Who said without prior business experience, you cannot open a franchise? Biggby Coffee only asks you to be passionate enough, and zero business experience works for them. So if this is something that interests you, then you are on the right page!
But the most important question is how much does a Biggby Coffee franchise owner make? Don’t worry! In this guide, we have reviewed the Biggby Coffee franchise in detail so that you can determine if this is the right business opportunity for you or not.
About Biggby Coffee
Biggby Coffee house is USA based coffeehouse chain that was founded by Bob Fish and Mike in 1995 in Lansing, Michigan. Initially, it was named “Beaner’s Coffee,” but after realizing that it is a derogatory term towards Mexican Americans, they changed it to Biggby Coffee.
Biggby Coffee became an instant hit due to its delicious taste, and shortly, the founders opened a second store in 1997.
Consequently, in the next year, they decided to franchise Biggyby and establish Global Orange Development. Ever since then, this coffee company has been flourishing, and as of 2023, there are more than 300 Biggby Coffee outlets across 13 states, and it continues to grow.
Biggby Coffee offers an affordable entry-level franchise opportunity to even those who have no business experience whatsoever.
The company offers initial hands-on training, help in site selection and buildout, and ongoing marketing support.
So far, so good. But should you invest in the Biggby Coffee franchise? How much can you make from it? Is it even profitable? Keep reading to find out the answers to all your questions.
((https://www.mlive.com/business/2013/04/whats_in_a_name_here_are_the_s.html))
Read: Caribou Coffee Franchise
Also Read: Dutch Bros Franchise
How Much Does A Biggby Coffee Franchise Owner Make?
The money that an individual Biggby Coffee Franchise unit makes may vary depending on its location, operating expenses, management, staff, etc.
However, as per the FDD data, the average median sales of the Drive-thru Biggby Coffee franchise in 2021 was $745,069, and the average median sales for its non-drive-thru outlets were $413,937.
So the annual median sales of Biggby Coffee for 202 franchised restaurants in the year 2021 was $648,352 on average. Hence, as a Biggby franchise owner, this is the kind of amount that you can expect to make or even more.
((https://www.biggbyfranchising.com/research/how-much-can-i-make/))
Interested In Biggby Coffee Franchise?
How Much Does A Biggby Coffee Employee Earn?
According to Indeed, the average pay of Biggby Coffee employees is $9/hour, which is 112% lower than the national average. And their average annual pay is $18,500 a year.
Also, the lowest position at Biggby Coffee is that of an appointment setter who makes $14,000 annually. In contrast, the highest paying job at Biggby Coffee is of a Graphic artist who makes $50,000 a year.
Key Figures of Biggby Coffee Franchise
| Franchise fees | $20,000 |
| Initial investment fees | $276,000 – $439,000 |
| Royalty fee | 6.0% |
| Marketing fee | 6.0% |
| Veteran Incentive | 50% off franchise fee |
| Term of Agreement | 10 Years |
| Is Biggby Coffee Franchise renewable? | Yes |
| Absentee ownership | Yes |
Biggby Coffee Franchise Investment Cost Calculation
Opening a Biggby Coffee Franchise requires you to have an inital investment amount of $276,000 – $439,000. Here’s a break down of all associated costs:
| ITEM | ESTIMATED COST |
|---|---|
| Initial Franchise Fee | $20,000 |
| Leasehold Improvements | $140,000 – $205,000 |
| Real Property Rental | $1,000 – $21,000 |
| Furniture, Equipment and Decor | $61,500 – $71,000 |
| Blueprints, Plans and Permits | $5,500 – $11,000 |
| Drive-Through Equipment | $13,500 – $14,500 |
| Interior & Exterior Signage | $4,000 – $15,000 |
| Insurance | $3,500 – $4,500 |
| Initial Inventory | $9,000 – $14,000 |
| Utility Expense | $500 – $4,000 |
| Initial Advertising and Grand Opening Promotions | $9,000 |
| License Permits and Other | $1,000 – $2,500 |
| Misc. Travel and Living Expenses for Training | $500 – $5,000 |
| Additional Funds – 3 Months | $5,000 – $40,000 |
| Organizational Expenses | $2,000 – $2,500 |
| Total Estimated Initial Investment | $276,000 – $439,000 |
Pros & Cons Of Biggby Franchise
Pros Of Biggby Franchise
- Provide training and support
- Low-cost investment
- Flexible business model
- No prior business experience required
- Real estate and construction support
- Passive investment opportunity
Cons Of Biggby Franchise
- Does not offer exclusive territory protection
- No franchise financing
- High competition
Biggby Coffee Franchise Average Revenue & Profit
Biggby Coffee franchise is a good investment opportunity, and its franchise owner makes $648,352 in sales on average each year.
After deducting all expenses, the amount of profit that you can make as a Biggby Coffee franchise owner is $186,995 a year on average.
This is not a huge amount, but since the company allows you to run this franchise passively, you can make money from this franchise while still doing your job.
And if we talk about the revenue of the company itself, then as per the 2021 data shared by Zippia, Biggby Coffee’s revenue is $12.0M annually.
Biggby Coffee Franchise Failure Rate
To determine the failure rate of Biggby Coffee franchise let us have a look at the number of outlets that they have opened and closed between 2019-2021:
| Outlet type | Year | Outlets at the start of the Year | Outlets at the end of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 2020 2021 | 239 239 245 | 239 245 281 | +8 +6 +36 |
| Company-Owned | 2019 2020 2021 | 0 0 0 | 0 0 0 | 0 0 0 |
| Total Outlets | 2019 2020 2021 | 231 239 245 | 239 245 281 | +8 +6 +36 |
As we can see from the table above, Biggby is still in its early stage and offers a good potential for growth.
The failure rate of Biggby Coffee is low, so you can think about investing in this business opportunity.
Biggby Coffee Franchise Payback Period
To find out the Biggby Coffee franchise payback period, let us do some calculations by taking into account the initial franchise fees, minimum liquidity, ongoing monthly fees, etc.
| AVERAGE INVESTMENT | $310,575 |
| AVERAGE REVENUE PER OWNER | $648,352 |
| AVERGAGE PROFIT PERCENTAGE | 15% |
| AVERGAGE PROFIT PER YEAR | $186,995 |
| AVERAGE PAYBACK PERIOD | 2 years approx |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 310575/186995 = 1.66 = approximately 2 Years based on median
The average investment for the Biggby Coffee franchise is $310,575 and the average revenue per owner is $648,352.
With an average profit percentage of 15%, the average profit per year is $186,995.
This means that the average payback period for the Biggby Coffee franchise is approximately 2 years, as the total investment of $310,575 would be recouped within this period
What Is Biggby Coffee Known For?
Biggby Coffee is a gourmet coffee chain that offers delicious coffee from coffee beans sourced from outside of the U.S.
But there are so many coffee chains already, so what makes this company unique? It is their approach to people.
This coffee company is big when it comes to going the extra mile for people, be it their customers who are treated with exceptional service or even the franchisees who are given a lot of support and flexibility to help them grow.
These are some of the most popular items of Biggby Coffee menu:
- Neapolitan latte
- Butter Bear latte
- Snickerdooble latte
- Earl Grey Tea Latte
- Banana split crème freeze
- Cotton candy latte
- Sweet tooth special latte
- Wild Zebra latte
- Chocolate chip cookie crème freeze
Is Biggby Coffee Franchise Profitable?
Biggby Coffee franchise generates a profit of $186,995 a year on average. And as per the data available on the Biggby Coffee website, the company has been able to produce higher average sales than compared to the rest of the coffee shop industry.
The profitability of any company is directly related to its sales. So yes, the Biggby Coffee franchise is profitable, but it cannot make you rich.
So the best way to utilize this franchise opportunity is by making it a passive source of income (the company allows that).
Biggby Coffee Franchise Earning Potential
Even after its slightly expensive coffee rates, Biggby Coffee has been flourishing at a good speed over the past few years.
Also, a Biggby Coffee outlet easily makes sales of $648,352 per year, with your initial investment ranging anywhere between $276,000 – $439,000.
So its sales-to-investment ratio is 2.1x, and anything above 1x is good.
All these factors help us to deduce that Biggby has a good earning potential, and the chance that you would face any loss with the ever-increasing demand for coffee is very low.
Wrap Up
After reviewing all the details of investing in the Biggby Coffee Franchise, here is what we think.
Opening Biggby Coffee Franchise is easy because of the flexible qualification requirement and low initial-investment cost as compared to other franchises.
The company has been growing, and the demand for coffee has constantly been increasing over the years, too, making it a safe option.
The company makes a decent amount of profit, and although a Biggby Coffee Franchise alone won’t make you rich, you can make it a passive source of income.
Overall, we think Biggby Coffee Franchise is a good investment opportunity.
Frequently Asked Question
Does Biggby Coffee offer any franchise discounts to veterans?
Yes, the Biggby Coffee franchise offers a half-off discount on their initial franchise fee of $20,000 to qualified discharged US military veterans.
Does Biggby Coffee offer financing?
No, Biggby Coffee does not offer financing. However, they do offer a list of third-party lenders who can help you with financing.
How much does it cost to own a Biggby Coffee franchise?
For a site-built location, the estimated total investment required to open a Biggby Coffee franchise would be between $276,000 to $439,000. And for a modular location, the estimated total investment required would be $320,500 to $517,500.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.