Opening a coffee shop in the town of Lake Butler
The first option would be to start a franchise of Dunkin Doughnuts. I feel like this place checks all of the boxes for what the coffee consumers of Lake Butler want, and it would be much easier to start than building a new business from scratch. I feel that this is still an entrepreneurial venture due to the fact that Dunkin Doughnuts, and no other coffee shop, has existed in Lake Butler previously.
The second option would be to build my own coffee shop from the ground up. It wouldn't need to be large, but big enough to offer areas to sit and hang out with friends, as well as, a small area for some local artists to perform. It would still have a drive-up window for convenience. The main difference from the franchise option would be that it would be a local place where I could make up my own menu, rules, etc. I could personalize it to meet the specific needs of people in Lake Butler.
Honestly, the second option sounds great but would require much more work and would be riskier as it has never been tested before. This could equal greater reward, but could also be unsuccessful. The first option would involve less risk, because most people already know and like Dunkin Doughnuts. If fact, during my interviews, one person mentioned that Dunkin Doughnuts was their favorite brand of coffee and that he knew other people who felt the same way. It would come with a business model and training so it would require much less work on my part. Dunkin is also already thriving in many smaller towns so it could be more of a sure thing. The downside is less personalization and less say in how the business is run.
Hi Kindra,
ReplyDeleteI really enjoyed reading this post. I think you were very effective in portraying both sides of the argument. Personally, I think it would be best to start off with a franchise Dunkin Donuts. Obviously, this is the less riskier choice because of already having an established brand and products. Although it would make a lot less money than starting your own coffee shop, it would have a higher chance of being successful.
I guess I should have kept reading! I think knowing your town and doing research would make the most sense. Are other chains successful in your town? Does it make sense to open a Dunkin near a highway instead of downtown because at least you will have those who need coffee stop in your town when recognizing the Dunkin sign? Finding the car traffic both by tourists and locals would be very helpful in making your decision.
ReplyDeleteI agree with your analysis that the second option is more risky. I love the debate between franchising vs. starting new. First, I would consider brand differentiation since you are providing a whole new customer experience. I dont know about you, but where I live, Dunkin' Donuts sells coffee through gas stations. So when someone wants a quality cup, they go to Starbucks or a craft coffee shop. Just a thought! The other thing is that if demand is super high in your town for high quality coffee, you can probably afford to take more risk, which makes the second option more doable.
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