Panera Bread/Saint Louis Bread Company vs Sprinkles Cupcakes Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Panera Bread/Saint Louis Bread Company vs Sprinkles Cupcakes 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
Sprinkles Cupcakes Franchise
Investment $1,010,985 - $2,252,846$576,000 - $1,075,000
Franchise Fee $35,000N/A
Royalty Fee 5%-
Advertising Fee --
Year Founded 19872012
Year Franchised 19932020
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee --


Business Experience Requirements
 
Panera Bread/Saint Louis Bread Company Franchise
Sprinkles Cupcakes 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

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Financing Options
 
Panera Bread/Saint Louis Bread Company Franchise
Sprinkles Cupcakes Franchise
  In-House/3rd PartyIn-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
 
Panera Bread/Saint Louis Bread Company Franchise
Sprinkles Cupcakes Franchise
Training --
Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations-
Marketing 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: 40 - 60

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

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Expansion Plans
 
Panera Bread/Saint Louis Bread Company Franchise
Sprinkles Cupcakes Franchise
US Expansion YesYes
Canada Expansion No-
International Expansion NoYes

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 Sprinkles Cupcakes

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Sprinkles opened “the world’s first cupcake bakery” in Beverly Hills, as reported by the Food Network, and is credited by the Los Angeles Times as “the progenitor of the haute cupcake craze.” Founded by Candace Nelson, judge on Food Network’s hit show “Cupcake Wars,” and husband Charles, Sprinkles has inspired long lines of devoted Hollywood stars and serious epicureans alike. From Tom Cruise to Oprah Winfrey, Blake Lively to Ryan Seacrest, celebrities are abuzz about Sprinkles!
Baked fresh in small batches throughout the day, Sprinkles Cupcakes are handcrafted from the finest ingredients and contain no preservatives, trans fats or artificial flavors. Sprinkles has locations nationwide, a traveling Sprinklesmobile - the world’s first cupcake truck, and sells its cupcake mixes at over 250 Williams-Sonoma stores throughout the US and Canada.
In 2012, Sprinkles debuted the world’s first Cupcake ATM and continued its foray into classic American desserts with the launch of Sprinkles Ice Cream & Cookies.
“The Sprinkles Baking Book” hit the New York Times Best Sellers list in October, 2016.

The total investment necessary to begin operation of a Production Bakery is $781,000 to $1,075,000. This includes $40,000 to $43,250 that must be paid to the franchisor or affiliate.
The total investment necessary to begin operation of a Pantry Bakery is $576,000 to $895,000. This includes $40,000 to $43,250 that must be paid to the franchisor or affiliate. The franchisor and you may choose to sign a Development Rights Agreement under which you will develop a number of Sprinkles Cupcakes Bakeries. The franchisor expects the Development Rights Agreement to cover between 2 and 10 Sprinkles Cupcakes Bakeries.
The total investment necessary to begin operation under a Development Rights Agreement is $40,500 to $202,500. This includes $40,000 to $200,000 that must be paid to the franchisor or affiliate.