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Coffee Franchises: To Own Or Not To Own

Apr 4, 2008
Coffee franchises have taken over in small business today as we know it. Every corner in every major city has a coffee house, most of these coffee houses are linked through coffee franchises. 81% of Americans will have been in at least 5 different coffee franchises in their lifetime.2.5% of the stock market are cornered by such businesses like the basic coffee house. We the public has definitely benefited from large coffee franchises, as they have benefited from us.?

Small Business vs. Franchise

Each has its own benefit. A small business owner has a lower overhead. This is ideal for profit margins. A single coffee house owner can expect to have up to 4 employees, this would be ideal, and they can maintain business with this type of crew. The average pay that a single coffee house owner can expect to pay out per employee could be anywhere from $5.75 an hour -$6.50 an hour. Usually a small business owner of this type can afford to hire part-time employees, therefore saving oneself the added costs of health benefit.

Accidental insurance coverage for this low ratio will also be feasible. A coffee franchise has the benefit of name recognition. Everyone who is an avid coffee drinker has their favorite name brand coffee house. This makes availability for name product sales. There are big tax breaks for large coffee franchises. This also makes room for more revenue, and having more revenue allows for a large company to hire more part-time employees. Having more employees has the benefit of making more produc
ts, and being able to sustain a larger clientele.

To Each His Own

If you ask your 80 year old next door neighbor if he or she prefers a large coffee franchise cup of coffee or the local small business owner's cup, you may find that they will likely support the local favorite, the small business owner. There is some loyalty to the small business men and women today. Now ask the same question to a college student, who has just enough time to run to the corner (very accessible) large coffee franchise, which cup they prefer, you will likely hear them say the convenient, trendy coffee franchise.

Not that the college student is less loyal, but maybe the new thing is a little more popular and a little more accessible. Now every one person must decide for themselves which is best for them, to support the larger business, or the smaller business. No matter which you choose, there will always be a new trend in java.
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