Ever wondered how better a coffee chain can evolve in a competitive market space while still amassing an immense customer base? It is undoubtedly true that none can survive long in business with simple and usual flavor; one has to make it unique, fresh, and highly customizable flavor to meet customer demand.
And here comes Philz Coffee, a leading American coffee chain, boasting a wide range of freshly prepared coffee blends and food options. Let’s learn more about it.
- Brand: Philz Coffee
- Founded: 2003
- Key People: Phil and Jacob Jabber
- Industry: Coffee, restaurant
- No. of outlets: 70+
- Area served: US
- Franchise Fee: NA
- Royalty Fee: NA
- Model: Family-owned
- Estimated Initial Investment: $250K to $350K
Table of Contents
Overview of Philz Coffee franchise
Phil Jaber, who had been operating a grocery store in the San Francisco area for over two decades, had already built a community. In 2003, he, along with his son Jacob Jaber, laid the foundation for Philz Coffee.
Philz Coffee certainly resembles the name of its founders (Phil Jacob), and with more than two decades in the sector, the chain has emerged as a prominent coffee brand in San Francisco, California.
With multiple locations spread across the US market, Philz Coffee boasts a flavorful range, specially crafted coffee beans for preparation, and on-the-spot preparation techniques, making them some of the premium features of the brand.
At present, they have over 70 outlets across the country, and all of them can serve you uniquely crafted coffee flavors.
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Key facts about Philz Coffee
| Sr No. | Type | Private |
|---|---|---|
| 1 | Trade Name | Philz Coffee |
| 2 | Industry | Coffee restaurant |
| 3 | Founded | 2003 |
| 4 | Founders Or Parent Company | Phil and Jacob Jabber |
| 5 | Corporate Headquarters | United States |
| 6 | Number of outlets | Over 70+ |
| 7 | Area served | United States |
| 8 | Model | Company-owned and operated |
| 9 | Menu offering | Range of coffee, tea, mojito, pastries, chocolate, and more |
| 10 | Revenue | USD 43 million |
| 11 | Website | philzcoffee.com |
How is the Philz coffee franchise different from its competitors?
When someone plans to open their own business, they prefer a franchise that can actually compete with its peers and has a unique proposition that can help them tackle the market and provide them with a long-term business opportunity in the sector.
Here in this section, you’ll get to know more about its USP:
- Personalized coffee experience:
- Over the years, the Philz Coffee franchise has been serving unique and personalized coffee, where their customers can come and choose their favorite beans and enjoy their delicious coffee.
- Variety of flavors and other options:
- As a franchisee, you’ll not only serve its carefully crafted coffee blends but also an exemplary range of drinks, chocolates, and pastries.
- Key USP: On-the-spot preparation:
- Coffee is meant to be served fresh and hot, and Philz Coffee, which takes immense pride in offering one cup of coffee at a time, ensures unparalleled freshness.
Does Philz Coffee franchise?
Philz Coffee maintains a company-owned approach instead of partnering with potential franchisees. The chain has inaugurated over 70 outlets in 20 years, and all of them are company-owned.
At least in the near future, Philz Coffee doesn’t seem to be embracing the franchise model. If they do so in the future, you’ll eventually come to know by following our future updates.
How much does a Philz Coffee franchise cost?
There have been multiple pieces of information on Philz Coffee and its estimated cost to open its franchise. As you know, Philz Coffee doesn’t sell franchises, and to get accurate information, it is always advised to get in touch with the company’s officials.
Based on average investment costs in the coffee business, one may need to have an initial capital of approximately $250K to $350K. With this initial capital, the franchise fee for a brand like Philz Coffee franchise could be between $40,000 and $50,000.
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Is Philz Coffee franchise profitable?
Philz Coffee has been in the industry for more than two decades, and they have amassed quite a loyal customer base for their specially crafted coffee and other drinks.
In recent years, Phil and his team have inaugurated dozens of outlets across the country. However, the recent news regarding the decision not to renew their lease agreement at their original location has raised concerns for the business.
According to the report published at Mission Local, the major reasons for the non-renewal of their very first outlet were outdated equipment, higher maintenance costs, conflict between employees and management, and an overall declining profit margin.
Beside all these, Philz Coffee is certainly a leading brand, but the recent news about the chain needs to be addressed, and if you are looking to partner with them, consider checking with the concerned team.
What are the alternatives to Philz Coffee?
If you are particularly seeking opportunity in the coffee industry, then here are the best two alternatives (obviously, there are many, but we are providing our best pick).
Black Rifle Coffee Company
BRCC was founded in 2014, way later than Philz Coffee. The chain went public on February 10, 2022. According to the former Green Beret, Evan Hafer (founder), BRCC is on a mission to better and strengthen the community of veterans, first responders, and more.
The chain doesn’t follow the traditional franchise model; instead, it sells its dealership, and to become their approved dealer, a minimum purchase of $1000 and an annual purchase of $5000 are a must.
In addition to this, you should also have at least two years of relevant experience in the coffee industry. More info in the the article.
Read more: How can you buy a BRCC franchise? – cost and profit
Biggby Coffee franchise
Biggby Coffee is another interesting chain, founded by Bob Fish and Mary Roszel in 1995. As compared to Philz Coffee, Biggby Coffee operates over 300 outlets that offer a wider range of food options than Philz.
Like we mentioned earlier, the initial cost for Biggby Coffee is also in the pocket range, and you need to have at least $246,305–$564,626 to become one of their partner. there are few more requirements for it.
Exciting for Biggby coffee? do check this out.
Read more: How much does Biggby franchise cost? – Analysis
The Final Thought
The overall cafe industry in United States has exhibited unparalleled growth and brands like Tim Hortons, Starbucks, Scooter’s has capitalized on it. In all these, Philz Coffee is also a prominent brand, quite famous for its on-the-spot preparation strategy.
Philz Coffee isn’t a franchise and they may opt for franchising model in future. The recent news of non-renewal of their lease agreement ( building owned by its co-founder) for its original stores seems concerning.
Typically, Philz Coffee has two streams of revenue generation: one from the sales of coffee and drinks, and the other from merchandise and the sale of bagged coffee blends. To increase their margin, they may consider opening multiple locations and introduce few more coffee blends and menu options.
Want to explore more? Then check out below franchising opportunities.
Food & Beverages Franchise, Bakery Franchise, Home Improvement, Car wash, Real Estate, and Tea & Café Franchise
FAQ
What’s the original Philz Coffee address?
The very first store of Philz coffee was at 24th and Folsom streets, which was closed on October 2023.
Is Philz Coffee worth Investing?
Philz Coffee is solely a family-owned brand and it has maintained its heritage for over two decade. And buying its franchise isn’t possible currently.
