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Below is an in-depth analysis and side-by-side comparison of LaMar's Donuts vs Bruegger's including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $288,500 - $366,500 | $389,600 - $591,600 |
Franchise Fee | $28,500 | $30,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | - | - |
Year Founded | 1960 | 1983 |
Year Franchised | 1993 | 1993 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
Renewal Fee | - | 25% of then-current franchise 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 | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | As needed | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations | Grand opening, Field operations/evaluations |
Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | Ad slicks, Regional advertising |
Operations |
Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators) |
Franchisees required to buy multiple units/master licenses; 95% of all franchisees own more than one unit
Absentee ownership of franchise is allowed. (66% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | No |
International Expansion | No | No |
Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.
In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.
When Nord Brue and Mike Dressell started Bruegger's in 1983, they actually founded the retail bagel concept. Up until that point, bagels were considered mostly an ethnic food and were not known much outside of New York. At that time, less than one-third of Americans had ever tasted a bagel. From their home base in Burlington, Vermont, Brue and Dressell pioneered a new concept that expanded the traditional bagel bakery into a quick service bakery with premium specialty cream cheeses, custom-made sandwiches, signature soups and exceptional coffee. They worked with a professional bagel baker from New York City for 2 1/2 years to perfect their recipe and baking process. In 2004, Bruegger's welcomed new ownership and expanded beyond bagels into breads, wraps and other lunchtime menu items, and began updating bakeries to reflect the welcoming feel of a New England farmhouse-inspired bakery-cafe that Bruegger's has evolved into. Today, almost 40 years after the first Bruegger's opened in Troy, New York, there are almost 300 Bruegger's locations throughout the U.S., with more on the way.