According to the National Chamber of the Bakery Industry, the average annual consumption of bread per person in the US is 33.5 kilos, according to the National Chamber of the Bakery Industry. It shows that this sector is an ideal market to invest in and quite competitive. So, today we will talk about the best bakery franchise opportunities; a very attractive way to enter the industry is through a franchise model.
In the USA, we seek the highest quality of bread. That is why we offer the best bakery equipment: from industrial mixers, mixers or cutters, to the ovens you require for small productions and rotary or radiation ovens for a high volume of demand.
Best bakery franchise opportunities
The best bakery franchises have evolved greatly in recent years. The change in the business model they present is a wonderful idea. These brands have increased their product lines, presenting a greater assortment.
The main advantage of this model is that you can get a certain guarantee of success. In addition, you can take advantage of the franchise’s reputation, something that can give you stability and confidence when investing.
One of the most prominent factors in this market segment is the creation of the so-called “Bakery coffee,” which are establishments in which the concepts of bakery and cafeteria come together. In these places, we can buy bread, have a coffee, have a snack made by hand, or buy any product related to the bakery. They are pleasant places whose number has multiplied throughout the big cities.
The investment required to open one of these stores covers a very wide range. We find some of the best bakery franchises with low average investment, such as Dunkin’s, or brands with higher investment, such as Nothing Bundt Cakes. Of course, investment is not one of the indicators by which the success of a franchise is governed.
Why open a bakery franchise?
There are about 6,000 retail bakery franchises in the US. And about 37,000 are small artisan companies. Businesses that employ more than 1.5 million Americans approximately. Furthermore, bakeries are the businesses that generate the most direct and indirect jobs in the USA. Only behind the construction and automotive industries.
Bakery franchises can be much more advantageous than starting a business from scratch. The chances of success of a venture increase significantly with a franchise system. In addition to endorsing a famous brand, the franchisor can offer permanent assistance.
While the franchisee can:
- Choose the support and machinery you need.
- Take charge of the installation of the facilities.
- Hire staff.
- Create an institutional advertising strategy.
- Have the possibility of obtaining bank loans with lower rates.
- Get access to valuable information about the market.
Is a bakery franchise profitable or not?
We can count the average returns of a bakery franchise with tasting that obviously, we will not say what it is or where it is located. Our consultancy in Barcelona informs us that it regularly prepares sectoral reports for different businesses to advise its clients and to be able to compare their performance with those of the sector.
What are the franchise options in the USA?
Many bakery franchises in the USA have a low investment and high profitability as a common point. That makes them perfect opportunities to enter this industry. Here are five very attractive bakery franchises to invest in :
This donuts franchise was founded in 1950 and started franchising in 1955. It is dedicated to producing high-quality artisan slices of bread, encompassing the best of American bakeries. Also, it has 12,676 franchise units worldwide.
However, it is a very attractive option if you want to have a business that differs from the rest. It will be a great choice if you are thinking about opening this franchise business. The major fact is you will get vast field support from them.
On the other hand, the initial investment is from $228,620. So it is an excellent option.
It is a network created in 1994, and it is very famous in the north of the country. Also, it has been franchising since 1996, and in present days it has 323 units in the whole world. On the other hand, it has five own stores and another 30 franchisees. The initial investment to open a store is from $164,950.
This franchise was established in 1985 and had two of its establishments and another 33 franchisees. It started franchising in 1986. Cinnabon is famous for its cinnamon food items like cinnamon rolls, coffee, cinnamon buns, etc. The network aims to expand in the central area of the country. This franchise has 1,512 units worldwide. In cities with more than 500 thousand inhabitants, with premises of 60 square meters.
However, the initial investment of this franchise business is from $30,000.
Sharon’s franchise company was founded in 1990, and the bakery network emerged in 2003. Today it has six of its stores and another nine franchisees.
The stores must have a minimum of 40 square meters, and the total investment is 900 thousand pesos for a seven-year contract. The company offers the opportunity to open in cities with more than 100,000 inhabitants, including the United States.
Great American Cookie
American franchise specialized in the production of cookies. They have a model of more than 10 years of operation and constant development of products and different lines of business. Great American cookie has 376 units worldwide.
It is located within the range of “low investment” franchises. The initial investment of this franchise business is from $160,500. However, depending on the business model, the headquarters, and the type of premises chosen.
Grainier is a franchise business that Central has tested and proven that works and is successful. With more than 114 establishments in Spain, being one of the benchmarks within the Spanish bakery market. This brand was founded in 2006 and offered a wide variety of products at the best prices on the market. They are manufacturers of their products, which allows them to distribute a quality product.
It has an innovative concept that they have defined as “fast-delicatessen,” which makes them stand out within pastry-pastry-bakery activity. Its strategy follows the sale of a gourmet product at a competitive price within the market. With over 20 years of experience in the sector, its differential values are product quality at a competitive price.
It is one of the oldest bakeries in the American market. Its creation dates back to 1967, and it is a successful business concept that combines the experience and Know-How of more than 30 years with a Galician product of recognized quality and high demand. In addition, they offer the possibility of opening your own “turnkey” business.
It is a Bakery & coffee franchise business that is easy to manage, with low investment, small size, and great quality according to its price. They have software that allows comprehensive business management. In addition, complete training is offered from the beginning to the franchisee, which makes their job much easier.
This franchise is a favorite for many American people due to its super yummy pretzels and other delicious items. It has more than 200 establishments in the US and growing. Since its creation in 1991, this brand has achieved a great growth rate. It started franchising in 1992. This fact is thanks to a high-quality positioning in the product, the store, and the management, with a firm orientation towards customer satisfaction and the profitability of the point of sale.
However, this franchise business has 264 units worldwide. The initial investment from $205,200.
Nothing Bundt Cakes
This franchise is famous for its delicious cakes, as its name says so. Nothing Bundt Cakes managed to open four stores in less than a year. Currently, this franchise reaches 166 total units. It is a successful franchise business opportunity you must try. Its business units have a caring environment to make customers feel at home.
FAQ on Best bakery franchise opportunities
How to know if a bakery is profitable?
Divide the net profit by the annual sales (or the period analyzed) and multiply it by 100. The result of this operation is the profit margin of your business expressed as a percentage. A higher number indicates greater efficiency in generating profit.
What is the investment of a bakery?
In addition to that, you will know what the people’s consumption habits are and if there is a need to put a bakery. Consider an investment of approximately 10 thousand pesos to buy all the raw materials. Suppliers are another important part as they will supply the business for production.
What is the salary of a baker in the United States?
The average salary is $ 13.42 per hour, with a median annual wage of $ 27,920.
What are the products of a bakery?
Candela flour is made with soft wheat and usually with a white shell. Therefore, the appearance of these flours is usually whiter, and the touch is lighter and stickier. These flours are also used for all kinds of pastries.
Conclusion on Best bakery franchise opportunities
We hope this article can help you choose the best Bakery Franchise opportunities that can be a good deal for you. In any case, you can carry out the same business model on your own. However, it will require you to constantly be thinking about new products, suppliers, commercial campaigns, and working for the publicity and promotion of your business.