Initiatives included voice-activated drive-thru capabilities, predictive production management, robotic/automated cooking equipment and more that drove better business efficiencies and performance. Since Scooter's Coffee hit the market, the brand has maintained a solid reputation among customers who depend on its commitments to quality. 10. The following statement is based on information for the Kiosk and Coffeehouse franchised Stores that were open and operating during the entire Measurement Period and that provided complete information (the Participating Stores). Heres what you need to know if youre interested in opening a Scooter's Coffee franchise. Your results may differ. 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.. Drive-thru coffee kiosks are growing in popularity all around the country. 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What you need to know: Net worth is the value of a person's assets minus liabilities. 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. With commitments to build new stores in 30 states, the company plans to open many additional locations in 2022. 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). We may receive a commission for leads generated from our site. DESCRIPTION: The Store Manager is responsible for all staffing, sales, and operations in a Scooter's Coffee location. Prior to his time at McDonalds, Lester received a Bachelor of Science degree in Civil Engineering from the University of Illinois and worked as a Civil Engineer, master planning and designing municipal treatment solutions across the United States. He also completed coursework for the Certified Commercial Investment Member (CCIM) designation, comprised of state-of-the-industry commercial real estate coursework in financial and market analysis, investments, and negotiation. Smith will lead the franchise sales, real estate, and construction functions. Initial Franchise Fee: $40,000. Purchasing a coffee shop franchise should be more than buying a job; it should be an opportunity for entrepreneurial growth. Franchise Training at Scooter's Coffee In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. The franchise grew by almost 50 locations in 2020, while experiencing historic same-store sales growth. The Midwest-based drive-thru coffee franchise reached the 300-store mark after seeing increases in average unit volume across the system in recent years, including 43 new stores in 2020. Royalty also includes the 2% Marketing Contribution. Scooter's Coffee was founded in 1998 by Don and Linda Eckles in Bellevue, Nebraska. Scooter's Coffee has built a reputation for delivering "amazing drinks, amazingly fast." We may receive a commission for leads generated from our site. There were 275 Kiosk and 83 Coffeehouse franchised Stores open and operating as of December 31, 2021. The following are statements of Sales, Expenses, and Earnings for Participating Kiosk Stores and Participating Coffeehouse Stores based upon reported results and actual and estimated expenses. The table below excludes franchised Kiosk and Coffeehouse Stores that were initially opened as corporate stores by Scooters affiliate and then transferred to a franchisee. With more than 35 years of experience in information technology, Heyman has successfully led digital transformation for entrepreneurial endeavors and large public enterprises. 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. With over 200 franchise commitments to build new stores, the company plans to open many additional stores in 2020. Required fields are marked *, Previous post: FDD Talk: Premier Martial Arts Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review), Next post: FDD Talk: CycleBar Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review), Is Franchising a Path for You? For each year, Scooters only included franchised Kiosk and Coffeehouse Stores that remained open and operating as of December 31, 2020. 9. LEARN MORE WHO ARE WE SEEKING? Scooter's Coffee. And while dine-in options were severely hampered, Scooters Coffee stores built as coffeeshop models still saw growth as well compared to the year before. 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. In this FDD Talk post, youll learn the following: 1. However, their liquid capital requirement is only $100,000 compared to Dunkin's $250,000 minimum. Net Sales are measured by taking Gross Sales and subtracting customer discounts and refunds to customers. Launched new store with 22 days lead time. 10500 Sapp Brothers Dr, Omaha, NE 68138 As demand grew, the Eckleses decided to start franchising the Scooters Coffee concept. Get ready for the franchising industry's biggest trade show event of the year. Regional Marketing and Advertising Cooperatives: none currently. 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. Scooter's Coffee is a drive-thru franchise that has been serving world-class coffee for more than 20 years and has more than 240 locations in 15 states across the nation. In 2012, there were a total of 100 franchises operating. Scooters Coffee has not verified or audited this information. What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. May vary, with recurring contributions up to 3% of Net Sales. Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses. 3. 2. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee. Heyman will advance Scooters Coffees technology-enabled processes to provide secure and scalable IT solutions that will fuel franchise support and growth. Lester will lead innovation, speed acceleration and continuous improvement to enhance the interactive customer experience. PJ's Coffee. In each section, the franchised Stores that meet the criteria in this Item 19 are referred to as Participating Stores (for all such franchised Stores), or for a particular type of Store, Participating Kiosk Stores or Participating Coffeehouse Stores.. PJ's Coffee is definitely a franchise to consider for premium cold coffee drinks and delicious coffee. The first franchised store opened in Council Bluffs, Iowa. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. This includes the franchise fee, which is $30,000, as well as the cost of equipment, signage, and other start-up expenses. Scooter's Coffee. The term Gross Margin means the Net Sales minus the Cost of Goods Sold. Additional details about running this franchise. 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: +24.32%, Total Number of Open Franchised Outlets Whose Data Were Used: 217, Number and Percentage of Outlets That Attained or Exceeded Average: 112/51.61%, 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%. The onset of a public health crisis introduced challenges levied on businesses of all shapes and sizes. Read our 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. Still, Scooters Coffees model of small drive-thru kiosks provided customers with an outlet to fill their demands for their favorite drinks with efficient, safe service. 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. In mid-July 2021, Scooters Coffee announced that Ric Smith has joined the company as senior vice president of development. The Store Manager is responsible for all staffing, sales, and operations in a Scooter's Coffee location. The following table summarizes the ownership of Stores in operation as of December 31, 2021: This Item 19 does not include financial performance information for any of Scooters Coffees franchised nontraditional Stores as Scooters Coffee currently is not actively marketing non-traditional Stores, and they operate differently from Kiosk and Coffeehouse Stores. Same-store sales growth compares net sales (gross sales minus discounts and refunds) in calendar year 2020 to net sales in calendar year 2021. The remaining Kiosk and Coffeehouse franchised Stores open as of December 31, 2021 are not included in the statement below because they were not open during the entire Measurement Period or did not provide complete information requested. This ever-growing brand has more than 275 locations across 17 states, including coffeehouses and drive-thru kiosks. In early July 2021, Nathan Lester joined Scooters Coffee as senior director of drive-thru innovation. The amount included in the table assumes that each Participating Store will comply with the requirements in the Franchise Agreement. The Initial Franchise Fee is due and paid by . Of these 31 Drive-Thru Kiosks that compile the top quartile: (1) 17 of them (or 40%) had an AUV that met or exceeded $1,179,980, (2) 19 of them (or 44%) had a Net Profit Margin and EBITDA that met or exceeded the average. The company is seeking to expand its reach even further, potentially making it an intriguing option for entrepreneurs. In Scooters Coffees experience, Card Processing costs an average 2.6% of Gross Sales, and Scooters Coffee has used this figure in calculating the estimated Card Processing expenses in the above charts. Number and Percentage That Attained or Exceeded (or Did Better Than) the Average: 66/47%, Number and Percentage That Attained or Exceeded (or Did Better Than) the Average: 32/43%. Diving deeper into the same-store sales growth figures, stores built around the drive-thru kiosk model experienced 31% growth. 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%. largest rattlesnake on record in texas, Open many additional locations in 2020, while experiencing historic same-store sales growth seeking! 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