Many aspiring entrepreneurs and investors have been captivated by the idea of owning a Starbucks franchise. The renowned coffee giant’s global success and loyal customer base make it an attractive investment prospect.
However, it’s important to note that Starbucks does not offer franchise opportunities to individuals. Unlike other popular franchises, Starbucks operates its stores directly.
If you still want to invest in Starbucks through other means, continue reading.
Why Doesn’t Starbucks Offer Franchise?
Starbucks does not offer franchise opportunities to individuals. Starbucks operates its stores directly and does not have a traditional franchise model where individuals can invest in and operate a Starbucks store under the brand.
The popular chain of coffee houses does not offer franchise opportunities because they choose to operate the stores directly. It allows them to maintain strict control over the brand, quality, and customer experience.
By operating company-owned or licensed stores, Starbucks can ensure consistency across all locations. They also have a greater level of control over product offerings, employee training, and store operations. This approach has contributed to the strong and consistent global presence that Starbucks has achieved.
Other Ways to Invest In Starbucks
Here are some other great alternatives to invest in Starbucks in 2023 and become a part of the brand:
1. Open A Licensed Starbucks Store
While Starbucks does not offer franchise opportunities, they do have licensed stores. These are popular high-traffic locations, i.e., airports, grocery stores, universities, and other areas with more footfall. The licensing agreement allows independent businesses to operate a Starbucks store within their premises.
It is one of the best investment options for businesses looking to use Starbucks’ brand recognition to their advantage. If you are interested in this type of investment option, visit Starbucks directly and inquire about their licensing policy. Keep in mind that the process and requirements may vary depending on the location and Starbucks’ current licensing strategy.
Note that licensing differs from owning a franchise. It’s more like renting the Starbucks brand and using their likeness. Here, you have to pay licensing fee instead of the franchise fee. The cost for a licensed Starbucks store is around $315,000. Apart from that, you also need $700,000 in liquid assets to become eligible for opening a Starbucks store.
2. Invest In Starbucks Corporation Shares
Another alternative for Starbucks’ investment is to buy shares of Starbucks Corporation. You can easily buy (NASDAQ: SBUX) on the stock market. Starbucks is a publicly traded Company. This means you can easily buy and sell its shares on stock exchanges. By purchasing the shares, you can become a shareholder. You’ll have the opportunity to participate in the company’s financial performance and enjoy dividends as well as higher share prices.
Note that before you invest your money in Starbucks, consider the risks. You need to take into account factors like the company’s financial stability, competition, and overall market. It will help you to make the right investment decision. If you don’t have much knowledge, seek financial advice from a professional.
3. Invest Indirectly Through Starbucks ETFs or Mutual Funds
You can also invest in Starbucks indirectly, i.e., exchange-traded funds (ETFs) or mutual funds. This type of investment is more convenient and safe. Mutual funds and ETFs are investment options where many people contribute their money together. These funds create a collection of different stocks, which can include Starbucks Corporation (SBUX).
By investing in these funds, you indirectly invest in Starbucks along with other companies, spreading the investment risk across multiple holdings. When considering mutual funds or ETFs, it’s important to research factors like historical performance, expense ratio, management, and investment strategy to make informed investment decisions.
4. Buy A Starbucks NNN Property
Buying a Starbucks NNN (Triple Net Lease) property can be an attractive form of investment for those interested in the Starbucks brand. NNN properties are commercial real estate assets leased to a tenant, in this case, Starbucks. As the property owner, you receive rental income from Starbucks.
Investing in NNN properties can provide a steady income stream and potential long-term appreciation. However, it’s essential to thoroughly evaluate the property and consider location, lease terms, and the financial stability of Starbucks as a tenant before making a purchase. If you’d like to learn more, you can start by looking at Starbucks NNN properties for sale and find one that suits you and your investment needs.
Why Should You Invest In Starbucks?
There are several reasons why investing in Starbucks can be appealing. Here are some reasons:
- Strong brand and global presence
- Resilient and growing industry
- Diversified revenue streams
- Digital innovation and customer engagement
- Commitment to sustainability and social responsibility
- Potential for shareholder returns
Conclusion
Investing in a Starbucks franchise as an individual is not possible. However, alternative ways to invest in Starbucks include opening licensed stores, purchasing shares of Starbucks Corporation, or investing in Starbucks properties through real estate avenues. It is important to consult up-to-date information and seek advice from professionals before making any investment decisions.