[Pepini]

I´ve been planning of opening a Starbucks in a prime location in Lisbon. I would partner with a friend who has worked in the restaurant business for 10 years.

There´s not much info online.

Are the requirements of Starbucks too much to bare?

What are the royalties Starbucks charges?

What would be the cost of installing a Starbuck store.
I know they keep ownership of the store.

[sammybiker]

If you're serious, the best advice I would have would be to go work for a local retail Starbucks and gain basic, on the ground experience of how one operates. This will also grant you direct exposure to the owner of that branch and they would be by far the most qualified to answer any questions of yours.

Additional value will be realized when apply for funding/investments to launch, you'll have experience as to how a Starbucks should operate.

[CarCrashKid]

Yeah, if you're serious about it, you're going to have to put in serious time for it by becoming at least a manager.

I know another Irish that worked for McDonalds in Ireland, they sent him over to London to work as a manager and he took the position.
After a couple of years,he returned to Ireland and subsequently set up his own McDonalds, he now has 4 "restaurants". 2 in Dublin city and 2 in surrounding areas with another on the way. It's serious graft.

[redbeard]

When it comes to big chains it is necessary to work in it. Understanding company culture is key.

[bw220]

I worked at a Starbucks for a few years and they rarely allow people to buy franchises. A quick Google search shows that they aren't allowing any right now. Better luck with a different franchise. I've heard Subways can be a money maker.

[ManAbout]

Pretty sure you can't just "open a Starbucks" as an individual. The stores are either corporate owned or if they are franchised, they are institutional franchisees like airport companies etc.

[WestIndianArchie]

(06-21-2014 11:16 PM)ManAbout Wrote:  

Pretty sure you can't just "open a Starbucks" as an individual. The stores are either corporate owned or if they are franchised, they are institutional franchisees like airport companies etc.

He's in Spain.

Starbucks is starting to franchise in Europe.

http://online.wsj.com/news/articles/SB10...1318755960

And the best way to get the information is to contact them directly.

WIA

[Doc_J]

Lisbon is in Portugal...

get yourself a map here: maps.google.com

[Pepini]

Yep the place to be opened is Lisbon. There are already few. I would basically enter with the capital and with drafting of contracts. I´ve been investing in real estate but I would like higher margins.

[Alpharius]

Be careful with franchises. Starbucks has a decent reputation but others, not so much. Remember, when you open a franchise you're not starting your own business - you're investing in building someone else's. they control the supply chain, limit what you can/can't do, and usually the contract says that a breach of contract is reason for them to take the location from you. Any breach of contact. Subway, Baskin Robbins, Dunkin Donuts, and Quiznos have all had their brand hit pretty hard because they were a little too trigger happy when it came to seizing locations. There's little franchisees can do because they signed a contract that lays it out rather well, most courts are going to side on behalf of the contract terms.

Franchisees are perfect targets for predatory contracting and they have little or no form of recourse. Good way to lose out on a large investment and have nothing to show for it.

[Cobra]

I knew a guy in school who went in with 2 other guys on a Subway franchise. I think each dropped about a $25k+ investment at that time.

These dudes were working day and night to keep that place above water. Employee trust was an issue he mentioned.

After a while, I think they got the place on lock and were doing well but it was maybe like 1 to 2 years of pounding the pavement.

Be prepared to put in not only cash but time and sweat in the beginning.

[tomtud]

Be weary of opening up a franchise that does well in one country and may flop in another. For example, the Canadians will know that Tim Hortons coffee is hugely popular in Canada and the franchises are making a killing. However, the franchises in the northern states of the USA aren't doing great at all. In fact they are struggling to get a footprint.

Try to make a clause in your contract that states if your location doesn't go too well, you are free to move it without any penalties (if that is even possible).

[lurker]

Those are all questions that YOU should have the answer to if you're considering purchasing a franchise. If your idea of due diligence is to ask a bunch of men on the internet brought together by the common ground that they like 18-25 year old Eastern European pussy, you're going to fail.

Want to know what Starbucks franchising requirements, royalties, etc are? Call Starbucks. Talk to their corporate franchising unit or area franchisor. Read the offering circulars and disclosure documents they send you. Read the documents again. Read the documents a third time.

Go out and talk to other Starbucks owners. Talk to owners with failing locations as well as thriving ones.

In six months, come back and tell us what you've found.