It’s hard to believe Black Rifle Coffee Company has been around less than 10-years and is now going public through a SPAC (special purpose acquisition company) that’s valued at $1.7 billion. The coffee chain has taken the industry by storm through the quality of its specialty coffees unique brand message that’s all about giving back to the military veterans and police officers.
The CEO of Black Rifle Coffee, Evan Hafer, is committed to building an ecosystem for veterans to get job support after the military. At this time half of the companies 600 employees are in the military or the spouse of someone that serves. Hafer has a bold vision of hiring 10,000 veterans across the United States, but realizing that goal will require a lot of money and expansion.
Interested in starting your own Black Rifle franchise? This is an option for qualified entrepreneurs to help support this vision by opening their own Black Rifle Coffee shop. In this franchise review, I break down the cost to open this business and requirements of franchisees. Take our 8-minute franchise quiz to find out if this coffee chain is right for you.
- Cost to Open a Black Rifle Coffee Company
- Requirements to Open a Black Rifle Coffee Franchise
- What Makes BRCC Different?
- How Many Black Rifle Coffee Locations Are There?
- Black Rifle Coffee Company Valuation
- Can You Buy Stock in Black Rifle Coffee Company?
Cost to Open a Black Rifle Coffee Company
Do you want to open your own Black Rifle Coffee outlet? If so, you’re opening yourself to a whole new world of possibilities. That’s because they’re a relatively new player in the industry, so you’ll have a lot of opportunities and directions to go. You’ll also have the opportunity to jump onto one of the fastest growing and unique movements in the coffee industry.
The Black Rifle Coffee Company website doesn’t display information regarding franchise rates and fees. However, according to sources, you between $200,000 to $250,000 of liquid capital with a net worth of $500,000.
For more accurate data, you can get in touch with the Black Rifle Coffee Company and ask for updated franchise rates, requirements, and disclosures. The company is still emerging from its SPAC and updated figures will likely be shared later this year.
Related Reading: Is the Total Cost to Open a 7-Eleven Franchise Worth It?
Adding more psychical retail coffee shops is clearly part of BRCC’s longterm, strategy though. Part of the deal of the SPAC was to add another $225 million in cash to the companies balance sheet. BRCC plans to use this cash to expand into more coffee shops in more locations. As the companies CEO Hafter stated in an interview with CNBC, the company will be able to hire many more veterans by adding coffee shops across the country.
Requirements to Open a Black Rifle Coffee Franchise
The Black Rifle Coffee Company website does not have information that details the specifics of opening a franchise. According to sources, they’re searching for franchisees with a minimum of 2 years of restaurant experience in addition to meeting the financial requirements above. Franchisees also need to have the passion and determination to protect the brand and to uphold their mission. Ideally, these would be veterans, but it’s not a requirement for the brand.
Although the company doesn’t have franchising-related information, they do have a dealer page that provides an online form for you to fill out if you’re interested in reselling their products. Apparently, they will communicate with you, send you a list of requirements, and answer your inquiries after you send the form.
According to the checklist at the bottom of the form, to be a dealer, you must fulfill the following requirements:
- You need to have a physical storefront location where you can resell their goods.
- You cannot sell Black Rifle Coffee Company products on your own website and other e-commerce platforms such as eBay, Amazon, and more.
- You cannot brew Black Rifle Coffee then sell that brewed coffee to customers.
- You need to purchase an initial $1,000 worth of Black Rifle Coffee Company products. This purchase will go towards a “discount tier” for that year.
What Makes BRCC Different?
It’s easy to generalize and label Black Rifle Coffee as just another Starbucks, trying to create and refine the newly established coffee-drinking lifestyle and industry (and earning money in doing so).
However, while they do serve coffee and are striving to grow just like any other business, Black Rifle Coffee Company focuses more on its mission statement. That is, to provide income and opportunities to army veterans, first responders, law enforcers, and their families. That’s no surprise considering that the Black Rifle Coffee Company is founded by former Green Beret Evan Hafer.
In addition, Black Rifle Coffee Company has a pretty impressive inventory of accomplishments and activities, some of which include the following:
- They are colloquially known as the “conservative coffee company” as they focus more on growing their company to achieve their primary mission—supporting American veterans, law enforcers, and the like. According to Hafer during an interview with The Wall Street Journal, “I know who my customer is. I know who I’m trying to serve coffee to. I know who my customer isn’t. I don’t need to be everything to all people.”
- Black Rifle Coffee Company is managed, operated, and run by army vets.
- Black Rifle Coffee Company had a public show-off against the giant Starbucks in 2017. When Starbucks announced that they will hire 10,000 foreign refugees who suffered from the impact of Donald Trump’s travel ban, Black Rifle Coffee Company responded by promising to hire 10,000 veterans to work on their company. This move gained them international attention.
- Many brick-and-mortar coffee shops closed down or teetered towards the brink of bankruptcy during the COVID 19 pandemic. Not so with Black Rifle Coffee Company. Thanks to their firm and robust online infrastructure, they were surprisingly prepared during the pandemic. Not only did they survive, but the company’s sales increased by 30%.
- Following their surprising success during the COVID 19 pandemic and as the world rapidly embraced e-commerce, the company expanded its subscription base. They also offered free shipping, more coffee varieties, and more online promos.
- During the COVID 19 pandemic, they provided coffee, meals, and water to frontline workers for free. They also donated around $50,000 to organizations that support frontline workers.
- True to its mission statement, Black Rifle Coffee Company supports groups and organizations that help armed forces veterans. Also, in 2019, they launched a buy-one-get-one promo for law enforcement officers.
The Coffee and Content Model
You might not be aware, but BRCC didn’t start out as a coffee shop. They got their start as a direct-to-consumer brand selling unique blends of coffee like Coffee, or Die (medium roast), Thin Blue Line (medium roast), to Beyond Black (dark roast).
It’s not just coffee that’s important to BRCC, it’s the content they produce for the military community. The company publishes their own coffee magazine called Coffee or Die, which was published in 2018. The company also has a widely popular and active YouTube channel. Here you’ll find regular videos published about the special forces, military life, and comedy episodes tailored to their audience.
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Content marketing and storytelling has been one of the growth drivers of this business. I’d argue this is the most important catalyst for company growth over the past 7 years the company has been in business. The reality is there a hundreds of companies offering a comparable level of coffee grounds. What makes this brand stand out is the unapologetic mission statement and commitment to publishing content for a clearly addressable, but underserved market. There’s a lot you can learn from BRCC.
How Many Black Rifle Coffee Locations Are There?
To date, there are over 1,700 Black Rifle Coffee Company partnered stores all over the United States along with 4 owned stores. They also have outlets in firing ranges, 5.11 Tactical Stores, and Bass Pro shops. Lastly, they also sell coffee, gift cards, and all sorts of branded merchandise on their website.
In 2017, the company established a division in Alberta, paving the way for future expansions in Canada. CEO Darren Weeks heads this division. A year after, the company initiated the operation of a new coffee roasting facility located in Manchester, Tennessee.
In September 2019, the company started the operation of its very first stand-alone licensed coffee shop in Boerne, Texas.
As of 2021, the company employs around 600 employees. Roughly 50 percent of their employees are veterans, military spouses, or reservists. This is in line with their mission statement to support and provide opportunities to American veterans, soldiers, law enforcers, and emergency responders.
Black Rifle Coffee Company Valuation
Last November 2021, Black Rifle Coffee Company struck a merger with a special acquisition company called SilverBox Engaged Merger Corp (NASDAQ: SBEA). The merger resulted in a valuation of $1.7 billion, which is quite massive.
At the time of writing you can purchase SBEA on the open market for around $10 per share. If you’re bullish on the longterm prospects of this company, check out the up-to-date financials here.
3 years prior to the upcoming merger—that’s 2018, the company generated a gross revenue that totaled around $30 million.
Can You Buy Stock in Black Rifle Coffee Company?
Probably very soon! The potential merger mentioned above is in line with Black Rifle Coffee Company’s goal to raise funds for expansion and to go public.
Potentially, the Black Rifle Coffee Company could net more than $545 million in capital investment. The influx of capital will allow the company to grow exponentially, open more stores, and recruit 10,000 war veterans to work on the outlets.
This merger is already on the timeline, and it may become official sometime in early 2022. As soon as the deal is signed, the company will be renamed Black Rifle Coffee Inc. and will become public. BRCC is based in Salt Lake City, Utah.
The Bottom Line
Black Rifle Coffee Company is not just a fast-growing company. It also upholds a noble bastion that makes Americans proud by giving opportunities to the country’s protectors. If you want to be a part of this mission all the while generating income and establishing your own business, consider being a dealer or franchisee of the Black Rifle Coffee Company.
Related Reading: How Much Does it Cost to Buy a Starbucks Franchise?
Before you apply to become a BRCC franchisee, make sure your belief system aligns with the company’s corporate vision. The attitude of this coffee shop isn’t for everyone. And that’s okay! Even the companies CEO expresses that they understand extremely clearly who their customer is. BRCC is not trying to be all things to everyone. If you’re looking for “politically correct” this is not your coffee brand.
The coffee lifestyle is a new yet fast-growing industry that you want to capitalize on. One of the best ways to start a coffee business is to become a franchisee or a dealer of a well-known brand. Franchising is an ideal business concept, especially if you’re new in entrepreneurship and you’re not confident in creating a brand you feel passionate about.