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What Factors Influence the Cost of Opening a Bagel Shop?


  1. The Type of Bagel Shop Business

The fact that anyone who wants to open a bagel shop may either decide to start the business from a kiosk, makeshift shop, or a standard shop facility means that the cost will be different.

The truth is that it is far cheaper to open a bagel shop from a kiosk or makeshift facility than from a shop facility. As a matter of fact, the cost of renting and equipping a shop facility will consume the bulk of your budget.

  1. The Location Where You Want to Start the Business

In the United States of America, some cities are pretty expensive to start and run a business. If perchance you settle for a city that is expensive to run a business, then it will cost you more when compared to someone who chooses to start his or her bagel shop in a city that is way cheaper to start a business.

  1. The Cost of Equipping Your Bagel Shop

Aside from getting comfortable furniture such as stools, couches, sofas, tables, shelves et al, you will also need electronics such as flat-screen televisions, sound systems, and perhaps a public address system.

When it comes to your working equipment, you will need to purchase a bagel dough mixer, bagel forming machine, bagel proofer, bagel boiler, bagel oven, bagel slicer, dough divider, dough sheeter, proofing racks, baking trays, sinks and dishwashing equipment, shelving and storage units and ice machine et al.

  1. The Number of Staff You Want to Recruit

The only reason why this might not be an issue for you is if you choose to open your bagel shop from a kiosk or as a one-man business where you can handle all aspects of the business.

But if you choose to open a standard bagel shop, then you must make plans to recruit and train key employees who will occupy different roles in your organization.

You should make plans to recruit a Manager, an Accountant or cashier, a bagel maker, salesgirls and salesboys, and kitchen staff. As expected, the budget for recruiting and training your employees is going to take a significant portion of your budget.

  1. The Cost of Obtaining the Needed Licenses and Permits

Interestingly, this cost may vary across different states and jurisdictions in the United States. The fact that different states require different types of licenses and permits means that your budget for permits and licenses will be determined by the state you want to open your bagel shop.

As expected, you should budget for a general business license, seller’s permit, food handlers permit, building permit, fire and safety permit, zonal permit, and signage permit amongst others.

  1. Your Ongoing Expenses

Anyone who wants to open a bagel shop should have a budget for ongoing expenses such as ingredients (flour, yeast, toppings), utilities (electricity, water, gas), rent or mortgage payments, equipment maintenance and repairs, insurance (liability, property), marketing and advertising costs, payroll for staff, permits and licenses, and any other miscellaneous expenses related to running the business.

  1. Miscellaneous Expenses

Although there is no specific amount when it comes to miscellaneous expenses for a bagel shop, you may decide to include the cost of hiring and paying a business consultant and attorney, the cost of branding, promotion, and marketing of the bagel shop, the cost for logistics, the cost of the purchase and customizing of uniforms, shoes, and caps for your employees, and the cost of the grand opening of the bagel shop as part of your miscellaneous expenses.