Baker Bros American Deli Franchise

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Detailed Information

Capital Required
$416,000 - $696,000

Liquid Capital
$250,000

Net Worth
$1,500,000

Training and Support
Available

Existing Units
3

 

 

 

 

Baker Bros. American Deli is an UPSCALE, fast-casual deli that features Specialty Sandwiches, Award-winning salads, Gourmet Pizzas, and more.  The fast casual segment is the fastest-growing segment in the restaurant industry and is predicted to hit $17B in sales by 2010.

  • Baker Bros insists on using the highest quality meats, cheeses, breads and produce in all of their recipes.
  • Each restaurant is professionally managed by a salaried GM and two salaried assistant managers.
  • Open 11-9, the restaurants realize approximately 70% of total sales during lunch.
  • Every menu item is prepared fresh to order.  Featuring counter-style service, labor requirements are minimal.
  • Baker Bros provides extensive support in Real Estate site selection, Design & Development, Marketing and Operations.

Preferred Profile

  • We are seeking professional business people that have the ability and desire to commit to three or more units.
  •  Baker Bros is truly a business investment, not a “job.”  We do not offer single store franchise agreements.
  • Our ideal franchisee needs a good business background, but not necessarily restaurant experience.
  • For those franchisees without a food background, we will help interview and hire a qualified Director of Operations to run the day-to-day operations for the franchisee

Earnings Potential

  • Revenues for the company stores in 2006 grew 10% over 2005, realizing $1.3 Million in average sales per location
  • Average unit level EBITDA for company stores in 2006 was 19.4%
  • The financial numbers are based on the results of our four company-owned restaurants, each of which has been open for more than six years as of December 31, 2006.  There is no assurance you will do as well.  If you use our figures, you must accept the risk of not doing as well. This offering is made by prospectus only.

Investment Parameters

  • Total turn-key investment ranges from $416,000 to $696,000 per unit, including franchise fees.
  • The average investment has been approximately $500,000 per unit.
  • Baker Bros restaurants typically lease 2500-3500 SF of space in highly visible and active power centers.
  • Royalties are 5%.  No Marketing Fee or Ad Fund payable to Baker Bros.  Franchisees spend up to 2% in local advertising.
  • Franchise fees are $25,000/unit.
  • 1.5 Million Net Worth plus liquidity of $250,000 per unit to be developed.
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