Fresh Out of the Oven: 5 of the UK's Best Baked Goods Franchises
Becky Martin, writer
Many of the British public’s favourite foods are considered baked goods. From biscuits and cake to bread and pies, there’s nothing quite so comforting as oven-fresh indulgence. In this article, we are going to explore five of the best baked goods franchises in the UK that you can get your teeth into.
The UK bakery industry constitutes one of the largest markets in the food industry. While the bread market alone is worth around £3.6 billion (The Federation of Bakers Ltd), the entire baked goods market generates annual revenue of £8 billion (IBISWorld). Employing approximately 80,000 people and having grown at a rate of two percent each year for the last five years, it can be considered a stable industry that plays a vital role in the UK economy. Concerns about health and the rising levels of obesity in society have resulted in innovative product development and ensure bakeries will have to continue adapting to survive.
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Based on the number of outlets, the top four retailers that sell baked goods as the primary element of their food offering are Subway, Costa, Greggs and then Starbucks. If you want to give some of these leading brands a run for their money, read on to discover more about five of the best baked goods franchises in the UK.
What’s the difference between a baked goods franchise and an independent baked goods business?
One of the most significant divisions in the baked goods industry is the split between independents and franchises. However, the two types of store aren't in as direct competition as it seems. The independent category tends to include artisanal stores that specialise in baked goods - sold at a relatively high price - and are often influenced by continental bakeries. On the other hand, franchises tend to specialise in a single type of good and are likely to be an import from the US or other important international markets.
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Five of the UK’s best baked goods franchises
1.Cinnabon
Cinnabon was established in 1985 as a father and son business that aimed to make the greatest cinnamon roll on the market. The first store was opened in Seattle, and the business soon spread across the US, finding particular success in shopping centres and as part of larger retail spaces. It has now expanded internationally and is looking for suitable franchisees to open new locations in the UK.
How much does it cost to invest in this baked goods franchise?
Prospective franchisees will need to raise a total of £139,200 if they want to open their own unit. There are two franchising options available to investors – the in-line store or the takeaway kiosk. Cinnabon looks for individuals with expertise in the real estate market, as well as business management and marketing.
What will I get in return for my investment?
In return for their investment, franchisees will be provided with high-quality training and supported throughout the set-up process. The central franchising team at Cinnabon are one of the most experienced in the baked goods industry and will be able to provide excellent guidance and assistance from your first moment as a franchisee to your last.
Who is the ideal franchisee?
The ideal Cinnabon franchisee is someone who has experience in food service management as an owner or operator. You should also have industry-specific expertise, as well as being extremely knowledgeable in local marketing, project management, human resources and real estate.
2.Wafflemeister
Though the original Wafflemeister business was founded in 1999, the waffle recipe it uses can trace its origins back 50 years to the founder’s secret family recipe. Since 2000, the business has focused on bringing its famous Belgian waffles to customers around the world, with a particular emphasis on European and UK markets.
What investment does Wafflemeister ask for?
To become a Wafflemeister franchisee, you’ll need to raise anywhere between £100,000 and £150,000. Wafflemeister offers franchisees the opportunity to open either a kiosk or in-line store, with the cost varying depending on the size and style of the store. The franchise charges a five percent +VAT management service fee, as well as 1.5 percent +VAT marketing fee.
What do I get in return?
Franchisees will take part in a four-week bootcamp training programme that ensures all areas of the operation are understood. You’ll also receive assistance with shop construction and fitting, recruitment and marketing. To top it all off, franchisees will be trained to meet the standards expected by the central franchisor and will have access to a dedicated franchise liaison executive.
3.Dunkin’ Donuts
Finally, Dunkin' Donuts is one of the most reputable big name brands in the baked goods industry. Specialising in fresh coffee and glazed doughnuts, it's built a cult following for its products and has opened shops in a large number of international markets. Founded in 1950 by William Rosenberg, the business quickly expanded beyond its home state of Massachusetts and set up stores around the US. Today, it's a truly global franchise.
How much does it cost to invest in this baked goods franchise?
To become a Dunkin' Donuts franchisee, you'll need access to liquid assets worth around £1,200,000 and a net worth of roughly £2,300,000. While this may seem like a particularly substantial investment, the Dunkin' Donuts brand is so well known that its franchise stores can easily command such a price.
What training and support will I get?
In return for their investment, franchisees receive help creating their Dunkin’ Donuts stores, as well as marketing, management and operations guidance. All franchisees are put through an extensive training regime and fully prepared for their future role. The majority of training is delivered via classroom lectures and e-learning resources, though there are also some residential courses to attend.
Am I the right fit?
If you want to be part of a world-renowned brand that has over 11,000 global locations, and dream of developing at least 20 restaurants, Dunkin’ Donuts encourages you to express your interest. It’s on the lookout for candidates that have experience in the foodservice sector and the necessary negotiation skills to secure a premium location.
4.Bagel Corner
This baked goods franchise specialises in bagels and is a firm favourite of customers in France. Founded in 2010, Bagel Corner has been providing quality bagels as part of a quick service restaurant (QSR) concept. And it certainly is quick. Customers get served just over one minute after ordering. So, with rapid service, attractive prices and fresh ingredients, it’s no surprise that Bagel Corner has expanded to 30 locations. But it’s now looking to infiltrate the UK market through franchising.
What is the investment?
To get accepted as a Bagel Corner franchisee, you will need to make a minimum investment of £500,000. In return for this, you will take part in a comprehensive 10-day training programme that includes on-site training and ongoing support.
Am I what Bagel Corner is looking for?
Bagel Croner is looking for regional and master franchisees who have access to the required investment to apply.
5.Baguette Express
Baguettes are a cult favourite as a nutritious lunchtime meal. Consumers pick from a range of delicious fillings, which means Baguette Express can appeal to a wide customer base. The franchise offers fresh salads and aromatic coffee, as well as its soft, custom-made baguettes.
How much will a Baguette Express franchise set me back?
Franchisees need to submit a business plan and a minimum of £20,000-£35,000. Start-up costs are between £55,000 and £100,000, subject to the franchise package that you wish to invest in.
What will I get in return for my investment?
Franchisees will be supported through the site selection process and have access to a two-week training programme. Even when you’ve been in the business for a few years and are making healthy profits, you will still receive ongoing support in sales, advertising, marketing and any problems that arise.
Who is the ideal Baguette Express franchisee?
You can join this franchise without having any experience in the industry, but you do have to be business minded and have the drive to succeed. It also asks that candidates are energetic and happy to work hard for big rewards.
Ready to take a bite out of a baked goods franchise?
The UK is home to a large number of baked goods businesses and a variety of franchising opportunities. The five franchises we've examined here are all high-performing businesses with excellent brand reach. If you're considering opening a franchise in the sector, they should be the first baked goods businesses that you look into.
If you’d also like to check out some other food franchise opportunities. We have a range of healthy food, food truck and natural food franchise opportunities at investment levels to suit everyone’s budget.
Discover other franchise opportunities
Becky Martin, writer