What Makes a Good Coffee Shop Business Model?

by | Franchise

Coffee shops are attractive to investors because the coffee shop business model is frequently a simple one that has a quick return on investment, and is incredibly scalable.

The downside to that is the competition is fierce, it’s a very saturated industry, and it can be hard to stand out. So how has Just Love Coffee Cafe created a business model for a coffee shop that is not only unique but has proven to be a good investment?

Good Revenue Sources in Top Coffee Shop Business Models

The modern coffee business model does more than simply sell coffee. Today’s coffee shop business model has expanded to multiple revenue streams.

American coffee desires can be somewhat fickle, but they can also be steadfast. The cafe business model has to adapt to that. Food menus have to ebb and flow with the wants and trends of the American palate, which can turn on a dime.

The top coffee shops, like Starbucks, Dunkin Donuts, Tim Hortons, and Peet’s Coffee have surfed the waves of popular coffee trends. In some cases, they have set the trends themselves.

Common revenue streams in the coffee industry model include:

  • Hot and iced coffees, lattes, and espressos that will cater to seasonality.
  • Breakfast items like pastries, donuts, sandwiches, and oatmeal.
  • Lunch offerings like more sandwiches, wraps, cheese & crackers, or protein boxes.

None of these revenue streams require more of the square footage of the franchise locations that are already necessary to run the coffee shop business model. In this way, they bring in additional revenue without committing more resources.

Just Love Coffee Cafe is no different, and in fact, might have an advantage. The waffle iron-inspired menu has considerable flexibility with the menu to add additional food items—more so than baked goods or pastries. There’s also an aesthetic beauty to the foods that lend to posting on social media for organic brand recognition.

How Social Sense Should be Part of Every Good Coffee Shop Business Model

Speaking of social media, social sense is a critical component of every good coffee shop business model.

However, every franchise owner should remember it’s not only about online social interaction. After all, customers can’t drink their coffee online.

By nature, a coffee shop is a social endeavor. The franchise owner of a coffee shop with the mindfulness to build relationships with those in the community—from their frequent customers to their neighborhood businesses and city commerce partners—may find that community supporting them in return.

Just Love Coffee Cafe franchise owners are encouraged to be bigger parts of their communities, through important causes or charities that speak to them, but also through simple connection.

This can be by hosting fundraiser nights for school programs, joining fundraising drives for other businesses or charities, or contributing to outreach programs already developed by community leaders.

Being part of the fabric of the community means the franchisee’s face becomes a well-known thread within that fabric. Communities support their own in order to strengthen their local economies, and that includes the franchises in their neighborhoods.

Just Love Coffee Cafes have become successful parts of many communities throughout the 15 states in which we’ve opened nearly 50 locations. Our social consciousness is, in large part, the cornerstone for how we’ve integrated so well.

The Business Model Canvas Can Solidify a Good Coffee Shop Business Model

To develop a good business model of a coffee shop, one can use the business model canvas.

This is a strategic tool on a single page that helps define the business concept you’re creating—in this case, it’s a business model of a coffee shop.

On one side of the page, there’s the internal focus of the business, and on the other side, the external focus, i.e., the customer. Right between the two is the value proposition, where the business’s internal structure and external targets meet. This is where customers get the value the company provides in exchange for something, usually money.

The value proposition is foundational to every business. It’s why customers are interested in the coffee shop business model.

In the case of Just Love Coffee Cafe, they get coffee and maybe a delicious waffle or waffle-grilled sandwich, and the franchise owner satisfies another local customer’s hunger and coffee needs. They also get to meet another potential regular, sell a quality product, and invite the customer to stay and relax in the cafe-style seats for as long as they like. The franchise owner gets to make an impression.

The customer’s additional need for somewhere to work that’s not the home or office is met, and they also find a place where they can meet friends or colleagues, or simply spend time enjoying their delicious coffee and waffle.

The business model canvas can be further detailed to show how Just Love Coffee Cafe’s coffee shop business model is not just streamlined but enhanced to perform well in almost every market, which is why the franchise is thriving.

Consider a Just Love Coffee Cafe Franchise Investment

Just Love Coffee Cafe’s coffee shop business model is a unique combination of simple, scalable, and flexible, which is a big reason the franchise is growing at the rate it has been in the last couple of years.

  • The stores require only a small footprint to open, and a limited staff of just 5-6 at launch.
  • The business model is simple to operate and easy to scale in an industry worth $85.16 billion in 2022.
  • Our menu of hand-roasted coffee blends and specialty beverages are a big draw, especially with many of them developed in-house, giving Just Love Coffee Cafe a distinctive flavor.
  • Our full all-day menu is an additional revenue stream that’s unique in the coffee shop segment that adds to the average ticket price—$12.50-$14.50 per customer.
  • The menu has the advantage of being easy to cook, easy to control quality, and still provides customers with a unique product and a memorable experience.
  • Customers find our products so attractive, they routinely post on social media about them, organically growing our reach through word of mouth.

Just when you thought the coffee shop industry was too saturated for a unique and competitive franchise opportunity, Just Love Coffee Cafe has created a good coffee shop business model that’s simple, elegant, and looks very promising for investors. Interested? Contact us for more information!

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