Starbucks franchise in Russia

The development and popularization of a recognizable brand brand is almost the most important task for a novice businessman or an entrepreneur who has already taken up his mind about the possibilities of a new business idea. But there is another way to make your business recognizable - the use of an already existing, years-tested brand. Franchising or franchising, literally, - buying from the owner of a popular and financially held enterprise the right to conduct business using his trademark. The advantage of such a transaction is difficult to overestimate. Along with the brand, the buyer (franchisee) gets a strategy of development that is justified by itself, a recognizable business image, and, if it is a question of establishing a catering service, then firm recipes.

The leader and the fastest paying off object of the franchise is the restaurant business. Most "giants" catering willingly trade franchise, of course, subject to strict compliance with all the terms of the license agreement.

However, those who are planning such a collaboration with the famous American company Starbucks in Russia, may face some difficulties. What is it connected with and how can franchisees of the legendary brand become?

About company

One of the most successful brands in America, the chain of Starbucks coffee houses, by popularity at home and around the world, is not much inferior to McDonald's restaurants. The cozy "home" atmosphere of the establishments, the high quality of the products offered, the cordial attitude to any client and the varied menu are the qualities that make Starbucks coffee houses in great demand. Among the visitors of Starbucks you can often meet well-known personalities, and most importantly the company's invention - a corporate glass for a hot drink, has already become an attribute of many Hollywood films and serials.

The history of the brand: from a small store to the symbol of America

The history of the legendary coffee house network began in 1971 with a store that opened three young American Americans in Seattle. At the same time, entrepreneurs have come up with a logo that is now known all over the world - a stylized mermaid or a siren on a green background.

The outlet, specialized in selling coffee beans and special coffee equipment, was not popular with local residents at first. Everything changed when the store had a manager Howard Schultz - a businessman who made Starbucks the way he is today. It was he who proposed a new concept for Starbucks - the sale of coffee in cups, for the first time in the United States. Also later, already being the new owner of the Starbucks chain, Schultz came up with the standardization of all establishments.

This policy "Starbucks" adheres to this day. In institutions under this logo, the interior and cozy atmosphere of the first coffee house are always recreated, the same music is played, free Wi-Fi is provided, the staff is polite and very friendly, and all drinks and food are invariably of high quality. This also applies to any coffee house where the Starbucks franchise operates, regardless of the country where the institution is located.

What, except coffee, you can buy in the coffee house "Starbucks"

Establishments with green logo "Starbucks" offer visitors not only a glass of first-class coffee. The coffee shop has a large selection of teas and a wide range of desserts, hot and cold snacks. The "standard set" of the American menu includes sandwiches, muffins, pastries, cheesecake, cookies, soft drinks. Foreign coffeehouses "Starbucks", a franchise that is provided by an American company, supplement this list with local cuisine of the country where the institution is located.

A separate income item is coffee shop souvenirs. With the Starbucks logo you can buy the main invention of this company - a plastic ring for a mug with a hot drink, as well as various trinkets: badges, mugs, caps and much more.

Franchise "Starbucks" outside the US

Immediately make a reservation: "Starbucks" - one of those companies that declare that they do not sell franchise, information about this is even on the official website of the coffee house network. Nevertheless, of all Starbucks establishments operating in more than 60 countries around the world, about 60% do not belong directly to the American company, but operate under a "license agreement", under which they are entitled to use the trademark and technology.

In Europe, as well as in the homeland of the company, the franchise of Starbucks coffee shop, in principle, is not provided to anyone. The expansion of the network here is exclusively due to the acquisition by the main office of already existing small network restaurants and cafes.

Why is it beneficial to cooperate with Starbucks?

Despite the fact that it is incredibly difficult to achieve the franchise of Starbucks, there are still a lot of applicants for cooperation with the company. First of all, this is due to the high attractiveness of the brand for visitors, the rapid return on all investments and the excellent reputation of the network of coffee houses. In addition to the opportunity to open a coffee shop under the famous Starbucks trademark, the franchise of this company gives its partners a number of advantages:

• Specialty recipes for drinks, hot and cold snacks and desserts;

• Access to the extensive range of the Starbucks network;

• The opportunity, in consultation with the company, to complement the traditional menu with dishes of national cuisine;

• Support and recommendations for staff training;

• Recommendations for the design of the interior of the institution, according to generally accepted standards;

• Consultations on creating a cozy atmosphere, common to all Starbucks institutions: music, service, work with visitors and so on.

Starbucks coffee houses in Russia

The first franchise "Starbucks" appeared in Russia relatively recently, in 2007. For a long time, the Russian capital remained the only city where you could visit a coffee shop operating under a network license. And until today, to conclude a license agreement for work in Russia is much more difficult than in many other countries. The reason for this guarded and even prejudiced attitude to Russian business is the company "Starbucks" does not hide - the emergence of this brand in our country was preceded by a loud trial of an American company with a Russian firm that simply conferred the trademark of the coffee house in 2004.

The main difficulty is that there is still no general procedure for how to get a Starbucks franchise on the territory of Russia, as well as a single price. Each application is considered individually, negotiations on the amount of the transaction are conducted directly with the applicant.

To become a franchisee, the applicant from Russia will have to contact directly with the company's representatives, leave an application on the official Starbucks website in English. In the application, in addition to the willingness to cooperate and strictly comply with all the requirements of the license, you should indicate your data, contacts, the name of your company (if any), describe your achievements in the business and financial opportunities at the moment.

Starbucks requirements for cooperation

The chain of coffee houses values its own business reputation. High demands are made both for own coffee houses, and for institutions that are provided with The Starbucks franchise. The conditions that the company puts forward to all franchisees without exception, to someone may seem almost impossible. So, you can get a franchise by following the following conditions:

• The applicant must own a suitable room: at least 60 square meters. Meters, a lively area of the big city, the entrance doors are located on the south or east side. Here, preference is given to premises located in socially significant facilities - the railway station, the airport, universities, hospitals and others.

• The presence of a solid amount of free funds.

• Chances for cooperation will significantly increase, provided that the applicant already has entrepreneurial experience. For example, own successfully developing business.

• First of all, applications from people known and successful have been considered.

But even if the franchise is approved and the enterprise began to function, the company exercises strict and constant control over the fulfillment of the conditions, the quality of the products and the services provided. With the non-observance of all coffee shop standards, the Starbucks franchise may well be withdrawn.

How much does the Starbucks coffee shop franchise cost?

Another feature of the cooperation with this network of coffee houses is that the Starbucks franchise requires a fairly solid investment. According to experts, the arrangement and design of one square meter of coffee house will cost from 2 thousand dollars. The "lion's share" of the high price, of course, goes to purchase the necessary equipment and the interior of the establishment. The same amount includes the cost of purchasing products, which, as you know, must be of appropriate high quality.

Thus, if we calculate the initial capital that will be invested in the organization and arrangement of the coffee house, without taking into account the cost of the premises, we can say that the franchise "Starbucks" in Russia will cost about 150 to 180 thousand dollars.

How profitable is this investment of capital? Based on the experience of the Starbucks coffee shops operating in the capital and in St. Petersburg, it can be concluded that all costs are fully paid off during a modest business term, approximately two years.