The ‘gold’ recipe to open franchise coffee

The ‘gold’ recipe to open franchise coffee

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The 'gold' recipe to open franchise coffee

The beautiful premises account for 50% of the win, so even though the two Aha and Cong coffee shops are next to each other on the corner, both are still very crowded.

Nice premises + Low cost price

"In an area, the location of the bar is not the best, it must be second! If not achieved, it is not approved," the franchise consultant for a large coffee chain leading the system today affirmed.

With the experience of developing the franchise chain, he calculates that the beautiful premises can decide up to 50% of the investor's ability to recover capital early.

"Beautiful" is understood as a store with a large frontage, large area, located in a favorable location, eye-catching, a gathering place for many people. That's why it happened, from last year, at the corner of Quan Su crossroads (Hanoi), Aha Cafe style "sidewalk" sprouted right next to the "subsidized" quality coffee Cong although the shop of Communist had been built in here a few years ago.



Hai quán cà phê nhượng quyền nằm sát nhau trên đường Quán Sứ, Hà Nội. Ảnh: Quỳnh Trang

Hai quán cà phê của Aha và Cộng nằm sát nhau trên đường Quán Sứ, Hà Nội. Ảnh: Quỳnh Trang

Instead of "trying to eat sticky rice to open a shop" on a bad ground, he advises investors to wait patiently until you choose a beautiful location or even exclude the money to get a pretty good rent. .

However, beautiful premises come with "heavy" costs. Therefore, if you do not want to bear big risks, investors should "pick fish sauce" to choose the chain of lower position requirements. Some chains and premises only need to have a total area greater than 60-70 m2. "The most important thing is to pay attention to the front and the parking lot," said the owner of a franchise chain with an initial investment of about one billion dong.



Đồ hoạ về chi phí đầu tư và thời gian thu hồi vốn của các chuỗi nhượng quyền hàng đầu hiện nay. (Click vào ảnh để xem chi tiết)

Đồ hoạ về chi phí đầu tư và thời gian thu hồi vốn của các chuỗi nhượng quyền hàng đầu hiện nay.

That is also one of the reasons, chains like Highlands, Cong, Aha, the initial investment cost (including a month of rent) can be up to 3-5 billion because they have more stringent requirements. about store location. While in some other chains, the initial cost can be highest from 1.2 to 1.5 billion.

In addition to "beautiful premises", the investor must also memorize the rest of the "gold" formula related to the operating cost balance of the shop.

With experience developing dozens of franchise stores in many provinces, Mr. Vu Viet Anh - founder of Gemini coffee chain suggested a "recipe" that can be applied to every model of coffee shop. "Expenses must not exceed 80% of the revenue, ie the minimum profit margin of 20%. For example, the cost of premises should not account for over 30% of revenue, the maximum salary payment is about 15%. , cost of accounting for less than 30%, "he said.

According to VnExpress, Aha's cost price is 30%, higher than milk tea business or other coffee models. As for Gemini, the cost of sales accounts for about 22-23% of revenue, with an additional charge of about 28%. Currently, the revenue of an Aha Cafe shop is from 5 to 20 million a day (about 150 - 600 million a month), depending on the location. As for Gemini, at an investment of 600 million to 1.5 billion, the revenue of a store is about 150 million to 400 million.

Sharing with investors, the consulting department of one of the franchise brands developed at a fast pace - Aha Cafe said the payback period of the stores was approved and signed by the airline. contracts (investment of less than 2 billion) usually less than 2 years calculated on a 5-year contract. Meanwhile, according to the survey, the payback period in some chains such as Cong Coffee, Viva, Gemini ... also about 2 years. With the Napoli chain, small-scale investment stores under 200 million even only need 6 months to recover capital.

Khách khứa ngồi đông đúc tại một quán cà phê trên đường Hoàng Cầu, Hà Nội. Ảnh: Quỳnh Trang. 

Khách ngồi đông đúc tại một quán cà phê trên đường Hoàng Cầu, Hà Nội. Ảnh: Quỳnh Trang. 

"Sweet & bitter" experiences with coffee franchise

However, if someone intends to quit his job to franchise coffee business is quite "potato", according to the founder of a coffee brand with more than 30 stores in Hanoi. "It's no better than being a salary," he said.

Indeed, coffee has a bitter taste, so the business of this dish is sometimes difficult to avoid the feeling.

Mr. Hoang Anh, owner of an Aha franchise cafe on Dong Tac street, said that the wave of franchising was blooming but in reality, he had many friends who opened the shop but only lived day to day. "The revenue is just enough to support the ground. So before deciding, investors should consider carefully, do not rely on inspiration," Mr. Hoang Anh said.


An investor in Hanoi was also "leased the price" by the landlord when he knew he was trading franchised coffee. "If you open your own restaurant, the rental fee is VND 80 million, and the franchise establishment of a brand X is VND 120 million," he said of the lessor. Besides, there are cases, when the owner finds that the business is good, ask for an increase or reclaim the house that is not for rent anymore.

In order to open a store, many people have spent all their capital on the initial money to build the shop and pay the rent (usually paid at least every 6 months), without being aware of the high costs incurred. during initial operations, such as purchasing additional equipment or paying employees. Therefore, many people have difficulty in having a shortage of cash fund in the first half of the year.

In addition, concessions in the province will face "virtual revenue" in the first phase. The owner of a shop in Ha Tinh said that when he opened it, his turnover was about 20 million VND a day, but the later it gradually decreased, maintained by half. Because people in the province often only come to "try to know" and the actual number of visitors is much lower than the days of opening.

Hoang Tien, founder of the Coffee Bike chain, added: "Investors need to understand carefully the types of costs and benefits offered by the brand besides information about the franchise fees they offer. In fact, many chains will profit from the initial settup of the store as well as selling materials to the store, "he said. Moreover, when franchising, there are problems arising that investors can not anticipate as terrible. panic of communication. Consumers will respond immediately, even announcing a boycott of the system when a chain store has negative information. "They do not know and do not care who is managing each store. Just an unlucky shop with a bad reputation, the sales of other stores will be affected," the franchisor of Cong Cong Coffee in Hanoi. said.

Therefore, before deciding to invest, carefully understand the needs of the market, the role of the franchise company as well as improve the management and operation capacity, the owner of a coffee brand shared.