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Updated RecentlyCinnabon vs Panera Bread/Saint Louis Bread Company Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Cinnabon vs Panera Bread/Saint Louis Bread Company including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $23,100 - $430,900 | $1,010,985 - $2,252,846 |
| Franchise Fee | $30,000 | $35,000 |
| Royalty Fee | 6% | 5% |
| Advertising Fee | 1.5% | - |
| Year Founded | 1969 | 1987 |
| Year Franchised | 1986 | 1993 |
| Term Of Agreement | 10-20 years | 20 years |
| Term Of Agreement | 10-20 years | 20 years |
| Renewal Fee | 50% of current franchise fee | - |
Business Experience Requirements |
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| Experience | *Experience as a multi-unit restaurant operator *Recognition as a top restaurant operator *Net worth of $7.5 million *Liquid assets of $3 million *Infrastructure and resources to meet our development schedule *Real estate experience in the market to be developed *Total commitment to the development of the Panera Bread brand *Cultural fit and a passion for fresh bread |
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Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/Yes | No/No |
| Start-up Costs | No/Yes | No/No |
| Equipment | No/Yes | No/No |
| Inventory | No/Yes | No/No |
| Receivables | No/Yes | No/No |
| Payroll | No/Yes | No/No |
Training & Support |
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| Training | On-The-Job Training: 40 hours Classroom Training: 40 hours Additional Training: Additional training annually | - |
| Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
| Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op advertising, Ad slicks, National media, Regional advertising |
| Operations |
Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8 - 10
Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) |
Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit Number of employees needed to run franchised unit: 40 - 60
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | No |
| International Expansion | Yes | No |
Company Overviews
About Cinnabon
Since 1969, malls throughout the world have been filled with the scent of Cinnabon. Each bakery serves fresh and prepackaged cinnamon rolls, Pecanbons (cinnamon rolls topped with pecans and caramel frosting), coffees and other drinks.
If success was a freshly baked treat, it would be Cinnabon®.
- Super sweet average net sales of $861,481 for the top quartile of franchise owners*
- A global, iconic brand with enviable brand awareness and strong affinity with Millennials and Gen Z
- A category leader that dominates the sweet treat segment
- The strong support and tools of FOCUS Brands®
Cinnabon® owns the cinnamon roll
category, and we’re looking for people to grow our legacy and “bake”
good on the promise that is our brand.
The total investment necessary to begin operation of a Full Bakery franchise ranges from $214,050 to $430,900 in a Traditional Location and from $122,500 to $419,200 in a Non-Traditional Location. This includes $30,000 to $30,400 that must be paid to the franchisor or their affiliates.
The total investment necessary to begin operation of an
Express Bakery ranges from $23,100 to $43,500 in a new Schlotzsky’s®
restaurant and from $59,000 to $155,750 in any other location. This
includes $7,500 to $7,900 that must be paid to the franchisor or their
affiliates.
The total estimated investment necessary to begin operation of a Concession Bakery ranges
between $110,000 and $244,600. This includes $5,000 to $5,400 that must
be paid to the franchisor or their affiliates.
Veteran Incentives $5,000 off franchise fee
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#53 in Franchise 500 for 2020.
#35 in Franchise 500 for 2021.
About Panera Bread/Saint Louis Bread Company
After more than 17 years in the retail industry, Ken Rosenthal changed gears and founded Saint Louis Bread Co. in 1987. His goal was to create a neighborhood bakery where people could pick up fresh-baked bread, meals and snacks. In 1993, Rosenthal sold Saint Louis Bread to Au Bon Pain Co. Six years later, the company was renamed Panera Bread.
The future growth of Panera Bread will be based upon company bakery-cafe development as well as the continued sale of franchise area development agreements.
Panera Bread does not sell single-unit franchises, so it is not possible to open just one bakery-cafe. Rather, we have chosen to develop by selling market areas which require the franchise developer to open a number of units, typically 15 bakery-cafes in a period of 6 years.
Panera Bread franchises must be well-capitalized to open great bakery-cafes and meet this aggressive development schedule. Additionally, they must have a proven track record as excellent multi-unit restaurant operators to operate great Panera Bread bakery-cafes.
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#38 on Franchise Rankings.com