Are you looking for a franchise opportunity that wakes up the entire neighborhood? And one where you can wake up feeling enthusiastic about your career. Feeling good about what you do, rather than dreading another workday? Then it’s time to invest in an incredible coffee establishment.
But which coffee company is the best to invest your hard-earned money into? Well, today we will take a look at what’s known as the best coffee in Seatle. It has to be, right? After all, the name of the business is Seatle’s Best Coffee.
And if they are going to name their business as the best coffee, then they had better be sure they offer the best coffee. Especially if they want to keep living up to the amazing reputation that they have. And as a franchise owner for this company, you could be known for having the best coffee around.
But is it worth the investment? It could be. However, this company has definitely been experiencing a dry spell and a serious decrease in growth over the past few years. So, it’s quite questionable as to whether or not this franchise opportunity is the best one around.
Although, we can’t base our decision on the growth alone, right? To find out if this franchise opportunity makes the list for one of the best experiences, we will have to take a look at all of the details and statistics on the background of the company. And gather enough information that will have you feeling confident in your decision. Whatever that may be.
So, let’s check out what this company’s history is and what makes it the best coffee in Seatle. And find out if the franchise opportunity is just as good as the coffee that they serve.
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Living it Up With Seatle’s Best Coffee
Since the early 1970s, this smooth tasting coffee has been brewing up in the city of Seatle. But it wasn’t always known as Seatle’s Best Coffee. In fact, when the company first began, it was called Stewart Brothers Coffee. And it was made in a peanut roaster that weighed only 12 pounds.
They were dedicated to taking the name for having the best coffee in the city. So naturally, they entered a competition that would do just that. This smooth-tasting, delicious coffee took home the winning prize of being recognized as having the best cup of coffee in Seattle. And the rest was history.
Today, they dedicate themselves to living up to that reputation by rigorously testing their coffee and coffee beans through a three-step process. So that there are no beans that pass through without being 100% perfection. And nothing less.
In fact, their beans are sourced directly from Latin America and are 100% Arabica beans. So the taste is insanely authentic and smooth. Just as it was always intended to be.
As you can see, they are obviously named Seattle’s Best Coffee with good reason. And throughout the decades, they have never lost their touch. However, they have lost quite a few franchise locations. And it’s not entirely clear as to why. But before we get too far ahead of ourselves, let’s take a look at the statistics so that you can see for yourself.
Best Coffee; Best Franchise?
So, we have established that Seattle’s Best Coffee is, well, the best. Or at least it was back when it won the competition for being the best cup of coffee. But, is it the best franchise opportunity around? Or even in this specific industry? There’s not really a right or wrong answer here. However, when we take a look at the statistics, it’s not looking too great.
Since the opening of this franchise opportunity back in 1994, the company did experience a serious amount of growth. However, it soon began to taper off and pretty quick, to tell the truth.
At the end of 2010, Seattle’s Best Coffee was operating a grand total of 557 franchise locations. That’s pretty astonishing. However, only two years later, at the end of 2012, that number dropped drastically to only 73 locations run by franchise owners.
That’s a pretty huge drop in locations within such a short time. And the turnover rate doesn’t look much better. In fact, it’s excruciatingly high at 57.64. Since the turnover rate is determined by adding the number of terminations, transfers, and non-renewals. And dividing it by the total number of operating locations. It’s safe to say that there have been quite a few failures.
But to understand the exact reasoning behind this high turnover rate, it’s best to question the company. You should ask specific questions. Such as, how many have closed in the last few years? And what is the most up-to-date turnover rate?
It’s important to always talk to the company to find out if the statistics are the most recent and to follow up with any further questions or concerns that you may have. Especially when you are going to be investing your hard-earned cash into this new business.
Requirements for This Franchise
When it comes to making your final decision on a business opportunity, the one thing that might make or break the deal is the cost and other requirements for the franchise. As far as Seattle’s Best Coffee goes, their requirements are pretty much average and the price point isn’t too steep.
In fact, it may be the only thing that this company has going for it in regards to its franchise opportunity. And the only things that are missing are the great benefits that many other companies are willing to offer. Such as financial transparency, extensive training, and territory rights. However, Seattle’s Best Coffee will at least give you a discount if you plan on purchasing more than one location.
The first fee that you are responsible for as a new business owner is the initial franchise fee of $25,000. And after everything is said and done, you ill have invested anywhere between $178,008 and $491,508. This can widely range depending on your specific location, along with other factors.
The two fees that won’t change are the ongoing royalty and advertising fees that you are required to pay to the company. As a franchise owner, you will be paying a 4% royalty fee and a 2% advertising fee that are both based on your gross sales.
Both of these fees will have to be paid for the entire 10 years of your agreement term. Yes, once you sign your contract, you agreeing to a 10-year term and will not receive any refunds if you back out too soon. However, if you like the way the business is going, you can renew your agreement for another 10 years after your initial term is over.
An Honest Opinion
When a company claims to have the best of something (especially when they name their company as such), they better be sure that they live up to those expectations. And by looking at what some of their customers have to say, it seems that they have been keeping up with that reputation.
However, we aren’t here to talk only about how great their coffee actually is, right? You want to know if the business is actually worth investing in or if it’s going to be a disappointment. And honestly, it doesn’t seem to be that great of a deal.
Sure, the price isn’t too expensive and the ongoing fees are decently low. But, there aren’t many incentives besides the fact that they give you a discount if you purchase more than one franchise location. And honestly, what good is that if the business is a dud?
In all honesty, the fact that they have had such a huge drop in the number of locations is quite concerning. Especially with the high turnover rate. This can indicate some serious issues with this opportunity. Such as the failure of too many businesses in the past. Leading to franchise owners terminating their agreements too early.
So, overall, I would say proceed with caution on this opportunity. Because while the actual company seems pretty great, the actual business opportunity looks to have some risky behavior going on.
Always double check with the company on these statistics and find out the reasoning behind them. The company can clarify whether or not these closings were due to good or bad reasons.
The Conclusion
A coffee establishment is a great business idea. Think about it; the world loves coffee. Heck, most people seem to be unable to function throughout their day without it. And as a business owner for a coffee place that is known to have ‘the best cup of coffee’, you are bound to have a successful business, right?
Not always.
Unfortunately, there are some coffee joints that are much more successful their others. Regardless of whether or not they were named the best coffee in the city. And when it comes to Seattle’s Best Coffee, I would have to say this is one that may be better off left alone.
Of course, there are some pretty decent attributes to this opportunity. However, overall, it seems a bit risky. Especially with the huge decrease in locations and high turnover rate in such a short amount of time.
Either way, you should always continue to do your research and find out which company calls out to your needs the most. And always follow up with the company to find out more information regarding the opportunity. There are millions of business opportunities out there right now, waiting for you. But only you can decide which one you will choose for this journey.
If you feel that Seattle’s Best Coffee has what you are looking for, then contact the company to get started on your franchise application.