Starbucks franchisees are scrambling to secure their franchises to compete with the likes of Nestle and Coca-Cola, with some companies offering even more enticing perks for franchisees than they do for regular customers.
The chain has been increasingly struggling in recent years, with sales dropping from $1.2 billion in 2015 to $900 million in 2017.
It has been a major beneficiary of the new “Starbucks franchise” program, which lets franchisees purchase up to 25% of a brand, or $500 million, for their franchisees, according to The New York Times.
The program, run by Starbucks’ global franchise business, has been controversial.
Its aim is to get brands to use the brand as an integral part of the franchise, which is the main driver of sales.
But some franchisees say it’s actually a very good incentive for brands to make more money, and some franchisee groups are calling it a cash cow for the company.
“I don’t want to be an asshole.
I want to take the brand to the next level,” said Mark O’Brien, a member of the Seattle-based franchise association.
He said he’s been offered a 10% discount on the price of his coffee at Starbucks, a 10.5% discount at a local coffee shop, and a 10-percent discount at his local Walmart.
“That’s a huge benefit,” O’Briens said.
“It gives you a way to say, ‘This is a great deal, and I want more of this.'”
O’Brien said he received an email from a franchisee in Seattle that included a note that read, “I just received this letter and I am now an actual franchisee for the Starbucks coffee brand, not just a customer.”
The franchisee added that he received a discount of 15% on his coffee if he signed up for the program, as well as discounts for other brands that Starbucks owns.
O’Connor, who owns a local business called Starbucks, said he thinks it’s fair to ask franchisees to make up for any loss that they incur by selling to Starbucks, and that it would be unfair to franchisees who don’t participate in the program to not be eligible for that discount.
“It’s a win-win for the consumer, for the business, and for the franchise,” OBrien said.
He also said the franchisees have a lot of leeway when it comes to how much they get for their franchises.
“We can negotiate for better terms for other companies, or we can negotiate to get a higher rate for ourselves,” he said.
“If you want a better rate, if you want to buy the coffee that we are selling, then you can negotiate.”
According to O’Connors, some franchise groups in the US have started to make offers of 20% to 25%, and others have offered as much as 100% of the Starbucks brand.
O’Connor said he also received an offer from a company called Lululemon that he had never heard of before, and he said that was a really nice offer.
“When you are dealing with a company like Lululesmon, they are very competitive,” Ollie said.
Ollie, who is a former executive at Lulululemino, said that he is also interested in a Starbucks coffee shop in California.
“This is one of those places that you have to think about for a year before you really make a decision,” he added.OConnor said that if he does decide to make the move, he’ll probably make it to Starbucks himself.
He said he already has a few Starbucks locations lined up in the states, and expects to be working in Seattle for the next two to three years.
“The franchise is the key, the customer is the other key, and the franchise is what you can leverage for growth,” Olli said.