Drive-through coffee kiosks are making it easier for Canadians to grab a coffee on the roadway and still make it to work in time. Owning a coffee franchise can be one of the best decisions and investments in your life. A portfolio of them would be even more valuable. When you look at this list below, you will most likely think that Starbucks would be at the top of the list but to surprise you, Starbucks isn’t a coffee shop franchise and they are all corporate-owned.
Coffee franchises are one of the most popular business concepts in every established market. It is justified by the fact that an estimated 40% of the global population drinks coffee regularly. Plus, a coffee shop is a location where individuals can drink coffee alone or with buddies, and have meetings with colleagues or members of the family. It is a great area where one can start or end up a working day, have a break, or begin a day off.
Coffee franchises are always a great business to buy. It uses a broad range of opportunities for both entrepreneurs with a limited spending plan and for those who are ready to acquire a master franchise.
1. Mocha Monks Express
After careful research and consideration, Mocha Monks Express comes in at number one on the list as this new coffee concept is making a buzz in the coffee franchise industry. Based out of Ottawa, Canada, the brand offers a unique and one-of-a-kind franchise concept that looks like a food truck but is actually a train and comes with very strong growth potential. The many years of experience of the management team and the unique coffee menu make this franchise concept a dream for franchise owners if you can qualify for it and get your hands on a strategic location.
Owning one is akin to owning one of the first McDonald’s or Tim Hortons franchises when they were first starting.
2. Dunkin Donuts
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On October 31st, 2020, Inspire Brands announced that they would be acquiring Dunkin’ Brands Group for $11. 3 billion, which would include Dunkin’ Brands’ debt that Inspire Brands would be taking on. With an acquisition so large, you know there is an opportunity brewing.
With over 900 coffee shops in the nation, it has 3 times as many as McDonald’s, and about a 3rd more than Starbucks. South Korea is house to Dunkin Donuts’ only coffee roasting plant outside the U.S. Still, the company sees China and its significantly bigger population as the more profitable chance.
3. Tim Hortons
The Tim Hortons chain represented 22. 6% of all quick food industry sales in Canada in 2005. Under pressure from major financiers Peter May and Nelson Peltz, in late 2005, Wendy’s announced it would offer between 15% and 18% of the Tim Hortons operations, which was completed on March 24, 2006, and subsequently stated it would spin-off to investors by the end of 2006.
Shares of the company began trading on March 24, 2006, with a going public share price of CA$ 27 per share, raising over $700 million in the very first day of trading. On September 24, 2006, Wendy’s spun off the rest of its shares in Tim Hortons, by distributing the remaining 82% to its shareholders.
On September 28, 2009, Tim Hortons Inc. revealed it had actually finished the reorganization of its corporate structure to become a Canadian public company.
It was revealed the offer would form the third-largest snack bar business worldwide. On October 28, 2014, the deal was approved by the Competitors Bureau of Canada, however, had yet to be approved by Market Canada. The Bureau ruled that the deal was “not likely to lead to a significant minimizing or avoidance of competitors.” Former CEO Marc Caira assured the integrity of Tim Hortons following the purchase, mentioning that the acquisition would “allow us to move quicker and effectively to bring Tim Hortons renowned Canadian brand to a new international client base.” On October 30, 2014, different media covered a Canadian Centre for Policy Alternatives study which suggested that Hamburger King’s proposed takeover of Tim Hortons is “likely to have overwhelmingly unfavourable effects for Canadians.” This study evaluated Hamburger King’s personal equity owner, 3G Capital, and past takeovers of Burger King, Heinz, and Anheuser-Busch, and stated that “it has a 30-year history of aggressive expense cutting, which could harm Tim Hortons workers, small-businesspeople, Canadian taxpayers, and customers.” The deal was approved by Minister of Industry James Moore (of the governing Conservative Party of Canada) on December 4, 2014: The 2 companies consented to Moore’s conditions, requiring that the Burger King and Tim Hortons chains keep different operations and not integrate locations, keep “considerable work levels” at the Oakville head office, and ensure that Canadians comprise a minimum of 50% of Tim Hortons’ board of directors.
In September 2016, Tim Hortons revealed it would be broadening into the United Kingdom, with an unannounced number of places to be built. Tim Hortons had 683 U.S. locations by the end of 2016.