House of Bread

House of Bread is a bakery cafe concept. We focus on using the finest ingredients to produce the most delicious and nutritious bakery cafe items. The factors that are attributable to the success of the concept are excellent product quality and customer service provided in a convenient retail setting. A “fresh” message is naturally conveyed by the open production site, the sweet smell of bakery goods and the enjoyment of samples of hot bread out of the oven.

Since 1996, we have been baking bread the way Grandma made it by hand, fresh, and naturally. Our lunch offerings carry the same standard of high quality natural ingredients to produce the same great taste guarantee. We use Boars Head meats for our deli partner and Equal Exchange fair trade organic as the coffee supplier. In August of 2009, we have opened up our new prototype bakery cafe that has a smaller footprint of 1050 sq.ft. This allows us to go into higher rent districts and reduce the cost of the build out.

Location Selection
The demographic area for a House of Bread Bakery should be a town with a population of at least 40,000 people within the city limits or an area with over 80,000 people within a five mile radius

Capitalization
Total initial startup costs are approximately $250,000, which can vary depending upon whether new or used equipment is purchased. Also included is the franchise fee, travel, training, location selection, site build out, point-of-sale information system, equipment purchase, initial supplies and ingredients, organizational expenses, signage, pre-opening promotion and working capital. We do not provide direct financing. However, we do provide assistance with financial projections, business plan designs, and lender negotiations.

BACKGROUND

Established: 1996
First Franchised: 2000
Franchised Units: 8
Company Owned Units: 1
Projected New Units (12 Months): 4
Registered: CA and WA. Looking to grow through out the United States and would consider international candidates for multiple units only.

FINANCIAL/TERMS

Cash Investment: Single $125K / Multiple $150K
Total Investment: $193K - $349K
Minimum Net Worth: $400K
Franchise Fee: $32K for 1st one / $16K for second and $8k for third units
Royalty: 6%, 5% after sales level of $500k.
Ad: None
Average Number of Employees: 8
Passive Ownership: No, not the first year. Yes, for 2nd year

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