How Scooter’s Became One Of America’s Top Franchises

Scooters, a coffee shop chain founded by Don and Linda Eckles in 1998, has grown from a single Omaha location to 912 stores, primarily franchises. Don Eckles, after running his coffee chain for over a decade, approached Warren Buffett about buying his business. Buffett declined but introduced him to M1 Capital, leading to a 2018 deal that fueled Scooters' expansion. The business model is highly profitable, with franchisees bearing most costs. Last year, systemwide sales hit $859 million, yielding an estimated $80 million in revenues for Eckles's holding company, with a 62.5% net margin. This profitability has made Scooters a $1 billion acquisition target, though Eckles prefers to keep it private for now. The Eckles started with a drive-thru coffee concept in Omaha, remodeling a former Chinese restaurant in 1998 with $40,000 in savings. Facing early financial struggles, they decided to franchise in 2001. Scooters' small, drive-thru kiosk model makes it cheaper and easier to build and finance compared to traditional fast-food franchises. The Eckles remain majority owners with a 60% stake in the $1 billion company.