Paris Baguette, which has over4,000 world models with solely 100 within the U.S., is able to speed up its stateside progress. Though 2020 was a yr by which many of the foodservice trade noticed document losses, the Korea-based model opened greater than 15 U.S. places and reported $2,235,198 in common unit quantity throughout the system.
“We consider that the energy of our franchise may be measured most precisely by the energy of our franchisees, so we’re laser-focused on making certain that they prosper,” Darren Tipton, CEO of Paris Baguette America, mentioned in an organization press launch. “Our excessive AUV reveals that we’re persevering with to make good on that promise.”
With 52 places within the pipeline and 30 franchise agreements in place, the chain has recommitted to its objective of reaching 1,000 U.S. models over the following 10 years.
All through the COVID-19 disaster, Paris Baguette remained open and maintained constant gross sales with out having to change its core enterprise mannequin, Pete Bell, chief advertising and marketing officer, mentioned within the launch.
“All of our values as an organization are centered round sharing moments of pleasure, and that is one thing that was particularly necessary to individuals final yr,” he mentioned. “We’re not simply sharing pleasure with our company by offering superb objects and experiences, we’re giving them a solution to share pleasure with their family members, whether or not by way of a lovely cake for a celebration and even only a good cup of espresso and a croissant for breakfast. You possibly can’t low cost how a lot these moments imply to individuals.”
Paris Baguette was additionally one in all few manufacturers to thrive with out pivoting closely towards off-premise providers. Though it affords plenty of off-premise choices, together with on-line ordering for pickup and supply, Bell mentioned gross sales by way of these channels accounted for less than 5% of the model’s total gross sales for the yr.
“We have made certain that franchisees are outfitted with every thing they should accommodate prospects, however what we discovered is that almost all of our company actually recognize the act of visiting a retailer, seeing the gorgeous muffins and pastries, and choosing one thing out,” he mentioned. “It is a real supply of consolation for many individuals, and that pleasure for the shopper interprets straight again to pleasure for the franchisee.”
A streamlined operational mannequin ideally suited for multi-unit operations
In contrast to different ideas which have expanded to full-service or in any other case tailored their mannequin in an try to mix the advantages of different segments with their very own, Paris Baguette has caught to its small-footprint, grab-and-go mannequin, which not solely proved important within the time of social distancing and the mass closure of eating rooms but in addition allowed the model to carve out an enviable place for itself because the dominant participant in its phase. A decade in the past, the model might have needed to compete with cafe-chain behemoths, however these manufacturers have largely vacated the area, opting as an alternative for full-service fashions that proved ill-suited for the brand new COVID-shaped restaurant panorama, mentioned Mark Mele, Paris Baguette’s chief growth officer.
“You see so many different manufacturers spreading themselves too skinny,” he mentioned. “They’re transferring into full-service and customarily attempting to do an excessive amount of — they lose focus. And what we noticed final yr, sadly, was that a lot of these manufacturers had been unable to remain afloat when the buyer panorama shifted.”
Every location requires a small crew of centered professionals — “cakers, bakers and baristas,” because the model informally refers to its store-level workers — however Mele mentioned the operational mannequin reduces labor and permits for a positive work-life stability. All objects are ready within the morning, so kitchens shut early and staff do not need to work late, for instance.
“For those who take a look at most chain bakeries, the meals may need been made lots of of miles away from the shop, and you’ll inform. It isn’t baked contemporary,” Mele mentioned. The shop does not really feel like there’s truly any baking happening there and that is not the sensation persons are searching for after they’re shopping for a cake or choosing up a loaf of bread for dinner.
“Our groups are of their cafes each morning working, and you’ll immediately see the artwork, talent and fervour that goes into each merchandise we promote.”
Including franchisees
Paris Baguette has kicked off its progress plan with greater than 47 shops bought since January 2020, and Mele mentioned his crew is assured it should hit its first benchmark of 40 new models open by the tip of 2021, beginning with Kansas Metropolis, Dallas, Philadelphia and a bunch of different markets in states from Oregon to North Carolina.
“We have had an inflow of inquiries from aspiring franchisees in markets we have not even entered but,” he mentioned. “However we’re not rising only for progress’s sake — we’re rising the place we see alternative, and proper now we see an enormous demand for Paris Baguette — each from potential house owners and prospects — in cities throughout the nation, and we’re excited to take advantage of these alternatives.”
The whole funding to franchise with Paris Baguette ranges from $709,193 to $1,386,292, together with a $50,000 franchise charge. These getting into into an space growth settlement should develop a minimal of 4 shops.
“This isn’t a tough promote,” Bell mentioned. “So many individuals dream of proudly owning their very own enterprise, and a bakery and cafe — with all of the sights, smells and tastes that associate with that — is usually proper on the prime of their listing. Add to that the assist of a company crew and an operational mannequin that has confirmed extremely worthwhile and recession-resistant, and it is arduous to discover a extra enticing enterprise alternative.”