From Humble Beginnings to a $1 Billion Franchise: The Journey of Scooter's Coffee
They Borrowed $40,000 From Friends and Family to Open a Coffee Kiosk — Now Their Franchise Is Worth $1 Billion
Entrepreneur
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Don and Linda Eckles, who initially borrowed $40,000 from friends and family to open a coffee kiosk in Omaha, have transformed their venture into Scooter's Coffee, now worth $1 billion. With 912 locations across 32 states, the franchise generated $859 million in sales last year, showcasing a highly profitable business model.
- 01Don and Linda Eckles started Scooter's Coffee with a $40,000 loan from friends and family.
- 02The couple worked every shift for the first four months at their initial kiosk in Omaha.
- 03Scooter's Coffee now operates 912 locations across 32 states.
- 04The franchise generated $859 million in sales last year.
- 05The Eckles turned down a $1 billion buyout offer for their company.
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Don and Linda Eckles faced initial financial hurdles when they couldn't secure a bank loan, leading them to borrow $40,000 from friends and family to establish a coffee kiosk in Omaha, Nebraska. They worked tirelessly for the first four months at their 650-square-foot location, which was a remodeled Chinese restaurant. After reaching a break-even point, they expanded to a second location and later borrowed $150,000 to build two more kiosks at a nearby mall, nearly facing bankruptcy due to high construction costs. In 2001, they began franchising at the request of friends and customers, and over the next 25 years, Scooter's Coffee grew to 912 locations across 32 states. The franchise model proved to be exceptionally profitable, with the company achieving $859 million in sales last year and an estimated 62.5% net margin for the Eckles' holding company. Despite receiving a buyout offer of $1 billion, the Eckles decided to retain ownership of their successful brand.
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The success of Scooter's Coffee not only showcases entrepreneurial resilience but also contributes to local employment and economic growth through its numerous franchise locations.
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