Franchising series – Article 5: The real costs of opening a coffee café franchise

The real costs of opening a coffee café franchise

A clear-eyed look at what it takes to get started, and what you can expect in return

Thinking of opening a coffee café franchise? It’s an exciting move!

But before you hang your “we’re open” sign and brew the espresso, it is crucial to know exactly what you’re signing up for financially. What will it cost to get your coffee café off the ground? What monthly expenses should you expect? And, just as important, what kind of return could your investment yield?

In this article, we unpack the numbers so you can go in with your eyes open and your budget properly aligned.

Startup costs: What is involved?

Launching a coffee café franchise comes with a set of upfront costs. While figures will vary depending on location, size, and the brand you choose, these are the essential building blocks:

  • Joining fee

A once-off payment that gives you access to the franchise brand, systems, training, and ongoing support. Think of it as the cost of tapping into a proven business model.

  • Shopfitting and equipment

This includes everything from interior design and furniture to kitchen equipment, coffee machines, point-of-sale systems, signage, and more. It’s often the biggest portion of your initial investment, and the most visible.

  • Lease deposit and rental setup

Most leases require a deposit plus the first month or two of rent upfront. This varies depending on your landlord and lease terms.

  • Licensing and registration

Business registration, municipal trading licenses, and health and safety compliance all come with associated costs which can’t be skipped.

  • Initial stock and supplies

You’ll need a full set of opening stock including coffee, food items, packaging, cleaning products, uniforms, and more – everything to serve your first customer with confidence.

Ongoing costs: What to budget for

Once the coffee café is up and running, you’ll have recurring monthly expenses, such as:

  • Monthly franchise fees – typically a percentage of your revenue, paid to the franchisor for ongoing support and brand use.
  • Staff salaries and wages
  • Rent and utilities
  • Consumables and stock replenishment
  • Local marketing and promotions
  • Maintenance and equipment servicing

A reputable franchisor will provide a detailed monthly cost breakdown to help you manage cash flow effectively and plan with confidence.

What kind of returns can you expect?

Your return on investment will depend on several factors including your location, foot traffic, operational efficiency, and day-to-day management. But franchising offers some solid advantages:

  • Faster ramp-up thanks to brand recognition and marketing support
  • Reduced trial-and-error risk due to fewer unknowns and access to tested systems
  • Stronger buying power through group purchasing, giving you better margins on stock and supplies

A well-run coffee café franchise can become profitable within one to six months, but it requires dedication, hands-on management, consistent service, and a strong focus on customer experience.

Watch out for hidden costs

Some costs are easy to overlook. These may include:

  • Delays in construction or municipal approvals
  • Travel or accommodation linked to initial training
  • Insurance premiums and compliance updates
  • Technology upgrades or system upgrades

A transparent franchisor will guide you through these upfront and help you budget accordingly.

The Daily Coffee Group’s approach to investment

At The Daily Coffee Group, we believe in transparency from day one. We provide a full investment breakdown and help you understand exactly what’s included and what not. No vague numbers. No hidden extras!

What you get:

  • A beautifully designed, fully fitted coffee café
  • High-performance barista equipment and operational systems
  • Full training, launch support, and marketing rollout
  • Ongoing franchisor guidance and national brand visibility

We work with you to create a business model that makes sense for your goals, your budget, and your future, and to help you invest smartly, run your business confidently, and grow sustainably.

Next in the series: The role of a franchisee – what it takes to succeed

We’ll explore what franchisees actually do, from daily operations to long-term business leadership.

To learn more about joining The Daily Coffee Group, visit www.thedailycoffeecafe.co.za

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