Thinking About Starting a Bagel Shop?
If you love baking and want to serve up something fresh and comforting, opening a bagel shop might be the perfect business opportunity.
Bagels are a timeless favorite—whether paired with coffee for breakfast, used in gourmet sandwiches, or sold fresh by the dozen.
But turning your passion into a successful bagel shop takes more than a great recipe. You’ll need a solid business plan, the right location, dependable suppliers, and a strategy to stand out in a competitive market.
This guide will walk you through the key steps to help you launch and grow a bagel shop that keeps customers coming back for more.
Steps to Starting a Bagel Shop
This section provides valuable insights to assist you in making informed decisions for your bagel shop.
Take your time to carefully evaluate key points before entering the startup phase, ensuring you lay a solid foundation for your business’s success.
1. An Overview of What You’re Getting Into
Is Starting a Bagel Shop the Right Step for You?
There is a key factor to succeeding in business, and that factor is you!
Understanding how you feel about owning and running a business is important.
Passion is Crucial for Success
Passion is a crucial element for success in your own business. Passion is the driving force you need.
When you’re passionate about your business and problems, arise, you look for solutions. On the other hand, without it, you’ll look for a way out.
How passionate are you about owning your own business?
Let’s look at an interesting perspective:
Imagining the Freedom
Imagine doing anything you want without restrictions and enough money to last you for the rest of your life. That means money has nothing to do with how you will spend the rest of your life.
Now an important question.
In this situation, would you start a bagel shop?
If your answer is yes, it shows that you are passionate about owning and operating a bagel shop and are heading in the right direction.
However, if your answer is no, it prompts another question:
Exploring Alternative Paths
What would you prefer to do instead? Perhaps, you should pursue that path instead.
In summary, you need to be passionate about the business you are starting.
For More, See How Passion Affects Your Business. Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.
2. Gaining an Overview of Owning a Bagel Shop
Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.
A Bagel Shop Defined and Daily Tasks
A bagel shop is a food service business specializing in serving bagels, often alongside other menu items like sandwiches, salads, coffee, and bakery goods.
This enterprise involves more than just creating delicious bagels; it encompasses many tasks that ensure smooth operation.
Everyday responsibilities can vary but often include ordering and managing inventory, baking bagels and preparing other menu items, serving customers, keeping the store clean and inviting, and handling monetary transactions.
In addition, maintaining all necessary licenses and health department standards is essential to the day-to-day tasks.
Keys to Success in Operating a Bagel Shop
Successfully managing a bagel shop requires effective strategies in several key areas:
Building a Customer Base Attracting regular customers is crucial. Offering quality products, exceptional service, and a welcoming atmosphere are all instrumental in building a loyal customer base. Effective marketing, both online and offline, can also help to increase visibility and attract new customers.
Staff Management Selecting, training, and managing a capable staff is vital. Employees should be well-versed in various roles, from baking to customer service. A bagel shop’s success heavily depends on its team’s efficiency and effectiveness.
Cash Flow Management Effective cash flow management is crucial in the food service industry.
This involves careful budgeting, monitoring of costs, managing debts and accounts receivable, and proactive financial planning.
Adapting to Change and Technology In an ever-evolving industry, staying current with trends and adapting to new technology can give your shop a competitive edge.
This could involve implementing new point-of-sale systems, optimizing online ordering and delivery, or introducing new products in response to consumer trends.
Handling Revenue Fluctuations Seasonal changes, holidays, and local events can lead to fluctuating revenues.
Being prepared for these fluctuations and having strategies to manage them effectively is an important part of running a successful bagel shop.
Competing Effectively Facing new and existing competition requires a unique selling proposition, outstanding customer service, and consistent product quality.
Understanding your competitors and differentiating your shop can help you stand out and thrive.
Customer Expectations and Satisfaction
Customers today expect more than just good food.
They appreciate swift service, clean premises, friendly staff, and value for money. Ensuring your bagel shop meets these expectations can increase customer satisfaction and repeat business.
Feedback is a valuable tool in understanding customer needs and improving service.
Encouraging customer reviews, responding to feedback, and making necessary improvements is important. Remember, a satisfied customer is your best marketing tool.
b.) Bagel Shop Models
Types of Bagel Shop Setups and Their Business Models
Traditional Bagel Shop This is the most common type of bagel shop, which involves baking and selling bagels on-site.
These shops often expand their offerings to include sandwiches, salads, coffee, and other bakery items.
The business model is focused on direct customer sales, either for dine-in, takeout, or delivery.
Bagel Cafe This setup is a fusion of a traditional bagel shop and a cafe. While it continues to offer a variety of bagels, it emphasizes a broader menu and a comfortable dining environment.
Its business model hinges on creating a unique ambiance and diversified menu to attract customers seeking a more extensive dining experience.
Mobile Bagel Shop This type of bagel shop operates from a food truck or a similar mobile setup.
The business model for a mobile bagel shop involves identifying high-footfall areas and events to serve freshly made bagels and sandwiches. It offers flexibility and lower startup costs compared to a brick-and-mortar shop.
Bagel Franchise Joining a bagel franchise means operating under a well-established brand name.
The franchisor typically provides a comprehensive operation, marketing, and training system, while the franchisee pays initial and ongoing franchise fees.
This business model is beneficial for those seeking a more structured setup with potentially lower risk.
Online Bagel Shop An online bagel shop operates primarily through e-commerce.
Bagels are baked, packaged, and shipped directly to the customer’s doorstep.
This model relies heavily on a strong digital marketing strategy, quality packaging, and efficient delivery methods.
Choosing Your Business Model
Choosing the right business model from the beginning is crucial, as switching your model later is more challenging.
Identifying a profitable and high-demand niche for your bagel shop is essential.
Whether you choose a traditional shop, a cozy bagel cafe, a flexible mobile unit, a structured franchise, or an e-commerce platform, your decision should align with your business goals, financial resources, and the needs of your target market.
c.) Making Your Bagel Shop Stand Out
Unique Recipes Experiment with unique, signature bagel recipes that are exclusive to your shop. Consider incorporating local ingredients or creating a bagel that represents your local community.
Themed Environment Design your shop with a unique theme that provides an unforgettable experience. The theme could be related to your local culture, a historical period, or even a pop-culture phenomenon.
Exceptional Customer Service Make your bagel shop known for its top-notch service. Train your staff to be attentive, friendly, and efficient. Remember, customer service is often the differentiating factor in the food industry.
Community Engagement Get involved in community events and initiatives. Sponsor local sports teams, participate in festivals, or organize charity events.
This helps your shop stand out and builds a strong local customer base.
Sustainability Practices Adopting sustainable and eco-friendly practices can help differentiate your bagel shop.
This could include using locally-sourced ingredients, offering discounts for customers with reusable cups, or minimizing plastic waste.
d.) Add on Ideas for a bagel shop
Expanded Menu Besides bagels, consider offering complementary items such as gourmet coffee, unique cream cheese flavors, salads, or artisan sandwiches. A varied menu can cater to more customer preferences and increase revenue.
Merchandise Selling branded merchandise such as mugs, T-shirts, or tote bags can help increase brand visibility and provide an additional revenue stream.
Catering Services Offering catering services for local businesses, events, and parties can greatly expand your reach and diversify your income.
Loyalty Program Implement a loyalty program that rewards repeat customers. This could include discounts, free items, or special offers for members. Not only can this increase customer loyalty, but it can also provide valuable data about your customers’ purchasing habits.
Workshops and Events Hosting bagel-making workshops, tastings, or other special events can generate interest and draw customers into your shop. This can also offer an additional revenue stream and help build a community around your brand.
Remember, add-ons should align with your overall business model and brand image, meet customer needs, and contribute to your business’s profitability.
e.) Questions You Need to Consider for Your Bagel Shop
As you contemplate starting a bagel shop, carefully mull over the following questions:
Bagel Shop Model What type of bagel shop are you considering? Traditional, cafe, mobile, franchise, or online business?
Employee Considerations Will you personally take on all the work, or do you plan to bring in employees? If so, how many, and for which roles?
Management Structure: Do you intend to manage your bagel shop, or are you considering employing a manager to oversee operations?
Partnerships and Investments Are you contemplating bringing in partners or seeking investors to support your business financially?
Business Location: Are you considering starting a home-based bagel shop, or do you prefer operating from a commercial location?
Business Setup If applicable, are you considering a traditional brick-and-mortar setup, or do you plan to operate primarily online?
Growth and Long-term Goals Have you considered the growth potential of your bagel shop? What are your long-term aspirations for your business?
Target Market, Who are your potential customers? Have you conducted market research to identify your target demographic and their preferences?
Competitive Analysis Who are your competitors in the area? What unique offerings or strategies can you implement to stand out?
Financing Your Business How do you plan to finance your bagel shop? Have you considered all the potential costs and projected revenue to ensure financial viability?
Regulatory Requirements Are you aware of all the licenses, permits, and regulations applicable to opening and running a bagel shop in your chosen location?
As you journey towards setting up your bagel shop, the answers to these questions will be instrumental in guiding you through the subsequent steps.
Carefully consider each question and align your responses with your business goals to create a robust foundation for your venture.
f.) Pros and Cons of Owning a Bagel Shop
Pros of Running a Bagel Shop
Being Your Own Boss, You have the independence to make important decisions that affect your business.
Creative Freedom Running a bagel shop allows you to be inventive, from creating unique bagel flavors to designing your shop’s interior.
Potential for High Revenue A well-run, popular bagel shop has the potential to generate significant revenue.
Flexible Hours Once your business is successful and you have a reliable team, you can set your working hours as per your preference.
Control Over Your Working Environment You can create a workplace culture that aligns with your values and vision.
Community Connection Running a bagel shop allows you to connect with and contribute to your local community.
Passion and Fulfillment If you love bagels and serving people, running a bagel shop can be a rewarding and fulfilling career.
Cons of Running a Bagel Shop
Responsibility for Problems As the owner, all issues, big or small, will land on your desk. The success or failure of the business rests on your shoulders.
Irregular Income Especially in the early stages, your income may not be consistent and can be largely dependent on the success of your business.
Challenging Start-Up Phase The initial stages of starting a bagel shop can be tough, as it involves a lot of planning, investment, and setup.
Long Working Hours You may have to put in extra hours, especially in the early stages, which can impact your work-life balance.
Pressure to Succeed Running your own business can bring significant pressure to be successful, which can be stressful.
Significant Initial Investment Opening a bagel shop requires a substantial financial investment in equipment, premises, staff, and stock.
Constant Change From customer preferences to industry trends and regulations, changes are always occurring in the food industry, which requires adaptability.
Risk Factor As with any business, there’s a risk involved in running a bagel shop. This can include financial risks, the risk of failure, or risks associated with unforeseen events like natural disasters or pandemics.
High Competition The food service industry is highly competitive, and a new bagel shop will need to work hard to differentiate itself and attract customers.
Regulatory Compliance Food businesses face stringent health and safety regulations, and maintaining compliance can be time-consuming and costly.
For more, see Pros and Cons of Starting a Small Business.
3. Research
Thorough Research is Essential
You must conduct thorough research for the bagel shop business you intend to open before taking any other action.
With quality information, you will know what you’re getting into. Otherwise, you might find yourself in a situation you don’t expect.
Seek Insights from Experienced Individuals
One way to get the best information is from people experienced in running a bagel shop.
They are qualified to give you information you can depend on. The time you spend with them can be priceless and an opportunity to gain insights from their knowledge and years of experience.
Finding and Approaching Bagel Shop Experts
I have written an article with ideas to help find the right people to contact and approach them in an acceptable and non-threatening way.
The steps go beyond this post, but I strongly suggest you read the article from the link below to understand what you’re getting into.
See An Inside Look Into the Business You Want To Start for all the details.
Target Audience
Understanding your target audience is essential for a bagel shop. Knowing your target market, you can tailor your offers to appeal to customers and provide products and services that interest them.
This enhances customer satisfaction and increases the likelihood of repeat business and positive word-of-mouth.
Target Market Ideas:
- Breakfast enthusiasts seeking a quick and convenient meal option
- Office workers looking for a tasty and portable breakfast or lunch option
- Health-conscious individuals seeking a variety of fresh and wholesome choices
- Coffee lovers who enjoy pairing their beverage with a delicious bagel
- Students and professionals seeking a cozy and welcoming place to study or work while enjoying a snack.
For more, see How To Understand Your Target Market.
4. Looking at Financials:
Startup Costs:
This section provides an overview of the startup costs of opening a bagel shop, including initial expenses, monthly expenditures, and anticipated profits.
Estimating Startup Costs:
To ensure a smooth and successful launch, accurately estimating your startup costs is crucial.
Underestimating could lead to financial constraints, hindering the opening of your business. Conversely, overestimating may deter potential investors or lenders due to perceived risks.
The size of your operation, chosen location, equipment requirements (new or used), employment decisions, and rental or leasing arrangements all impact your cost estimation.
Research and compile a comprehensive list of needed items, and consider including additional factors that arise during your investigation.
For more detailed information, refer to my article on Estimating Startup Costs.
Sales and Profit:
It’s important to understand that your sales depend on factors such as the appeal of your products and services, market demand, and effective marketing strategies targeting your intended customer base.
Profitability Considerations:
Profitability extends beyond individual sales. It necessitates careful evaluation of various expenses, including rent, payroll, and overhead costs.
Generating sufficient sales to cover monthly expenses and provide a reasonable salary is key to achieving long-term success.
For More, See Estimating Profitability and Revenue
Sample Financial Lists As a Starting Point
Estimated Startup Costs for a New Bagel Shop in the USA
- Lease for Premises (6-month advance): $30,000
- Shop Renovations: $20,000
- Professional Kitchen Equipment: $25,000
- Initial Inventory (Bagels, ingredients, beverages): $5,000
- Furniture and Decor: $15,000
- Business Licenses and Permits: $1,000
- Initial Marketing and Advertising: $3,000
- Signage: $2,000
- Website Design and Setup: $1,500
- POS System: $1,500
- Miscellaneous Expenses: $2,000
Total Startup Cost: $105,000
Estimated Monthly Expenses for a Bagel Shop in the USA
- Lease: $5,000
- Staff Salaries: $7,000
- Utilities (Electricity, water, internet, etc.): $500
- Inventory (Bagels, ingredients, beverages): $4,000
- Marketing and Advertising: $1,000
- Insurance: $500
- POS System and Website Maintenance: $100
- Miscellaneous Expenses: $500
Total Monthly Expense: $18,600
Sample Sales and Profit Breakdown for a Bagel Shop
To calculate potential sales for a bagel shop, you’ll need to estimate the average number of daily transactions and the average transaction value. Let’s break it down:
Assuming your bagel shop is open 30 days a month:
- Average Transaction Value: Consider the average price of a bagel is $3. If a customer buys two bagels, that’s $6. If they add a coffee for $2, that’s $8 per transaction.
- Average Number of Transactions per Day: Suppose your bagel shop is quite popular, and you serve around 125 customers daily. This is just an example and would depend on location, competition, and marketing efforts.
So, if you multiply the average transaction value by the number of transactions per day, you get your daily sales.
Daily Sales = Average Transaction Value * Average Number of Transactions per Day
Daily Sales = $8 * 125 = $1,000
Now, if you multiply the daily sales by the number of days your shop is open in a month (let’s say 30 days), you get your monthly sales:
Monthly Sales = Daily Sales * Number of Days Open per Month
Monthly Sales = $1,000 * 30 = $30,000
Assuming a sales revenue of $30,000 per month:
- Gross Sales: $30,000
- Minus Total Monthly Expenses: -$18,600
- Equals Net Profit Before Taxes: $11,400
This is a simplistic way to estimate sales; the figures can vary greatly.
Factors such as holidays, weather, special promotions, local events, and more can cause the number of transactions and the transaction value to fluctuate.
5. Choosing The Right Business Location
Your bagel shop’s location selection can significantly influence its success or failure.
Setting up a shop with no appetite for bagels or where the market is already saturated with bagel shops can pose severe challenges immediately. Too little demand can hinder your business growth, while too much competition can make it tough to carve out a niche for your shop.
Ideally, you want to establish your bagel shop in an area with a strong demand for quality bagels but where the competition is manageable.
Additionally, it’s critical to find a location that fits your budget. Operating in a bustling city center can increase visibility and foot traffic, but the higher rental costs need to be offset by robust sales to ensure profitability.
On the other hand, a less expensive suburban area may reduce overhead costs but could also limit your customer base, potentially impacting your shop’s revenue.
Selecting the right location for your bagel shop is critical to your business strategy. Do your homework and research the market meticulously before making a decision!
For more about business locations, see Choosing The Best Location for Your Business.
6. Create Your Mission Statement
A mission statement plays a vital role in identifying the purpose of your bagel shop.
It serves as a guiding compass, keeping you focused and reminding you of the primary value you aim to deliver to your customers and community.
Examples of Bagel Shop Mission Statements:
- “Our mission is to delight customers with freshly baked, handcrafted bagels that bring people together over great food and create a sense of warmth and community.”
- “At our bagel shop, we are dedicated to providing a wide selection of high-quality, made-from-scratch bagels, spreading joy and satisfaction with every bite while fostering connections within our local neighborhood.”
- “We strive to be the go-to destination for bagel enthusiasts, offering a diverse range of unique flavors and top-notch customer service, all while contributing to the vibrancy and growth of our community.”
For more, see, How To Create a Mission Statement
7. Creating A Unique Selling Proposition (USP)
A Unique Selling Proposition (USP) assists in identifying and developing distinctive aspects that set your bagel shop apart from competitors.
It helps you create something unique that captures customers’ attention and differentiates your business in the market.
USP Examples for a Bagel Shop:
- “Our bagel shop stands out by offering gluten-free and vegan options, catering to diverse dietary preferences without compromising on taste or quality.”
- “With our bagel shop, customers experience the novelty of a build-your-own bagel concept, allowing them to personalize their creations with an extensive array of fresh toppings and spreads.”
- “Our bagel shop sets itself apart by using locally sourced, organic ingredients to craft artisanal bagels that deliver exceptional flavor and support sustainable farming practices.”
8. Choose a Business Name
Choosing the Perfect Bagel Shop Name
When selecting a name for your bagel shop, it’s essential to opt for something catchy and fitting.
The ideal name should be easy to pronounce and memorable, as it will likely remain unchanged throughout your business ownership.
Additionally, securing a matching domain name for your online presence is crucial. Conduct thorough research to ensure that your desired name isn’t already registered by another business.
To ignite your creativity and assist you in creating an original business name, here is a list of 30 inspiring ideas for your bagel shop:
- Bagel Bliss
- Doughy Delights
- Freshly Baked Bagels
- The Bagel Haven
- Tasty Rounds
- Bagelicious
- Crispy Crusts
- The Bagel Co.
- Savory Bagel Bites
- Sunrise Bagels
- Gourmet Bagel Bar
- Oven-Fresh Bagels
- The Bagel Spot
- Bite-Sized Bagels
- Bagel Emporium
- Wholesome Bagel Bakery
- Bagel Boulevard
- Heavenly Holes
- Crusty Cravings
- Bagel Bonanza
- The Bagel Basket
- Bagel Street Cafe
- Flavorful Rounds
- Bagel Junction
- Toasted Treasures
- The Bagel Oasis
- Bagel Euphoria
- Dough Delights
- Bagel Central
- Artisan Bagel Works
Use these suggestions as a starting point to unleash your creativity and develop a unique and captivating name for your bagel shop.
For more, see the following articles:
9. Register Your Company
Ensuring Legal Compliance for Your Bagel Shop
It’s crucial to ensure that your bagel shop operates within the bounds of the law.
Taking the necessary legal steps establishes your business’s legitimacy and protects you from potential liabilities.
Consider consulting with a professional to ensure you have the best setup for tax benefits and liability protection.
Business Registrations for a Bagel Shop:
When setting up your bagel shop, you may need to consider various types of registrations, depending on your location and business structure. Common types of registrations for a bagel shop include:
- Business Entity Registration: Register your bagel shop as a sole proprietorship, partnership, limited liability company (LLC), or corporation. This step formalizes your business structure.
- Employer Identification Number (EIN): Obtain an EIN from the Internal Revenue Service (IRS) if you plan to hire employees or have a business structure other than a sole proprietorship.
- State and Local Business Licenses: Check with your local government and state authorities to determine if you need specific licenses or permits to operate a bagel shop legally.
Permits and Licenses for a Bagel Shop:
In addition to registrations, specific permits, and licenses may be necessary for your bagel shop. Here are some permits and licenses to consider:
- Food Service Permit: Obtain a food service permit to ensure compliance with health and safety regulations in handling and serving food.
- Seller’s Permit: If your bagel shop sells taxable goods, you may need a seller’s permit to collect and remit sales tax.
- Signage Permit: Check local regulations to see if you require an outdoor signage or advertising permit.
- Fire and Safety Certificates: Ensure compliance with fire and safety regulations by obtaining the necessary certifications.
Remember, requirements can vary based on location and specific circumstances, so it’s important to research and consult local authorities to determine the specific registrations, permits, and licenses needed for your bagel shop.
For more, see the following articles:
Registration:
- How to Register Your Business
- How To Register a Business Name
- How To Register a DBA
- How to Register a Trademark
- How to Get a Business License
Business Structures:
- How to Choose a Business Structure
- Pros & Cons of a Sole Proprietorship
- How To Form an LLC
- How To Register a Business Partnership
- How To Form a Corporation
Services:
10. Create Your Corporate Identity
A strong Corporate Identity (ID) is essential for your bagel shop business. It encompasses design elements that represent your brand consistently across various components. These include your logo, business cards, website, business sign, stationary and promotional items.
Having a cohesive and professional Corporate ID is crucial to leave a lasting impression on both new and existing customers.
It reinforces your brand’s image, builds trust, and creates recognition in the marketplace.
By maintaining a consistent and visually appealing design, you can enhance the perception of your bagel shop, attract customers, and foster customer loyalty.
Investing in a well-crafted Corporate ID demonstrates your commitment to professionalism and quality, establishing a strong foundation for your bagel shop’s brand identity.
It visualizes your business values, helping you stand out in a competitive market and create a lasting impression that resonates with customers.
See A Complete Introduction to Corporate Identity Packages for more.
11. Writing a Business Plan
A Fictitious Business Plan Example for a Bagel Shop
Business Plan for “Rolling Dough Bagel Shop”
Executive Summary
Rolling Dough Bagel Shop aims to be a premiere destination in [City, State] for fresh, artisan bagels in a vibrant and welcoming environment.
Our commitment to quality ingredients, unique bagel flavors, and exceptional customer service will set us apart from other breakfast venues in the area.
Company Description
Rolling Dough is a start-up bagel shop in the heart of [City]. Founded by [Your Name], a bagel enthusiast passionate about hospitality, the business seeks to serve locals and tourists with various delicious bagels, coffee, and other breakfast items.
Market Analysis
Industry Overview: The bakery-café sector, which includes bagel shops, has been steadily growing over the past five years, with an increasing demand for gourmet offerings and healthier options.
Target Market: Our primary target market includes residents and working professionals in [City], aged 18-45 who value a quality, quick, and wholesome breakfast option. Additionally, we hope to attract tourists seeking a local culinary experience.
Competitive Analysis: While there are other bagel shops and cafés in the area, Rolling Dough will distinguish itself through its artisan bagel variety, commitment to local ingredients, and warm, community-focused atmosphere.
Business Structure and Management
Rolling Dough Bagel Shop will begin as a small business with [Your Name] as the owner and manager, assisted by a team of dedicated staff, including a head baker, baristas, and front-of-house personnel.
Products and Services
Rolling Dough will offer various freshly baked bagels, unique homemade spreads, locally-sourced coffee, and other breakfast items. We will also provide catering services for local businesses and private events.
Marketing and Sales Strategy
We will use social media, local press, and partnerships with other local businesses to raise awareness about our shop. Customer loyalty will be encouraged through a rewards program. We will also engage the community through local events and charitable initiatives.
Financial Projections
Our projected first-year revenue is $360,000, based on an estimated average of 125 daily transactions at an $8 transaction value.
Our startup costs, including lease, renovation, equipment, and initial inventory, amount to $105,000. Monthly expenses, including lease, salaries, utilities, and inventory, will be approximately $18,600.
Funding Request and Exit Strategy
We are seeking an investment of $130,000 to cover startup costs and provide working capital for the first few months of operation.
In the event of a sale of the business or other exit, we plan to ensure a return on investment for any financial backers.
Please note this is a simplistic sample business plan, and your actual business plan may require more detail and specifics tailored to your unique situation.
Consider working with a business advisor or doing further research to complete a comprehensive business plan.
For information on creating your business plan, see, How to Write a Business Plan.
12. Banking Considerations
Choosing a Bank and Setting Up Accounts
Consider choosing a nearby bank that caters to business owners. Having a separate business account offers several advantages, including streamlined expense tracking, simplified bookkeeping, and providing proof during tax audits.
Building a Professional Relationship
Developing a professional relationship with your banker is also a good idea. They can assist you with advice and financial services and streamline applications for your bagel shop’s needs.
Accepting Credit and Debit Cards
You will also want to consider applying for a merchant account or a similar setup to accept credit and debit cards. This provides a convenient payment option for your customers and enhances their experience.
By partnering with a business-focused bank, maintaining a dedicated business account, and offering flexible payment options, you can effectively manage your finances and create a seamless customer experience.
For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.
13. Getting the Funds for Your Operation
Obtaining Funding for Your Bagel Shop
If you require financial assistance to start your bagel shop, the following tips can guide you in securing a loan:
- Exploring Funding Options: Various funding options are available to support your bagel shop, including traditional lenders, private loans, investors, and selling assets. Consider the most suitable option for your specific needs and circumstances.
- Meeting with a Loan Officer: When meeting with a loan officer, there are several considerations to keep in mind:
- Prepare a comprehensive business plan that outlines your bagel shop’s concept, market analysis, financial projections, and growth strategies.
- Be ready to explain your industry experience, qualifications, and how you plan to manage and operate the business.
- Highlight the unique selling points of your bagel shop and emphasize the market demand for your products.
- Present a realistic financial forecast that demonstrates your ability to repay the loan.
- Required Documents for a Business Loan Application (Sample):
- Completed loan application form
- Business plan and executive summary
- Personal and business financial statements
- Income tax returns (personal and business)
- Legal documents (licenses, permits, registrations)
- Collateral information (if applicable)
- Projections of cash flow and financial statements
By carefully considering funding options, preparing necessary documents, and effectively presenting your bagel shop’s potential, you can increase your chances of securing the funds needed to start and operate your business.
See, Getting a Small Business Loan for more.
14. Software Setup
Software Considerations for Your Bagel Shop
When setting up your bagel shop, carefully considering the necessary software is crucial. Here are some important factors to keep in mind:
- Ease of Implementation: Research software options early on, as it’s generally easier to implement a program from scratch rather than switch to a new system once your data is already in another program.
- User Feedback and Reviews: Look for software demos and read reviews and forums to gather insights from others who have experience with the software. This can help you make an informed decision.
- Financial Tracking and Tax Preparation: Research software solutions for tracking expenses and preparing financial documents for tax filing. Consult with your bookkeeper or accountant to select the right accounting software that suits your bagel shop’s specific needs.
Software Options to Consider for Your Bagel Shop:
- Point of Sale (POS) System: Look for a POS system that efficiently handles sales transactions, tracks inventory, manages customer data, and generates sales reports.
- Accounting Software: Consider using accounting software that simplifies financial management, tracks income and expenses, and provides comprehensive reporting features.
- Inventory Management Software: Explore inventory management software that helps you track and manage your bagel shop’s ingredient inventory, ensuring efficient stock control and reducing waste.
- Employee Scheduling Software: Look for employee scheduling software that streamlines staff scheduling, tracks employee hours, and facilitates effective shift management.
- Online Ordering and Delivery Platforms: Consider utilizing online ordering and delivery platforms that integrate seamlessly with your bagel shop, providing convenient options for customers to place orders and track deliveries.
15. Get The Right Business Insurance
For more, see What to Know About Business Insurance.
16. Select Suppliers
Choosing Reliable Suppliers for Your Bagel Shop
Building strong relationships with your suppliers is essential for the success of your bagel shop. Having trustworthy and dependable suppliers is a key factor that directly impacts your business.
Benefits of a strong supplier relationship:
- Competitive Pricing: Establishing a reliable partnership with suppliers enables you to access competitive prices for ingredients and supplies. This allows you to pass on savings to your customers and improve your profit margin.
- Consistent Stock Availability: Dependable suppliers ensure you always have an adequate supply of necessary ingredients and materials. This allows you to maintain smooth operations without interruptions.
To maintain a healthy working relationship with your suppliers, it’s crucial to treat them respectfully and ensure they also benefit financially. This fosters mutual trust and strengthens the partnership, resulting in a more efficient supply chain for your bagel shop.
By prioritizing reliable suppliers, cultivating positive relationships, and ensuring mutual benefits, you can create a strong foundation for your bagel shop’s success and ensure a consistent flow of quality ingredients for your delicious creations.
For More See, How To Choose a Supplier.
17. Physical Setup
Layout:
A bagel shop’s physical setup and layout are crucial in creating an inviting and efficient space. With a well-planned layout, you can optimize workflow, ensure customer comfort, and maximize operational efficiency.
Consider factors such as:
- Counter placement
- Seating arrangements
- Kitchen organization
These considerations help create a seamless flow throughout the shop, enhancing customer experience and staff productivity.
Signage:
In addition to installing your main business sign, signage throughout your bagel shop is essential—place signs strategically in relevant locations, including parking lots, exits, and designated areas.
Well-designed signage:
- Directs customers
- Reinforces your brand
- Showcases professionalism in your operation
You contribute to positive customer perception and overall experience by utilizing signage effectively.
Office Setup:
Managing your bagel shop effectively requires an organized and well-equipped office space. A properly arranged office enhances productivity and efficiency in handling administrative tasks.
Ensure your office is equipped with the following:
- Computers
- Printers
- Filing cabinets
- Office Supplies
Creating a functional workspace allows you to effectively manage day-to-day operations, handle paperwork, and make informed decisions to drive the success of your bagel shop.
See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.
18. Creating a Website
Benefits of Having a Website for Your Bagel Shop
A website for your bagel shop offers several advantages in today’s digital age. Here are some key benefits:
- Online Presence: A website allows you to establish an online presence, making it easier for potential customers to find and learn about your bagel shop.
- Increased Visibility: With a website, you can reach a wider audience, including local customers and tourists searching for bagel options in your area.
- Showcase Your Products: Your website serves as a platform to showcase your menu, specialty bagels, promotions, and other enticing offerings, enticing customers to visit your shop.
- Convenience for Customers: A website lets customers conveniently browse their menu, place online orders, and access important information such as store hours and location.
- Brand Building: Your website contributes to building a strong brand image, allowing you to showcase your unique story, values, and passion behind your bagel shop.
- Customer Engagement: Engage with your customers through your website by sharing news, updates, and special events, fostering a sense of community and loyalty.
Investing in a well-designed and informative website can significantly enhance your bagel shop’s visibility, customer engagement, and overall success in the competitive food industry.
For more, see How to Build a Website for Your Business.
19. Create an External Support Team
Building an External Support Team for Your Bagel Shop
Having an external support team of professionals is invaluable for your bagel shop. These individuals provide advice and services that can greatly contribute to your business’s success, and they are not part of your regular payroll.
Importance of an External Support Team:
Ideally, you can engage their services on a per-use, contractual, or hourly basis. While you may already work with some professionals individually, considering them as part of your team helps you recognize their significance and may inspire you to expand your network.
Building Professional Relationships:
You don’t need to have all team members in place before starting your bagel shop, as building professional relationships takes time. However, it is essential to continue working on this aspect.
Examples of Professionals to Include:
A strong support team may include professionals such as:
- Accountant
- Lawyer
- Financial Advisor
- Marketing Specialist
- Technical advisors
- Consultants
By assembling a trusted and diverse external support team, you can tap into their expertise and resources to navigate challenges, make informed decisions, and drive the growth of your bagel shop.
For more, see, Building a Team of Professional Advisors for Your Business.
20. Hiring Employees
Managing Human Resources for Your Bagel Shop
During the early stages of operating your bagel shop, you may consider handling everything independently to minimize expenses.
This approach can work well initially, as payroll is a significant cost, especially in the startup phase.
However, as your business grows, it may become challenging to single-handedly manage and operate all aspects. At this point, hiring employees can greatly enhance productivity, provided you recruit the right individuals.
List of Essential Jobs for Running a Bagel Shop:
The following are job positions or outsourced services you may want to consider as your bagel shop grows and becomes successful:
- Baker: Responsible for crafting and baking delicious bagels to meet customer demand.
- Customer Service Representative: Handles customer inquiries, takes orders, and ensures exceptional service.
- Cashier: Manages cash transactions, operates the register, and provides a friendly checkout experience.
- Barista: Prepares and serves specialty coffee and other beverages to accompany the bagels.
- Kitchen Staff: Assists with food preparation, including slicing, toasting, and assembling bagel sandwiches.
- Shift Manager: Oversees daily operations, ensures smooth workflow, and addresses any issues.
- Delivery Driver: Delivers orders to customers promptly and efficiently if offering delivery services.
- Bookkeeper: Manages financial records, handles payroll, and ensures accurate bookkeeping.
- Marketing Specialist: Develops marketing strategies, promotes the bagel shop, and attracts new customers.
- Cleaning Crew: Maintains cleanliness and hygiene throughout the shop, including dining areas and kitchen.
As your bagel shop grows, the need for these positions or outsourced services may arise to effectively manage operations, provide excellent customer service, and drive business growth.
For more, see, How and When to Hire a New Employee.
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Points To Consider
Hours of Operation:
Consider the following hours of operation for a bagel shop:
- Morning Operation: Open early, starting at 6:00 AM or earlier, to cater to breakfast customers.
- Extended Hours: Consider closing later, around 5:00 PM or later, to accommodate lunchtime and late afternoon customers.
- Weekend Hours: Open on Saturdays and Sundays to serve customers looking for weekend breakfast or brunch options.
- Holiday Hours: Adjust hours to align with holidays or special occasions, extending operating hours if necessary.
- Seasonal Variations: Adapt hours based on seasonal fluctuations in demand, such as during summer or local events.
Evaluate local market conditions, customer preferences, and competition to determine the optimal hours of operation for your bagel shop.
Regularly review and adjust hours to ensure you effectively serve customers and maximize business success.
Equipment
A List of Equipment and Supplies to Consider for a Bagel Shop:
Baking Equipment
- Commercial Bagel Dough Mixer
- Bagel Divider and Former
- Bagel Boards
- Bagel Scoop
- Bagel Kettle
- Revolving Tray Oven
- Baking Sheets
- Cooling Racks
- Dough Cutter
- Mixing Bowls
- Measuring Cups and Spoons
- Baking Utensils (spatulas, whisks, etc.)
Display and Serving Equipment
- Display Cases for Bagels
- Serving Trays
- Bread Baskets
- Sneeze Guards
- Tongs for Serving
- Countertop Display Rack for Packaged Goods
Coffee and Beverage Equipment
- Commercial Coffee Maker
- Espresso Machine
- Coffee Grinders
- Milk Frother
- Blenders (for smoothies and blended beverages)
- Ice Machine
- Refrigerated Beverage Dispenser
Kitchen Appliances and Tools
- Commercial Toaster
- Commercial Microwave
- Refrigerator
- Freezer
- Food Processor
- Cutting Boards
- Knives
- Utensil Holders
Cleaning and Sanitation Equipment
- Dishwasher
- Three-Compartment Sink
- Hand Washing Sink
- Cleaning Tools (mops, brooms, buckets, etc.)
- Trash Cans and Recycling Bins
Point of Sale (POS) and Technology
- POS System
- Cash Register
- Credit Card Processing Machine
- Telephone System
Furniture
- Tables
- Chairs
- Outdoor Patio Furniture (if applicable)
- Shelving Units for Storage
Remember, the specific equipment you need will depend on your bagel shop’s size, menu, and local health department regulations. Always ensure that your equipment meets the necessary safety and health standards.
Marketing Considerations
Attracting Customers to Your Bagel Shop
A bagel shop without customers is not a real business. So to succeed, you must attract customers. It’s harder initially because your operation is new, and people don’t know about it.
Building Reputation and Marketing Experience
Assuming you build a good reputation, it will get easier as time passes. You will also have more marketing experience.
Ongoing Marketing Efforts
Marketing your bagel shop is an ongoing process. The more you invest in effective marketing techniques, the more revenue you generate.
Take Charge of Your Marketing
You don’t always need a marketing agency or expert to market your business. You can always do that if needed. To simplify your marketing process, think of it as bringing awareness to your business, which you can do anytime an opportunity arises.
You can reach potential customers, increase visibility, and drive business growth by actively promoting your bagel shop.
Remember, marketing is a vital component that fuels customer acquisition and contributes to the long-term success of your bagel shop.
See our article How To Get Customers Through the Door and our marketing section for articles that will provide ideas to bring awareness to your bagel shop.
Skill Set:
Evaluating Your Skill Set for Running a Bagel Shop
It’s important to assess your skill set and determine your ability to successfully run a bagel shop.
Recognizing your strengths and weaknesses lets you make informed decisions about acquiring the right skills.
Remember, if you lack a crucial skill, you can learn it yourself or hire someone with the expertise needed.
Essential Skills for a Bagel Shop Owner:
- Baking and Culinary Skills: Proficiency in preparing and baking bagels and knowledge of various flavors and techniques.
- Business Management: Skills in managing operations, finances, inventory, and personnel to ensure smooth business functioning.
- Customer Service: Ability to provide excellent customer service, handle inquiries, and maintain positive customer relationships.
- Marketing and Promotion: Competence in developing marketing strategies, promoting the bagel shop, and attracting new customers.
- Time Management: Effective time management skills to balance multiple tasks, prioritize responsibilities, and meet operational demands.
- Problem-solving: Capacity to identify and resolve issues that arise in daily operations, such as equipment malfunctions or customer complaints.
- Communication: Strong communication skills to interact with customers, employees, suppliers, and other stakeholders effectively.
- Creativity: A creative mindset to innovate new bagel flavors, design appealing displays, and develop unique offerings.
By focusing on acquiring or leveraging these essential skills, you can enhance your ability to successfully operate a bagel shop and provide a delightful experience to customers.
Final Thoughts on Starting a Bagel Shop
Starting a bagel shop is a flavorful way to combine your love for baking with real business potential.
With the right preparation, consistent quality, and a welcoming atmosphere, your shop can become a daily stop for locals and a must-visit for newcomers.
Use this guide as your starting point and take each step with purpose—your journey to owning a successful bagel shop begins here.