Caribou Coffee from Minnesota plans to expand its business through franchise development in the U.S. With 718 units, the company announced the domestic franchise program in October after the filing of its franchise disclosure document on April 20, according to Caribou CEO John Butcher.
“Caribou’s performance throughout 2020 and growth despite the pandemic was a catalyst for the decision and “showcased the immense potential the company has to replicate this success through domestic franchising”, Butcher said, “plus Caribou’s franchising success internationally. The brand has more than 260 franchise stores in 10 countries outside the U.S.”
Caribou’s parent company, JAB Holding Co. announced earlier this year to combine Panera Bread, Caribou Coffee and Einstein Bros in one unit.
“We’ve had nothing but positive interactions” with all executive teams, and I have worked closely with Panera CEO Niren Chaudhary and Einstein CEO José Alberto Dueñas.” Butcher said.
JAB acquired Caribou for $340 million in 2012. The private investment company also owns Peet’s, Pret, Krispy Kreme and other retail brands.
“We continue to believe that neighborhoods need coffeehouses. They are the gathering place of the community,” Butcher said. “While we’re very excited about the success of our Caribou Cabin, we aren’t abandoning our commitment to the traditional coffeehouse.”
The company is now focusing on the quality of the partnerships and finding the right franchise partners who have sophisticated background in multi-unit operations. Caribou also plans to keep developing corporate stores alongside franchise expansion.
The total franchise investment for a “Cabin” Coffeehouse ranges from $446,100 to $732,300, while a “Chalet” model costs $722,100 to $1.15 million, according to Caribou’s FDD. Meanwhile, a non-traditional “Kiosk” version is $249,100 to $606,300. These figures include the franchise fee.