Bob Fish Talks Specialty Coffee Shops with newGround
Growing a business in any industry is never easy. It requires time, money, determination and entrepreneurial skill, as well as a little bit of luck, among other things.
In the fiercely competitive specialty coffee shop sector, this is even more challenging, particularly as consumers become increasingly discerning. Now, they not only expect high-quality coffee, but also excellent customer service and a memorable experience to boot.
Broadly defined as the licensing of a brand to a second party, franchising as a business model has boomed since the mid-20th century. Today, many of the most recognisable names across a range of industries operate as franchise concepts, from McDonald’s to Dunkin Donuts to Domino’s Pizza.
The model is simple: a franchisor offers a brand’s trademarks and procedures to a franchisee who pays royalties and an initial fee for the right to do business. Importantly, it is the franchisee’s obligation to deliver the product and services to consumers in line with the brand standards.
“Franchising is a method of distributing a product or service,” explains Bob Fish, the co-founder of Biggby Coffee, a franchised coffee shop chain with more than 300 stores across the United States. “Most are founded by individuals who build some units, figure some things out and then say, ‘Hey, I could expand this a little faster by franchising’.”
In the coffee sector, franchising carries a number of benefits, from spreading brand awareness to fostering quick expansion without risky investment. But is there a right time for coffee shop owners to take the dive?