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Updated RecentlyPanera Bread/Saint Louis Bread Company vs Breadsmith Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Panera Bread/Saint Louis Bread Company vs Breadsmith including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $1,010,985 - $2,252,846 | $380,250 - $454,750 |
| Franchise Fee | $35,000 | $30,000 |
| Royalty Fee | 5% | 7% - 5% |
| Advertising Fee | - | - |
| Year Founded | 1987 | 1993 |
| Year Franchised | 1993 | 1993 |
| Term Of Agreement | 20 years | 15 years |
| Term Of Agreement | 20 years | 15 years |
| Renewal Fee | - | $500 |
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 | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | No/Yes |
| Start-up Costs | No/No | No/Yes |
| Equipment | No/No | No/Yes |
| Inventory | No/No | No/Yes |
| Receivables | No/No | No/Yes |
| Payroll | No/No | No/Yes |
Training & Support |
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| Training | - | On-The-Job Training: 219.5 hours Classroom Training: 51 hours |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Purchasing Co-ops Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform |
| Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | Ad Templates Social media SEO Website development Email marketing |
| 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) |
10% of all franchisees own more than one unit Number of employees needed to run franchised unit: 20 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 | No | No |
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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#38 on Franchise Rankings.com
About Breadsmith
While studying in Norway, college student Dan Sterling got his first taste of European bread. Sterling returned to the United States and graduated from Harvard Business School before starting his own company. But he never lost his love of bread, and after volunteering to help a local bakery with its accounting, he decided to launch a bakery of his own. He opened the first Breadsmith location in 1993, and the company began franchising in 1994.
The total investment necessary to begin operation of a Breadsmith
primary franchise store is $380,250 to $449,750 ($377,250 - $451,750 for
veterans). This includes $100,000 to $115,000 (less $3,000 if you are a
veteran) that must be paid to the franchisor or affiliate.
An
additional investment of $95,500 to $163,500 is necessary if a satellite
location is opened in connection with the primary store. This includes
$5,000 that must be paid to the franchisor or affiliate.
Veteran Incentives 10% off franchise fee
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#333 in Franchise 500 for 2020.
#333 in Franchise 500 for 2021.