.16%, Franchised Same-Store Sales Growth Over Prior Year: +13.39%, Total Number of Open Franchised Outlets Whose Data Were Used: 59, Number and Percentage of Outlets That Attained or Exceeded Average: 38/64.41%. Here's how franchisees can tap into consumer behaviors using strategic messaging and offers that speak to clients wants and needs. Royalty also includes the 2% Marketing Contribution. In mid-May 2021, Scooters Coffee released its 2021 Franchise Disclosure Document, providing a look into its system and sales growth during 2020. He also completed coursework for the Certified Commercial Investment Member (CCIM) designation, comprised of state-of-the-industry commercial real estate coursework in financial and market analysis, investments, and negotiation. Compared to the year before, Scooter's Coffee stores saw an increase of more than 26%. Scooters Coffee started franchising in 2002 and is franchised by Scooters Coffee LLC, headquartered in Omaha, Nebraska. See Item 19 of the FDD for more information. Compare where Scooter's Coffee landed on this years Franchise 500 Ranking versus previous years. 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