Bagel is a preferred food item among people of all age groups. It is taken in breakfast as well as in meals. This love for Bagels makes it a very profitable business idea. You can start your Bagel Shop Business and earn a good income.
Bagel Shops serve not just Bagels but also other savories and beverages so that people get all that they need for breakfast or lunch at the same place. So, your Bagel Shop must have the arrangements for all these.
There are two ways to start a Bagel business. One is starting your own from scratch and the other is buying a franchise of a reputed Bagel Shop.
We will cover in this article the steps required to open a bagel shop business of your own.
Bagel Shop Business Plan for Beginners
Once you decide on starting your Bagel Shop Business, you must follow certain steps one after the other to have an organized and structured business that will give you good returns. Let us study the points:
1. Learn How to Make Bagels
Before starting your Bagel Shop Business, you must have a good idea about Bagels. If you know how to bake Bagels, it will be helpful for you. If you don’t know, then take a course on Bagel making and make some at home. Get some idea about the different types of Bagels available in the market and the preferred type of Bagels in different regions.
2. Do the Research
You have to do the market research thoroughly. First of all, you must study the people in the area where you want to start your Bagel Shop. Since Bagels are not high-priced items, affordability will not be a problem. You have to study their preferences.
Take note of the Bagel Shops in the neighboring areas of your Bagel Shop. That will give you a clear picture of the competition you are going to face. That will enable you to plan your strategies accordingly.
3. Find a Proper Location
You must decide on a place for your Bagel Shop Business. Since people prefer to sit and have Bagels with beverages; you need a space for that along with a kitchen for baking fresh Bagels. If you have enough space at your home you can start your Bagel Shop Business from home. Otherwise, you have to rent a space or take it on lease.
4. Make your Bagel Shop Business Plan
Before starting the Bagel Shop Business, make a detailed plan for the business. Write down the details like the location of the shop, rent, and cost of setting up the Shop which includes furniture, equipment, crockery, cutlery, utensils, ovens, salaries of staff, cost of raw materials, and other items.
Make an estimate of the investment you need for the business and how will you manage the finance. If you have enough savings, you can start with that. Otherwise, you can apply for a bank loan or other kinds of funding.
5. Choose the Right Business Model
You have two options in starting your Bagel Store. You can start the shop under your leadership preparing fresh Bagels and selling them. Otherwise, you can go for a franchise and start your Bagel Shop Business under a reputed name.
Both have their advantages and disadvantages. You have to do your local research to know whether the people of the area prefer fresh Bagels or those from reputed brands.
6. Name your Bagel Shop
After deciding on the area, and nature of the business, you have to name your Bagel Shop. Think of a suitable name that applies to Bagels as well as an eatery, where other foods and beverages will also be sold. The name should be relatable and attractive so that customers feel encouraged and interested to buy from your shop.
Book a domain in the name of your Bagel Shop. This is very important for the publicity and profit of your business. If you don’t get the domain, you have to change the name to get the domain.
7. Register your Bagel Shop Business
After the name, you have to give legal status to your business. If you are from the United States, you can opt for LLC for your Bagel Shop Business as it protects your personal assets in case your company comes under financial disputes legally.
8. Obtain Taxes, License, Permits
You have to register your Bagel Shop Business for the necessary taxes and obtain EIN. For the shop selling food items, you need a license from the health department. There are provisions for other licenses which you need to check with the local authorities of the area where your shop will be located.
As the owner of the Bagel Shop Business, you need a Seller’ Permit so that you can collect sales tax from the customers. You also need certain other local permits.
In the case of a food shop, there will be regular inspections by health officials to check the standard of your products. So, never compromise on quality or cleanliness.
9. Open a Business Bank Account
After the legal formalities, open a bank account in the name of your Bagel Shop Business. Keep the accounting of your business very methodical. Hire an experienced accountant for maintaining the accounts.
10. Get the Right Business Insurance
You have to get your business insured. Get General Liability Insurance and Workers’ Compensation Insurance for your Bagel Shop to protect your business from any incidents of accident or mishaps.
11. Calculate the Cost to Start Your Bagel Shop Business
You need an investment of approximately $ 70,000-80,000 to start your Bagel Shop. It will cover the equipment needed, rent, furniture, raw materials, utensils, crockery, cutlery, electricity, taxes, license fees, insurance premium, salaries of staff and sales, marketing, and publicity.
If you want to cut on the start-up cost, you can go to a smaller shop with fewer staff.
12. Expenses of Your Bagel Shop
The expenses of the business will be on rent, salaries, raw materials, equipment, utensils and others, taxes, licenses, insurance and publicity, and marketing.
13. How to Get Clients
The first step in getting clients for your items is to correctly identify target customers. Since Bagels are liked by people of all age groups, your customers will also be people in general, especially the people who prefer a quick filling meal. Bagels are not very expensive food and therefore preferred by people of different economic classes.
Develop an effective promotional plan and reach your prospective customers. Some common tools are flyers, brochures, proportional discount coupons, etc. Social media platforms are highly useful in reaching customers locally.
14. Set Pricing and Profit Margin for Your Bagels
The price of a plain Bagel is between $2.00-$3.00. For cheese and cream Bagels the price is approximately $4.00-$5.00. The other food items and beverages like coffee or smoothies or yogurt also cost roughly the same.
The calculation of profit is based on the number of Bagels you can sell. The more you can sell daily, the more profit you earn. As Bagels have a very good demand, your chances of selling in large numbers are very bright. However, you need a certain period to cover your cost.
15. How to Increase Bagel Shop Profit
There are many things you need to do to increase the profit of your business.
a) Good Quality
Bagels are best preferred as freshly baked food. So always serve the best quality Bagels to your customers. That will attract customers and help in word of the mouth publicity. You can also use fusion in the recipes for attracting customers.
b) Create a Website
Make your website a very attractive and interactive one. Make arrangements for online sales and payment. Keep dedicated persons for delivery. Use reviews of satisfied customers on the website.
c) Social Media Publicity
Use social media platforms like Facebook, Instagram, and Twitter for publicity. Create pages in the name of your Bagel Shop. Use good photographs and reviews. Share the link of the pages on the website also.
d) Post Advertisements
Give regular advertisements in newspapers, and on television. Use flyers, banners, and hoardings in the name of your Bagel Shop.
e) Conduct Regular Surveys
Try to conduct regular surveys from the customers visiting your shop and people in general regarding the quality of your Bagels, the ambiance of your Bagel Shop, and what more the customers expect from your shop.
f) Offer Special Discount
Offer special discounts on festival times. Also, offer some privilege discounts on regular customers and higher billings.
g) Build Your Bagel Shop Brand
Try to build the name of your Bagel Shop as a brand. Do some sponsorship or participate in corporate events in the name of your business. You can also organize a food workshop or cooking classes in the name of your shop. It will not only generate extra income but also spread your name and help to build the brand.
Frequently Asked Questions
What are the wages of workers of a Bagel Shop?
The wages and salaries of staff will depend on the availability of labor in the locality of the bagel shop. However, approximately on average, the wage per hour is between $8 to $12.5.
What is the basic equipment required for a Bagel Shop?
Some of the basic equipment you need to run a bagel shop are an oven, mixer, Bagel Kettles, and Divider.
How much does it cost to open A Bagel Shop?
The cost of opening a bagel shop will largely depend on the size and the location of the shop. The costs include the rent of the space, the cost of making bagels, salaries, and license costs.
The initial start-up cost of starting a bagel shop from scratch in the United States is estimated to be in the range of $1,00,000 to $3,00,000 depending on the location and the number of customers you plan to serve.
How much you can earn from a Bagel Shop?
On average, the cost of making a bagel is in the range of $2.00 to $3.00. If you can sell it at a price of $5.00 the earnings per bagel stand at $2.00. So, for the sale of 100 bagels a day, one can make $200 per day. Therefore, the monthly income for a bagel shop owner with sales of 100 bagels per day stands at $6,000 per month.
What is the cost of a Bagel Shop Franchise?
Again, it will depend on the brand’s reputation. However, the minimum cost of opening a bagel shop franchise is approximately $35000 in the United States.
The general love for Bagels will help to grow your business. With growth, you can also start branches of your Bagel Shop in different locations. According to Statista, the consumption of Bagels in the period between 2020 and 2024 will increase.
Therefore, your Bagel Shop Business has great potential for growth. You have to maintain a very good standard of the food items served and a clean and healthy atmosphere. That will be enough to expand your business and increase profits.

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