Still Baking: the best brands of bakery, coffee and cold cuts | Franchise News
Slow to increase after being hit hard by COVID-19, sales in the bakeries, cafes and delicatessen segment fell 12.5% last year to $ 9.8 billion. Paris Baguette was the only franchise in the category not to record a drop in sales last year, although a 0.4% sales growth does not appear significant at first glance.
The big brand with 3,924 units ranked # 38 on our recently released Times Top 400 franchise and posted a turnover of $ 2.7 billion last year, just behind Panera Bread at $ 5 billion, although Mark Mele, director of development at Paris Baguette, believes Panera should be considered a “Restaurant” versus a bakery. Mele largely attributes Paris’s success to keeping stores open when competitors closed, taking advantage of third-party delivery apps and having baked goods freshly made every day. Plus, they were fortunate not to have encountered as many supply chain issues as other brands, he said.
Paris Baguette started wrapping all products in plastic during the pandemic, which “completely changed the way we do business, but I think we’ve learned the lessons,” Mele said. “We never really stopped, we always offered everything we offered, just in a different way. For us, the packaging was a big issue.
The brand also managed to open 15 units last year. “We went there really hard, found these people who were also looking to take advantage of the time and invest and potentially open a new Paris Baguette,” Mele said. “Timing is everything, and we had a really good jump in the first quarter. “
Despite a 15.6% drop in revenue in 2020, Panera Bread rose to number 20 with $ 5 billion in system-wide sales, the clear and continuing leader in the category as a whole. Its parent company JAB Holding Co. recently combined Panera Bread, Caribou Coffee and Einstein Bros. Bagels under the umbrella of Panera Brands.
Meanwhile, McAlister’s Deli lost 6.3% of its sales but opened 12 restaurants, which equates to unit growth of 3%, while Jason’s Deli lost 10% of units and recorded the largest decline. sales of 35.8%.
Newcomer Gong Cha is # 156 on our list with $ 400 million in system-wide sales in 2020 starting at 1,500 units. Taiwanese bubble tea coffee, widely marketed to Gen Z, was acquired by a Boston-based private equity firm in 2019. Check out the ranking of the 400 franchises here.
Sales growth: Bakery, Café, Deli
|Parisian baguette||$ 2.7 billion||+ 0.4%|
|Schlotzsky Bakery Cafe||$ 304 million||-5.2%|
|McAlister||$ 674 million||-6.2%|
|Einstein Bros. Bagels||$ 410 million *||-21.2%|
|Madeleine||$ 117 million||-30.5%|
|Jason’s Deli||$ 400M *||-35.8%|