Dunn Bros. Coffee is Getting its Buzz On
Dunn Bros. Coffee has put franchise expansion on the front burner in 2007 with aggressive growth plans that include expansion in the Twin Cities and the chain’s first locations in Chicago.
According to the Minneapolis St. Paul Business Journal, the Minneapolis-based coffee chain currently has 79 stores in six states, and plans to add 25 to 30 stores this year, including 15 in the first four months. It will enter four new states.
According to Dunn Bros., all of their shops have comfortable seating, free WiFi and use of a computer. Each has a “bean bar” that displays a wide variety of beans. Many locations have meetings rooms. Local musicians perform and artists often display their work in our shops. Many Dunn Bros. locations have a drive-through.
Including the initial licensing and training fee ($30,000 for a single store or $65,000 for a three store commitment), the total initial investment required to open a single store will range from a low of $164,000 to a high of $480,000. Dunn Bros. offers assistance in the preparation of a comprehensive business plan and guidance on approaching lenders. Second, we have relationships with third-party lenders who are already familiar with DBC. Qualified applicants may be required to put 10% to 20% cash down of the total initial investment and gain a loan term of up to ten years on the amount borrowed.
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POSTED IN: DUNN BROS.
2 opinions for Dunn Bros. Coffee is Getting its Buzz On
Bill
Aug 5, 2007 at 7:13 am
Look before you leap. If you spend $250,000 building a store how many coffee drinks would you have to sell to pay off the cost? At $3 a cup about 85,000 not including interest and COG! Interesting!
sean
Aug 6, 2007 at 9:11 am
Bill: This is an excellent point, and one that too few franchise prospects consider carefully enough. How will a given franchise help you get trial from new customers? How will you get them to come back on a regular basis… even when faced with increased competition? Marketing, customer loyalty programs, strong branding and having a true point-of-difference should be priorities in choosing one franchise over another.
A great benefit of coffee concepts is that you are selling a legal and socially accepted drug…
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