Scooters Coffee continues to grow rapidly while it strives to provide the best customer drive-thru interaction in the world. There is no . Since Scooter's Coffee hit the market, the brand has maintained a solid reputation among customers who depend on its commitments to quality. The Gross Sales, Discounts, Cost of Goods Sold, Labor Costs, and Rental Expenses are based upon the reported results for the Participating Stores during the Measurement Period. Scooters Coffee Continues Growing in Iowa, Scooters Franchise Owner Salary vs. Competition. This company is offering new franchisees in the following US states: Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Louisiana, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, New Mexico, Nevada, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Wisconsin, West Virginia, Wyoming. Net Sales are measured by taking Gross Sales and subtracting customer discounts and refunds to customers. Heres what you need to know if youre interested in opening a Scooter's Coffee franchise. 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. Indeed, despite its relatively small size, a Scooters Coffee restaurant makes $797,101 in turnover per year on average. More than 140 stores are currently slated to open by the end of 2021, with the long-term goal of reaching the 1,000-store milestone in 2024. It has a lot to offer with many locations, a high volume of unit sales, and strong company culture. Only then you can pay yourself dividends. According to Career Bliss, a Dunkin Donuts franchisee tops out at around $124,000 a year, with the lowest-paid franchise owners earning $23,000. Some outlets have earned this amount. Your results may differ. 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. In mid-May 2021, Scooter's Coffee released its 2021 Franchise Disclosure Document, providing a look into its system and sales growth during 2020. The brand is known for its signature caramel coffee, smoothies, baked goods, espresso drinks, and other related foods. As demand grew, the Eckleses decided to start franchising the Scooters Coffee concept. 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. If a Store first opened mid-month, that partial month of initial operations is not included in the data below. Franchise Chatter is reader-supported. Use Our Free Financial Calculator, Franchise Costs: Detailed Estimates of Amazing Athletes Franchise Costs (2021 FDD), FDD Talk 2021: Hounds Town USA Franchise Review (Financial Performance Analysis, Costs, Fees, and More), Section I Background information on the Scooters Coffee franchise opportunity, including relevant news updates, Section II Estimated initial investment for a Scooters Coffee franchise, based on Item 7 of the companys 2021 FDD, Section III Initial franchise fee, royalty fee, marketing fee, and other fees for a Scooters Coffee franchise, based on Items 5 and 6 of the companys 2021 FDD, Section IV Number of franchised and company-owned Scooters Coffee outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the companys 2021 FDD. Customers can stop at a Scooter's Coffee drive-thru and pick up quality coffee as they begin their day with a smile. To be part of the Scooter's Coffee team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. Scooters Coffee has been serving up delicious coffee, tasty treats, and genuine smiles since 1998. Source: Franchise Disclosure Document 2022 Yet, this adjusted EBITDA does not mean you will earn 21.2% of the total revenue as the net profit. Never miss a beat when you sign up to receive our newsletter. 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 partnered with third-party financial lenders that may help qualified franchisees cover the costs of the franchise fee, startup cost, equipment, inventory, accounts receivable, payroll. $19.99. Showcasing what the future of Scooters Coffee will look like, the Katy site offers the first of many new features for the brand, including exterior digital menu boards, a dual-lane drive-thru, and much more. The Initial Franchise Fee is due and paid by . Your email address will not be published. Scooters Coffee, which was ranked a top franchise in Entrepreneurs annual Franchise 500 for 2020, is an amazing opportunity for anyone opening a coffee shop. The term Discounts includes the face value of coupons, free or reduced drink promotions, gift card promotions, mobile app promotions, waste, and employee free drinks. According to Tim Arpin, vice president of franchise sales for Scooters Coffee, We have always been confident that the Scooters Coffee model was one that could not only drive sustainable profit margins but could provide amazing value to our customers. We care about the protection of your data. The term Rental Expense includes the total amount of payments to the franchisees landlord, including base rent, common area maintenance, real estate taxes, and insurance. Scooter's Coffee. Additional details about running this franchise. 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. On average, a Scooters Coffee franchise makes $170,116 in profits per year (21.2% EBITDA margin). A Scooters Coffee franchise owner salary may rise up to around $320,000 a year, before depreciation, interest, taxes, and any debt service. *This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. The term Labor Costs includes wages for in-store employees including the manager and payroll taxes, but does not include employee benefits. Overhead employees are not included in the labor calculations above. Learn more about how to become a franchise owner with one of the leading coffee brands in the nation. Scooters Coffee started franchising in 2002 and is franchised by Scooters Coffee LLC, headquartered in Omaha, Nebraska. Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Need help? 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. Initial Franchise Fee: $40,000. Looking to buy an A-list franchise? Everyone watched their spending last year, and yet so many customers saw our products and service worthy of their dollar. Earnings Before Depreciation, Interest, Taxes, and Debt Service: $138,202 (21.3%), Earnings Before Depreciation, Interest, Taxes, and Debt Service, Earnings Before Depreciation, Interest, Taxes, and Debt Service: $112,737 (15.9%), Your email address will not be published. Your results may differ. Nov 2021 - Jun 20228 months. Scooter's Coffee has a franchise fee of up to $40,000, with a total upfront investment range from $794,500 to $1,264,500. The remaining Kiosk and Coffeehouse franchised Stores open as of December 31, 2020 are not included in the statement below because they were not open during the entire Measurement Period or did not provide complete information requested. Heyman has a Bachelor of Science degree in Geology and Physics from Tufts University and a Master of Science degree in Geology from Brown University. With more than 35 years of experience in information technology, Heyman has successfully led digital transformation for entrepreneurial endeavors and large public enterprises. See Item 19 of the FDD for more information. Entrepreneur and its related marks are registered trademarks of Entrepreneur Media Inc. 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%. **This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. This information is based upon the top 43 of 172 Drive-Thru Kiosks that were open during the entire 2021 calendar year and provided complete information. For a number of good reasons, many entrepreneurs opt to buy a franchise of a successful coffee concept rather than open as an independent. Initiatives included digitizing supply chain processes, automating business practices, designing/building the first global sustainability data collection/reporting solution, and leading the implementation of its Automated Order Taking initiative. The Eckles were inspired to open their own coffee shop while they were living in California where they witnessed the growth of the specialty coffee industry and drive-thru coffee concepts. 15. Subscribe to Scooter's Coffee delivery and enjoy 100% Arabica beans, sourced directly from farmers who take pride in their product. Scooters Coffee ranked No. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. The term Average Customer Ticket means the total amount of Gross Sales during the Measurement Period, divided by the total amount of customer transactions. Scooter's Coffee franchisees have two options for franchise models: our drive-thru kiosk model or a welcoming drive-thru coffeehouse model. Opening a Scooter's Coffee franchise could be a strategic move if owning a well-regarded beverage franchise is your dream. 12. You also agree to our Privacy Policy. 9. 10. Table of Content Chapter 1: Global Coffee Franchises Industry Overview Chapter 3: Market Dynamics Chapter 4: Top Company Profiles Chapter 5: Global Coffee Franchises market Competition, by Players . Find out below. This Item 19 also does not include any financial performance information for any of Scooters Coffees affiliate-owned Stores. 4. 66 on Entrepreneurs 2022 Franchise 500 list. The first franchised store opened in Council Bluffs, Iowa. 2. Number and Percentage That Attained or Exceeded the Average: 83/48%, Number and Percentage That Attained or Exceeded the Average: 84/49%, Number and Percentage That Attained or Exceeded the Average: 79/46%, Number and Percentage That Attained or Exceeded the Average: 35/47%, Number and Percentage That Attained or Exceeded the Average: 37/49%, Number and Percentage That Attained or Exceeded the Average: 34/45%. Potential profit from a Scooters Coffee franchise is well above the average for the industry. To create an amazing experience for each life we touch. Nationwide trends indicate that consumers want easy access to specialty coffee and quality service. LEARN MORE WHO ARE WE SEEKING? Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company. Definition: The total amount necessary to begin operation of the franchise. Scooters Coffee understands customers want to interact with brands digitally. This ever-growing brand has more than 275 locations across 17 states, including coffeehouses and drive-thru kiosks. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. During 2020, the range of rent paid for Kiosks was $3,600 to $52,401, and the range of rent paid for Coffeehouses was $12,000 to $112,441. Catch up on the latest franchise news, trends, and more. Franchise Chatter is reader-supported. Scooter's Coffee was founded in 1998 by Don and Linda Eckles in Bellevue, Nebraska. Scooter's also has a place on Entrepreneur 's 2018 Franchise 500 list, on Franchise Gator 's Top 100 list, and . 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 owner becomes an important part of the community and feels the satisfaction of serving great coffee and other items. During 2021, the range of monthly rent paid for both Kiosks and Coffeehouses was $3,500 to $10,000. Orders over $39.99 Ship Free! However, their liquid capital requirement is only $100,000 compared to Dunkin's $250,000 minimum. Scooters Coffee has not verified or audited this information. Lester also oversaw McDonalds innovation restaurants, implementing breakthrough practices in live environments. Exceeding 400 stores is significant and reflects an important moment for the brand as Scooters Coffee advances toward a goal of 1,000 stores by 2024. Regional Marketing and Advertising Cooperatives: none currently. In addition, utilizing digital menu boards at this location allows us ample flexibility. The term Cost of Goods Sold includes amounts for coffee beans, dairy, food items, syrups, tea, smoothies, cups, lids, paper products, and other direct products associated with serving food and beverage products. Description. For example, this Item 19 does not include costs associated with paying any rental expense, equipment, royalty, or continuing marketing fees. Visit OwnAScooters.com today to learn more about joining the Scooters team and making your dreams a reality. Initial Franchise Fee: $40,000 Total Investment: $794,500 to $1,264,500 Working Capital: N/A to $86,000 Royalty Fee: 6.0% The initial purchase price of any franchise includes several fees. What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. 7. Non-traditional Stores are carts or small spaces located in specialty locations (e.g., airports, hospitals, stadiums, train stations, malls, military bases, amusement parks, and business atriums), or within other businesses such as large office buildings. The term Discounts includes the face value of coupons, free or reduced drink promotions, gift card promotions, mobile app promotions, waste, and employee free drinks. Were most proud of the fact that it emphasizes the trust our brand has with customers. Franchise Winners, Survivors and Losers Last Year. 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: +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%. 8. All of the Stores whose data were used in the table above were open for at least 13 months during the measured period. These brands have been the strongest for the longest. Tim Arpin, vice president of franchise sales for Scooters Coffee, said, Were thrilled with the growth weve seen in the past few years and hitting a milestone like 300 stores is a great reminder of what the brand has accomplished. The term Earnings Before Depreciation, Interest, Taxes, and Debt Service is the estimated earnings before deductions for payments and costs of borrowing to finance the Initial Fees in Item 5, Initial Investment in Item 7, and ongoing investments in the Store and before deductions for depreciation on the Initial Fees in Item 5, Initial Investment in Item 7, and ongoing investments in the Store. But our ability to pivot effectively and continue growing throughout the Midwest and beyond has truly excited our existing franchisees and prospective franchisees about what is possible going forward.. How profitable is a Scooters Coffee franchise? See more Food Franchises in USA in the catalog . Targeting mostly businesses and special events, Cafe2U serves customers from a van, which is staffed with baristas. while meeting budget expectations and achieving a $100,000 profit . In addition to the initial franchise fee of $40,000, you would also pay for: On average, a Scooters Coffee franchise makes $797,101 in sales per year. 13. The investment amount covers all startup costs you need to open a restaurant. Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company. The following charts are based on information for only 186 Kiosk and 78 Coffeehouse franchised Stores that were open and operating during the entire Measurement Period for 2021 and that provided complete information (the Participating Stores). The initial investment for a Scooter's Coffee franchise is $120,000. The average profit for a small coffee cafe is 2.5 percent of gross sales. That's right, Cafe2U is coffee on wheels. Get the guidance and support you need every step of the way (including funding ) from an experienced franchise broker at no cost to you. Scooters Coffee has not verified or audited this information. 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. The term Overhead is the estimated costs of other expenses including business insurance, licenses, accounting fees, franchisor technology fees, banking fees, store supplies, service contracts, repairs, maintenance, uniforms, and other miscellaneous costs. See Item 19 of the FDD for more information. Scooters Coffee is an American drive-thru coffeehouse chain with over 500 locations in the US. And entrepreneurs considering buying a franchise want to know how much money they may stand to make. 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. It takes on average 9.6 years to repay your investment if you were to open a new Scooters Coffee franchise. Curious to know where Scooter's Coffee ranked on other franchise lists? Email franchisechatterblog@gmail.com, Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful. (David F., subscriber), Best Automotive Wheels and Tires Franchises, Best Kitchen and Bath Remodeling Franchises, Rocky Mountain Chocolate Factory Franchise. Scooters Coffee also may offer exclusive territories, potentially setting up franchisees for success by weighing all factors. 15. The franchise grew by almost 50 locations in 2020, while experiencing historic same-store sales growth. The term Overhead is the estimated costs of other expenses including business insurance, licenses, accounting fees, franchisor technology fees, banking fees, store supplies, service contracts, repairs, maintenance, uniforms, and other miscellaneous costs. But, ultimately, a coffeehouse or drive-thru coffee kiosk is a business. In mid-May 2021, Scooters Coffee released its 2021 Franchise Disclosure Document, providing a look into its system and sales growth during 2020. Same-store sales for locations open for at least 13 months is measured each year. The initial franchise fee will start at $25,000-35,000, with additional expenses depending on the location and size of the shop. You do not need to consent as a condition of any purchase, and you can revoke consent at any time. This Item 19 is separated into five sections. He subsequently earned a Master of Business Administration and a Master of Information Systems from the University of Nebraska at Omaha. That should include reviewing the companys legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers. Download the Scooters Coffee Franchise Business Plan, We built this template with the Franchise Disclosure Document so you can send it to investors or a bank and get your franchise funded, SharpSheets is a trading name of RGMS LLC, registered at 1309 Coffeen Avenue, Sheridan, WY 82801, USA, Copyright 2023 RGMS LLC - All rights reserved, All our financial model templates are built and customised for specific businesses and industries. It was founded in 1998 in Bellevue, Nebraska, by Don and Linda Eckles. Details can be found in Item 12 of the FDD. 16. 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. This Item 19 is separated into five sections. Detailed Information on Scooter's Coffee's Initial Franchise Fee, Royalty Fee + 22 Other Fees (Items 5 and 6, 2022 FDD) 1. For each year, Scooters only included franchised Kiosk and Coffeehouse Stores that remained open and operating as of December 31, 2021. The term Gross Margin means the Net Sales minus the Cost of Goods Sold. How much money can you make with a Scooters Coffee franchise? The same-store sales growth figures below show the change in the Net Sales (as defined above) earned by Participating Stores during the 2019-2020 calendar year when compared with the Net Sales earned by the same Stores during the prior calendar year, broken down by type of Store (Kiosk or Coffeehouse). Definition: A ongoing fee paid to the franchisor on a regular basis. 8. At C2 Education, a national chain of 200 specialized tutoring centers in 14 states, Smiths department led all aspects of store development, including strategic planning, site selection, legal, lease management, construction, and facilities. Scooter's Coffee franchise fees for 2023: Initial Investment: $794,000 - $1,264,500 Net Worth Requirement $500,000 Cash Requirement $200,000 Veterans incentive: Yes Royalty Fee 6% Financing options: Yes Initial Franchise Fee: $40,000 Is Scooter's Coffee a Semi Absentee Franchise with a Passive Ownership Opportunity? Smith will lead the franchise sales, real estate, and construction functions. The financial performance figures do not reflect all of the costs of sales, operating expenses, or other costs or expenses that must be deducted from net revenue or net sales figures to obtain your net income or profit. It is clear that the 550-square-foot drive-thru kiosk model has proven itself effective and viable. 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). Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee. 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 . Fill out this form and a specialist from the Franchise Brokers Association will reach out to you. Net Sales also includes the fair market value of any services or products you receive in barter or exchange for your services and products. As the senior vice president of development, Smiths experience and leadership will help underscore the companys commitment to achieving growth goals while providing innovative ways for customers to get amazing drinks, amazingly fast. Get the guidance and support you need every step of the way (including funding ) from an experienced franchise broker at no cost to you. The information presented in this Part 1 is based on information Participating Stores provided to Scooters Coffee. At the beginning of July 2019, Scooter's Coffee gave its franchisees a powerful new way to help customers cool down and power up anywhere and everywhere with the company's first-ever canned Cold Brew beverages. Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees. The median earnings for a top-performing shop are around $184,000. Its been that commitment from franchisees, both long-term and newer, that has allowed us to expand our footprint.. Total Number of New Stores That Opened During the Calendar Year: 39, Average Gross Sales During the First Full Month of Operations: $66,775, Number and Percentage That Attained or Exceeded the Average: 19/48.7%, Median Gross Sales During the First Full Month of Operations: $66,652, Low Gross Sales During the First Full Month of Operations: $27,221, High Gross Sales During the First Full Month of Operations: $102,739, Total Number of New Stores That Opened During the Calendar Year: 43, Average Gross Sales During the First Full Month of Operations: $44,686, Number and Percentage That Attained or Exceeded the Average: 20/46.5%, Median Gross Sales During the First Full Month of Operations: $42,132, Low Gross Sales During the First Full Month of Operations: $13,063, High Gross Sales During the First Full Month of Operations: $111,917, Total Number of New Stores That Opened During the Calendar Year: 26, Average Gross Sales During the First Full Month of Operations: $36,742, Number and Percentage That Attained or Exceeded the Average: 12/46.2%, Median Gross Sales During the First Full Month of Operations: $35,936, Low Gross Sales During the First Full Month of Operations: $13,336, High Gross Sales During the First Full Month of Operations: $66,643, Total Number of New Stores That Opened During the Calendar Year: 18, Average Gross Sales During the First Full Month of Operations: $36,266, Number and Percentage That Attained or Exceeded the Average: 9/50.0%, Median Gross Sales During the First Full Month of Operations: $35,865, Low Gross Sales During the First Full Month of Operations: $12,572, High Gross Sales During the First Full Month of Operations: $53,444. 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