House of Bread vs Erik's DeliCafe Franchise Comparison

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

Start-Up Costs and Fees

 
House of Bread Franchise
Erik's DeliCafe Franchise
Investment $157,000 - $347,000$303,500 - $521,600
Franchise Fee $35,000$35,000
Royalty Fee 6%5%
Advertising Fee --
Year Founded 19961973
Year Franchised 19981986
Term Of Agreement 10 years10 years
Term Of Agreement 10 years10 years
Renewal Fee $5K-


Business Experience Requirements

 
House of Bread Franchise
Erik's DeliCafe Franchise
Experience
  • General business experience

  • Industry experience
  • General business experience

  • Financing Options

     
    House of Bread 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

     
    House of Bread Franchise
    Erik's DeliCafe Franchise
    Training --
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperativesNewsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
    Marketing Co-op advertising, Ad slicks, Regional advertisingCo-op advertising, Ad slicks
    Operations 25% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 8

    Absentee ownership of franchise is 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

     
    House of Bread Franchise
    Erik's DeliCafe Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About House of Bread

    After spending six years as a lawyer, Sheila McCann decided to do something different with her life. At Harvard Business School, she researched several business ideas before settling on a bread bakery. McCann had fond memories of baking with her grandmother as a child in Montana. Inspired by her grandmother's spirit of independence and endurance, she founded House of Bread in San Luis Obispo in 1996.

    The company targets its specialty breads to young professionals, health-conscious consumers and baby boomers looking to increase fiber in their diets. House of Bread lets customers sample its healthful, whole-grain breads and watch the bread being made. All stores feature on-site milling.

    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.