Manhattan Bagel is one of the best-known bagel and coffee franchises in the marketplace. Since the early eighties, Manhattan Bagel has brought New York-style fresh bagels to the marketplace, with locations now numbering 212 nationwide. Manhattan Bagel is unique in terms of offering a franchise within the fast-casual dining space. Its product lines which include bagels, sandwiches, and coffees, separate it from the mainstream competition.
If you are interested in entering the food business with a well-recognized brand, the Manhattan Bagel franchise could be your best bet. In this article, we will examine the key aspects of the Manhattan Bagel franchise in the USA, including startup costs, potential profitability, requirements, and what makes this franchise unique.
Table of Contents
About Manhattan Bagel
| Company Name: Manhattan Bagel |
| Founded By: Andrew Gennusa and Jason Gennusa |
| Established Year: 1987 |
| Headquartered: S Bellaire St., Suite Skybox Denver |
| Buisness Sector: Restaurant chain |
| Number of Restaurants: Over 1000 Restaurants Nationwide |
| Offering items: Quick breakfast, a hearty lunch, or a sweet treat and Beverages. |
| Official Website: Manhattan Bagel |
Headquartered in Burlington, New Jersey, Manhattan Bagel was founded in 1987. Since then, it has successfully niched a hole in the market by bringing authentic New York-style bagels from communities across the United States. Apart from the bagels, the menu has been laden with all sorts of breakfast and lunch items such as sandwiches, wraps, salads, and coffees, which makes it one versatile brand for dining all day.
Key Details of Manhattan Bagel Franchise
| Brand Name: Manhattan Bagel |
| Industry: Food and Beverages |
| Number of Outlets: 1000+ |
| Franchise Fee: $25,000 |
| Franchise Cost: $480,000 to $850,000 |
| Royalty Fee: 5% of Gross Sales |
| Profit Margin: 10% to 20% |
| Franchise Agreement Term: 5 to 10 years |
| ROI Timeline: 2 to 3 years |
| Space Required: 1200 to 1500 sq ft |
| Franchise: Apply Here |
What Makes Manhattan Bagel Special?
Authenticity and quality define this brand. Here is what makes Manhattan Bagel different:
Authentic New York-Style Bagels: Manhattan Bagel’s hallmark bagels are made using the old-fashioned traditional New York-style kettle boiling and baking technique. This technique gives their authentic bagels a certain flavor and texture that no other competitors have.
Variety of menus: It has a variety of menus other than its bagel. Other services from the franchise include breakfast and lunch options in the form of bagel sandwiches, egg sandwiches, wraps, soups, salads, and premium coffee, which attract a larger customer base between breakfast and lunch.
Brand Recognition: Manhattan Bagel is over 30 years old and has brand recognition within the Northeast. Its quality products and friendly service help bring new customers into the door while keeping regulars coming back.
All Day Dining Concept: Where most bagel shops may restrict themselves to only offering breakfast, Manhattan Bagel has actually constructed the menu to support daily value. This can tap into the 100% revenue potential of customers who may come in during the day for breakfast and lunch and even the occasional late-afternoon snack.
Franchise Opportunity Manhattan Bagel
If you are interested in the fast-casual restaurant industry, the Manhattan Bagel franchise has an established brand with a successful track record. It is a great entry into the marketplace and allows you to bring a name into the business that people already recognize and can rely on as a brand.
How Munch Does Manhattan Bagel Franchise Cost?
Starting a Manhattan Bagel franchise will call for an investment as well as meeting specific financial requirements.
| Franchise Fee | $25,000 |
| Infrastructure Cost | $300,000 to $450,000 |
| Initial Stock | $50,000 – $75,000 |
| Equipment Cost | $100,000 – $150,000 |
| Working Capital | $50,000 – $100,000 |
| Leasehold Improvements | $150,000 – $200,000 |
| Net worth and liquid capital | $150,000 |
| Royalty Fee | 5% of Gross Sales |
| Marketing Fee | 2% of Gross Sales |
| Franchise Agreement Term | 5 to 10 years, Renewable |
| Total Investment | $480,000 and $850,000, |
Initial Franchise Fee: The initial franchise fee for any Manhattan Bagel location comes in at around $25,000. This entitles you to the ability to operate under the Manhattan Bagel brand and includes such things as training, support, and site selection help.
Total investment: This is an investment in opening a Manhattan Bagel franchise. This is valued at between $480,000 and $850,000, depending on location size and many other determinants. The initial franchise fee, leasehold improvement, equipment, and inventory contribute to this investment.
Royalty Fees: 5 percent of gross sales: To cover ongoing support and branding, the company takes up 5% royalty from the gross sales made within the franchisee business.
Marketing Fees: The franchisee pays a national marketing fund, which generally runs at about 2% of gross sales. This fund is used for brand-wide advertising and promotion.
Net worth and liquid capital: A Manhattan Bagel franchise requires at least $500,000 in net worth. The minimum amount of liquid capital is $150,000. This gives the financial strength for the successful launch and operation of the location.
Lease Costs and Location Build-out: Lease costs would vary dramatically depending upon the location, size, and real estate market. Further included in the initial investment is the cost of building out and designing the space to meet the standards of the Manhattan Bagel brand.
Training and Support for Manhattan Bagel Franchisees
Among the key benefits of entering a franchise is all-inclusive training provided by the franchisor. The training program of Manhattan Bagel is so detailed that not only does it train the new franchisees, but it also supports them through the entire journey. Here is what you can expect:
First, Manhattan Bagel provides first-time training that covers all the information you will require to run the business. You are trained in customer service, operations, marketing, and financial management. All these are done at headquarters as well as at your shop.
On-site opening support: Manhattan Bagel will provide on-site support at your store opening to make the launch as smooth as possible. Corporate staff experienced in this process will be there with you during those first few days of operation, walking you through everything and answering any questions you may have.
Support, Following Training and Opening: after the training and opening period follows regular follow-up access to up-to-date resources at operations and assistance with the resolution of problems as they may come along. A Franchisee would also learn with the use of online sessions known as webinars that update knowledge of things around them.
Marketing and Advertising: Manhattan Bagel offers support to its franchises at national and local levels through marketing activities. Contributions from franchises to the marketing fund promote the brand image and pull in more customers to its outlets. It also offers franchisee marketing at a local level to ensure that the market being served is reached appropriately.
Supply Chain and Vendors: The company has built relationships with vendors to supply the franchisee with good quality ingredients and supplies at competitive prices. This maintains uniformity of the products across locations and gives the brand the quality standard it needs.
Profit Potential of a Manhattan Bagel Franchise
Profitability in a Manhattan Bagel franchise is substantially a function of location, operating efficiency, and market demand. Earnings data for Manhattan Bagel franchises is not available; however, industry benchmarks can be used.
The fast-casual dine-in market is rapidly increasing, particularly for health-conscious and convenience-oriented brands such as Manhattan Bagel. Typically, the industry-level profit margin for fast-casual restaurants falls within 10-20%. This range will vary, though, for a particular franchise. Profitability will rely heavily on cost control and loyal customers.
Elements of Influence on Profitability
Location: An excellent location that can be considered to include a high-traffic shopping center, busy street, or college proximity greatly affects revenue.
Operating Costs Labor and food constitute the most significant costs. These costs need to be well controlled to make the most of the profit.
Customer retention: Quality service and consistent products are worth putting in effort for, as these offer a loyal customer base. They provide steady income and help in word-of-mouth marketing.
Local Competition: Its adherence to competitors, such as fast-casual and quick-service restaurants, directly impacts your sales. Still, Manhattan Bagel’s emphasis on better bagels and breakfast fare may be an important competitive edge in less saturated markets.
Effective Marketing: Using corporate marketing techniques and spending significantly on local ads does have a role in brand awareness and customer traffic.
Ideal Franchisee Profile for Manhattan Bagel
Manhattan Bagel is interested in recruiting franchisees who have a passion for the food industry, excellent customer service, and a financial perspective of owning a franchise. Individuals who possess the following characteristics will be suited for a Manhattan Bagel franchise:
Business Owners: Past experience as a manager of restaurants or as a restaurateur may give extra leverage in operating a successful Manhattan Bagel franchise.
Entrepreneurs are passionate about serving good food. People should have an interest in running a high-quality restaurant that provides an excellent experience to visitors and also gets involved at the local level.
Hands-On Operators: If the person is willing to engage actively in day-to-day operations, they have higher chances of success, simply because personal involvement can only mean better service and higher operational efficiency.
Financially Strong Individuals: They must satisfy the financial requirements. When there are extra funds in case of unforeseen expenditures, it helps manage the business better.
Steps to Owning a Manhattan Bagel Franchise
Research and Application: First, research the franchise, including the cost and requirements, and apply to show interest.
Initial Discussion and Approval: Upon application, you will meet with the Manhattan Bagel team to decide whether you’re a good fit.
Review the Franchise Disclosure Document: Review the FDD carefully for all obligations, fees, and other pertinent information.
Site Selection and Build-out: Upon receiving the approval, connect with Manhattan Bagel so you can identify the preferred site and build from that point.
Training and Launch: Finish the required training; prepare to hold a grand opening and, eventually, launch your very first Manhattan Bagel shop.
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Pros and Cons of a Manhattan Bagel Franchise
Any investment in any business has pros and cons, and it is with a Manhattan Bagel franchise too.
| Pros | Cons |
| Strong brand recognition: This is for the fact that Manhattan Bagel has had a rich history of quality over the years, which is a magnet for attracting customers. | Highly Initial Investment: Opening Manhattan Bagel requires a high opening cost as significant capital must be used in order to start. |
| Comprehensive support and training: Franchisees go through extensive training and further support, thereby reducing their learning curve and operational risk. | Royalties and Marketing Fees. These fees are normal components in franchising, which a few may consider pretty hefty, especially for an establishment in its initial phase. |
| Multiple Streams of Revenue: As Manhattan Bagel delivers services for breakfast, lunch, and snack time, there are more streams of revenue. | Dependence of location for success. A piece of ideal land is hard to get and costly to hold; the success depends mainly on the location chosen. |
| Availability with Healthy Eating: It caters to the healthy trend in contemporary consumers because its products are fresh from a bakery and very lightly processed. | Demands of Operation Fast food restaurant demands hand-to-hand involvement. As for people who seek investment from passive income, perhaps the hands-on nature and need for constant interaction wouldn’t make them happy. |
Manhattan Bagel Franchise Image Gallery
Conclusion
Buying a franchise from Manhattan Bagel might be the most satisfying pursuit for a food lover who wants to venture into running a fast-casual restaurant. This has an established brand with high-quality products combined with an all-encompassing support system, which represents the potential for a wonderful opportunity for a franchise. To say that it demands so much investment and involvement together with good planning, however, can it really be a venture suitable for you? Yes. It might be your bridge towards stepping into the rising business in the USA, which mainly consists of bagels and coffee.
FAQ
What is the Manhattan Bagel Franchise Cost?
The total investment to start the Manhattan Bagel franchise is between $480,000 to $850,000 including Franchise Fees, setup costs, working capital, initial stock, and others.
How Much Space Required to Start the Manhattan Bagel Franchise?
Setting up the Manhattan Bagel Franchise restaurant requires space between 1200 sq ft to 1500 sq ft.
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