Cheirin Bão launches coffee machine microfranchise

Cheirin Bão has launched an automated coffee machine microfranchise to expand its presence beyond coffee shops. With an initial investment starting at R$80,000 (Brazilian reais) per franchisee, the format has already secured 35 signed contracts and aims to reach 100 franchisees by the end of 2026, according to a report published by Pequenas Empresas & Grandes Negócios on 15 October.

Coffee beyond the shop counter

Officially launched on 15 September, the model involves installing machines in businesses, offices, medical practices, factories and high-footfall locations. The machines serve filter coffee, espresso, cappuccino and hot chocolate.

The idea is to create new points of contact with consumers without relying solely on opening coffee shops. Rather than requiring a new shop, expansion can also come through machines installed in spaces already used by workers, customers or visitors.

The chain invested R$5 million in the project. Projected investment across the operation as a whole is R$58 million. These figures are separate from the initial investment required of franchisees and should not be confused with the cost of joining the model.

According to the company, the aim is to install 3,000 machines in Brazil over the next two years. The focus is on cities where Cheirin Bão already has shops and franchisees, linking the new business line to an established commercial base.

Two ways to run the microfranchise

The format offers two options, with different responsibilities for franchisees. Under the rental model, franchisees find locations for the machines and manage the commercial relationships. Products are delivered directly to each site, so franchisees do not need to restock the machines themselves.

Under the direct-operation model, franchisees are responsible for restocking and managing the machines. This distinction matters to anyone assessing the business: although both options use automated machines, the tasks assigned to the operator differ.

The contract allows each franchisee to operate up to 30 machines. This is a contractual limit, not an indication that every franchisee will start with that number of machines.

The initial investment starts at R$80,000, with an estimated payback period of 10 to 11 months. This timeframe is an estimate, not a guarantee that the capital will be recovered. When comparing the options, prospective franchisees should examine the commercial and operational responsibilities of each, as well as the assumptions behind the payback projection.

Initial take-up comes from existing franchisees

The 35 contracts signed by the time the report was published were all with existing Cheirin Bão franchisees. Initial take-up of the new format has therefore come from within the brand’s own franchise community.

The chain has more than 600 outlets operating in over 300 cities, across every Brazilian state. Around 35% of franchisees operate more than one outlet, according to figures provided by the company.

The target of 100 franchisees by December should be distinguished from the contracts already signed. Likewise, the ambition to install 3,000 machines in two years is an expansion plan, not the number of machines currently in operation.

These distinctions help put the launch into perspective: the format already has signed commitments, but the main figures announced for its scale remain future targets.

New business line supports revenue ambitions

The initiative follows Cheirin Bão’s reported revenue of approximately R$442 million in 2025, up 10.5% on the previous year. For 2026, the company expects to reach R$500 million.

The company sees potential for up to 1,400 shops, but does not regard that figure as a fixed target. In this context, the machines offer another route to expansion without requiring every new location to become a conventional coffee shop.

The microfranchise’s initial focus is Brazil. The company also sees opportunities in Latin America and reports interest in Colombia and Chile, although this does not mean operations in those countries have been confirmed.

In practice: before signing up, compare the rental and direct-operation models, check the contract terms and test the payback estimate against the locations you can realistically secure and service.