This is how we started our business in 1992. We purchased an espresso machine, grinder, and air pot brewer to be placed in a friend’s ice cream operation. We supplied the equipment, coffee, and syrups. He supplied the location, milk, cup and labor. We received 50% of the profits from the coffee drinks. Many compatible businesses are shocked by or do not want to make the initial financial investment ($7000 in my case), or are intimidated by their lack of knowledge of specialty coffee drinks and how to train employees. The advantages include:
- No working hours
- No rent
- No employee wages and benefits
The challenges include
- Honest partners to report drinks sold
- Passionate partners about your products on their menu
- Continual training of part time help
The agreement is an important ingredient to this concept. Here are some important issues to include:
- Quality accountability
- Scheduling of trained staff at all times
- Cash register receipts
- Equipment maintenance
- Forming a policy to dismiss poor baristas
- Rewarding accomplished baristas with a pay increase
- Using a testing tool for baristas
Some possible partnerships may include some of the following:
- Ice cream operations
- Delicatessens
- Bakeries
- Upscale restaurants
- Bagel stores
- Dessert stores