Fresh & hot: 38 hot opportunities in baked goods

Entrepreneur, Dec, 1996 by Karen Axelton

Something's in the oven - and it smells of profits. Sales of baked goods in America are rising faster than a fresh loaf of hearth bread. Indeed, you can scarcely turn a corner, visit a shopping center or walk through a mall these days without encountering a shop selling fresh-baked goods of some kind.

Let's begin with America's love affair with the bagel - a relationship that shows no signs of ending any time soon, as new bagel stores seem to pop up daily. These are not your father's bagels, either: From pesto or jalapeno to cranberry or garlic-flavored, this new breed of bagels tantalizes customers with a mind-boggling array of options.

The same trend is happening at pretzel shops, where cinnamon-sprinkled, ranch-dip flavor and raisin twists have joined their plain, salted brothers. With such a plethora of choices (and we haven't even mentioned the dipping sauces), it's no wonder that, in just about any mall you visit, the longest line you'll see is out the door of the pretzel store.

What else is on a roll? Why, cinnamon rolls, of course. Americans may claim to be more health-conscious than ever, but they still find plenty of excuses to indulge. And what better treat than a succulent cinnamon bun, oozing raisins and dripping frosting?

Also hot are hearth bread stores, selling a variety of breads, muffins, croissants, rolls and other baked goods. Hearkening back to the "good old days" when people visited their friendly baker for fresh bread, these stores are drawing droves of customers seeking more than just your standard supermarket loaf.

Why are baked goods selling like, well, hot cakes? There are several driving forces. One is a trend toward health. Many hearth bakeries tout their products' natural ingredients, for example; and pretzels are promoted as a low-fat, healthy snack (we're a bit skeptical about those cinnamon-sugar-frosted ones, though). Another reason, paradoxically, is a trend toward splurging. With such a focus on low-fat and nonfat foods these days, people who are cheating on their diets want to cheat big - with a calorie-laden cinnamon roll, for instance.

Perhaps the most important factor, though, is one trend expert Faith Popcorn has dubbed "small indulgences." Even though consumers are tightening their belts, they still want to enjoy high-quality products. Buying a fresh, gourmet bagel or loaf of bread allows customers to savor a little something special without breaking their budget.

Clearly, there's plenty of dough to be made in this industry. So, with no further loafing, check out the following listing of 38 baked goods franchises . . . and get cooking.

ATLANTA BREAD CO.

115-D Davis Cir. Marietta, GA 30060 Phone: (770)425-1073 Bakery/cafe Yr. began: 1993, Yr. franchising: 1995 Number of units: 13 Total investment: $360K Where seeking: All U.S. Franchise

AUNTIE ANNE'S INC.

P.O. Box 529 Gap, PA 17527 Phone: (717)442-4766 Hand-rolled soft pretzels Yr. began: 1988, Yr. franchising: 1989 Number of units: 348 Total investment: $161K-240K Where seeking: All U.S., Canada, other foreign Franchise

BEST BAGELS IN TOWN

480-19 Patchogue Holbrook Rd. Holbrook, NY 11741 Phone: (516)472-4104 Bagel bakery restaurant Yr. began: 1990, Yr. franchising: 1991 Number of units: 18 Total investment: $150K-215K Where seeking: Northeast, Southeast Franchise

BETWEEN ROUNDS BAGEL DELl & BAKERY

19A John Fitch Blvd., Rte. 5 South Windsor, CT 06074 Phone: (860)291-0323 Bagels/baked goods/deli items Yr. began: 1990, Yr. franchising: 1992 Number of units: 9 Total investment: $142.4K Where seeking: Northeast Franchise

BIG APPLE BAGELS

8501 W. Higgins Rd., #320 Chicago, IL 60631 Phone: (312)380-6100 Bagels/deli sandwiches Yr. began: 1993, Yr. franchising: 1993 Number of units: 150 Total investment: $220K-300K Where seeking: All U.S., Canada, other foreign Franchise

BIG CITY BAGELS INC.

151 Kalmus Dr., #C0001 Costa Mesa, CA 92626 Phone: (714)434-3500 Bagel bakery/cafe Yr. began: 1992, Yr. franchising: 1993 Number of units: 17 Total investment: $250K-330K Where seeking: All U.S., Canada, other foreign Franchise

BIG SKY BREAD COMPANY

455 Delta Ave., #204 Cincinnati, OH 45226 Phone: (513)871-5050 Whole grain breads/baked goods Yr. began: 1990 Yr. franchising: 1993 Number of units: 31 Total investment: $162K-322K Where seeking: All U.S. Franchise

BREADSMITH

3510 N. Oakland Ave., #212 Shorewood, WI 53211 Phone: (414)962-1965 Hearth-baked breads Yr. began: 1993, Yr. franchising: 1993 Number of units: 36 Total investment: $200K-250K Where seeking: All U.S. Franchise

BRUEGGER'S BAGELS

159 Bank St., P.O. Box 374 Burlington, VT 05401 Phone: (802)862-8923 Bagel bakery Yr. began: 1983, Yr. franchising: 1991 Number of units: 450 Total investment: $269.9K-821.6K Where seeking: All U.S., other foreign Franchise

THE CHESAPEAKE BAGEL BAKERY

6832 Old Dominion, #203 McLean, VA 22101 Phone: (800)422-2435/(703)893-0167 Bagel bakery & restaurant Yr. began: 1981, Yr. franchising: 1985 Number of units: 152 Total investment: $322.5K-402.5K Where seeking: All U.S., Canada, Mexico Franchise