The business of selling a lot of bagels is discussed by two of the most well-known bagel shops in New York City.
For many people, opening their own bagel shop is the realisation of a lifelong goal. According to the Simmons National Consumer Survey (NHCS), in 2020 more than 202 million Americans enjoyed a bagel during breakfast.
Most cottage food ordinances do not prohibit the sale of bagels. A cottage food law is a regulation that allows the retail sale of food prepared outside of a commercial kitchen. These home-cooked treats can’t go bad if kept out at room temperature, so they have to be nonperishable.
Cottage cuisine can include baked goods like bagels, breads, scones, cookies, cakes, and more as long as they don’t contain any potentially harmful fillings. Bagel shops are perfect for first-time bakers who want to sell their wares from home but don’t want to deal with the red tape of obtaining commercial baking licences.
Since the average price of a bagel is over a dollar, yet the ingredients to make bagels are quite inexpensive, it might be a lucrative business to start from home.
- Ingredients added on top, such as seeds and spices
Find out what paperwork is needed to start a home-based bagel business in your state. Cream cheese, cheese, deli meats, and even pickled items may not be allowed to be sold alongside your bagels due to health and safety concerns.
If you’re going into the bagel industry, it’s for the best to adhere to a tried-and-true recipe that everyone loves.
The Basics of Opening a Bagel Store
Easy startup costs and little overhead make it possible to open a bagel shop either in your own kitchen or in a commercial kitchen. Creating a business plan for a bagel shop is the first step in opening a successful bagel store. The plan should detail the shop’s financials, potential investors, and staffing needs.
Once you have a strategy in place, you may invest in new bagel shop equipment or upgrade your current kitchen appliances. The answer to the question “what equipment do I need to operate a bagel store?” is the same whether you’re making bagels at home or planning to open a bagel shop.
- Bagels and cooking implements, such as bagel kettles
- Wire tappers
- An oven that divides bagels (industrial or at home)
To answer the question, “how much does it cost to operate a bagel shop?,” one must take into account the price of a bagel oven, which can run anywhere from $15,000 to $50,000; the price of a commercial space; and the cost of recruiting staff. The total cost to open a moderately sized bagel shop will be close to $240,000.
Although this sum may appear large, it is crucial to remember that bagel shops, whether operated from home or by a professional, can be very lucrative ventures if managed properly.
A bagel restaurant’s annual profit ranges from $1 to $6, depending on the price of the bagel, the number of other things sold in the shop (such as coffee), the number of customers served each day, and the business’s operating expenses.
Earnings per year may be as high as $200,000 and often are in the $50,000 level. What is the price of a single bagel to produce? It usually costs between 10 and 35 cents!
Shop for Bagels? Some Thoughts
The startup costs for a single bagel shop are high. To cut down on startup costs, you can team up with an established bagel business like Noah’s Bagels, Einstein Bagels, or a coffee establishment that also sells bagels, like Starbucks.
Compared to starting a business from scratch, franchising is safer and provides more support for its franchisees. In addition, your clientele will already be well-established.
A homemade bagel company is another viable option. The answer to the question “how much profit does a bagel store make?” is conditional on the ratio of production expenses to sales.
Without the overhead of a storefront or employees, a home-based business can generate nearly 100 percent profit after deducting the cost of raw supplies.