Bagels are a huge hit with people of any age, making them a brilliant business venture. This treat is consumed for both breakfast and lunch, solidly positioning you to make money from your bagel shop. A bagel shop makes for an attractive business opportunity that can bring in substantial income.
A Bagel Shop should offer not only bagels but also other breakfast and lunch items as well as beverages in order to meet all of their customers’ needs. So, make sure your Bagel Shop has everything necessary.
To get into the Bagel business, you can either start your own venture or purchase a franchise of an established Bagel Shop.
This article outlines the steps necessary to start a bagel shop business.
You may like to read: 200+ Bagel Shop Name Ideas to Feed Your Hunger for Success
Business Plan for Beginners
If you pursue opening a Bagel Shop, it’s important to create a plan that ensures your business is organized and efficient. Here are the steps:
1. Learn How to Make Bagels
Before beginning your Bagel Shop venture, it is beneficial to have a good grasp of Bagel knowledge. If baking is already familiar to you, this will be of help.
If not, there are courses available regarding Bagel making and one can practice at home. Additionally, familiarize oneself with the various kinds of Bagels sold in stores and which types tend to be most popular in different areas.
2. Do the Research
To succeed, you must do thorough market research. Start off by understanding the people in the vicinity you plan to open your Bagel Shop. Since Bagels are not expensive items, affordability shouldn’t be a concern. Examine their preferences carefully.
When opening a Bagel Shop, take note of the other businesses in the area to get an understanding of potential competition and plan your strategies accordingly.
3. Find a Proper Location
The selection of a suitable place for your Bagel Shop Business is crucial. For patrons to enjoy the Bagels along with their beverage of choice, seating, as well as a kitchen for preparing fresh Bagels, must be available.
If enough space occurs in one’s home, then that may serve as an option to start the business. Otherwise, renting or leasing a space is mandatory.
4. Make your Bagel Shop Business Plan
When starting a Bagel Shop Business, create a comprehensive plan that includes the shop’s location, rent, setup costs such as furniture and equipment, salaries of staff, raw materials costs, and other items.
To begin your business, determine how much money you need, and then decide if using your own savings is a viable option. If not, applying for a loan or looking into other forms of funding can be a good next step.
5. Choose the Right Business Model
To open a Bagel Store, you have two options. First, you can operate the store directly by making fresh Bagels and offering them for sale. Alternatively, you can opt for a franchise agreement and start your business using the name of an established brand.
You must investigate the area to decide if people prefer homemade or branded Bagels, as both have their own pros and cons.
6. Name your Bagel Shop
When choosing the area and type of business, you need to come up with a creative name for your Bagel Shop. This should relate to bagels
Securing a domain in the name of your Bagel Shop is key to the success of your business. If it’s not available, you may have to consider revising the name in order to get it.
7. Register your Bagel Shop Business
Following your business name, you’ll need to select a legal status. In the U.S., an LLC may be the best choice for your bagel shop, as it safeguards personal possessions if any financial disputes arise.
8. Obtain Taxes, License, Permits
To operate a bagel shop, you must register for taxes, obtain an EIN and acquire a license from the health department. You should also contact your local authorities to determine if other permits are necessary.
If you own a bagel shop, you need a seller’s permit to charge sales tax. Additionally, certain local permits may be necessary.
Food stores must always maintain high standards of quality and cleanliness to pass regular health inspections. Do not compromise in these areas.
9. Open a Business Bank Account
Following the legal requirements, initiate a bank account in your Bagel Shop Business’ name. Be meticulous when accounting for your business. Hire a competent accountant to manage the finances.
10. Get the Right Business Insurance
To protect your Bagel Shop from any accidents or incidents, you should get General Liability Insurance and Workers’ Compensation Insurance.
11. Calculate the Cost to Start Your Bagel Shop Business
It will cost approximately $70,000 – $80,000 to open a Bagel Shop. This investment will cover the necessary equipment, rent, materials, utensils and crockery, electricity bills, taxes and license fees as well as staff salaries and sales and marketing expenses.
Reducing start-up costs is possible by choosing a store with fewer employees.
12. Expenses of Your Bagel Shop
Business expenses include rent, salary, raw materials, equipment, utensils, taxes, licenses, insurance, advertising, and marketing.
13. How to Get Clients
To find potential clients for your bagels, you should recognize who your target market is. Bagels are favored by people of all ages, enabling you to market to the general public. Plus, since bagels are a relatively cheap food, they can be bought by anyone regardless of economic status.
To reach potential consumers, create a successful promotional strategy. Utilize materials such as flyers, brochures, and coupons for discounts. Additionally, leverage social media platforms to target local audiences.
14. Set Pricing and Profit Margin for Your Bagels
A plain Bagel typically costs between $2.00-$3.00, while cheese and cream Bagels are usually priced at around $4.00-$5.00. Other food and beverage items like coffee, smoothies, or yogurt have similar prices.
The number of Bagel sales determines your profit. The more you can sell per day, the higher the profits you make. This is due to Bagels having such a great demand and thus leaving vast opportunities for expanses. Nevertheless, it takes some time to cover any initial costs you have incurred.
15. How to Increase Bagel Shop Profit
To maximize profits, there are various actions you need to take for your business.
a) Good Quality
In order to provide customers with the highest quality of Bagels, always serve them freshly made. This will please customers and result in more word-of-mouth promotion. Additionally, experimenting with fusion recipes can be helpful in drawing people in.
b) Create a Website
Create a visually appealing and interactive website. Provide the option to make purchases and payments online. Employ personnel to ensure a quick delivery. Include positive reviews from pleased customers on the site.
c) Social Media Publicity
To gain publicity, utilize social media sites such as Facebook, Instagram, and Twitter to create pages for your Bagel Shop. Make sure to post interesting photos and reviews. Also, include the link to these pages on the company website.
d) Post Advertisements
Advertising in newspapers, television, flyers, banners, and hoardings can help promote your Bagel Shop.
e) Conduct Regular Surveys
Ask customers and the general public for feedback about your Bagel Shop’s quality, atmosphere, and what improvements they’d like to see.
f) Offer Special Discount
For festivals, give out special discounts. For regular customers, provide privilege discounts with higher purchase amounts.
Establish your bagel shop’s brand.
Crafting your Bagel Shop’s name into a brand can be accomplished in a variety of ways. Look into sponsorship opportunities or joining corporate events and representing your business.
You might also consider organizing food workshops and cooking classes to not only build up supplemental income but also propagate the name of your shop and create recognition for the brand.
Frequently Asked Questions About Bagel Shop Business
How much do employees of a Bagel Shop get paid?
The amount staff can earn per hour at the bagel shop varies depending on local labor availability, but is typically between $8 and $12.5.
What are the necessary tools needed to run a Bagel Shop?
To open a bagel shop, you’ll need an oven, mixer, Bagel Kettles, and Divider.
What is the cost to open a Bagel Shop?
How much it’ll cost to open a bagel store depends on the size, location, and the rent for the space, ingredients used to make bagels, employee wages, and applicable license fees.
Starting a bagel shop in the US could cost between $100,000 and $300,000, depending on the area and intended customer base.
How much money can you make from owning a Bagel Shop?
The typical cost of making a bagel falls somewhere between $2.00 and $3.00, and once it is sold for $5.00 there is a profit of $2.00 per bagel. A bagel shop owner who sells 100 bagels a day will earn roughly $200 dollars each day, meaning the monthly income for that shop is about $6,000.
How much does it cost to buy a Bagel Shop Franchise?
The cost to open a bagel shop franchise in the U.S. is at least $35,000 and may depend on the business’s reputation.
Due to the popularity of Bagels, you have a great opportunity for business growth. Expanding with additional branches in various locations is an option. According to Statista, bagel consumption is expected to rise from 2020 to 2024.
Consequently, your Bagel Shop has huge potential for development. Keeping top-notch food standards and a pristine environment is essential to extending your business and generating more profit.
You may like to read: 290+ Sandwich Shop Name Ideas that Drive Hungry Traffic
