Scooter’s Coffee Franchise Cost, Profit & Failure Rate 2024

Most people want their morning coffee as quickly and easily as possible. After all, no one wants to waste time standing in line.

Scooter’s Coffee makes it possible for people to get their caffeine fix quickly and easily with around 500 drive-thrus across the United States.

For over 20 years, Scooter’s Coffee has been providing caffeine-enriched beverages to those in need of an extra boost.

The chain specializes in coffee drinks such as lattes, mochas, and frappés.

But it’s not just about the Coffee – customers get to choose from a variety of snacks, including breakfast sandwiches, pastries, and more.

Considering the brand’s unique concept and huge success, many people are interested in becoming a part of Scooter’s Coffee franchise family. But what does it take to become a franchisee? Read on to find out.

Scooter's Coffee Franchise

About The Scooter’s Coffee

Scooter’s Coffee is a Nebraska-based, award-winning coffee franchise that has been satisfying customers since 1998.

From hot and cold specialty drinks to delicious pastries and snacks, Scooter’s Coffee brings the ultimate satisfaction to caffeine enthusiasts nationwide with approximately 500 drive-thrus and kiosks.

Plus, every single drink is made with 100% Arabica beans for a superior taste and quality experience.

Scooter’s menu offers a range of creative fusion drinks like the chain’s signature Caramelicious latte, Strawberry Acai Quencher, and Sweet Cold Foam – all topped with delicious whipped cream; as well as favorites like seasonal lattes, premium teas, smoothies, blended energy drinks, and more.

In addition to beverages, patrons can also enjoy treats from the bakery, such as bagels and breakfast sandwiches.

Scooter’s Coffee stands out from other chains with its fast order fulfillment: just 40 seconds per customer! This makes it easy for busy customers to get their morning coffee or afternoon treat on the go quickly and reliably.


Scooter’s Coffee Franchise History

Scooter's Coffee Franchise History

Scooter’s Coffee was founded in 1998 by Don and Linda Eckles, who had the revolutionary idea of combining the convenience of a drive-thru with the quality of a coffeehouse after stumbling upon a drive-thru hut. 

The first location, named “Scooter’s Java Express,” was opened in Bellevue, Nebraska, with Linda working the drive-thru window while Don ground and brewed the beans.

From day one, they had an ambitious goal of providing customers with a speedy “scoot in and scoot out” experience. 

By 2001, Scooter’s Coffee had 5 locations and had become so popular that they decided to begin franchising their concept.

Their first franchise opened up in Council Bluffs, Iowa, and their success didn’t stop there – throughout the 2000s, Scooter’s Coffee grew exponentially as more locations opened around the country. 

In 2011, after experimenting with various variations on the name, the chain settled on the current moniker “Scooter’s Coffee,” which perfectly encapsulated its mission of providing quality yet fast service. 

Since then, Scooter’s has experienced continuous growth and currently boasts almost 500 locations throughout America.

With ambitions to reach 1000 locations by 2024, it doesn’t look like this trend is ending anytime soon. As a franchisee, you can be a part of this success. 


Types 

Type 1: Drive-Thru Kiosks

There is no sitting, and drinks are sold primarily through drive-up windows. They are typically found in a parking lot alongside other retail establishments.

Type 2 – Drive-Thru Coffeehouse

These establishments are usually placed in a strip mall and are referred to as “end-cap space,” though they can also be a standalone structure.

Moreover, Coffeehouses have a drive-up window for mobile clients and indoor seating for walk-in customers.


Scooter’s Coffee Franchise Model

Cost or FeeAmount or Percentage
Initial Investment$797,000–$1,260,000
FranchiseYES
Franchise Fee$40,000
Royalty Fee6%
Liquidity$200,000
Estimated Outlets500+

How Much Does It Cost To Open A Scooter’s Coffee Franchise?

Opening a Scooter’s Coffee franchise is a great way to get involved with an established and successful brand.

However, it does require some high upfront costs. Before you decide if this opportunity is right for you, it’s crucial to consider the associated fees and investments that come with owning a Scooter’s Coffee franchise. 

To become a Scooter’s Coffee franchisee, you’ll need an initial investment of between $797,000–$1.26 million.

This includes the $40,000 franchise fee as well as the cost of equipment and supplies needed to open the business. 

You’ll also need liquid capital of at least $200,000 and a net worth of at least $500,000 in order to be considered for a Scooter’s Coffee franchising agreement. 

In addition to these initial costs, there are ongoing expenses associated with running your own business that must be taken into account.

These include royalty fees of 6% as well as an advertising fee of 2%. These fees will be deducted from your monthly revenue but can help cover the cost of marketing materials and campaigns designed by corporate headquarters that will help drive customers to your business. 


Scooter’s Coffee Revenue

Scooter's Coffee Revenue

Scooter’s Coffee is one of the most successful coffee franchises in the United States, with an estimated annual revenue of over $649 million. That averages out to over $378,000 in revenue per employee. 

The success of Scooter’s Coffee is due to its commitment to offering quality and convenience for customers.

This has resulted in an impressive average annual sales of $797,101 per franchisee.

So if assume a profit margin of 20% as per the industry standard, then we can say that a Scooter’s Coffee franchise owner make, $159,420 in net profit on average.

This is how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%797101.00
Rent10.00%(79710.10)
Insurance5.00%(39855.05)
Salaries20.00%(159420.20)
Franchise Royalty Fees5.00%(39855.05)
Utilities2.00%(15942.02)
Cost of Goods Sold (COGS)25.00%(199275.25)
Labor (Variable)13.00%(103623.13)
Total (Expenses)80.00%(637680.80)
Net Profit20.00%159420.20

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Failure Rate Of Scooter’s Coffee

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020237289+52
2021289379+90
2022379525+146

For the Franchised outlets:

  • In 2020, the growth rate was (52)/237×100≈21.94%
  • In 2021, the growth rate was (90)/289×100≈31.14%
  • In 2022, the growth rate was (146)/379×100≈38.52%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20202719-8
20211921+2
20222130+9

For the Company-Owned outlets:

  • In 2020, the failure rate was (8)/27×100≈29.63%
  • In 2021, the growth rate was (2)/19×100≈10.52%
  • In 2022, the growth rate was (9)/21×100≈42.85%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020264308+44
2021308400+92
2022400555+155

For the Company-Owned outlets:

  • In 2020, the growth rate was (44)/264×100≈16.66%
  • In 2021, the growth rate was (92)/308×100≈29.87%
  • In 2022, the growth rate was (155)/400×100≈38.75%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Scooter’s Coffee grew from 2020 to 2022, showing a growth rate between 21.94% and 38.52%.

On the other hand, for company-owned outlets, the growth rate of Scooter’s Coffee was lying in the range between 10.52% and 42.85% for 2021-2022. The company also experienced a decline in 2020, showing a failure rate of 29.63%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that Scooter’s Coffee franchise has expanded in the years 2020-2022, showing a total growth rate between 16.66% and 38.75%.


Payback Period Of Scooter’s Coffee

Based on a midpoint investment of $1,028,500 for a Coffeehouse, the payback period can be calculated as:

Payback Period = Midpoint Investment / Yearly Profit = $1,028,500/ $1,59,420= 6.4 years

Based on these figures, it will take approximately 6-7 years to pay back the initial investment for Scooter’s Coffee franchise. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Scooter’s Coffee Franchise Requirements

In order to become a Scooter’s Coffee franchisee, you must be prepared to invest both time and capital.

To start, you’ll need liquid capital of at least $200,000 and a net worth of at least $500,000 in order to be eligible for the franchising agreement

You will also need access to a drive-thru kiosk or coffeehouse that is at least 664 square feet in size. These physical requirements are necessary for you to operate your business successfully. 

Beyond the financial and physical requirements, Scooter’s Coffee looks for franchisees with an entrepreneurial spirit and the desire and dedication to succeed.

As a franchisee, you should also be customer service-oriented and willing to put in the hard work needed to ensure that your business is successful. 


Scooter’s Coffee Franchise Training And Support

Once you meet the financial and physical requirements for a Scooter’s Coffee franchise, you will be invited to attend their Operations Training Program.

The four-week long course takes place in Omaha, Nebraska, and begins 8 weeks prior to the opening of your location.

This training consists of 56 hours of classroom instruction as well as 104 hours of on-the-job practice. 

The training covers all aspects of operating a successful business, including customer service and product knowledge.

You will also learn about managing employees, marketing, real estate, construction, and more.

Your progress will be closely supervised by experienced Franchise Brand Consultants who are available throughout your training period as well as after your business is opened. 

Scooter’s Coffee also provides ongoing support once your franchise is open.

This includes assisting with marketing campaigns, developing relationships with strategic partners, implementing local initiatives, and continuing education opportunities such as webinars and conferences to help ensure your business stays ahead of the competition. 


Scooter’s Coffee Franchise Terms Of Agreement & Renewal

Scooter’s Coffee offers a 10-year initial term for all of its franchisees, with the option to renew for an additional 10 years upon meeting certain requirements.

This includes demonstrating good business performance as well as paying the $10,000 renewal fee. 

Franchisees that successfully meet these criteria will be offered an extension agreement outlining the new terms and conditions for another decade of franchising with Scooter’s Coffee. 


Scooter’s Coffee Franchise Obligations And Restrictions

As a Scooter’s Coffee franchisee, you are expected to adhere to the franchisor’s standards and requirements.

This includes using approved vendors for products and services, participating in necessary marketing campaigns, adhering to local health codes and regulations, as well as any other legal requirements related to running a business. 

You are also required to maintain adequate levels of customer service as outlined by the franchisor.

Additionally, if you choose not to renew your agreement after 10 years or close your business within that time period, you will be required to comply with specified transition procedures before doing so. 


Scooter’s Coffee Franchise Financial Assistance

Scooter’s Coffee does not offer direct or indirect financing to its franchisees. The company also doesn’t guarantee your note, lease, or any other type of loan. 

However, Scooter’s Coffee does have strategic partnerships with well-known lenders that provide financing options to potential franchisees.

Their team is available to help guide you through the process of securing financing for your business and connect you with their lending partners if necessary. 

Entrepreneurs considering a venture into the coffee franchise sector might explore options such as Dunkin’ Donuts, Blue Bottle Coffee, Dutch Bros, Aroma Joe’s, and 7 Brew franchises.


Scooter’s Coffee Comparison

CompanyScooter’s CoffeeDunkin Donuts
Year Founded19981950
Franchise Fee$40,000$40,000–$90,000
Initial Investment$797,000–$1,260,000$121,400–$1,787,000
Number of Outlets500+12,500+

Conclusion

The coffee industry is growing rapidly, and there are plenty of opportunities for aspiring entrepreneurs to get involved.

With its strong brand recognition, competitive pricing, and proven business model, a Scooter’s Coffee franchise can offer you the opportunity to become your own boss while reaping the rewards of success. 

Now that you have a better understanding of the franchise costs, requirements, and support that Scooter’s Coffee provides, you can make an informed decision about whether or not franchising with them is right for you. 


FAQs

Does Scooter's Coffee Offer Franchising?

Yes, Scooter’s Coffee offers a franchising program to individuals interested in opening their own businesses.

Who Founded Scooter's Coffee?

Scooter’s Coffee was founded by Don and Linda Eckles in 1998.

How Many Scooter's Coffee Locations Are There?

As of 2023, there are around 500 Scooter’s Coffee locations across 23 different states.

Is Opening A Scooter's Coffee Franchise Worth It?

Yes, opening a Scooter’s Coffee franchise can be a great way to become your own boss and reap the rewards of success.

With its competitive prices and proven business model, Scooter’s Coffee provides an excellent opportunity for entrepreneurs. 

Where is the headquarters of Scooter's Coffee?

Scooter’s Coffee is headquartered at Omaha, 10500 Sapp Brothers Dr, United States, and has 1 office location.

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