Costa

The Franchise Package

We are looking for Franchisees who have the energy and resources to open and develop a "cluster" of a minimum of five stores in a geographical region. With the full weight and experience of both Costa, and our parent company Whitbread, we will work with you to establish your first store in your first year with us. And when you have successfully launched and operated your first store we will work with you to exploit the right regional opportunities within your territory.

As a Costa Franchisee operating five sites and more, you will have a significant business which will require the right infrastructure and team in place to support it.

Nothing has been left to chance and our combination of experience and know how will enable our Franchisees to operate to the very highest of standards. Our operational blueprint will enable you and your teams to hit the ground running, allowing you to focus on the overall development of the business.

From "cluster" identification, through to the training of you and your people, we will support you with real "hands-on", practical advice.

Financial Information

Of course, your investment won't be purely one of time and effort as we will also ask you to make a financial commitment.

Whilst we want to ensure that you successfully operate your first store we will have a careful eye on your development plans and for this reason we would want to work with Franchisees who understand the commercial realities involved in running a small "cluster" of stores.

In order to maximise the opportunity a significant financial investment is required and we are looking for people with the ability to open stores quickly. To do this you will need £250,000 liquid assets and the ability to raise a further £500,000 without having to borrow against the initial stores opened. Each store costs between £200,000 and £250,000 to acquire and build and the aforementioned funding requirement will enable you to make the most of property opportunities that come your way. Costa already has over 700 stores in the UK so we have very firm views on what is required to build and launch a successful business. This, combined with your experience and knowledge of the local market, will create the perfect successful partnership.

If you decide to register your interest in this opportunity we will naturally share with you the key financial and commercial details as part of the recruitment process. We want our Franchisees to have realistic and achievable plans in place.

Our Support

A key feature of the Costa Franchise package is the support that we put in place:-

• "Cluster" Identification and Property Support - we will help you to find the right properties in your "cluster".
• Store Designs, Branding and Fit-out - we actively encourage our franchisees to use the Costa designated project managers to deliver the highest standards. We prefer our Franchisees to focus on the development and training of the people.
• Product Supply - as part of the Whitbread group our Franchisees will benefit from better negotiated rates with suppliers as well as "state of the art" delivery logistics.
• Full Training - all Franchisees will benefit from a customised package of training both prior to launch as well as on an on-going basis. Training will focus on retailing skills, product knowledge and training your Baristas to produce only the best coffee. We also have specific training packages in place for 4 of the staff within your team.
• Merchandising and Promotion - we supply a full promotional calendar together with fully branded point of sale packages focussed on driving sales and brand awareness.
• Operational and Financial Support - we provide our Franchisees with full management information that will help to develop the business, as well as "Costa Check", a documented brand audit that will ensure Franchisees operate to the highest standards.

The key focus for Costa is to ensure that when the time comes to launch - we don't just walk away from you and expect you to get on with it. Our training and support programmes are impressive and will focus on developing a close working relationship with you and your team.

Have you got what it takes?

We are looking to appoint a number of locally based entrepreneurs that have the drive and motivation to work closely with us to make a success of their own business. You will need to demonstrate a track record of working successfully in a fast paced consumer environment and you will need to have a passion for making the customer experience reflect the quality of the Costa Brand.

Our opportunities extend across the UK and we are looking for Business Partners that can commit to excellence and growth - ultimately growing to a minimum of 5 outlets within your chosen area.

In addition to experience and drive you will need to be able to motivate others, manage teams and maintain effective relationship with staff, advisers, Costa Management and customers.

We're sure that you will want to know more about our ideas and plans and we will want to know more about you.

FAQs

1. What areas are available?

Following the success of our recruitment drive over the last 3 years there are a limited number of areas available.

We are only recruiting in Scotland, Wales, South West England and North East England.

2. How much capital will I require?

In order to move quickly in the market you will need £250,000 liquid assets and the ability to raise a further £500,000 without relying on the initial stores to provide funds towards this. This reflects the pace of the market and will enable you to expand your business quickly when property opportunities become available.

3. What experience do I need?

We do not expect you to have coffee retailing experience, as our package of training and support will enable you to operate to the highest standards. Because we fully expect you to operate up to five stores in your "cluster", we will tend to focus on your commercial drive together with your ability to lead and motivate a large team of staff to deliver our Costa brand standards.

4. Will I be able to sell my franchise?

Yes, you can sell your Costa business just like any other business. However, we will want to vet the incoming Franchisee in the same way as we vet you. We also have the right to match the highest offer you have received and buy the business ourselves.

5. Will I have to work full time in the business?

We prefer people who have no other business interest, however we do recognise that you may want to continue your current business or profession and each proposition will be judged on its merits. We do expect that you will have a passion for the business and will be able to devote an appropriate amount of time to ensure its success.

6. If accepted as a Franchisee how long will it take to open my first unit

This depends on how quickly you can find yourself a suitable location. As a guide you should be prepared to allow six months to find and fit-out a property.

7. How much money will I make?

Costa provides you with a business blueprint and the tools to help you make the business a success. Your success will depend on how you use the blueprint and the tools at your disposal.

8. Does Costa offer any financial assistance?

No, however we can guide you through the key funding decisions and introduce you to key banking teams who have a working knowledge of the Costa Franchise system.

9. Can I open more than one store?

Absolutely! We are only interested in pursuing interest from Franchisees who can meet the development criteria of opening up to five stores within their territory.

10. What If I don't wish to manage more than one store?

We would suggest that you contact our Corporate Sales department where one of our sales team will contact you with further information on purchasing point of sale equipment & coffee products.

Contact the Customer Services Department on 0870 1954040.

11. Do I need to find my own sites?

We fully expect Franchisees to play an active role in finding their own sites. However, we can also help you to find the right sites through our knowledge of the property market. We will insist on "signing off/approving" all sites.

The Franchise Journey

In order to complete your journey to becoming a Costa Franchisee you will be expected to go through a number of key steps:

Step 1

Download the Franchise Application Form from the bottom of this page and upon completion please post to:

UK Individual Franchise
Costa Ltd
Whitbread Court
Porz Avenue
Dunstable
LU5 5XE

Step 2

We shall also begin to share more detailed financial information upon completion of a Confidentiality Agreement in order that you can begin work on putting your business plan together. We shall also begin to share the Franchise Agreement with you.

1. Cluster Approval
   Once we are happy with the application form we will contact you about the areas that are available in your geography and agree a list on which to formulate your business plan.
2. Financial Approval
   In parallel with the above process, you will have been working on the financials with your accountant / bank and will submit a financial package to Costa.
3. Contract Approval
   At this point, an 'in principle' contract is agreed and you will complete the overall business planning package.

At each stage of the process, Costa will ensure that you have a focal point for Q/As and guidance appropriate to the topics you raise.

We anticipate 4-6 weeks from Business Plan Information Session to Sign-off.

Step 3

We would expect our prospective Franchisees to present their Business Plan to the Costa Team in order to discuss in more detail the viability of this exciting opportunity.

Step 4

Assuming that the Business Plans look in good shape we will action the legal process with your solicitor.

Step 5

Once the legal formalities are completed and fees paid we shall work with you to ensure that your chosen site is suitable. We shall then work with you to ensure that the store is refurbished to the Costa standards.

Step 6

Whilst your store is being refurbished we will put in place your Training Programme that will focus heavily on a 4-week intensive programme in one of our stores. We shall also work with you to ensure that you recruit and train a successful team.

How can I apply?

So if you think that Costa provides you with an exciting opportunity please download the following Franchise Application Form.

Franchise Application Form

Please ensure that you complete the form in detail so that we can move forward your application. Upon completion, please post the form to:

UK Individual Franchise
Costa Ltd
Whitbread Court
Porz Avenue
Dunstable
LU5 5XE