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Description
Investment Icon

What Are the Initial Investment Requirements for a Corner Bakery Cafe Franchise?

To open a Corner Bakery Cafe franchise, prospective franchisees should be prepared for an initial investment ranging from $1,090,000 to $2,168,000. This includes a franchise fee of $40,000. Additionally, franchisees need to have cash readily available between $150,000 and $450,000 and meet a net worth requirement of $500,000 to $1,000,000. Understanding these financial commitments is crucial for anyone considering this franchise opportunity.

Fees Icon

What Are the Ongoing Fees for Corner Bakery Cafe Franchisees?

Corner Bakery Cafe franchisees are subject to ongoing fees that include a royalty fee of 5% of gross sales and a marketing fee of 1.75%. These fees contribute to the overall operational costs and support the brand's marketing initiatives. Franchisees should factor these percentages into their financial planning to ensure sustainable profitability.

Revenue Icon

What Is the Revenue Potential for a Corner Bakery Cafe Franchise?

The revenue potential for a Corner Bakery Cafe franchise is promising, with average annual revenue per unit reported at $2,781,272. The median annual revenue stands at $1,585,187, while the lowest and highest annual revenues per unit range from $1,158,000 to $2,781,272, respectively. This indicates a significant opportunity for profitability, provided that franchisees effectively manage their operations and adhere to brand standards.

Breakeven Icon

What Is the Breakeven and Payback Timeline for Corner Bakery Cafe Franchisees?

Franchisees can expect a breakeven period of approximately 18 months, allowing them to recover their initial investment relatively quickly. The investment payback period is notably shorter, at around 10 months, which highlights the potential for rapid returns on investment. This timeline is an essential consideration for prospective franchisees evaluating the financial viability of the Corner Bakery Cafe franchise model.

Corner Bakery Cafe Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

10 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$40,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

1.75%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

18 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$1,090,000 - $2,168,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$150,000 - $450,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$75,000
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,585,187
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$2,781,272
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$1,158,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Food Franchises
Category icon A more specific division within the broader industry.

i Category:

Casual Dining
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Mike Hislop
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

12700 Park Central Drive, Suite 1300, Dallas, Texas 75251
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2006
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

CBC Restaurant Corp.

Corner Bakery Cafe Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

104
The number of locations owned by independent franchisees.

Franchised Units i

37
The number of locations owned and run by the franchisor.

Corporate Units i

67
Units 2021 2022 2023
Total Units 159 148 136
Net Change YoY -11 -12
Franchised Units 49 42 37
Net Change YoY -7 -5
Corporate Units 110 106 99
Net Change YoY -4 -7
Investment About

Company Background

Corner Bakery Cafe is a fast-casual restaurant chain that specializes in freshly prepared food, including breakfast items, sandwiches, salads, and baked goods. Founded in 1991 in Chicago, Illinois, the brand has grown to become a popular dining destination, known for its cozy atmosphere and commitment to high-quality ingredients. With a focus on community and customer satisfaction, Corner Bakery Cafe has expanded its presence across the United States, offering a welcoming environment for guests to enjoy a meal any time of day.

Potential About

Franchise Opportunity

Investing in a Corner Bakery Cafe franchise presents a unique opportunity for aspiring entrepreneurs looking to enter the food service industry. With a well-established brand and a proven business model, franchisees can leverage the popularity of the cafe's menu offerings and customer loyalty. The franchise system provides comprehensive training and ongoing support, ensuring that new owners have the resources they need to thrive in a competitive market.

Metrics About

Investment Requirements

To become a Corner Bakery Cafe franchisee, the initial investment ranges from $1,090,000 to $2,168,000, which includes a franchise fee of $40,000. Prospective franchisees must demonstrate a cash requirement of $150,000 to $450,000 and a net worth between $500,000 and $1,000,000. These investment parameters ensure that franchisees are financially prepared to manage their business effectively and achieve long-term success.

Fees About

Royalty and Marketing Fees

Corner Bakery Cafe charges a royalty fee of 5% of gross sales, alongside a marketing fee of 1.75%. These fees contribute to the overall support and resources provided by the franchisor, including national marketing campaigns and operational assistance. The structured fee system helps maintain the brand's visibility and growth while allowing franchisees to benefit from collective marketing efforts.

Breakeven About

Financial Performance

The average annual revenue per unit for Corner Bakery Cafe is approximately $2,781,272, with a median annual revenue of $1,585,187. While the lowest annual revenue per unit is reported at $1,158,000, the highest can reach $2,781,272. This financial performance indicates a strong potential for profitability, especially considering the breakeven time of 18 months and a payback period of just 10 months for initial investments.

Units About

Corporate Structure

Corner Bakery Cafe operates a combination of franchised and corporate units. As of 2023, there are 136 total units, with 37 franchised and 99 corporate locations. The brand continues to evolve, focusing on both franchise expansion and maintaining a strong corporate presence, which allows for consistent brand management and operational excellence across all locations.

Frequently Asked Questions

The initial investment for a Corner Bakery Cafe franchise ranges from $1,090,000 to $2,168,000. This includes the franchise fee, equipment, leasehold improvements, and other startup costs.