Problems in Franchising: Avoid these Costly Mistakes

It takes a lot of money to build a business, and you certainly don’t want to waste any. Check this list of 7 costly mistakes to avoid.                                

1. Letting emotions rule. Falling in love with a franchise concept is a common mistake. Don’t let your emotions guide your decisions. Use your head, do your due diligence and take the time to thoroughly investigate the franchisor’s offering.

2. No professional team. Don’t try to do your own financials, contract reviews, or negotiating. The cost of professional franchise attorneys, accountants, and advisors is money well spent.

3. Too little cash. Lack of capital is the number one reason franchisees fail. Item 7 in the UFOC will tell you how much money you’ll need with a low and high range. Be smart-go with the high range. Then ask current franchisees if the numbers are high enough.

4. Penny wise and pound foolish. Choosing one franchise over another because the initial franchisee fees are lower is shortsighted. It assumes that all franchises are alike and nothing could be further from the truth. Choose the franchise with the proven concept and strongest track record.

5. Too much help. Payroll is the biggest part of overhead for most franchise businesses. New franchisees often hire too many people or pay too much in wages. A good franchisor will provide a good staffing plan. Stick to the plan.

6. No comparison.  Never buy expensive equipment, supplies or inventory without shopping around first. Even if your franchisor offers group purchasing, do your own research, shop as many vendors as you can, consider aftermarket suppliers, and weigh different financing options (loans or leases).

7. Marketing blunders.  As a new business owner, you’re going to be targeted by every ad salesperson around. Ignore them. Follow your franchisor’s marketing plan to the letter to avoid wasting thousands.

Editor: The Problems of A Cuppy’s Coffee Newsletter

Company newsletters throughout the business world have a key element or theme about them. That theme or purpose of the newsletter is to motivate its employees to be more productive. At the Bean Street Journal, a Cuppy’s Coffee’s newsletter, as Editor I want to move beyond motivation. The purpose and main editorial thrust of this company wide publication is to educate and inform franchisees as well as the staff of Cuppy’s.

As a parent of a teenage daughter, I learned early in my homeschooling days that in order to sometimes inform or educate the best route is to entertain to get the point of the lesson across. This worked well with my daughter, but will it work with adult business people?

Therein lies the problem with a monthly newsletter. Will the information and content of the newsletter educate the readers? Will it also entertain and keep the reader flipping thru every page? As editor I hope this is the case, but as a writer and contributor the crux of any writing is will the readers enjoy it? Will my passion for fiction interfere with the nonfiction topics of business? This is always a concern.

Before the release of any newsletter, I enjoy receiving feedback from the staff of Cuppy’s. This pre-screening by a 100 pair of eyes, always catches the errors I may have made in producing the newsletter. For this I am thankful.

As for the reader I do hope that you enjoy the newsletter and are educated by the contents. Your feedback and suggestions are always welcome at the Bean Street Journal.

~Editor

Cuppy’s Coffee: Pitfalls To Avoid In Business

  Running a successful business can be daunting. Several factors play a key role in the success of your business such as patience, passion, knowledge of your industry and determination. There are others, but there are more ways to fail than there are to succeed. Take a look at the following pitfalls and the subsequent topics to follow, and see if they may apply to you . Any one or combination of these pitfalls will be reflected daily in your attitude and the way you approach the next day’s business.  If you find yourself party to any of these pitfalls, don’t worry, we have a way for you to turn it around.

Conversation Curses    

Having the wrong conversation can do more harm than good in making you feel better. As humans it is our nature to want to vent our frustrations from the highest mountains we can find. And while on that mount the wrong words can be like a rolling stone on an unending hill to disaster. Today’s society tends to relish all that is wrong or negative. The effect is contagious and detrimental to most businesses just as in this example. In the 80’s a certain franchise, which we won’t mention here, gained national notoriety in the press from the conversations and correspondence that occurred between disgruntled franchisees. It took that company years and cost millions of dollars to regain the respect of the public for its brand. These franchisees had a bad case of ‘Loose Lips’ which eventually led to many of them closing their doors, not to mention, losing their hard earned investments. This downward spiral even damaged the franchisees that were making a financial windfall and had no party to negativity that was unleashed by others. That was not the intention but once the cat was out of the bag it was hard for many of them to recover. Another example how negative press and today’s events can hurt your business, how many of you will check your toys for the label “Made in China”?    

Your company image and brand is, and should be, very important to you. How do you want your target market, customers and your community to perceive your franchise? Protect it. Talking or corresponding negatively about your experiences or hardships will result in a decline of customers walking through your doors. With the invention of the internet, email and text messages a shot can now be heard around the world faster than you can say “Loose Lips Sinks Ships”. Speaking negatively with your employees will not only lower their moral they too will become discouraged and not give the customer service you expect hurting your business further.     

The effects are numerous. So to counter that, it is wise to always build up your business by giving positive comments, correspondence and attitude even when things seem their worst.  You only hurt yourself when you speak negatively of your company, vendors and customers. Name recognition will have a lot of weight on the success of your location. You can be a part of the success or that shot heard around the world. 

Bad or No Customer Service    

     The enthusiasm has worn off. You look at your customers more like a life line than a person. Without realizing it you’ve stopped noticing the very people who are making your business successful. It’s become a JOB. You’re wondering why you can’t make ends meet or why it that you don’t have more customers. 

      The answer may be in you and your employee’s customer service skills. Taking a few minutes each day with each employee and explaining the importance of customer service can turn this pitfall around. A simple smile, a warm thank you or maybe an acknowledgement of their presence are simple techniques that will make anyone feel comfortable in your store. And more importantly make them want to return with their friends. Your customers will reward you by telling their friends and neighbors about the wonderful experience they received at your store. Are you providing your customers with the service they need? If you know who the customer is, call them by name. Are you building a loyalty relationship between you and your customer? Offer your customer a discount or reward for sending a friend in to sample your wares. Create a service award program or contest among your employees. Want your baristas to give great service? Reward great service. Create the legends, spread the word. When your employees see praise and rewards for great service, pretty soon they are trying to one-up the others and become the next service legend. What will your customer say? “Wow! See you tomorrow!”

When Your POS System Goes Your Customers Don’t Have To – Cuppy’s Coffee

Your morning rush is looking very promising and you expect the rest of the day to be as good, but then your POS systems decides it’s time to take a nap. Losing your POS doesn’t mean you have to take a hit in the wallet until its repaired.

Several tips below will ease you through the process until you’re back up and running. Keep a checklist on hand for all your employees to reference is case of emergencies.

Check the power plug-in and wires to terminals. A cord could have been pulled accidentally between orders.

Inspect the breaker. While one employee checks the breaker one should be monitoring the system to see if a breaker may have flipped. Ideally you should have all your breakers tagged as to which breaker goes to what equipment.

Restart the terminal. This may sound simple but every employee should know where the power button is.  If the machine is working, make sure credit card readers are back online. Most systems today back up their sales data to the hard drive every 10 minutes.

Call for help. Call the manufacturer for help if the above tips fail to reboot your system. Keep the number of the manufacturer close to the terminal as well as all other emergency numbers. Make sure all your employees know where to find these numbers.

Move into manual mode. Keep a calculator, manual credit-card swipe and guest book handy in case of emergency. Your baristas should know all prices and how to charge the correct taxes. Have your best order taker move outside to drive lanes to take orders to help move your customers forward.

Let customers know there’s a problem and their order might take a few minutes longer. Customers appreciate knowing the truth. Usually they’re pretty sympathetic. Most people say, ‘Oh, I have a computer at home and at work and they crash all the time.’ Most people are willing to wait in that situation when they understand you’re doing the best you can.

Keep a lower tech cash register handy. It’s always nice to have backup in a tight spot. Why not keep a plug in cash register tucked away in case your web based POS system decides to crash. Most low end cash registers can be purchased for $100.

Plug into a battery backup. Today’s computer based businesses know the value of the battery backup. This can get you through the rush or even the day until your system can be repaired.

Being prepared for any emergency can make the difference between saving the day and losing more than your POS.

Now Open – Cuppy’s Coffee & More in Michigan

 

 Taylor and Jackson Michigan are the new homes to new Cuppy’s Coffee, Smoothies & More kiosks.  Opened over the holidays, these location are expecting to set record sales for new store openings across the country.      

Beginning in 2008 the owners of these two Cuppy’s Coffee kiosks will start looking to open additional locations. Welcome to the Cuppy’s Coffee family. 

 

Cuppy’s Coffee Baristas Train On The Nuances Of Espresso

 You, as a Cuppy’s Coffee franchisee, were thoroughly trained to wear the title of Barista. During training, you were taught to noticed the difference between what others call a latte and what is truly a combination of subtleties of flavors, aroma and taste. When using the term in English, “barista” refers to one who has acquired some level of expertise in the preparation of espresso-based coffee drinks.

Within certain circles, its meaning is expanding to include what might be called a coffee sommelier; a professional who is highly skilled in coffee preparation, with a comprehensive understanding of coffee, coffee blends, espresso, quality, coffee varieties, roast degree, espresso equipment, maintenance, latte art, etc.Though popularly believed to be an Italian term, it was developed in America as a derivative of the Italian word meaning bartender and is now part of the lexicon of some American coffee shops.     

After Coffee College, you will continue to learn all the nuances of an espresso based drink. Each day is a chance to learn more and more about the industry and become familiar with all the different variables that determines a good drink from a great experience. That great experience, the market trends and building on the little things that make a difference are just a few key ingredients that keep your customers coming back again and again.

Looks Who Here! New Cuppy’s Cafe in Wilmington NC

Wilmington, NC is the home to one of our newest locations. The owners were very pleased with the entire process from the build out to the grand opening. “Store sales are steadily rising everyday.” the owners have reported. “I know that we have been putting some of your advice to work and we are getting some positive feedback!” Look for this location to steadily increase their store sales.

A Letter From The President

Prepared to be WOW’ed. The New Year not only ushers in a new look for our franchisees, but also a new attitude. An attitude of care and service for our franchisees, vendors and staff. Everyone at Cuppy’s has committed themselves to providing a level of care and understanding, unmatched in the quick serve industry. From our receptionist to our store trainers, you will find that attitude in every aspect of your communications with us.     

We’ve planned our strategies, laid out our foundations, now the winds of the WOW factor will fill our sails to launch us into a very successful year and beyond. This success will also be your success. Name and brand recognition, customer loyalty and much more will be evident in the new attitude we’ve incorporated into our daily lives. You, our valued franchisee, can also contribute to the success of the brand by doing what you do best; provide your customers with an experience they will not soon forget.

Doug Hibbing

President 

Cuppy’s Coffee, Smoothies & More

Cuppy’s Franchisees Real Estate: What You Can Do To Help Find the Perfect Location

Location, location, location – plays a key factor in the success of most businesses. Whether you are looking for your first location and/or working on opening your second or third location, our dedicated Real Estate Specialists are here to assist you in your search for that A+ location. You, as a franchisee, are a part of this team, so here are a few things you can do to help in the search for that perfect spot. The input and resourcefulness you provide will be an invaluable tool your specialist can use to secure a location for your Cuppy’s Coffee location.     

1.  Drive through your search area – your eyes are the most important factor in determining the validity of a location. Make sure to look for the criteria that makes a winning location: Accessibility, Visibility, and Demographics!    

 2.  Write down any contact information on sites you think will work. Your specialist will follow thru with the brokers to gain more information.    

3.  Take along your Site Scorecard and pay special attention to sites that meet most of our requirements. Do this for every location you have in mind.    

4.  Ask your Specialist to send you a copy of our new Real Estate Flyer and pass it out to local brokerage firms. Start establishing a rapport with area brokers. This will also help owners and developers learn more about our superior product and compel them to want you in their developments.    

5.  Check with your local Chamber of Commerce and find out about any new developments coming to your area.  Doing this, you will increase your opportunity to become the first coffee store in the newest and best developments.     It is vital that you keep the lines of communication open with your specialist. Your feedback on locations is priceless and helps to fine-tune the search based upon your preferences and needs.  We’ve found that working together with your assistance on a local level in the search for that A+ location and the proprietary tools and data our Real Estate Specialists use, we are more successful in finding that perfect location.