Q&A: Does Nespresso Franchise in the UK?
Love coffee? Perhaps you’ve considered joining Nespresso as a franchisee. Here, we take a closer look at the business and whether it offers investment opportunities.
Founded in 1986, Nespresso is a premium coffee brand that belongs to the Nestlé Group. The business produces its own coffee, manufactures award-winning machines and has its own network of boutique stores, which showcase a range of different coffee blends. Nespresso has high standards, and only an estimated 1-2 percent of the world’s green coffee crop makes the grade, as each bean must to meet its strict taste and aroma profiles.
History of Nespresso
It was Swiss inventor Eric Favre who first came up with the idea of the coffee capsule. He brought it to the market with Nespresso for the first time in 1986 and it revolutionised the espresso. Ever since, companies like Kenco, Lavazza and L’OR have followed suit in producing their own capsules.
In 2000, Nespresso wanted to develop from a small business into a global brand. Since then, the company has hired over 13,000 employees across 76 different countries and launched more than 700 boutique stores. In 2005, it brought George Clooney on board as a brand ambassador, which boosted its association with premium coffee.
Even today, Nespresso works to stay ahead of the game. As part of its sustainability strategy, the company announced in 2012 that 75 percent of its capsules had the capacity to be recycled. More recently, Nespresso has guaranteed that all of its Grand Cru range will be sustainably sourced.
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Also, Nespresso is constantly updating its cutting-edge Grand Crus range in its three Switzerland-based production centres. Limited edition variations Vanilio, Ciocattino and Caramelito have been a recent addition to Nespresso’s family of permanent flavours. And with the growing popularity of iced coffee, Nespresso has launched a series of pods designed to make cold drinks.
This is a brand that believes coffee lovers deserve to taste the highest quality blends in the comfort of their own home.
Does Nespresso franchise?
Unfortunately, it’s not possible to open a Nespresso franchise unit. To ensure quality, the company directly conducts its business operations between farmer and consumer. Because it believes that franchising does not resonate with its principles, the business doesn’t use the franchise model as part of its global growth strategy.
It is also not possible to open a Nespresso Boutique franchise store. The Nespresso Boutique customer experience is strictly regulated, from the architectural design of its stores to the production of its blends. The company has said it would be impossible to replicate that seal of quality if the brand were franchised out to external individuals.
How to get involved with Nespresso
If you’re determined to be a part of the Nespresso brand, your other option is to join it as an employee. You can browse the current vacancies on its careers site here.
The coffee market in the UK
While us Brits have traditionally pulled out the teapot when we fancy a hot drink, coffee is fast becoming a firm favourite. In fact, here in the UK, we drink 95 million cups of the beverage every single day – and this number is only going to rise!
Today, the UK’s coffee shop sector is worth £10 billion, and 16 percent of the population pops into their local café on a daily basis. But it’s not just coffee shops that are benefitting from the increasing popularity of the delicious beverage.
As consumer habits evolve and lifestyles become busier than ever, mobile coffee shops have sprung up across the UK. While high street cafes remain as fashionable as they ever have been, mobile businesses are capitalising on our growing ‘grab on the go’ culture. A quick ‘coffee to go’ is the ultimate pick-me-up for many people dashing about their daily lives.
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Similar franchise opportunities
Although it’s not possible to open a Nespresso franchise unit, there are a number of other high-profile coffee brands looking for franchisees here on Point Franchise.
You may not have bought a coffee from this US-based business, but you’ll have almost definitely heard of it. If you want to open a kiosk-style coffee shop franchise, perhaps with small amounts of seating, this could be the perfect opportunity for you.
There are over 11,000 Dunkin’ Donuts locations spread across 31 countries, serving more than five million customers every single day. In fact, the franchise sells an average of over 30 cups of coffee every second. Dunkin’ Donuts has accumulated almost 70 years of experience in the food and drink industry, and is famous among coffee – and doughnut – lovers across the world.
- Becoming a Dunkin’ Donuts franchisee: This doughnut franchise is looking for entrepreneurs who are prepared to open at least 20 outlets within a given period. If you think you’re the person for the job, why not get in touch? To learn more and sign up, click here.
- How much you need to invest: This is a big brand, so you’ll need to have at least £3 million to invest.
- What you get for your investment: It goes without saying that you’ll benefit from high brand recognition and a ready-made customer base. It’s likely that, wherever you set up shop, you’ll find plenty of hungry customers eager to dunk their doughnuts. This franchise also provides its franchisees with world-class tools and resources to make sure all franchise units are profitable.
Esquires Coffee serves delicious food and drinks, but it’s also a business with high ethical standards, which should attract increasing numbers of consumers as time goes on. This franchise was founded in Canada in 1993 and came to the UK in 2000. Today, the internationally recognised brand has a network of more than 50 cafes in the UK and Ireland, and sees a turnover of just under £9 billion.
- Becoming an Esquires Coffee franchisee: When you become part of Esquires Coffee, you join a coffee shop franchise with a conscience. It works hard to preserve its “community ethos” and has been ranked as the UK’s second most ethical coffee company and the UK’s top coffee franchise (Elite Franchise). To learn more and sign up, click here.
- How much you need to invest: Franchisees need to put £225,000 towards property agency fees, store design and fit-out, furniture and equipment.
- What you get for your investment: Esquires Coffee provides an excellent training scheme and supports all franchisees in site selection and procurement, store design, lease negotiation and marketing.
If you’re thinking about opening a coffee franchise, why not go mobile, with a fully equipped van? Coffee Blue is the UK’s leading mobile coffee van franchise, selling “barista-quality hot drinks” and delicious food, which it takes to workplaces, events and festivals across the country.
The franchise’s parent company, Vantastec was ranked top ‘Converter of the Year’ at the 2020 WhatVan? awards, demonstrating just how reliable its mobile coffee vehicles are.
- Becoming a Coffee Blue franchisee: You’ll operate out of a Ford Transit Custom that has been converted into a sparkling coffee station. Franchisees benefit from higher reliability and lower ongoing costs than any other mobile coffee business. To learn more and sign up, click here.
- How much you need to invest: Coffee Blue’s full franchise package costs £16,950, but you could pay up to £43,305 upfront if you choose the ‘Buy Outright’ package.
- What you get for your investment: You’ll get master barista training and ongoing support, as well as £7,500 worth of stock, NCASS membership, access to the EPOS till system and help with marketing and social media.
Really Awesome Coffee
This is another alternative if you’re interested in starting a mobile coffee shop. It was launched in Coventry in 2010 and now has a chain of more than 50 franchisees. Really Awesome Coffee offers a wide variety of food and drink options, from gourmet coffees, frappes and smoothies to hot and cold food.
- Becoming a Really Awesome Coffee franchisee: If you have a friendly, enthusiastic attitude, this franchise wants to hear from you. To learn more and sign up, click here.
- How much you need to invest: If you want to make really awesome coffee, you’ll need to make an investment of £69,000. But after two years, you can expect to see a revenue of between £80,000 and £100,000.
- What you get for your investment: Every franchisee benefits from Really Awesome Coffee’s dedicated training programme. You’ll spend two weeks at the coffee franchise’s Coventry training centre before you get two weeks of support in your territory. After this, the franchise development manager will visit regularly to make sure you’re on the path to profitability.
To find out which coffee chains are looking for franchisees and what their investment requirements are, click here.
Alice Tuffery, Point Franchise ©
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