Omaha Coffee House Expanding to Arkansas

by Talk Business & Politics ([email protected]) 72 views 

Scooter’s Coffehouse of Omaha, Neb., is seeking franchisees for up to 12 new locations in Northwest Arkansas.

The company, with 60 locations across the Midwest, has various sized store types from 300-SF drive-thru only to 1,500-SF walk-ins.

Area developer Rachelle Lackey said she is already working with developers and realtors to scout sites, which can range from stand-alone structures to strip center locations.

Lackey said the company has never had a location close and has been recognized as one of the Top 500 franchises in 2006 and 2007 by Entrepreneur magazine.

Scooter’s has been voted “Best in Omaha” six years running, where it and behemoth Starbucks each have 10 locations. Starbucks currently has 10 shops in Northwest Arkansas.

Start-up costs for a drive-thru only location are typically $185,000 to $220,000, which includes the $25,000 franchise fee, equipment, construction, signage, inventory and beginning operating capital.

For a full-size location, start-up costs increase to between $290,000 and $325,000. Franchise fees are reduced to $20,000 on a second location.

Seven percent of gross sales go to Scooter’s, 6 percent for royalties and 1 percent for marketing. Lackey said Scooter’s typically requires franchisees to have a net worth of $250,000 (excluding their personal residence) and added that many franchises are owned by partnerships, which have the means to operate multiple locations.

Scooter’s, whose signature drink is the “Carmelicious,” roasts its beans daily. It also features lattes, fruit and espresso smoothies, Tempest Teas, Mate tea from South America and Matcha from Japan.