Panera Bread/Saint Louis Bread Company vs Erik's DeliCafe Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Panera Bread/Saint Louis Bread Company vs Erik's DeliCafe including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Panera Bread/Saint Louis Bread Company Franchise
Erik's DeliCafe Franchise
Investment $1,010,985 - $2,252,846$303,500 - $521,600
Franchise Fee $35,000$35,000
Royalty Fee 5%5%
Advertising Fee --
Year Founded 19871973
Year Franchised 19931986
Term Of Agreement 20 years10 years
Term Of Agreement 20 years10 years
Renewal Fee --


Business Experience Requirements
 
Panera Bread/Saint Louis Bread Company Franchise
Erik's DeliCafe 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


  • Industry experience
  • General business experience
    		•

    Financing Options
     
    Panera Bread/Saint Louis Bread Company Franchise
    Erik's DeliCafe Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/No
    Start-up Costs No/NoNo/No
    Equipment No/NoNo/No
    Inventory No/NoNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    Panera Bread/Saint Louis Bread Company Franchise
    Erik's DeliCafe Franchise
    Training --
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluationsNewsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
    Marketing Co-op advertising, Ad slicks, National media, Regional advertisingCo-op advertising, Ad slicks
    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: 40 - 60

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    		 78% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 16

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Panera Bread/Saint Louis Bread Company Franchise
    Erik's DeliCafe Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    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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    About Erik's DeliCafe

    After receiving his bachelor's degree in business and marketing, Erik Johnson tried his hand at accounting, security, food service and real estate before purchasing a 600-square-foot store in Scotts Valley, California, back in 1973. With help from his family, Johnson founded Erik's Deli Cafe, a quick-service and catering restaurant that served sandwiches, salads, soups and baked goods.

    Johnson expanded his chain throughout Northern California before selling the first franchise in 1986.