Franchising with La Costa Cafe and Lounge
Why Investing in La Costa Café and Lounge is a Smart Choice
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1. Proven Track Record of Revenue Growth
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Strong Start: In our first 6 months of operation in 2023, we generated $158,983.41 in gross sales.
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Year-Over-Year Growth: In 2024, we achieved $263,428.06 in gross sales, showing strong upward growth.
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Current Year Performance: We’re already seeing a 14% increase in sales from last year.
What This Means for You: As a franchisee, you’ll benefit from a proven foundation and robust systems that can help you replicate or exceed these results.
2. Strong Profit Potential with Efficient Cost Management
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Gross Sales: $222,199.36
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Net Sales: $216,172.99
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Cost of Goods Sold: $46,671.38
What This Means for You: Effective cost management and optimized pricing will ensure strong profitability for you as a franchisee.
3. Labor Cost Efficiency
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Labor Cost: $49,237.80
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Labor Percentage of Net Sales: 22.78%
What This Means for You: We’ve optimized labor costs to maximize profitability, and you’ll receive training to maintain efficient operations.
4. Consistent Profitability with Strong Cash Flow
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Net Total Collected (after fees): $255,796.80
What This Means for You: Strong revenue generation and solid cost control ensure you’ll experience positive cash flow from day one.
5. Potential for Strong Profits Based on Location
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Scalable Business Model: Our system works across urban, suburban, and niche locations.
What This Means for You: You can scale your operation and increase profits by adapting to local market conditions.
6. Extensive and Scalable Training Program
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Comprehensive Training: Covers everything from food prep to customer service, inventory management, and more.
What This Means for You: You’ll be well-equipped to run the business and maximize profitability with reduced learning time.
7. Multiple Revenue Streams and Upselling Opportunities
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Versatile Business Model: Beyond coffee, we offer food, beverages, catering, events, and premium products.
What This Means for You: You'll have multiple income streams, boosting your location’s overall profitability.
8. Ongoing Operational Support
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Continuous Support: You'll receive ongoing guidance on operations, marketing, inventory, staff training, and customer service.
What This Means for You: Our support helps you maintain smooth operations and adapt to market changes for long-term success.
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La Costa Café and Lounge Franchise Investment Breakdown
The total investment to open a La Costa Café and Lounge franchise ranges from $80,000 to $150,000. Here's the breakdown:
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Initial Franchise Fee:
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Amount: $25,000
(Covers brand usage, initial training, and franchise support.)
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Build-Out & Equipment Costs:
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Leasehold Improvements: $15,000 - $40,000
(Based on location size and customization requirements.) -
Essential Equipment: $15,000 - $30,000
(Includes espresso machines, fryers, refrigerators, and more.)
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Inventory & Supplies:
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Amount: $7,000 - $10,000
(For stock, branded items, etc.)
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Furniture, Fixtures & Decorations:
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Amount: $10,000 - $15,000
(For chairs, tables, signage, etc.)
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Marketing and Branding:
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Amount: $5,000 - $7,000
(For promotional materials, grand opening, etc.)
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Working Capital & Miscellaneous:
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Amount: $10,000 - $20,000
(For daily operational costs.)
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Permits, Licenses & Insurance:
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Amount: $5,000 - $8,000
(For business licenses, health inspections, and insurance.)
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Franchise Training Program:
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Amount: $5,000
(Comprehensive training for franchisee and staff.)
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Franchise Payment Plan
We offer a 3-payment plan to help you manage the franchise investment:
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First Payment (Upon Signing Agreement):
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Amount: $35,000
(This covers the franchise fee and initial operational costs.)
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Second Payment (Upon Lease Agreement or Location Secured):
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Amount: $25,000
(Covers inventory, marketing, and equipment setup.)
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Final Payment (30 Days Before Opening):
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Amount: $20,000 - $50,000
(Covers remaining expenses, including build-out, furniture, and working capital.)
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Expected Profits & ROI
Year 1 Estimated Gross Sales:
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$250,000 - $275,000
Year 1 Estimated EBITDA: -
$60,000 - $90,000 (25-30% margin)
Year 2 Estimated Gross Sales:
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$300,000 - $350,000
Year 2 Estimated EBITDA: -
$75,000 - $105,000
ROI (Return on Investment):
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Franchisees can expect to recoup their investment within 2 years based on strong sales and efficient operations.
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Why Invest in La Costa Café and Lounge?
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Proven Growth and Profitability
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With strong year-over-year sales growth and profit potential, you can expect to replicate or exceed current performance.
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High Profit Margins
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Our operational efficiencies ensure profitability from day one.
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Comprehensive Training & Support
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We provide extensive training and ongoing support to ensure franchisee success.
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Scalable & Adaptable Model
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Whether urban or suburban, our model can thrive in various markets.
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Strong Brand Recognition
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As the brand grows, you benefit from customer loyalty and increasing sales.
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Next Steps
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Franchise Application:
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Location Selection:
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We’ll help you find the best location.
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Franchise Agreement:
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Sign the agreement once the location is confirmed.
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Training & Launch:
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Complete training and prepare for your grand opening.
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Join La Costa Café and Lounge!
Invest in a growing brand with a proven business model. With the right location, training, and ongoing support, you can achieve significant profits and a rewarding business ownership experience.
Contact us today to start your franchise journey!