1992
800
$200,000
$15,000
$1,390,000
No
Caribou Coffee, established in 1992, is a renowned premium coffeehouse brand that has been serving handcrafted beverages with a commitment to quality and community. With a presence in over 800 locations across 11 countries, Caribou Coffee offers franchise opportunities in the United States, aiming to expand its footprint and bring its unique coffee experience to more communities.
Investing in a Caribou Coffee franchise provides an opportunity to be part of a well-established brand with a strong market presence. The company's commitment to quality, innovation, and community engagement makes it an attractive option for potential franchisees.
Established Year: 1992
Founders: John and Kim Puckett
Headquarters: Brooklyn Center, Minnesota, USA
Industry: Specialty Coffee and Quick Service Restaurant (QSR)
Ownership: Panera Brands (backed by JAB Holding Company)
Global Presence: Over 800 locations across 11 countries
Franchise Units in the USA: 470+ locations across 19 states
Company History:
Caribou Coffee was founded in December 1992 by John and Kim Puckett in Edina, Minnesota. Inspired by their backpacking trip through Alaska, the Pucketts envisioned a coffeehouse that embodied the spirit of adventure and personal connection. The first store opened on December 14, 1992, and quickly gained popularity for its handcrafted beverages and cozy atmosphere.
In 2001, the Pucketts sold the company, and it underwent several ownership changes over the years. In 2012, Caribou Coffee was acquired by JAB Holding Company, a Luxembourg-based private equity firm. In 2021, Caribou Coffee merged with Panera Bread and Einstein Bros. Bagels to form Panera Brands, aiming to create a leading fast-casual platform.
Franchise Expansion:
Caribou Coffee began franchising internationally over 18 years ago and currently has 282 franchised outlets across nine international markets, including Kuwait, Bahrain, Qatar, Saudi Arabia, Turkey, and the United Arab Emirates. In March 2022, Caribou Coffee signed its first multi-unit development agreement in the U.S. with Mike Mariola Restaurants to open 60 locations in Ohio. The first of these locations opened in Wooster, Ohio, on November 17, 2022. The company aims to expand its U.S. footprint significantly, with a pipeline of over 300 franchised units planned by 2030.
Mission and Values:
Caribou Coffee is committed to providing high-quality, handcrafted beverages and creating meaningful connections with its customers. The company emphasizes sustainable practices, community involvement, and a welcoming atmosphere in all its locations. With over 30 years in the industry, Caribou Coffee continues to uphold its founders' vision of building personal connections into the coffeehouse experience.
Caribou Coffee offers comprehensive support and training to its franchisees, ensuring they are well-equipped to operate successful locations.
Pre-Launch Support: Assistance with site selection, lease negotiations, and store design to ensure alignment with brand standards.
Operational Training: Extensive training programs covering all aspects of store operations, including barista training, inventory management, and customer service.
Marketing Support: Access to national marketing campaigns and local marketing resources to drive brand awareness and customer engagement.
Ongoing Support: Continuous support from a dedicated franchise business consultant, regular performance reviews, and access to a network of fellow franchisees.
Technology and Systems: Provision of point-of-sale systems, inventory management tools, and other technology solutions to streamline operations.
Caribou Coffee seeks franchisees who are not only financially capable but also passionate about the coffeehouse industry and committed to delivering an exceptional customer experience. The ideal franchisee profile combines business acumen, leadership qualities, and a dedication to the brand’s values.
Experience in Food & Beverage: Franchisees with prior experience in multi-unit food and beverage operations or hospitality management are preferred, as this helps in understanding the operational dynamics of a coffeehouse.
Entrepreneurial Skills: Strong business and financial management skills are essential for maintaining profitability, staffing, and operational efficiency.
Growth-Oriented Mindset: Interest in scaling operations through multiple locations is highly valued.
Financial Requirements:
Minimum net worth: $3 million
Liquid assets: $3 million or more
Franchisees should have access to the necessary capital to fund the initial investment, including franchise fees, build-out costs, working capital, and marketing contributions.
Brand Enthusiasm: A genuine passion for coffee and commitment to the Caribou Coffee experience is crucial.
Customer Service Focus: Franchisees must prioritize customer satisfaction, creating a welcoming environment for guests.
Community Engagement: Active involvement in local communities aligns with Caribou’s values of personal connection and social responsibility.
Multi-Unit Development: Ideal franchisees are interested in managing multiple locations, particularly in high-traffic urban or suburban markets.
Site Selection Insight: Understanding demographics, market trends, and customer behavior helps ensure optimal site performance.
Leadership Skills: Ability to recruit, train, and retain high-performing teams.
Commitment to Operational Excellence: Ensuring stores adhere to Caribou Coffee’s standards in quality, service, and cleanliness.
Long-Term Vision: Franchisees should be prepared to invest time, effort, and resources for sustained growth and profitability.
Integrity and Ethics: Operate in alignment with Caribou Coffee’s mission to deliver quality products while maintaining a strong reputation.
Collaboration: Willingness to engage with the Caribou Coffee network and corporate support teams for continuous improvement.
| Financial Component | Details / Range |
|---|---|
| Initial Franchise Fee | $15,000 – $30,000 (varies by location type) |
| Total Investment Required | $200,000 – $1.39 million (includes build-out, equipment, initial inventory, working capital) |
| Royalty Fee | 5% of gross sales for traditional locations; 6% for kiosks |
| Marketing Contribution | Up to 3% of gross sales (2% to Brand Fund + 1% local marketing) |
| Minimum Royalty Payment | $6,000 per year |
| Average Annual Revenue per Unit | $500,000 – $1,000,000 |
| Expected ROI | Typically achieved within 2–3 years depending on location and management efficiency |
| Break-Even Time | 2–3 years |
| Infrastructure / Build-Out Costs | $150,000 – $900,000 (depends on store format and size) |
| Working Capital Requirement | $30,000 – $150,000 |
| Potential Revenue Streams | Beverage sales, food items, retail coffee products, merchandise |
| Franchise Units (USA) | 470+ |
| Franchise Units (Global) | 800+ across 11 countries |
| Additional Fees | Varies by location: training, POS systems, insurance, and permits |
