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Ones to Watch | By Sabrina Davis

Scooter’s Coffeehouse

Despite all the changes in the past year, the product has remained the same. Scooter’s sells 30 different blends, encouraging those who want to buy in bulk to buy whole beans and a grinder. “As soon as coffee goes through the grinding process, it starts to lose part of its flavor profile,” Townsend says. “Our coffee is the freshest it can be. We roast our coffee weekly and get it out to our franchisees.”

And he claims the customer service is as exceptional as the coffee. “We teach our baristas to get to know the customers. Instead of saying, ‘Who’s got the large vanilla latte,’ it’s ‘Bill, your drink is ready.’ When we see regular customers drive up, we’ll get their drink started before they get inside.”

The majority of sales are in espresso and specialty drinks. The Caramelicious (caramel latte with caramel sauce, caramel whipped cream, and drizzled caramel) ranks first. Scooter’s also sells a variety of smoothies and espresso blended drinks. Baked pastries and desserts are offered for convenience, but the focus remains on the coffee. “We’d put our drinks in a taste test with anybody,” Townsend says.

Scooter’s Coffeehouse
CEO: Tom Townsend
HQ: Omaha, Nebraska
Year Started: 1998
Annual Sales: Not Disclosed.
Total Units: 50
Franchise Units: 47

So, what are their thoughts about that star player with more than 11,000 stores? “They’ve done a lot for the industry. We don’t see them as a competitor really. They have the Number 1 spot, and that’s the way it is,” Townsend says. “We won’t try to go in and put a store on the opposite street corner, although they’ve done that to us in Omaha. Still we’ve won the “Best of Omaha” coffee award for five years running now.”

WHY IT BEARS WATCHING: Scooter’s Coffeehouse, named initially for it’s scoot-in-scoot-out format, has positioned itself to become a leading purveyor of top-shelf coffee. “We’re even getting interest from Washington and Oregon,” Townsend says, “proving that people are looking for an alternative in premium coffee.”
With 50 stores in operation now, the goal is 100 by the end of 2007, with growth planned through multi-store franchising agreements and area development. Targeted areas include South Dakota, Minnesota, Missouri, Kansas, Texas, and Arizona, with continued growth in Iowa and Nebraska.
“We are a breath of fresh air for many site developers, because we work very quickly, from the time a site is presented to us until we make a decision.”
Long-term Townsend plans to grow the chain to 200–300 stores in the U.S. and possibly beyond, in answer to many international inquiries.
Scooter’s is highly adaptable, giving franchisees a choice of five business models. The double-drive-thru kiosks are now designed to match the buildings that surround them. There also are inline models, endcap stores with drive-thrus, shopping mall formats, and specialty models designed for airports, sports complexes, and the like. All five types are in operation and doing well.
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