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Below is an in-depth analysis and side-by-side comparison of Erik's DeliCafe vs Mrs. Powell's Bakery Eatery including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $303,500 - $521,600 | $125,000 - $160,000 |
Franchise Fee | $35,000 | $25,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | - | 3% |
Year Founded | 1973 | 1984 |
Year Franchised | 1986 | 1986 |
Term Of Agreement | 10 years | 10 Years +10 |
Term Of Agreement | 10 years | 10 Years +10 |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | 1. Head Office 1 Week 2. Franchised Store 1 Week 3. Own Store 1 Week |
Support | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Field Operation Evaluation Field Training Initial Store Opening Inventory Control Franchisee Newsletter Regional or National Meetings: At Additional Cost |
Marketing | Co-op advertising, Ad slicks | - |
Operations |
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) | Average Number of Employees: 2 Full-time, 4 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | - |
International Expansion | No | Yes |
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.
Mrs. Powell's has been in business since 1984. We specialize in Cinnamon Rolls, but we do much more than that! We have white and wheat bread, dinner rolls, sugar cookies, chocolate chip cookies, brownies, soup, sandwiches and so much more. What we really do is take care of one of the things you don't have time for anymore - baking. We cater and are always up for custom creations.