Burger Franchise vs Coffee Franchise: Everything You Need to Know

Are you interested in learning the differences between owning a burger franchise vs coffee franchise? You’re in the right place!

At Jack in the Box, we understand you have a lot of choices to make when it comes to finding the best franchise opportunity for you.

In this article, we’ll take a look at three key differences between a burger restaurant and coffee store when it comes to franchising.

What is a Burger Franchise?

A burger franchise is typically defined as a restaurant that primarily focuses their menu on the segment of beef or hamburgers.

Some of the most popular burger franchises in the United States are:

• Jack in the Box
• McDonald’s
• Burger King
• Wendy’s
• Whataburger
• Freddy's
• Culver's

These brands have a history of serving a wide variety of burgers along with fries, onion rings, or side salads. Plus, desserts like cookies and milkshakes.

Burger franchises are some of the most popular restaurants in the United States and have been expanding into international markets.

What is a Coffee Franchise?

On the other hand, a coffee franchise is commonly known as a shop that primarily serves coffee and other beverages.

Here are a few examples of well-known coffee franchises from around the world:

• Starbucks
• Dunkin’
• Peet’s Coffee & Tea
• Caribou Coffee
• Gloria Jean’s Coffees
• Scooter’s Coffee
• Aroma Joe’s Coffee
• Maui Wowi Hawaiian Coffees & Smoothies
• Cafe2U
• Biggby Coffee
• Dunn Brothers Coffee
• Coffee Beanery
• Café Barbera
• The Human Bean
• PJ’s Coffee
• Tim Hortons

These brands are well known for serving a wide range of different coffees. Plus, they typically offer pastries, teas, and smoothies too.

If you need a caffeine fix, you shouldn’t have trouble finding a Starbucks near you. They have more than 38,000 locations worldwide!

Menu Variety

Most coffee franchises have a fairly complex menu with drinks that are often customized for each individual customer.

Coffee orders are typically taken in the drive-thru, at the counter, or on an app where customers can earn loyalty points.

Some coffeeshops also serve breakfast food like pastries, bagels, and other sweet treats to accompany the guest’s coffee of choice.

Burger franchises will typically have a simple menu with burgers, fries, and drinks along with other items like chicken nuggets, salads, and desserts.

At Jack in the Box, we consider ourselves to be much more than a burger joint. Our innovative 24/7 menu offers five dayparts – breakfast, lunch, dinner, snacking, and late night.

Plus, we offer a wide variety of drink options including coffee, boba, and other infused beverages to keep our customers going when they need a “pick me up” treat.

Real Estate & Site Requirements

Most burger and coffee franchises offer flexible prototypes that can fit in a wide variety of traditional and non-traditional venues like c-stores, airports, and college campuses.

However, when it comes to Jack in the Box, we require all of our restaurants to have a drive-thru lane. This is why we prefer free-standing locations or end caps.

While most coffee franchises have a drive-thru lane, the requirement for each location to have one will vary depending on the brand you’re interested in.

Financial Requirements

The total initial investment cost for a burger or coffee franchise can range anywhere between a few hundred thousand to over two million dollars.

You can learn more about the estimated initial investment for each brand by referencing Item 7 in their most recent Franchise Disclosure Document.

As a franchisee, you’ll also be responsible for paying ongoing fees. These fees will vary depending on the brand you decide to do business with.

For example, Jack in the Box has three minimum financial requirements all our potential franchisees must meet.

• Minimum Liquidity: $500,000
• Minimum Net Worth: $1.5MM
• Franchise Fee: $50k per Location

As a franchisee, you’ll also be responsible for paying the ongoing royalty fees below…

• 5% Royalty of Gross Sales
• 5% Marketing Fee of Gross Sales

These royalties ensure you have the best possible resources to run your burger business and bring customers to your location.

Check Out These Additional Resources

We hope this article gave you a better understanding of the differences between owning a burger franchise vs coffee franchise.

At Jack in the Box, we’re looking for multi-unit franchisees who are excited to bring our craveable 24/7 menu to new markets across the country.

Here are some additional online resources you may like to check out:

• How Much Does a Jack in the Box Franchise Cost?
• 3 Reasons to Buy a Drive-Thru Restaurant Franchise
• Which Burger Franchise Makes the Most Money?

If you have any questions, please contact our franchise sales and support team.