Printer Friendly

Franchise coffee shop gears up for national expansion.

Franchise coffee shop gears up for national expansion

As specialty coffee sales continue to set new records, The Coffee Beanery, Ltd. is gearing up to expand into major retail markets across the country.

The franchised chain of gourmet coffee stores, which has doubled in number since 1986, plans a twofold growth by the middle of next year, and to double again in each of the next two years, according to JoAnne Shaw, president and founder of the 12-year old operation.

Shaw plans on riding that wave of success into the future. "In fact," she says, "our expansion, promotions and marketing programs are helping generate those swells."

The 23 Coffee Beanery stores, operating in shopping malls across five states, carry a variety of more than 50 top quality, fresh roasted coffee beans, a full line of related items, from grinders and roasters to espresso machines and drip filters, Swiss, pure-water decaf, and an expanding selection of propriety products. Franchisees, most of whom own more than one operation, serve commercial clients as well as the consuming public.

"Unequalled quality and unsurpassed service are the mainstays of our business," Shaw offers. "Each employee in our five company-owned stores and every franchise in our network is impressed with the importance of those factors immediately. Our in-depth training program concentrates on quality products and customer service."

Training is also geared to making the franchisee comfortable in the store, thus paving the way to more immediate success, Shaw says. Customers are offered free samples of freshly brewed coffee, and whatever information or help they need. They aren't pressured into making a purchase. "We're creating an atmosphere where the customer feels at ease in a warm, friendly setting," she adds. "More like a home than a store."

This philosophy is part of the company's marketing plan. "A good marketing plan is not just born, it's developed," Shaw points out. "We have a hot concept that we've been developing for more than a decade. We've made some mistakes and we've learned from them. At this point, we've got our promotional programs together, we make optimum use of advertising and signage, we negotiate leases and construction deals with the best of them. In fact, shopping developers are so impressed with our success (we've never had a franchise fail) that they're calling us daily offering prime retail locations. They're ready for our concept."

While Shaw notes that The Coffee Beanery, Ltd. has committed to a number of excellent mall locations around the country, franchisees may open stores outside of shopping centers.

The Coffee Beanery, Ltd. has been offering franchises since November 1985. Since then, the company has been slowly and carefully expanding its staff and support capabilities as new stores were opened. At this point, Shaw is ready to provide "that same outstanding caliber of support and service to franchisees anywhere in the country."

She says she has enlarged her staff, provided additional training to accomodate an expanding network of franchisees, revised marketing strategies, and is introducing a new packaging concept "that we're all excited about. It prolongs coffee freshness and enables us to assemble a variety of beautiful gift packages, replete with private labels."

Shaw reflects, "The thing I enjoy most is helping others get into business and doing what I can to ensure their success." One store owner, Ron Bowers of Saginaw, Michegan, calls the petite lady "a franchisor who takes a sincere interest in the success of each franchisee."

Coffee Beanery roasts their own coffee for their retail franchisees, and institutional and OCS sales. On a one-bag Probat roaster, Shaw tells us "Roasting volume actually changes from week to week, depending on the season." In fact, she expects to roast approximately 300,000 lbs. between September through December. Their Christmas season is an especially heavy-sales time, as it is for most retail shops.

One of the Beanery's recent machine acquisitions is a General Packaging form, fill, seal machine which is in General's II series--Model 76ACQ. It allows the company to pack whole bean or R&G in either gas flush, square bottom, valve packs or pillow packs. General has further complementary equipment for brick packs but Beanery uses the pillow sacks for their institutional and OCS accounts and the square bottom bags for their retail outlets. The OCS bags do not have the valves, the retail bags do.

Shaw is amazed at the variety of sizes available to her with the General Packaging Model. Fractional, gas-flush, square-bottom bags can come in either 1 3/4 oz. to 5.0 lb. sizes. She packs 5 lbs. for the franchisees and for their retail level, she packs 1/4 lb. bags and the single pot sampler pack. The attractiveness of these packages appeal to Shaw and usually her customers. The company intends to play up the single pot sampler packs for their Christmas sales season.

What is getting the most use out of these sampler pack sizes are the stores' flavored coffees. The best sellers are: Hazelnut, Irish Cream, and Swiss Chocolate Almond. Being introduced for the holidays are Toasted Almond and Raspberry Cream.

While the plant and stores are gearing up for the upcoming holiday season, all machines are in check and Shaw, which owns the second-ever built General Packaging model 76ACQ, has been satisfied with General's technical assistance.

Shaw, who takes a real interest in her franchisees points out that she has made arrangements to help buyers finance their franchisee. "Depending on the buyer's credit, he or she may need only 30 to 40 percent in cash."

Start up costs for the Coffee Beanery range from $90,000 to as much as $180,000. That includes two weeks of intense, all-encompassing training, demographic studies, lease negotiation, construction costs, promotion and advertising, brochure and signage, on-site assistance for two weeks, and complete inventory. It also includes a $17,500 franchise fee.

JoAnne and husband Julius are partners in three companies. She operates and is president of The Coffee Beanery, Ltd., and he runs their 20-year-old office coffee service and a snack vending business.

PHOTO : Shaw supervises the General Packaging form, fill, seal machine.

PHOTO : A sampling of bag sizes
COPYRIGHT 1989 Lockwood Trade Journal Co., Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1989 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Tea & Coffee Trade Journal
Date:Sep 1, 1989
Previous Article:In light of no quotas, India must initiate new export strategy.
Next Article:Fatigue: often tea & coffee can alleviate symptoms.

Related Articles
Canadian specialty retailing: coup for The Second Cup.
As franchises multiply, so too the potential problems.
Fabled French region inspires fresh concepts in specialty products.
German roaster expects growth despite stagnation.
Rough ground.
Juan Valdez opens his own shops.
Expanding to the Gulf Cooperation Council market: what are U.S. franchisors waiting for? Despite the fact that the Gulf Cooperation Council countries...
Retailer profile: Dunn Bross Coffee: with over 20 years of experience as a roaster retailer coffee shop, Dunn Bros Coffee is recognized for their...
Evaluating the current legal environment.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters