20 February 2024

7 Bagel Franchise Businesses That Deserve Your Attention

By Ronald Smith

Did you know that bagels have a fascinating history in the United States? They made their way to the country in the late 19th century when immigrants from Eastern Europe arrived in New York City. Today, the bagel industry is worth billions of dollars!

When it comes to bagels, New York City is still considered the nation’s bagel capital. Many of the top bagel franchises started in the Big Apple before expanding to other states. These franchises are loved by locals and visitors alike.

Although bagel franchises are often grouped together with donut franchises, we’ve made sure to separate them for this list.

Choosing the Perfect Bagel Franchise: How We Did It

When it comes to breakfast or a quick, tasty snack, bagels have become a beloved favorite for many people. If you’re thinking about starting your own bagel franchise, you’re in for a real treat. Bagel franchises give you the chance to bring delicious treats to your community while running a successful business. But how do you choose the best one from all the options out there? We’ve ranked these factors on a scale of importance, from 1 to 10, with 10 being the most important and 1 being the least.

  1. Taste and Quality of Bagels (Rating: 10/10)
    • The taste and quality of the bagels should be amazing, since they are the main product and a key factor in attracting and keeping customers.
    • Brand Reputation and Recognition (Rating: 9/10)

      When it comes to getting customers, having a well-known and respected brand is key. A brand’s reputation usually reflects the quality of its products.

      Another important factor for success is choosing the right location with lots of people walking by, also known as foot traffic. This is just as important as brand reputation because it directly affects how visible you are and how many sales you make.

      Having a variety of items on your menu, with options for customization, can make your customers happy and cater to their different tastes and preferences.

      While the financial side of things is important, it’s not as crucial as the taste, location, and brand. You should consider things like the initial fees for starting a franchise, the ongoing royalties you’ll have to pay, and the costs of getting everything up and running.

      When it comes to running a franchise, there are a few key factors that can make a big difference in your success. Let’s take a closer look at them.

      First up is marketing and advertising support. This is important because it can really help boost the visibility of your brand and bring in more customers. I’d rate this factor a solid 7 out of 10.

      Next, we have supplier relationships. While maintaining reliable and cost-effective relationships with suppliers is crucial, it’s not quite as important as some other factors. I’d give it a rating of 6 out of 10.

      Another important factor is training and support. As a franchisee, you need to have proper training and ongoing support from the franchisor. While it’s essential, it’s not quite as high-priority as some of the core elements. I’d rate it a 6 out of 10.

      Lastly, we have equipment and technology. Having the right equipment and technology is important for efficiency, but it’s not as crucial as the other factors we’ve discussed. I’d give it a rating of 5 out of 10.

      So, to summarize, marketing and advertising support, supplier relationships, training and support, and equipment and technology are all important factors to consider when running a franchise. While they may vary in importance, they all play a role in your overall success.

      Bagel Franchise Opportunities

      If you’re thinking about starting a bagel franchise, here are some great options for you to consider:

      1. Einstein Bros. Bagels

      Einstein Bros. Bagels is the biggest bagel franchise, with over 300 locations in 27 states. They have a strong brand presence and are located in top-notch areas all over the country. In addition to their delicious bagels, they also serve made-to-order sandwiches and mouthwatering desserts.

      Just like other bagel shops, Einstein’s also offers specialty coffee that’s known as Darn Good Coffee (because it really is). They even provide catering services for special events.

      Community Involvement (Rating: 4/10)

      Getting involved with your local community is a good thing, but it’s not as important as other factors when it comes to running a successful bagel franchise.

      2. Bagels in the City

      I own this amazing bagel business called Bagels in the City. It’s actually part of the same company that owns Einstein Bros. Bagels. My franchise allows me to have locations in cool places like New York, New Jersey, Pennsylvania, and Delaware.

      At Bagels in the City, we specialize in making traditional New York City bagels using a special method called boil and bake. Our bagels are seriously delicious! But that’s not all – we also make awesome sandwiches using only the best ingredients.

      I’ve been offering franchise opportunities for my business since way back in 1987. If you’re interested, the franchise fee is $25,000. It’s a great opportunity for anyone who wants to have their own bagel empire!

      3. Bagels Galore

      I can’t talk about Bagels Galore without mentioning My Favorite Muffin – it’s one of our tasty menu options! At Bagels Galore, we believe in offering a wide variety of delicious food, so we also have specialty sandwiches and salads to keep things interesting.

      If you need a pick-me-up, you can always enjoy a cup of our special Brewster’s brand coffee. It’s the perfect complement to any of our menu choices. And just like Bagels in the City, the franchise fee for Bagels Galore is $25,000. It’s an opportunity you don’t want to miss!

      4. NYC Bagel and Sandwich Shop

      Since 1995, NYC Bagel and Sandwich Shop has been giving people in New York and New Jersey the chance to start their own franchise.

      The special thing about NYC Bagel and Sandwich Shop is how they make their bagels. They let the dough rest for 12 hours before boiling it, and that’s what gives their bagels their unique flavor.

      If you live in New York or New Jersey, you can become part of the NYC Bagel and Sandwich Shop franchise. And they are always looking to grow, so they might expand to other places too. The best part is, they also have delicious sandwiches in addition to bagels!

      Starting a NYC Bagel and Sandwich Shop franchise costs $29,500. It’s a great opportunity to be your own boss and make people happy with tasty bagels and sandwiches.

      5. Brooklyn Water Bagel

      You might be wondering why this business has the word Water in its name. Well, that’s because we use a special, top-secret water in our ingredients. At Brooklyn Water Bagel, we stick to an old-world recipe to bring you tasty menu items and a truly unforgettable brand experience.

      Since 2011, we’ve been franchising our business, and the franchise fee is $35,000.

      6. Shmagel’s

      Shmagel’s is a super popular spot for both locals and tourists in Ocean City, Maryland. We actually have two Shmagel’s locations here, and we’re looking to expand!

      Hey, did you know that Shmagel’s is actively on the lookout for expansion opportunities? It’s true!

      7. Between Rounds

      Between Rounds is a fantastic bakery cafe and bagel shop. It all started back in 1992 when we opened our doors in Connecticut.

      I want to talk to you about Between Rounds, a fantastic bagel shop. It’s got a super cool interior and even offers drive-thru service. Plus, they’re looking to expand, just like Shmagel’s.

      If you’re interested in opening a franchise with Between Rounds, you’ll need to pay a fee. The cost ranges from $22,500 to $25,000.

      Specialty Bagels are on the Rise: Something You Should Embrace

      Let’s talk about the bagel industry. Lately, there’s been a huge surge in specialty and artisanal bagels. Forget about plain or everything bagels, these new and unique creations come in all kinds of exciting flavors and textures. As someone who wants to open a bagel franchise, it’s important to jump on this trend. It will help your business stand out and attract a wider range of customers.

    1. Get Creative and Innovative: The sky’s the limit when it comes to specialty bagels! You can experiment with all sorts of unique ingredients and toppings, creating your very own one-of-a-kind bagels that everyone will love. Don’t be afraid to think outside the box and work together with your franchisor to come up with exclusive recipes.
    2. Make the Most of Upselling Opportunities: Specialty bagels often come with a higher price tag, which means more money in your pocket! Customers are more than happy to pay extra for a gourmet or artisanal experience, which can really boost your income.
    3. Keep Customers Engaged: There’s nothing like limited-time or seasonal specialty bagels to get your customers excited! By offering these special treats, you’ll have people coming back for more and sharing their delicious discoveries on social media. It’s a win-win situation!
    4. Get Ahead of the Competition: Jumping on the specialty bagel trend can give you a real advantage in your market. While people love traditional bagels, offering something unique can help you stand out and steal customers away from your competition.

    How Much Does it Cost to Open a Bagel Franchise?

    The franchise fee usually falls between $25,000 and $35,000 – a pretty reasonable price. But the initial investment can range from $200,000 all the way up to $800,000. This includes everything from setting up shop, buying the property and equipment, stocking up on inventory, and more.

    If you’re interested in the NYC Bagel and Sandwich Shop franchise, you’ll be happy to know that they have one of the lowest startup costs, coming in at $120,000. However, keep in mind that this is just the baseline cost. There are many other factors to consider in this industry.

    Can I buy a bagel shop? Absolutely! There are opportunities to purchase established franchises. If you’re looking to expand, you can even buy multiple locations.

    Are bagel shops profitable?

    To become a franchisee, you’ll need a substantial net worth, typically around $500,000 to $800,000. Bagel franchises are highly sought after, so franchisors want to ensure they partner with the best owners.

    The best owners are those who have already proven their ability to make money, as evidenced by their net worth. Even though the initial costs can be high, the potential return on investment for this type of franchise is also quite high.

    How much money does a bagel shop make in a year?

    Imagine this: you decide to invest $300,000 in total costs, including the franchise fee, to start your own business. I bet you’re wondering if you can make that money back, right? Well, I have good news for you – you should be able to make it all back in just two years!

    But, here’s the catch – it’s all about where you set up shop. You might be thinking, how can you make any money selling a product that costs just $2? Well, it all comes down to the number of customers you can attract. The more customers you can sell to in a day, week, month, and year, the more money you’ll make. It’s as simple as that. So, if you don’t open your business in a great location, unfortunately, you won’t be able to make much money.

    Now, let’s talk about the coffee and snack shop industry. From 2002 to 2016, these types of businesses experienced incredible growth. In fact, their revenues doubled during this period. That’s pretty amazing! The key to their success was their ability to adapt to a changing market. They started offering Vegan, nut-free, and gluten-free choices, which attracted a whole new group of customers.

    So, why should you choose a bagel franchise?

    Well, let me tell you – there are so many reasons to love a bagel franchise. First of all, bagels are just delicious. They’re the perfect combination of chewy and soft, with a wide range of flavors to choose from. But it’s not just about the taste – bagels are versatile too. You can have them for breakfast, lunch, dinner, or even as a snack. They’re perfect for any time of the day!

    • The store hours are way better! Most places close super early, like around 3 p.m. That’s because they usually just serve breakfast and lunch, kind of like a regular sandwich shop. Some places even put it in their name, like the NYC Bagel and Sandwich Shop.
    • You won’t need as many workers here, usually just around 7 to 12. The vibe is really casual and friendly, which is nice.
    • But here’s the cool part – they’re not just serving your typical NYC bagel. They’ve got some seriously creative options, like the Chorizo Sunrise. It’s got Chorizo sausage, avocado, pepper jack cheese, and a jalapeno salsa on a green chili gourmet bagel. You can find that at Einstein Brothers Bagels. Bagels have come a long way from the standard NYC style.

    And the possibilities are endless! You can get all sorts of crazy twists on the classic NYC bagel. It used to be everyone’s go-to quick and yummy meal. But places like the NYC Bagel and Sandwich Shop have taken it to a whole new level. Now you can get sandwiches, fancy coffee, and all kinds of gourmet treats.