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BBs Coffee & Muffins
Our concept 
We are a coffee operator with a unique and successful focus. Our strength lies in the location of our stores and we are the only UK retailer that focuses solely on the shopping centre market place. By locating our stores in high footfall areas of regional and suburban shopping centres, we do not face the competitive fluctuations that are common in high street locations, where an unlimited number of competitors can open nearby. BB's sells a number of high quality core products around its own blend of freshly ground premium coffee and its own unique muffin recipe. The aroma of the muffins being baked in the stores, along with the freshly ground coffee, is irresistible to our customers. We are able to offer a high quality product, at a reasonable price, in a friendly atmosphere. Key strengths:
Our ideal franchise partner Our ideal franchise partner is somebody who:
Our support network  The cornerstone of our franchising concept is its comprehensive support network. We will provide you with the operational and management tools you will need to achieve and maintain maximum productivity and profits. We consider training to be of paramount importance. As a new BB's Coffee & Muffins franchise partner, you will receive comprehensive and ongoing training, which is fundamental to the success of your business. The initial course is a competency-based programme conducted at an Approved Training Store. You will also be supported through your store opening and into the first week. We will help you settle into your store and ensure that the skills acquired in training are successfully put into practice. Essentially our franchise partners are provided with a turnkey operation and the security of belonging to a programmed, well-managed retail brand.Pre Opening
Frequently asked questions Q. Where does BB's Coffee & Muffins originate? A. BB's is an Australian concept that was initially developed from a small chain of bakery shops. The freshly baked products have been developed to suit the BB's concept along with freshly ground coffee beans. Q. Who introduced BB's to the UK? A. Phil Abbott, Managing Director, started his business career with BB's in Australia as a Master Franchisee. When the opportunity came to introduce BB's to the UK and Europe in 1995, Phil accepted the challenge. He is responsible for the development of the brand through new sites and our franchise partnerships. Q. How successful has BB's been in the UK? A. Since the first store opened in July 1997 we have opened over 75 locations throughout the UK, Germany and Ireland. Our first franchised store was also opened in the same year. Although the business was initially developed through company owned stores there has been a substantial increase in the number of franchised stores opening and our business is now primarily geared towards franchisees. Q. What support is given to a Franchisee? A. BB's provides ongoing support for all franchisees. The Franchise Operations Manager visits each franchise store once a month and carries out quarterly audits. There is a dedicated franchise help-desk that provides telephone support when a franchisee requires assistance or advice. Informative Franchise Conferences are held twice a year to which all franchisees are invited. A weekly newsletter is circulated for up-to-date information on new products, league tables and helpful tips to improve the business. Q. How does BB's choose sites? A. BB's retain the services of a property company who identify potential locations. Each location is investigated for suitability, which involves site visits by our development and operations teams. Our designer also carries out an initial inspection to ensure that the premises can be serviced. Q. Why is BB's mainly in shopping centres? A. The brand was initially developed towards the shopping centre customer; shopping centres are ideal, as it is where our brand works best. Q. What size premises are required? A. This does vary, but the main criterion is to have minimum seating for 60. Q. What is acceptable rent on a store? A. Generally BB's will negotiate a low base rent with an additional percentage top up if turnover goes over a threshold. However, the rent will be proportionate to the profile of the centre i.e. a large, regional shopping centre with a considerable customer footfall will command higher rents than a smaller town shopping centre. Q. Who holds the Head Lease for the property? A. BB's will take the Head Lease from the Landlord and will grant a Sub-lease to the Franchisee, subject to a Licence to Sub-let from the Landlord. The terms of the Sub-lease will be those dictated by the terms of the Lease. The Sub-lease will be outside the Landlord & Tenant Act. Q. How long is the Franchise Agreement for? A. The initial period is for 5 years, with further 5 yearly renewal options for the remainder of the term of the Head Lease, less 3 days. For example, a 15-year lease would have 3 terms. Q. Can the Head Lease be extended for a further period? A. The majority of our Head Leases are within the Landlord & Tenants Act. This means BB's has an automatic right to apply for a further term if required. Q. What are the typical set-up costs? A. By far, the largest portion of the total investment will be the shop-fitting cost. This can vary between £70,000 and £130,000 depending on the size of the unit, the type of unit and the amount of work that is required. The work will be tendered to various shop-fitting companies for the most competitive price. The equipment, including the furniture, will cost approximately £40,000 and will be purchased from reputable suppliers. In addition, you will have to pay all legal costs, design and planning costs and all other professionals' fees. Q. What is the Franchisee fee? A. The initial Franchise Fee is £12,500 plus VAT payable on signing your Franchise Agreement. This will give you the ability to trade as BB's Coffee & Muffins and use the BB's business system. Q. How much Capital is required? A. Realistically you will require a minimum of £30,000 liquid capital. You will also require assets to offer for security for a business loan. You will need to get professional advice on a level of gearing that suits you. Q. Do you provide any financial assistance? A. BB's does not provide direct finance but we can introduce you to the relevant finance providers. Q. What is the typical timescale to open a store? A. When a suitable location has been identified and an applicant has expressed an interest, the minimum period will be 3 months to allow for due diligence and to secure funding. Q. What are Royalty payments? A. Royalties are the ongoing service fees that are currently 7% of net turnover and are paid monthly in arrears by Direct Debit. Q. What is the Marketing fee? A. The current marketing fee is £110 per week per store, subject to a minimum of £50 per week and a maximum of 4% of turnover (net of VAT) and is paid monthly in arrears by direct debit. This is reviewed periodically. Q. How much VAT is payable on sales? A. Standard rate VAT is payable on all eat-in sales. The muffins and baguettes are zero rated for VAT on takeaway sales. However, this is calculated automatically on the till. Q. When can I expect a return on my investment? A. In general a franchisee can expect a return on their investment between two to four years, depending on initial store cost and store performance. Q. What is the profitability of a BB's store? A. Generally, franchise stores perform much better than the company stores as the franchisee plays a much stronger role in the day-to-day running of the store. The profitability of the store not only comes through rigorous controls on labour and purchase costs but also by driving sales. Q. What is the gross profit on a cup of coffee and a muffin? A. The gross profit is between 70-80% on most products. Q. What is the minimum number of staff required? A. This is dependant on the size and the turnover of the store, but the average for a store trading 7 days a week is 3-4 full-time staff (this includes the Franchisee) with up to 12 part-time casual staff. Q. Does a Franchisee have to purchase ingredients and equipment from BB's? A. BB's has an approved list of products, which the franchisee must purchase, in most cases, from the nominated suppliers. Q. Can a Franchisee sell other products? A. No. As with all national brands, only products on BB's authorised menu can be sold. However, if a Franchisee feels that a new product may enhance the brand, authorisation may be granted following consideration from the franchisor. Q. What training is given? A. All Franchisees will attend a training store to complete a rigorous, competency-based training programme. Training is for 4 weeks and will include technical, operational, customer service, local marketing and administration. Franchise partners are supplied with copies of all BB's manuals for your store. Once the initial training has been completed Franchisees are expected to train their own staff. Additional training for store staff can be arranged for an agreed fee. Q. Does the programme include Food Hygiene training? A. There are obviously strict hygiene procedures that must be maintained due to the nature of the business. Basic Food Handling training will be part of the initial training programme. BB's Food Safety & Health & Safety Manual will enable the franchisee to train staff. Q. What sort of support is there regarding the maintenance of machines and equipment in the store? A. A Franchisee can benefit from company arranged service agreements at the same rates i.e. annual service charge for coffee machines including preventative maintenance visits. Q. What is BB's development strategy for the future? A. In the foreseeable future we envisage a growth to over 200 stores through new and existing franchised stores. We also see the potential for further expansion into the European market. The concept of the BB's Coffee & Muffins franchise is incredibly stable. top Testimonials We have detailed below some comments from our existing franchise partners. "Often copied but never equalled the BB's Franchise has been both successful and rewarding in financial terms for our business. Customers and landlords love the product range and the franchise. We opened our first store in Ireland in March 1999 and, due to our continued success, we plan to open our 10th store within the next 12 months. It's a winning concept that cannot be matched." David O'Connor "I chose BB's based on the excellent turnover and profit of the existing franchisees. BB's are at the leading edge of a major boom industry and, since coming on board, I have seen the organisation continue to grow from strength to strength and have recently purchased my fourth store. If you're looking for a business that generates success, then BB's should be your first choice." Gus McMillan (previously employed as International Franchise Director for the Royal Bank of Scotland) "The support of BB's has been invaluable to me in turning my coffee shop into a successful venture. My in-store training program enabled me to experience real-time selling situations and how customers are handled. The business support centre has since supported my sales through shop displays, merchandising, media advertising and seasonal product promotions." Ishvar Patel "Having previously been employed as an Area Manager by McDonalds, I was looking for a retail franchise that could offer similar overall standards in a high growth market sector. BB's offered excellent training, support and profit margins for their stores. After three years as a Franchisee my expectations have been far exceeded, hence I have become a multi-store owner." Simon Johncock top  Key Info | | ||||||||||
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