Unlocking Profit Potential
Of The Miners Coffee Franchise

So you’ve decided you want to start your own specialty coffee shop. Awesome!  Now what? In this post, we'll use The Miners' franchise model as a compelling case study, dissecting their projected monthly profit and examining the factors that lead to steady cash flow. We'll also discuss the success stories of existing The Miners coffee shops in Prague and Barcelona, addressing potential risks while highlighting the ways in which a franchisor may mitigate these challenges.

The Miners understands that in the world of business, nothing is guaranteed. However, they firmly believe that with a proven approach and a dash of entrepreneurial spirit, the potential for profit is limitless. As an aspiring entrepreneur, you’ll have the opportunity to achieve substantial revenue, especially with The Miners to guide you every step of the way.

“Location, location, location”. This well-known mantra undoubtedly still holds water, as 70 to 80% of success is rooted in location. Just as McDonald's is often seen as a real estate company rather than a mere burger joint, The Miners also places tremendous emphasis on location. When you become a franchisee, they’ll tap into their expertise to help you choose the best possible location. What does the perfect spot look like? We'll explore this further in our next post, but it includes key considerations like foot traffic (aiming for approximately 6,000 daily visitors), flexible lease agreements, and alignment with The Miners' target demographic—young professionals, students, and coffee enthusiasts.

The Miners then uses their own specialized financial calculator, fed with years of data, to evaluate a location's potential for success—a valuable tool that many new entrepreneurs may not possess. Their model has undergone rigorous testing across various locations, formats, countries and unique challenges, ensuring its reliability and adaptability. Using this calculator, they can predict the performance of your specific location and assess if it can meet the average target profit.

Example: Small Shop

• Approx. 30–70 square metres
• 4,000+ clients per month
• €150-200K of investments
• €30–40K monthly revenue
• €8,000 average profit or EBITDA*

* EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

Once you’ve found the perfect location that’s predicted to perform, The Miners steps in to help you manage the details, removing the guesswork from construction timelines, equipment selection, marketing strategies, staffing, and more. Plus, their long-term supplier relationships provide you with substantial cost savings, like 40% off Marzocco espresso machines. Their team has also extensively tested different design concepts to create the perfect atmosphere for your specific location and audience. And last, but certainly not least, they have the product to back it all up - exceptional specialty coffee.

With these kinds of perks and know-how, The Miners hopes for a remarkable 25% profit from your revenue, but how long will it take to see these kinds of results?

So, you've secured the perfect location and trained a fantastic team. You're ready to serve the best coffee in town. What can you expect in the first few months? Your coffee shop will undergo several stages of growth:

Stage 1: The Early Months - Right after opening, your coffee shop will go through an initial adjustment period. It is not unlikely that you will see a negative EBITDA as you find your footing.

Stage 2: The Growth Phase - During months 3 to 6, you will see your business steadily gaining traction if you are following the franchising guidelines.

Stage 3: The Target Stage - This is where the magic happens, and where you should see your coffee shop start to rake in significant profits.

The goal of The Miners will be to get you to that "target stage" as fast as possible, where you’ll be making substantial returns. Having navigated this process themselves numerous times, they are well-equipped to ensure that the race to target is significantly smoother than if you were to go it alone.

When we look at some of the existing Miners coffee shops in Prague and Barcelona, we can see the potential for your franchise to go above and beyond the €8,000 target. Let’s crunch some numbers.

The Miners Churchill, the second location to open in Prague, faced a unique challenge as it launched in the midst of a worldwide pandemic. Financing the construction of a 220-square-meter space during such uncertain times was undoubtedly difficult, and operating primarily through a to-go window meant daily sales were coming in around €200. However, fast-forward to today, and the Churchill location has achieved remarkable growth, boasting monthly sales exceeding €73,000. Even more noteworthy is the EBITDA figure, which stood at a remarkable €16,500 in May 2023.

Inspiring progress can also be seen in one of The Miners’ smaller shops, occupying just 32 square-meters in the heart of Prague. The average transaction per customer has grown from €5.3 in January 2022 to an impressive €7.1 in August 2023, with an EBITDA of €9,266.

Now, if we fly down to Barcelona, we’ll see the equally compelling case of the Poblenou location. The first location in Spain opened its doors just this past January, taking only four months to achieve a positive EBITDA, and since then, the location has consistently demonstrated promising growth month after month. As this post is being written, The Miners' continues their Spanish story, with the grand opening of a second location in Barcelona.

These stories showcase the adaptability and resilience of The Miners' business approach, whether facing a global pandemic or venturing into different countries and cultures, the model has shown its ability to thrive and succeed.

The Miners doesn’t just provide a coffee shop franchise; they offer a well-defined roadmap to success in the specialty coffee business. With their expertise, unwavering support, and a proven financial model, you gain access to the essential tools and guidance required to transform your passion into a profitable venture. However, it's important to acknowledge that the franchise route doesn't eliminate all risks. Business is business. Construction gets delayed. Economies squirm. Life itself can be unpredictable. But if you’re going to take a leap of faith, do you really want to go it alone?

Get in touch at franchise@theminers.eu

In the meantime, check out the  The Miners Insider website, Telegram channel or Instagram for an in-depth look into the industry. Or if you’re already gunning for a new challenge, head on over to The Miners Insider webpage and fill out the contact form at the bottom to become the next franchisee of The Miners.