Starbucks, a global coffeehouse giant, doesn’t technically offer franchises, as all its stores are company-owned. They do offer a licence to operate a store, but less than half its stores across the world implement this model. This is because they only accept licensees who already have a lucrative business that the brand can capitalise on (for example, a healthcare facility, a hotel, or a business that has real estate for a Starbucks premises).
Cobra Coffee is a licensed UK Starbucks franchised business owner, and they’re looking for business owners with potential sites.
Becoming a licensee of a Starbucks is not easy, so it's worth checking their corporate careers page for more information. Nonetheless, there is still a chance to qualify as a Starbucks franchise licensee, so we’ll offer guidance on how much it costs to do this, and what to expect in the process.
But before we dive into the important topics of Starbucks franchise costs, let’s take a quick trip down the Starbucks memory lane.
The Legacy of Starbucks: From Local Coffee Bean Store to Global Coffeehouse Giant.
Starbucks is the world’s biggest coffee chain, but it didn’t start out that way.
It started out as a small coffee bean store at Pike Place Market in Seattle, and was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker. In 1980, it was sold to Howard Schultz, who turned it into a coffee shop after an inspiring trip to Italy. An aggressive expansion of the coffee shop began in 1986. Fast forward to 2022, it had 35,711 stores in 80 countries, and there’s no sign of this expansion slowing down.
Starbucks made its debut in the UK in 1998, with the opening of its first store in Chelsea, London. Since then, it has expanded steadily and become an unrivalled presence across the nation.
Starbucks' commitment to sustainability and ethical sourcing has resonated with UK consumers, and the company has taken steps to reduce its environmental footprint by offering reusable cups, implementing recycling programs, and more.
So, let’s see what it takes to become a Starbucks franchise partner.
How Much Does It Cost to Operate a Starbucks Franchise?
Although Starbucks does not technically implement a typical franchise model, becoming a Starbucks licensee is not for those with a light wallet or blank resume.
The cost of buying a Starbucks franchise can vary significantly depending on several factors. Generally, you’ll need liquid assets of around £500,000. Starbucks also requires extensive financial information on your business’s liabilities, dividends and profits. The Starbucks franchise application form covers these requirements in detail.
How Much Can You Make Operating a Starbucks Franchise?
The potential earnings from owning a Starbucks franchise can be lucrative, because Starbucks licensees can often own more than one unit. Financial information on how much you can make from a Starbucks franchise is not widely available, but Cobra Coffee (which operates 66 licensed Starbucks units) experienced a 38% increase in sales in 2023. This amounted to £28.8 million, with a pre-tax profit of £492,837.
Although this is an example of an individual operator, it does give you an idea of the profit potential from operating multiple Starbucks franchises.
Of course, success also depends on your ability to manage costs, provide excellent customer service, and adapt to changing market conditions.
Other Food and Drink Franchise Opportunities
Operating a Starbucks franchise in the UK is not easy, and successful partners need to meet strict qualification criteria. Running an existing, profitable business is one of them.
If you’re unable to match Starbucks’ franchise qualifications, don’t worry. There are fantastic coffee franchise opportunities out there, and you’ll find one that matches your skills, finances, and professional goals.
Before you start your franchising journey, don’t forget to read our valuable franchise guides. These offer helpful information on the franchising model, from how to choose a franchising to understanding franchise resales.
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