Did you know that, according to the American Bakers Association, the bakery industry has 6,000 retail bakeries in the United States. Many of them operate through franchising. However, bakery franchises are not all the same. They vary in concepts, related products and services, reach, and popularity among Americans. In this article, we share an overview of the sector and some specific franchise options that you could consider in your portfolio:
Bakery Industry Overview
The bakery market in the U.S. has shown robust growth, especially in segments that cater to health-conscious consumers and those seeking convenience.
Major players dominate a significant portion of the market, but there is also substantial room for niche markets and innovative products. Specialty items such as baked, gluten-free, and organic products are gaining popularity, aligning with broader consumer health trends.
Financial results and trends
The market size of the global bakery industry was $331.37 billion in 2020, and it is projected to reach $436.91 billion by 2026.
The integration of online and home delivery services has become another crucial component for bakeries. During the pandemic, there was a notable increase in online ordering adoption, with a 27% growth in online sales for restaurants and food services in 2020. This trend shows no signs of slowing down, as convenience remains a high priority for consumers. In addition, the increase in acceptance of these technologies has allowed bakeries to expand their geographic reach and serve a wider customer base, which is essential in an increasingly digitized market.
This focus on convenience and technology has led many businesses to reevaluate and adapt their strategies to include a greater online presence and more efficient delivery options. This not only meets today’s demand, but also prepares companies for future expansions in an increasingly interconnected global market. Here are the franchises that knew how to adapt to new trends:
5 Best Bakery Franchises to Invest in USA
Dunkin’ Donuts Franchise
Dunkin’ is one of the most recognized franchises worldwide, founded in 1950 and beginning franchising in 1955. With around 12,676 franchise units, it offers an initial investment that can vary significantly depending on location, starting from $228,620. Royalty fees are 5.9%. Dunkin’ provides extensive support to its franchisees that includes training, site selection, operations and marketing. The brand is known for its strong presence and continuous innovation in its product offerings, including a variety of beverages, bakery products, and breakfast options.
Cinnabon Franchise
Cinnabon is famous for its cinnamon rolls and other derived products, it started in 1985 and began offering franchises since 1986. It has more than 1,512 units in operation and an initial investment that starts at $30,000. Royalty fees are 6%. Cinnabon also offers its franchisees support in training, marketing and operations, ensuring that product quality and brand consistency are maintained across all locations. It is especially popular in high-traffic locations where impulse products such as cinnamon rolls have a high yield.
Auntie Anne’s Franchise
Auntie Anne’s started in 1988 and entered the world of franchising in 1989. It is well known for its soft pretzels and has more than 1,934 franchise units. The initial cost to open an Auntie Anne’s franchise starts at $199,475, with royalty fees of 7%. The company supports franchisees with training, operational support, and marketing, focusing on community engagement and expansion into new locations such as universities and tourist spots. Their products have a unique flavor profile that appeals to both regular and new customers.
Brumby’s Bakery Franchise
Brumby’s Bakery is an Australian franchise with a long history of making bread and other fresh bakery products daily. With an established presence of 40 years, Brumby’s specializes in artisan breads, pies, and a variety of savory and sweet products. The initial investment for a Brumby’s franchise in Australia ranges from $370,000 to $430,000. Franchisees must also pay a weekly service fee of 6% on total gross sales and a marketing contribution of 2.5% on gross sales calculated weekly. Brumby’s stands out for its modern store design that highlights its authenticity as a bakery brand.
Kneaders Bakery & Café Franchise
Kneaders Bakery & Café started in 1999 and has built a reputation in the United States for its European-style bakery products, including loaf breads, succulent sandwiches, robust soups, and refreshing salads, all made daily in-house. All of the bakery’s café locations include retail sections and offer catering services where customers can order a variety of themed and personalized gift baskets.
To open Kneaders bakery franchises, interested entrepreneurs can expect to spend $25,000 on the initial franchise fee, and a minimum of $200,000 for the coffee unit, in addition to leasing and equipment purchase costs.
Find the ideal bakery franchise for you
Each of these bakery franchise options offers different advantages and considerations, from the level of initial investment to the type of support offered by the franchising company. Choosing the right one will depend on your business goals, budget, and interest in the type of product each one offers.
If you are interested in exploring franchise investment opportunities and want a detailed analysis to make the best decision, do not hesitate to contact us. At Interlink FBC, we help you evaluate the available options and find the one that best suits your investment goals.
