The Knot Churros

About The Knot Churros

The Knot Churros is a London-founded desserts bar that opened its doors back in 2019. The business attracts customers who want to indulge in what the brand claims is ‘the world’s first churros afternoon tea’. The franchise has been operating globally and is one of the first dessert businesses to work with brands such as Disney and Care Bears.

In 2023, The Knot Churros began serving customers in its flagship boutique dessert bars in South Kensington and Knightsbridge as well as a kiosk in Europe’s biggest shopping mall Westfield White City. The franchise has more than 200,000 social media followers, as well as 8 million views and 250k likes from a single reel on Instagram.

The Knot Churros’ menu comprises:

• Churros: The Knot Churros serves baked churros with a trendy twist. Its signature churros are baked and not fried. All toppings are handmade to ensure quality.
• Coffee and hot drinks: The Knot Churros team consists of talented baristas creating the smoothest coffee with the most outstanding art. Its Belgian hot chocolates, which comes in unique colours such as blue and pink, have been a viral hit on social media. The brand says: “We are also very proud to say we are one of the first to create a viral trend of creating a Biscoff coffee. A classic coffee with a sweet twist. The Knot Churros caters to all as we also have a selection of organic lattes made from the purest blends of turmeric, ginger, beetroot and more.”
• Bagels, burgers, and fries: The Knot Churros also has a breakfast, lunch, and dinner menu, serving rainbow bagels, mini chicken burger sliders, and nacho-loaded fries.
• Afternoon tea: The Knot created an afternoon tea consisting of churros, cotton candy, and bagels afternoon. To increase average customer spend, the brand has recently expanded its menu beyond Churros to include breakfast and lunch items. From burgers and fries to vegan hot dogs, there truly is something for everyone at The Knot Churros.

How does The Knot Churros franchise model work?

The business aims to open multiple stores globally via franchising. It has three models for franchise partners to choose from:

Dine-in dessert bar: A full-scale dessert bar that can accommodate 50-60 seats. This model will require a higher investment than the others but the space allows for higher turnover. This option works best when located in higher footfall areas.

Small boutique café/dessert bar: A boutique café feel seating up to 20 customers. This model focuses more towards takeaway and delivery options for customers and also works best when located in high-footfall areas.

Kiosk: A smaller kiosk model is also available that is perfect for shopping malls and pop up markets. This option can also be adapted to become a food truck allowing you to serve customers no matter their location.

As a franchise partner, your main role is to manage staff so that your location is running smoothly and in accordance with the guidelines set out by The Knot Churros.

Your focus should be on making customer experiences memorable and so the brand has outlined the basic tasks you can expect to be completing on a daily basis:

• Monitor staff, creating a healthy working environment
• Organise staff rotas
• Check all food hygiene HACCP has been done correctly by staff
• Check all bookings for the day, making sure reservations are reserved
• Stock control
• Check emails and answer any customer queries
• Check all reviews live up to the expectations of the brand
• Manage customers on arrival
• Manage all Deliveroo and Uber Eats bookings

What type of franchisee is The Knot Churros looking for?

The Knot Churros is looking for determined, ambitious, driven, and self-motivated individuals who share the brand’s passion for creating beautiful and luxury confectionaries while providing high levels of customer service and immersive experiences in exquisitely jaw-dropping spaces.

Did you know?

The Knot Churros has an expected revenue of £600,000 after 2 years!

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Franchisees don’t need previous experience in the hospitality industry to join the franchise, you will receive all the training you need in order to get set up and running your The Knot Churros business successfully.

The ideal franchise partner has the following characteristics:

• Positive
• Friendly
• Well-spoken
• Motivated

Training and support

• Franchise Manuals are updated when necessary.
• An ongoing training programme is provided.
• Access to a help-line facility gives advice on all aspects of the business method.
• Product, prices, and supplier research is conducted to maintain the strongest market position possible.
• Supplier buying prices and terms are negotiated.
• Head office regularly visits stores to provide an opportunity for review, analysis, advice, and guidance.
• Regular communications ensure the business progresses with mutual understanding on all points.
• A continual programme of research keeps abreast of marketplace developments and strategy.
• There’s a commitment to maintaining and further developing the corporate image.
• Usage of the national marketing fund to further enhance sales.
• Marketing initiatives help keep the brand message fresh.
• Newsletters give recognition and information on all new developments and successes.
• Regular franchisee meetings are organised.
• Regular analysis of the KPIs is conducted and advice given on any necessary improvements.
• Business coaching and mentoring is provided to help keep the business on track.

Financial information

The franchise fee for The Knot Churros is dependent on the franchise model you choose. The franchise fee for the dessert bar models is £19,000 and the kiosk model is £15,000. The total package cost will also depend on the model you choose and will be dependent on the location, size, and fit-out requirements of your dessert bar or kiosk. The business estimates the total package cost to range between £70,000 and £200,000.

The initial training programme is included in the initial package fee. The team will be on hand to ensure that you have everything you need to hit the ground running with your new business.

The business is able to connect you with lenders who may be able to support you in raising funds. However, it recommends you only enquire about the dine-in dessert bar opportunity if you have funds in excess of £50,000 available to invest.

The Knot Churros says franchisees enjoy high sales rates, £600,000 turnover per year achievable by the second year of operation. Franchisees typically earn £118,000+ per year in their second year.

Why is The Knot Churros a good investment?

Globally:

• The global ice cream and frozen dessert market is expected to grow to reach $124.75 billion in 2025 at a CAGR of 7%, according to Statista.
• The global fast-food market size was valued at $529.5 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.6% from 2021 to 2028.

In the UK:

• Brits consume around 150g of cakes, buns and pastries every week, according to Statista.
• Dessert parlours have become part of the UK’s night-time economy. Many outlets have opening times extending past midnight, serve mocktails and host happy hours reminiscent of pubs and bars but with an audience that tends to be younger, more female and often family-orientated.
• In 2018, the UK consumed an average of 5.8 million servings of ice cream a week.
• While the sale of ice-cream is rising by 1.5% year-on-year, the popularity of milkshakes is increasing at a faster rate at 8.1% annually.

What locations is The Knot Churros looking to target?

The business is looking to sign franchise agreements across the UK.

What are the franchise terms of agreement and renewal?

5 year term with right to renewal