Your particular success will be based on a number of variables including location, operating expenses, retail sales mix, sales margins, occupancy costs, financing costs, and other factors.
It is not legal for Classic Rock Coffee to disclosure P&L to franchisees. What we can do is give ‘guidelines’ that will help a potential owner come to their own conclusions. Here are some helpful items to assist with this:
- We have provided a hypothetical profit and loss calculator. This includes real and reasonable expenses that CRCC would have. The calculator is intended for a prospective owner to download and adjust the calculations based on their own findings. We would recommend adjusting items such as expected revenues, payroll, debt service, lease costs, etc.
- Look at other coffee brands numbers. Here is the 2015 published article from QSR magazine that shows average monthly store revenue from Starbucks as $87,341 and Tim Hortons as $95,250.
- Spend a couple of hours counting cars / people going into a coffee house in your community. Multiply that number of people by what you believe the average ticket price would be (you can google “average coffee house ticket” to get a good estimate).
- Ask yourself these three questions: 1) Is CRCC coffee better than other coffee houses? (you won’t know this yet, but when you try it you’ll have your answer), 2) Is the CRCC concept more appealing than other coffee houses?, 3) Are other coffee houses doing well? If you can answer yes to these questions AND you believe you have enough of an entrepreneurial spirit to run your own business, then you should be able to reasonably determine your success.
- Food and Beverage locations follow a simple rule. Keep your cost of goods below 35%. We do and we will make sure you do as well. Which means you have the best chance for profit.
Full Disclosure: Though its not necessary public knowledge, there is an understanding in the franchise world that ‘no one gets rich off of one location.” While it can happen, its not something you should have in your belief system. A good store should provide a reasonable living. But business is about multiples, and those who are able to open up multiple locations find revenues exponentially increased as a rule.