Café Franchise Pros, Cons, & Alternatives

Starting a café or coffee shop franchise can certainly be a fulfilling venture. Brightening people's days with specialty coffee drinks like lattes, cappuccinos, and espresso shots, along with a selection of teas, smoothies, and other non-coffee beverages, offers more than just refreshment — it builds a community hub. People may frequent coffee shops multiple times a week, if not daily, giving owners the chance to really connect with their customers. If you're curious to learn how to open a café franchise, our comprehensive guide will walk you through the benefits and drawbacks of getting started.

Opening a café franchise can be a great investment, but – like most business opportunities – it's important to weigh all the pros and cons before signing an agreement. Below are some of the top factors to consider:

Pros of Owning a Coffee Shop Franchise:

Market demand: Coffee is a worldwide favorite! According to Allied Market Research, the global coffee franchise market was valued at $90.7 billion in 2021. Projections show the industry reaching $200.3 billion in 2031, growing at a compound annual growth rate (CAGR) of 8.3% from now until the end of the forecast period.

Brand recognition: Partnering with an established brand can help you build a customer base. Franchisors, in addition to assisting with local marketing strategies, launch national advertising campaigns to strengthen the brand's presence. Vicious Biscuit, a brunch franchise, has strong brand recognition due to our impeccable reputation. In fact, we've been named the Best Biscuits of Charleston four years in a row. Recently, our brand ranked on the Fast Casual Movers & Shakers Top 100 list.

Ongoing support and training: Reputable franchisors should have an extensive training program to ensure franchisees are set up for success. Brands should also provide ongoing support through on-site visits, company meetings, updated training programs, and webinars.

Cons of Owning a Coffee Shop Franchise:

Limited control: Franchise brands typically have partnerships with suppliers and vendors that franchisees must purchase from. A lot of times, this can keep costs low. However, it also means franchisees can't negotiate or compare pricing from other suppliers.

Franchise fees: Franchise brands charge an initial franchise fee to cover the costs of the support they provide you when opening your location. This can range from $15,000 to $50,000.

Limited menu: Café franchises tend to have a concise menu. And while that may work as a midday pick-me-up, a limited menu can lead to lower ticket values. Investing in a brunch franchise like Vicious Biscuit gives customers more to choose from (and gives your team more to upsell). Instead of making a quick stop, guests can sit down and enjoy their time at breakfast.

Market saturation: Coffee franchises are quite popular. But with such incredible growth on the horizon, your area could become oversaturated. Typically, a small group of well-known brands grab the majority of the market. This can make your job of differentiating yourself much more difficult. However, if you choose to offer more than coffee and baked goods, you may gain a competitive advantage over other locations in your market.

Alternatives to a Café Franchise

If owning a coffee shop business doesn't seem like the best fit for you, there are other franchise options to consider:

Quick-service restaurant (QSR) franchises: Also known as fast-food restaurants, QSRs provide meals as efficiently as possible. These chain restaurants focus on speed, convenience, and consistency – all for a lower cost. These locations typically have drive-thrus and mobile pickup options for customers on the go.

Fast-casual franchises: Fast-casual restaurants occupy the middle space between casual restaurants and fast-food chains. This type of franchise offers higher quality food but with fewer table services. Customers typically order and pick up their food at the counter, but can eat in a comfortable and inviting atmosphere.

Brunch franchises: These restaurant franchises typically serve a mix of breakfast and lunch staples, catering to leisurely dining – especially on the weekends. Brunch franchises tend to offer a relaxed atmosphere, ideal for casual brunch dates and social gatherings. At Vicious Biscuit, we combine quick service with comfort. Our guests place their initial order at the counter, but can order additional food or drinks from their table.

Join the Brunch Revolution!

Vicious Biscuit offers a one-shift, brunch-only franchise opportunity. Whether you have a family, hobbies, or other business ventures, you can balance it all with us. Our locations close at 3 p.m. daily, granting you a better work-life balance. Additionally, our business model is family-friendly. Parents can build a restaurant where their children can be involved with the day-to-day. With Vicious Biscuit, you can create a lasting legacy!

Startup costs to own a Vicious Biscuit franchise range between $750,750 and $1,475,416, including our initial franchise fee, which can range from $35,000 to $40,000. We do require our franchisees to have restaurant or food service experience unless they've chosen a business partner with a history in restaurant management.Part of what makes us the best brunch franchise is our simplified operations. We provide a variety of food choices by skillfully utilizing similar ingredients across our menu.

This makes the learning process easier for our franchisees and reduces inventory complexities.

And it works. Our four corporate locations saw a killer average unit volume (AUV) of $1.9 million in 2023. Our fun, edgy culture and authentic Southern hospitality keep customers coming back for more of our stacked-high biscuits.

Don't wait. Get Vicious today! Start by filling out this form and one of our representatives will contact you about next steps.