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Bagel Shop Business Plan [Sample Template for 2024]

Bagel Shop Business

A bagel shop business is an establishment that specializes in selling and serving bagels, a type of bread product that is typically shaped like a ring.

Bagels are boiled and then baked, resulting in a chewy interior and a crusty exterior. They are often made with various toppings, such as sesame seeds, poppy seeds, salt, garlic, onion, and more. Bagel shops offer a wide variety of bagel flavors and styles to cater to different tastes and preferences.

Some popular options include plain bagels, everything bagels, cinnamon raisin bagels, whole wheat bagels, and many others. Additionally, bagel shops may offer different spreads and fillings, such as cream cheese, butter, jam, smoked salmon, deli meats, and various vegetable options.

In addition to bagels, many bagel shops also serve coffee, tea, and other beverages, making them popular breakfast or snack destinations. They might provide both sit-in and take-out options for customers.

Steps on How to Write a Bagel Shop Business Plan

  1. Executive Summary

Stacy Morgan™ Bagel Shop, Inc. is a premium bagel-focused establishment located in the heart of Boston, Massachusetts.

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We are set to bring the authentic taste of New York-style bagels to the residents and visitors of Boston while providing a warm and inviting atmosphere for our customers. Boston, a city renowned for its vibrant food culture, offers immense potential for a bagel-centric business like ours.

With a growing demand for quick yet satisfying breakfast and snack options, our shop has tapped into an underserved niche. Stacy Morgan™ Bagel Shop, Inc. was founded in 2020 by Stacy Morgan, a passionate entrepreneur with a deep love for traditional bagels.

Our shop is strategically located in a bustling commercial district, surrounded by offices, residential areas, and educational institutions, ensuring a steady flow of foot traffic throughout the day.

  1. Company Profile

a. Our Products and Services

We take great pride in offering a wide range of freshly baked, handcrafted bagels that cater to diverse palates. Our bagels are made using time-honored techniques, combining the perfect blend of texture and flavor.

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Our menu features an assortment of classic flavors such as plain, everything, sesame, and cinnamon raisin, as well as unique seasonal varieties to keep our offerings fresh and exciting. To complement our bagels, we provide a variety of premium spreads, including cream cheese, flavored butter, and artisanal jams.

Customers can also indulge in our selection of gourmet sandwiches made with fresh ingredients, high-quality deli meats, and flavorful veggies, all served on our signature bagels.

b. Nature of the Business

Our bagel shop will operate with a business-to-consumer business model.

c. The Industry

Stacy Morgan™ Bagel Shop, Inc. will operate in the food and beverage industry, specifically the “food service” or “quick-service restaurant” (QSR) sector.

d. Mission Statement

At Stacy Morgan™ Bagel Shop, Inc., our mission is to delight and satisfy bagel enthusiasts in Boston, Massachusetts, and beyond by crafting and serving the finest, handcrafted New York-style bagels. We are committed to using locally sourced, all-natural ingredients to create a diverse range of flavorful bagels that evoke nostalgia while fostering a warm and welcoming environment for our customers.

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e. Vision Statement

Our vision at Stacy Morgan™ Bagel Shop, Inc. is to be recognized as the premier destination for authentic New York-style bagels, setting the standard for excellence in the bagel industry. We envision expanding our footprint throughout the region, sharing the joy of our handcrafted bagels with more communities, and establishing ourselves as a leading brand in the food and beverage industry.

f. Our Tagline (Slogan)

Stacy Morgan™ Bagel Shop, Inc. – “Bagel Bliss: Where Flavor Meets Tradition!”

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Stacy Morgan™ Bagel Shop, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure
  • Chief Executive Officer (Owner)
  • Shop Manager
  • Accountant
  • Chef
  • Salesgirls and Salesboys
  • Cleaners
  • Security Guard
i. Ownership/Shareholder Structure and Board Members
  • Stacy Morgan (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
  • Denis Mitchel (Board Member) 18 Percent Shares
  • Bob Jefferson (Board Member) 10 Percent Shares
  • Raph McMillian (Board Member) 10 Percent Shares
  • Yvonne Nelson (Board Member and Secretary) 10 Percent Shares.
  1. SWOT Analysis

a. Strength
  • Stacy Morgan™ Bagel Shop prides itself on handcrafting authentic New York-style bagels using locally sourced, all-natural ingredients, which sets it apart from competitors and appeals to bagel enthusiasts.
  • The shop offers a diverse range of bagel flavors, including seasonal varieties, along with premium spreads and gourmet sandwich options, giving customers a wide selection to choose from.
  • Strategically situated in a bustling commercial district with high foot traffic, the shop enjoys easy accessibility, attracting both locals and tourists.
  • The shop prioritizes building strong customer relationships, understanding their preferences, and delivering exceptional service, resulting in a loyal and satisfied customer base.
  • Stacy Morgan™ Bagel Shop creates a warm and inviting atmosphere, making it a comfortable place for customers to enjoy their bagels and interact with friends or colleagues.
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b. Weakness
  • The shop currently operates only during breakfast and lunch hours, missing out on potential evening customers and late-night snack seekers.
  • As a single-location business, expansion opportunities may be limited, potentially restricting market reach and growth.
  • While seasonal flavors add excitement, they may create a challenge in maintaining consistent customer favorites throughout the year.
c. Opportunities
  • Introducing catering options for corporate events, meetings, and private gatherings can tap into a new revenue stream and increase brand visibility.
  • Implementing online ordering and delivery services can enhance convenience and reach a broader customer base.
  • Exploring the possibility of opening new branches in other neighborhoods or cities could expand the brand’s presence and increase market share.
  • Strengthening marketing efforts and leveraging social media platforms can increase brand awareness and attract a younger audience.
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i. How Big is the Industry?

The bagel shop industry, which is a part of the broader food service and QSR (quick-service restaurant) sector, is a small part of the industry in the United States.

ii. Is the Industry Growing or Declining?

The bagel shop industry was generally considered to have stable growth. However, it is important to note that industry trends can change over time, and factors such as economic conditions, consumer preferences, and competition can impact the growth trajectory of the industry.

iii. What are the Future Trends in the Industry?

As health-conscious eating continues to gain momentum, bagel shops might focus on offering healthier versions of bagels, such as whole-grain, gluten-free, or vegan options.

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Additionally, specialty bagels made with unique ingredients or flavors could attract adventurous food enthusiasts. Bagel shops may expand their menu beyond bagels and spreads to include a wider range of breakfast and lunch items. This could include incorporating more sandwiches, salads, and other innovative bagel-based dishes.

With the increasing reliance on technology and convenience, bagel shops could adopt online ordering platforms and mobile apps to streamline customer ordering and improve accessibility.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to bagel shop business because bagel shop is a niche idea in the food and beverage industry, specifically the “food service” or “quick-service restaurant” (QSR) sector.

v. Can You Sell a Franchise of Your Business in the Future?

Stacy Morgan™ Bagel Shop, Inc. has plans to sell franchises in the near future and we will target major cities in the United States of America, and Canada.

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d. Threats
  • The food and beverage industry in Boston is highly competitive, with various bagel shops, cafes, and QSRs offering similar products and vying for the same customer base.
  • Shifting consumer preferences towards healthier eating or different food trends could impact bagel consumption.
  • Fluctuations in the economy, such as inflation or recession, may affect consumer spending and could impact sales.
  • Reliance on local suppliers and seasonal ingredients could be susceptible to disruptions due to weather conditions or other external factors.
i. Who are the Major Competitors?
  • Einstein Bros. Bagels
  • Bruegger’s Bagels
  • Panera Bread
  • Brooklyn Water Bagel Co.
  • Noah’s New York Bagels
  • Tim Hortons (known for bagels in certain regions)
  • Bagel Factory
  • Bagelicious
  • Bagels & Brew
  • Big Apple Bagels
  • Kettleman’s Bagel Co.
  • The Original Brooklyn Water Bagel Co.
  • Goldberg’s Bagel Co. & Deli
  • Western Bagel
  • Manhattan Bagel
  • Ess-a-Bagel
  • Montreal Bagels
  • Bagel Nash
  • Chesapeake Bagel Bakery
  • Brooklyn Bagel Bakery.
ii. Is There a Franchise for the Bagel Shop Business?
  • Einstein Bros. Bagels
  • Bruegger’s Bagels
  • Big Apple Bagels
  • Manhattan Bagel
  • Noah’s New York Bagels
  • Brooklyn Water Bagel Co.
  • Bagel Time Cafe
  • Western Bagel
  • The Original Brooklyn Water Bagel Co.
  • Brooklyn Bagel & Coffee Company.
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iii. Are There Policies, Regulations, or Zoning Laws Affecting the Bagel Shops?

Yes, there are various policies, regulations, and zoning laws that can affect a bagel shop business in the United States. These regulations are typically put in place by federal, state, and local governments to ensure public health and safety, fair business practices, and adherence to specific zoning requirements.

Bagel shops, like all food establishments, must comply with food safety regulations set by the U.S. Food and Drug Administration (FDA) and state or local health departments. These regulations govern food handling, storage, preparation, and sanitation to ensure that the food served is safe for consumption.

Bagel shop owners need to obtain various licenses and permits to operate legally. These may include health permits, food service permits, business licenses, and others required by local or state authorities.

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Bagel shop owners must adhere to federal and state employment laws, covering areas such as minimum wage, overtime, and workplace safety. Bagel shops must comply with zoning laws and regulations to ensure that their business location is zoned appropriately for commercial use.

Bagel shops must adhere to local signage regulations regarding the size, placement, and content of their signage. Bagel shop premises must meet building and fire safety codes to ensure a safe environment for employees and customers. Bagel shops need to comply with environmental regulations concerning waste disposal and handling, especially in relation to food waste.

  1. Marketing Plan

a. Who is your Target Audience?

i. Age Range

The target audience for Stacy Morgan™ Bagel Shop, Inc. includes individuals across a broad age range. While bagels are popular among all age groups, the primary focus might be on young adults, professionals, families, and seniors.

ii. Level of Education

The bagel shop’s target audience may consist of individuals with varying levels of education, from high school graduates to college-educated individuals.

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iii. Income Level: Stacy Morgan™ Bagel Shop aims to cater to a diverse range of income levels.

iv. Ethnicity

The target audience at Stacy Morgan™ Bagel Shop is likely to be diverse, appealing to customers from different ethnic backgrounds.

v. Language

The bagel shop is expected to serve customers who speak English, as well as individuals from different linguistic backgrounds.

vi. Geographical Location

The primary geographical location for Stacy Morgan™ Bagel Shop is Boston, Massachusetts, and surrounding areas.

vii. Lifestyle

The bagel shop’s target audience may consist of individuals with various lifestyles, including busy professionals looking for a quick breakfast option, families seeking a casual dining experience, and students in need of a convenient snack.

b. Advertising and Promotion Strategies
  • Deliberately Brand All Our Vans and Trucks.
  • Tap Into Text Marketing.
  • Make Use of Bill Boards.
  • Share Your Events in Local Groups and Pages.
  • Turn Your Social Media Channels into a Resource
  • Develop Your Business Directory Profiles
  • Build Relationships with players in the event planning and catering services industry.
i. Traditional Marketing Strategies
  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
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ii. Digital Marketing Strategies
  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.
iii. Social Media Marketing Plan
  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market and potential target market.
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on relevant social media channels.
  • Run cross-channel campaigns.
c. Pricing Strategy

When working out our pricing strategy, Stacy Morgan™ Bagel Shop, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;

  • Penetration Pricing
  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.
  1. Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the entertainment industry and freelancers help refer customers to us.

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Stacy Morgan™ Bagel Shop, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need supplies such as bagels (flour, yeast, sugar, salt, malt extract or malt syrup, barley malt flour, oil or butter, eggs, and toppings such as sesame seeds, poppy seeds, onion flakes, garlic), mean that Stacy Morgan™ Bagel Shop, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.

Stacy Morgan™ Bagel Shop, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Stacy Morgan™ Bagel Shop, Inc. will make available to her clients:

  • Bank Transfers
  • Credit or Debit Card
  • Cash
  • Checks
  • Electronic Payment Systems such as PayPal or Venmo.
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d. Return Policy, Incentives, and Guarantees

Stacy Morgan™ Bagel Shop, Inc., will be offering a return policy, incentives, and guarantees to build trust and loyalty with your customers. We will make sure the policy is clearly communicated on our website and in-store signage, and provide instructions for customers to initiate a return.

Return Policy:
  • If a customer is not satisfied with their order, we will offer a refund
  • We will also offer a store credit for future purchases.
Incentives:
  • We will implement loyalty programs where customers earn points or rewards for repeat purchases.
  • We will offer special discounts or promotions for customers who refer friends or family members to the deli restaurant.
  • We will organize social media contests and giveaways to increase engagement and attract new customers.
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Guarantees:
  • We will guarantee the quality of our bagels and other products, and if a customer is not satisfied, they could receive a refund or a replacement meal.
  • We will offer delivery guarantees such as a guaranteed delivery time or a discount on the next order if the delivery is late.
e. Customer Support Strategy

To ensure customer satisfaction, we will encourage customers to provide feedback and suggestions. This will help us provide excellent customer service to all our clients and investors. We will work with effective CRM software to be able to achieve this.

On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

  1. Operational Plan

Our operational plan will outline how the business will run on a day-to-day basis. It will cover areas such as staffing, inventory management, customer service, and marketing.

Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. By developing a strong plan and implementing it effectively, we will be able to run our bagel shop business smoothly and attract and retain loyal customers.

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a. What Happens During a Typical Day at a Bagel Shop Business?
  • The business is open for the day’s work
  • The serving area is cleaned and ready for the day’s business
  • Bagels are prepared
  • Customer’s orders are taken and they are served or their orders are delivered to them
  • The cashier collects cash and reconciles accounts for the day
  • Administrative duties are carried out
  • The store or warehouse is restocked when required.
  • The business is closed for the day.
b. Production Process

Making a bagel involves a simple yet unique process. The traditional method includes combining high-gluten flour, water, yeast, sugar, and salt to create a dough. After kneading the dough, it is shaped into rings and left to rise. Once risen, the bagels are boiled briefly in water with added malt extract or syrup. This boiling gives them their chewy texture and shiny crust.

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Finally, the bagels are baked until golden brown, and various toppings like sesame seeds, poppy seeds, or garlic are added for flavor and appearance. The result is a delicious and iconic circular bread product, known for its chewy interior and crusty exterior.

c. Service Procedure

The service procedure for a bagel shop business starts with a customer requesting bagels and beverage drinks. Once the request is gotten, it will be processed and the customer will be served or the order delivered to a location as requested.

d. The Supply Chain

Stacy Morgan™ Bagel Shop, Inc. will rely on a supply chain model that involves sourcing, transporting, storing, and managing inventory of the various products and supplies needed to run our bagel shop business.

e. Sources of Income

Stacy Morgan™ Bagel Shop, Inc. will generate revenue through the sale of bagels, and non-alcoholic beverages, as well as other snacks.

  1. Financial Plan

a. Amount Needed to Start your Bagel Shop Business?

Stacy Morgan™ Bagel Shop, Inc. would need an estimate of $150,000 to successfully set up our bagel shop business in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.

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b. What are the Costs Involved?
  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $3,300.
  • Marketing, Branding, and Promotions – $3,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $3,400.
  • Rent/Lease – $50,000.
  • Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $70,000
  • Start-up Inventory – $35,000
  • Store Equipment (cash register, security, ventilation, signage) – $1,750
  • Furnishing and Equipping the Bagel shop – $80,000
  • Website: $600
  • Opening party: $5,000
  • Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Stacy Morgan™ Bagel Shop, Inc. will not build a new facility for our bagel shop business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

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d. What are the Ongoing Expenses for Running a Bagel Shop Business?
  • Rent or Mortgage Payments
  • Employee Wages and Benefits
  • Inventory and Supplies
  • Marketing and Advertising
  • Maintenance and repairs
  • Licenses and permits
e. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $65,000 Per Year
  • Shop Manager – $45,000 Per Year
  • Accountant – $32,630,000 Per Year
  • Chef – $30,800 Per Year
  • Salesgirls and Salesboys – $28,100 Per Year
  • Cleaners – $25,000 Per Year
  • Security Guard -$24,000 Per Year
f. How Do You Get Funding to Start a Bagel Shop Business?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
  • Source for soft loans from your family members and friends.
  1. Financial Projection

a. How Much Should You Charge for Your Product/Service?

On average, a plain bagel without any toppings or spreads could range from around $1 to $3. But specialty or gourmet bagels with unique flavors and premium ingredients can cost more than basic varieties.

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b. Sales Forecast?
  • First Fiscal Year (FY1): $260,000
  • Second Fiscal Year (FY2): $380,000
  • Third Fiscal Year (FY3): 4550,000
c. Estimated Profit You Will Make a Year?
  • First Fiscal Year (FY1) (Profit After Tax): $20%
  • Second Fiscal Year (FY2) (Profit After Tax): $25%
  • Third Fiscal Year (FY3) (Profit After Tax): $30%
d. Profit Margin of a Bagel Shop Business 

Stacy Morgan™ Bagel Shop, Inc. will aim for a profit margin of 20 to 30 percent on sales. This means that for every dollar spent on a bagel or other beverage by a customer, the business should aim to earn 20 to 30 cents in profit.

  1. Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?

Stacy Morgan™ Bagel Shop, Inc. will grow our bagel shop business by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

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b. Where do you intend to Expand to and why?

Stacy Morgan™ Bagel Shop, Inc. plans to expand to

  • New York City, New York
  • Las Vegas, Nevada
  • Houston, Texas
  • Key West, Florida
  • Baton Rouge, Louisiana
  • Myrtle Beach, South Carolina
  • Ocean City, Maryland
  • Orlando, Florida
  • Gulfport, Mississippi
  • Washington, D.C.
  • Baton Rouge, Louisiana.

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest and thriving market for bagels.

  1. Exit Plan

The founder of Stacy Morgan™ Bagel Shop, Inc. plans to exit the business via family succession. The company has placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.

The company has successfully developed a detailed transition plan to smoothly hand over responsibilities to the new successor. This includes transferring ownership, training key personnel, and communicating with employees, customers, and suppliers about the change.