Coffee Shop

Coffee Machine

Coffee Pots

Coffee Shops

Coffee Makers

Coffee Tables

Best Coffee

Contact Us

Site Map

Home > Learning Center > Coffee Shop

Coffee Shop

The coffee shop has become a place to do business, a place to catch up with old friends or a place to spend an afternoon relaxing and enjoying a good book. The coffee shop has quickly cemented its place in modern culture and we here at love nothing more than updating this site from our favorite local coffee shop. But what coffee shop should you choose, the popular chains that are all over the country or your local independent supplier?


Many people fear that the coffee shops franchises have come into local towns and aggressively overthrown the small, local existing coffee shops out of business. But after some research, we found that many local businesses all over the country had actually noticed an increase in sales since a chain had opened up close by.

The reason for this is simple; the major chains do all the marketing for the smaller independents. It is true that the large coffee corporations have an aggressive attitude, often opening up next door to a small shop that has been there for some time. But when a new franchise opens up, it creates considerable interest and as a result considerable lines of people waiting for coffee. Often times this line will be too long and people will look for an alternative.

This is when the locally owned businesses start to see a profit. More and more people would actually walk into the locally owned store because of the lines in franchise coffee shops. Some independents have actually started to reverse the aggressive tactics of the franchises and open up next to them and as a result have seen an increase in business purely from the overflow of customers.

It is reassuring to know that 57% of our nations coffee shops are still locally owned. In a five-year period between 2000 and 2005, the number of independent coffee shops in the country grew by 40%. When a popular franchise opened up six stores in the state of Omaha, business to all of the locally owned coffee shops increased as much as 25%. This statistic goes against the preconception many have that the chains are obliterating the independent cafes.

The failure rate for a newly opened independent coffee shop is only 10%. This is an amazingly low percentage when you compare it to the restaurant business, where failure is usually expected.

The main way the independent coffee shop is fighting off the big franchise is by not trying to be like them. They have to offer something different and their own unique take on the coffee experience. They are also overcoming this problem by offering a cheaper cup of coffee.

The products in a franchise are not cheap: a large frappuccino usually costs close to $10. A locally owned coffee shop can offer a higher quality cup of coffee with a personal and local touch at a cheaper price. Besides, there is no other product that offers such a huge profit. The average cup of coffee will provide the retailer with a 400% markup. But as long as it continues to taste so good and we get the personal experience we love so much, we will still visit the local coffee shop and gladly hand over our money.