There are few more thriving industries than the coffee shop industry. Over the last decade, the number of coffee shop businesses has boomed in the UK. Throughout this expansion, coffee van franchises have been a quietly growing trend, bringing both profit and reward to business owners. If you’ve been thinking about making a career change with a coffee van franchise, here’s how to make it a reality.
Coffee van shops were one of the biggest trends changing the face of high streets up and down the country before the pandemic. And, although many businesses have found it tough in recent months, there’s no evidence to suggest this is an industry slowing down any time soon.
While many could be forgiven for thinking that now isn’t the time to make a career change with a coffee van franchise, the franchising business model is one of the safest operating models, with only 1% of franchises citing commercial failure as a reason for closing in 2018. So, if you want to make a change with a secure and exciting coffee business, here’s what you need to know about the coffee industry.
Why start a coffee van franchise
Coffee vans have been an emerging trend in the coffee industry for some time. While the number of specialist coffee shops has almost doubled over the last decade [Statista], coffee vans have been bringing specialist coffee and equipment to people all over the country.
Coffee vans offer more mobility, without compromising quality and robust food hygiene standards. The best part is that all of this comes without the fixed costs of rents, fees, and other charges associated with setting up a business in a set location. This in turn has resulted in coffee van franchises avoiding the worst of the recent downturn. The appeal of a coffee van franchise is clear to see.
How to make a career change with a coffee van franchise
Having decided to make a career change, your next step will be to put in place the steps to make your coffee van dream a reality. Here are some key things you’ll need to do to get yourself set up in this exciting industry.
>> Read more:
1. Decide your budget
It goes without saying that not all franchises will be for you and the start-up cost is likely to be one of the biggest reasons. Ultimately, if a franchise's fees are beyond what you can afford, you might have to write that franchise off as a potential franchisor.
This being said, start-up costs aren’t always the barrier they seem to be. Many major high street banks are prepared to lend up to 70% of start up costs to individuals with good credit histories. Even beyond this, many franchises will have a dedicated finance coach or broker who can help you on the financial side of starting your business.
So, decide what your budget is, but be aware of the financing options that go with each business.
2. Choose your franchise
With your budget set out, you can now begin choosing which franchise is the best option for you. Some franchises will be better equipped for catering to events while others will be more suited to the general public. In addition, some will offer their own vans and equipment as part of the initial fee, whereas others may not.
Other things to bear in mind include:
- Working schedules: What will your working hours be? Can they be tailored?
- Training and support: How much training will be provided both before and after you open? Will there be ongoing training? Are there supportive coaches and networks?
- Recruitment: Will you need a team to help run the business? Is the franchise aimed at solo entrepreneurs instead?
- Products: What kind of food and hot drinks will you be offering? Are you passionate enough to sell them? Can you see yourself working with the franchise?
>> Read more:
3. How do you want to market your business?
A good marketing strategy can make all the difference between a successful business and a failing one. Your franchisor will almost certainly have a number of tips and pieces of advice for how to help your business grow, so you should always look to take this guidance on board.
However, the franchisee-franchisor relationship should always work both ways and steps should be taken to ensure you can give constructive feedback and advice on how to run the business. Nobody knows your customers like you, so you should be free to give your own ideas on how the business should run.
4. Produce a business plan
Once you’re ready, you will need to put all of your hard work and ideas into a business plan to present to various stakeholders. Overall, your plan will need to be readable to your franchisor who will be looking for many of the more business-oriented parts of your plan.
Depending on whether you’ll be approaching a lending institution or a bank for additional funding, you may also need to include details on the the financial and revenue side of your business, as well as future growth projections.
Your business plan will need to be a comprehensive document containing many of the major details of your business.
Start a coffee van franchise today
Starting a coffee van franchise is a fantastic way to get involved in an exciting and enjoyable industry. By tapping into an emerging trend that has a lot of potential to grow further, you will be able to capture the profitable side of this sector, while also enjoying the flexible and mobile benefits of being your own boss.
If you’ve decided that running a coffee van franchise isn’t the right opportunity for you, you can see a full range of other exciting franchises on the UK franchise directory.
Elliott Fudge, Point Franchise ©