Human Bean Franchise In USA Cost, Profit, How to Apply, Requirement, Investment, Review | SkillsAndTechSkillsandTech | February 22, 2022 |
If there’s one feature that all food and beverage establishments must have in the current environment, it’s a drive-thru. Luckily, The Human Bean didn’t need to change their strategy much over the past 2 years as they were already known as a drive-thru coffee destination since opening two decades ago.
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Human Bean Franchise Wiki
With a passion for creating happy people and our love of coffee, we opened our first drive-thru espresso stand in Ashland Oregon in 1998. The demand for convenient, quality coffee & espresso grew and soon after opening our original location in Ashland, we expanded to surrounding cities in Southern Oregon. The Human Bean quickly established a reputation for having friendly and experienced baristas and offering the highest quality ingredients.
The Human Bean was founded in 1998 with a commitment to developing the very best coffee drive-thru in Southern Oregon. Early success led to franchising the brand and system in 2002. The Human Bean brand currently has over 300 locations open or under development in 25 states.
Human Bean Franchise Benefits
- Site selection assistance
- Preliminary site plan design
- Architectural drawings of building choices
- Full equipment schedules for high volume drink production
- Complete Operations Manual
- Full branding with Trademarked name and logo
- Branded signage, graphics & marketing tools
- Branded Arabica coffee blends from our farm friendly programs
- Branded cups and other merchandise
- Specialized training prior to and during opening
Advantages of The Human Bean Franchise
Look forward to franchising The Human Bean? Here are a few reasons to get excited about this coffee chain.
One would think that a coffee drive-thru would just settle on serving simple brewed coffee but not The Human Bean. They go the extra mile to serve healthy options even in just a cup. For instance, you can customize your smoothies to make them low-carb. They also have dairy-free options like oat milk and almond milk.
Having a healthy option on your drink menu appeals to customers that who a healthier take on their beverages. The fact that they responsibly source beans is another appealing element to this demographic.
Options for Kids
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The Human Bean isn’t just for adults despite it being mainly a coffee place. The menu also includes drinks for kids like hot chocolate, soda water with flavored syrups, and fruit smoothies.
So if you ever franchise The Human Bean in your area, not only will you get adults as customers. You’ll also welcome families and their children too. This increases the average ticket value of each vehicle that goes through the drive-thru.
The Human Bean has a rewards program and starting with their silver level registration gets you $5 for every $55 spent. You also get a free birthday drink and double drink rewards on Wednesdays.
Perks get bigger as customers increase their level and spend more. But the basic ones already give you a good deal which can have customers coming back to The Human Bean to built up and redeem their rewards. The rewards program is joined by downloading an app on your phone. The Human Bean used to use a punch card system loyalty system, but not anymore.
No Royalty Fees
Royalty fees can take a chunk out of franchisers. They are considered as ongoing expenses and depend on the business whether it is a weekly payment or taken from monthly gross sales. As mentioned above, The Human Bean does not take royalty fees from their franchisers which is a great benefit and can help franchisers save more money.
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To put the royalty fee expense into perspective, consider that competitor Dutch Bros charges franchise operators 5% of gross sales each month. For many operators this means an extra $1,000 or more in overhead expenses per month.
The Human Bean continues to expand. They currently opened up in Visalia, California. A business that continues to expand is a good sign that they are growing and gaining recognition across more markets.
Challenges of The Human Bean Franchise
Franchising The Human Bean will also pose some challenges. Here are some of the hurdles you’ll likely encounter if you decide to open this coffee shop.
Limited Food Menu
The Human Bean has an extensive beverage menu which is to be expected since coffee is their main product. But the food menu is limited. They have granola nut bars, biscotti, breakfast sandwiches, and muffins. But they could use more items on their food menu to go with their coffee. Hopefully, The Human Bean will be able to add this to their list of plans for growing their company and maybe even offer pre-made lunch items to generate more midday sales.
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Does Not Offer Financing
The Human Bean does not offer financing. So if you are an interested franchise applicant in need of financing to be able to bring the coffee chain in your area, you’ll have to settle for third-party financing options. The Human Bean says they have relationships with third-party financer’s to help you throughout this process. Other concepts may be able to connect you directly with financing at better terms than you would be able to get on your own.
Limited National Brand Recognition
The Human Bean got its start on the West coast in Oregon and has expanded South and East from there. In some areas like the Boise area where I live, The Human Bean is extremely popular. You can see long lines in the morning at almost any location. But this isn’t the case as you head further into the Midwest. In fact, most coffee drinkers in Middle America have never heard of the coffee chain.
A major benefits of opening any franchise is leveraging the companies likeness and brand recognition with consumers. Depending on where you open, you might not get much brand lift from The Human Bean. Most people still haven’t heard of this coffee brand before. As a result, expect to put in a lot more work marketing and promoting the store depending on the region.
Human Bean Franchise Cost
The financial requirements for this coffee chain include a liquid capital of $100,000 – $200,000 and a net worth of $500,000 to $1,000,000. The average investment range for this food chain is $346,825 – $835,225 and the franchise fee is $30,000.
Financial Requirements and Fees
These are the fees that The Human Bean requires when you sign up to become a franchise operator:
|Fees / Expenses||Financial Amount|
|Liquid Capital||$100,000 to $200,000|
|Net Worth||$500,000 to $1,000,000|
|Total Investment||$346,825 to $835,225|
In addition, the coffee chain requires a 1% ad royalty fee of gross sales revenue. As for incentives, they offer a veteran incentive of $5,000 off the franchise fee. The term of agreement to run The Human Bean is 10 years.
Human Bean Franchise Requirements
This is highly confidential information. Because this company had not disclosed it. You can only know about this after applying for the franchise. All this will be discussed when the basic criteria are met and fulfilled. You can know the procedure as follows.
Human Bean Franchise Profit
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According to the Nation’s Restaurant News, The Human Bean saw $118.7 million in sales for the year 2020. Sales were up to 20%. Though the pandemic slowed down other businesses’ growth, The Human Bean with its drive-thru setup was able to not only survive, but thrive by increasing sales during this period.
This was a period of economic challenges for many franchises in the food space. The Human Bean proved the concept performs exceptionally in a health crisis.
According to reports, the typical Human Bean location yields at least $100,000 in profit annually. There industry average for a small to medium coffee shop owner with only one location is between $50,000 – $125,000 so this certainly falls in line with expectations for this type of business.
But do note that real profit varies from one store to another and depends a lot on location and who’s actually operating the business day-to-day. You also must take in the competition in your area and the location of your store since some areas can yield good sales results as compared to others. There’s a lot to consider and different variables at play here.
Franchise revenue depends on a wide range of factors, as does profit. How much money you can make from any franchise depends on a number of specific factors such as franchise location, labor costs, commercial lease rates and a number of other factors.
Human Bean Franchise Facts
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|Total Units||Over 100|
|Incorporated Name||The Human Bean Inc.|
|Subsector||Food and Beverage|
It was in 1998 when husband and wife Dan and Rhonda Hawkins, together with their high school friend Tom Casey and his wife Tami, started The Human Bean in Ashland, Oregon. Their first store was already a drive-thru espresso stand serving quality coffees to customers.
The demand for premium coffee grew that in 2002, The Human Bean started opening their business for franchising. They expanded in Southern Oregon and currently have more than 100 locations in the United States.
Many would expect that the coffee that The Human Bean sells is just regular coffee since a drive-thru setup is usually associated with fast food. But the coffee they sell are all premium coffee blends which they all source responsibly.
Another distinction of The Human Bean is that they provide a bean shaped chocolate with each coffee you purchase. The bean is placed on the lid of the cup when served. Many customers look forward to eating the bean as a treat. Just make sure to enjoy the bean before having your coffee because it has the tendency to melt on a hot lid.
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The Human Bean’s menu consists of coffee and other beverages. This includes their house specialty coffees such as their Irish Crème Breve, Mexi Mocha, and Chocolate Macadamia Nut Breve. They also sell teas, cold brews, energy drinks, and smoothies. Some stores also have secret menus. The one in Carson City, Nevada has a Blended Creamsicle which you can request.
The Human Bean has made it to Entrepreneur’s Fortune 500 list with a 53.2% growth recorded in over 3 years. They’re also a verified member of the Franchise Registry. The Human Bean is known as a franchise that does not charge royalty fees to their franchise operators. This is one of the reasons why they’ve become successful in expanding their business across America for their affordable rates. A franchise opportunity without royalty fees is extremely rare and is an enormous benefit to the bottom line of franchisees.
The Human Bean drive-thrus are also designed for efficiency and accuracy of service. They have double-sided drive-thrus and single-side designs. The coffee chain studied what makes their coffee drive-thru business a success and implements changes that benefit franchise operators.
How to Apply For Human Bean Franchise
To get the franchise first you have to fill the form. Then the company officials will contact you for further details. After that you you can open this franchise.
Human Bean Franchise Contact details
Q. Is it profitable or not?
Ans: It is fast moving consumer good products, so there is fewer margins but your sale is too high. So, obviously you can make more profit from this business
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So far we have shared the basics for this franchise. It is the most profitable franchise. You will never doubt your decision to start this franchise. Go ahead and achieve your goal. If you find more information please feel free to share with us. Share your thoughts and we will definitely contact you with new franchise and opportunities. Stay Tuned for more franchise. Thank you
Disclaimer: The information given in this article like investment may varry from place to place, so we are not sure about the investment part.
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