Why Investing in La Costa Café and Lounge is a Smart Choice

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1. Proven Track Record of Revenue Growth

• Strong Start: In our first 6 months of operation in 2023, we generated $158,983.41 in gross sales.

• Year-Over-Year Growth: In 2024, we achieved $263,428.06 in gross sales, showing strong upward growth.

• 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

• Gross Sales: $222,199.36

• Net Sales: $216,172.99

• 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

• Labor Cost: $49,237.80

• 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

• 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

• 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

• 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

• 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

• 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:

1. Initial Franchise Fee:

   • Amount: $25,000
     (Covers brand usage, initial training, and franchise support.)

2. Build-Out & Equipment Costs:

   • 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.)

3. Inventory & Supplies:

   • Amount: $7,000 - $10,000
     (For stock, branded items, etc.)

4. Furniture, Fixtures & Decorations:

   • Amount: $10,000 - $15,000
     (For chairs, tables, signage, etc.)

5. Marketing and Branding:

   • Amount: $5,000 - $7,000
     (For promotional materials, grand opening, etc.)

6. Working Capital & Miscellaneous:

   • Amount: $10,000 - $20,000
     (For daily operational costs.)

7. Permits, Licenses & Insurance:

   • Amount: $5,000 - $8,000
     (For business licenses, health inspections, and insurance.)

8. Franchise Training Program:

   • Amount: $5,000
     (Comprehensive training for franchisee and staff.)

 

Franchise Payment Plan

We offer a 3-payment plan to help you manage the franchise investment:

1. First Payment (Upon Signing Agreement):

   • Amount: $35,000
     (This covers the franchise fee and initial operational costs.)

2. Second Payment (Upon Lease Agreement or Location Secured):

   • Amount: $25,000
     (Covers inventory, marketing, and equipment setup.)

3. Final Payment (30 Days Before Opening):

   • 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:

• $250,000 - $275,000
  Year 1 Estimated EBITDA:

• $60,000 - $90,000 (25-30% margin)

Year 2 Estimated Gross Sales:

• $300,000 - $350,000
  Year 2 Estimated EBITDA:

• $75,000 - $105,000

ROI (Return on Investment):

• 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?

1. Proven Growth and Profitability

   • With strong year-over-year sales growth and profit potential, you can expect to replicate or exceed current performance.

2. High Profit Margins

   • Our operational efficiencies ensure profitability from day one.

3. Comprehensive Training & Support

   • We provide extensive training and ongoing support to ensure franchisee success.

4. Scalable & Adaptable Model

   • Whether urban or suburban, our model can thrive in various markets.

5. Strong Brand Recognition

   • As the brand grows, you benefit from customer loyalty and increasing sales.

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Next Steps

1. Franchise Application:

   • Submit your application to express interest.

2. Location Selection:

   • We’ll help you find the best location.

3. Franchise Agreement:

   • Sign the agreement once the location is confirmed.

4. Training & Launch:

   • Complete training and prepare for your grand opening.

 

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!