Thinking of Buying a Fast-Casual Franchise? Read this report first.

Ones to Watch | By Sabrina Davis

The Human Bean

The quality of the coffee is critical to the brand, Hawkins and Casey say. Ensuring that quality in the long term is the focus of the company’s Farm Friendly Direct program. The program rewards farmers growing first-rate coffee with above-market prices, allocating the extra money to fund local improvement projects like a water treatment plant in Guatemala and a new schoolhouse and paid teacher in Papua New Guinea, along with other projects in El Salvador, Ethiopia, Peru, and Costa Rica.

“There are so many large purveyors of coffee coming in to get a limited quantity of top-grade beans,” Casey says. “We are building loyalty with the farmers and are seeing it pay off. There have been some very respectable companies go in and offer farmers we’ve been working with more money and they’ve decided to stick with us.”

Ensuring a supply of high-quality coffee is one factor in a complex equation The Human Bean team began working years ago in laying the foundation for a national brand. From the equipment and store layout to the franchisee training and support systems, Hawkins and Casey have created what they say is a franchise opportunity with one of the greatest and fastest returns on investment available.

The Human Bean
Managing partners:
Dan Hawkins and Tom Casey
HQ: Medford, Oregon
Year Started: 1998
Annual Sales: $12 million
Total Units: 31
Franchise Units: 22
Why it bears watching: “We are operators first. That’s what sets us apart,” Hawkins says. “We know how to operate high-volume, double-sided drive-thrus, and we’re good at what we do.”
The Human Bean stores handle between 350 and 450 transactions a day between the hours of 5 a.m. and 9 p.m. The average check is $4 to $5. The profit margin is excellent given the real estate required. The buildings are 12-by-36 feet on a 15,000- to 22,000-square-foot piece of land.
While the company is testing locations with seating, it will remain focused on its double-drive-thru business. “The build-out is low, there are only three employees in a location, and we believe we can get more people through our drive-thrus than we could serve in a café,” Hawkins says.
Hawkins and Casey are excited about the exponential growth they are seeing through area development. “As we’ve ventured into larger, more-populated areas like Colorado and Arizona, we’re getting more exposure to multi-franchise operators who are seeing us as a great complement to their portfolio,” Casey says.
“We’ve created the infrastructure to accommodate very large growth, while continuing to focus on good service to our customers and partners. Given that, I don’t see a limit to how much we can grow.”
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