Nestle Toll House Cafe by Chip vs Panera Bread/Saint Louis Bread Company Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Nestle Toll House Cafe by Chip 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
 
Nestle Toll House Cafe by Chip Franchise
Panera Bread/Saint Louis Bread Company Franchise
Investment $43,900 - $499,100$1,010,985 - $2,252,846
Franchise Fee $30,000$35,000
Royalty Fee 6%5%
Advertising Fee 1.5%-
Year Founded 20001987
Year Franchised 20001993
Term Of Agreement -20 years
Term Of Agreement -20 years
Renewal Fee --


Business Experience Requirements
 
Nestle Toll House Cafe by Chip Franchise
Panera Bread/Saint Louis Bread Company Franchise
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


Financing Options
 
Nestle Toll House Cafe by Chip Franchise
Panera Bread/Saint Louis Bread Company Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/YesNo/No
Start-up Costs No/YesNo/No
Equipment No/YesNo/No
Inventory No/YesNo/No
Receivables No/YesNo/No
Payroll No/YesNo/No

Training & Support
 
Nestle Toll House Cafe by Chip Franchise
Panera Bread/Saint Louis Bread Company Franchise
Training --
Support Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluationsNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
Marketing Ad slicks, Regional advertisingCo-op advertising, Ad slicks, National media, Regional advertising
Operations 50% of all franchisees own more than one unit

Number of employees needed to run franchised unit: 6 - 10

Absentee ownership of franchise is allowed. (60% 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
 
Nestle Toll House Cafe by Chip Franchise
Panera Bread/Saint Louis Bread Company Franchise
US Expansion -Yes
Canada Expansion NoNo
International Expansion NoNo

Company Overviews

About Nestle Toll House Cafe by Chip

Ziad S. Dalal and Doyle P. Liesenfelt founded Nestle Toll House Caf'y Chip in 2000 to serve cookies and a variety of other Nestle products. Each cafe' menu features muffins, croissants, scones, rolls, cookies, cakes, biscotti, iced and hot coffees, and other chocolate treats.

The total investment necessary to begin operation of a Nestle Toll House Café by Chip franchise is $214,350 to $499,100 for a dine-in unit, $149,350 to $424,750 for an in-line unit, $145,400 to $311,700 for a kiosk and $43,900 to $112,400 for a non-baking satellite cart or kiosk. This includes $37,500 ($18,750 for a non-traditional venue) that must be paid to the franchisor or affiliate. This also includes an additional $7,500 if a satellite location is included that must be paid to the franchisor or affiliate. If you are acquiring franchise development rights, you will pay the farnchisor a development fee equal to$37,500 for the first Café to be developed and $18,750 for each additional Café to be developed.

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.

"franchiserankingscom"
#38 on Franchise Rankings.com