Baker Bros American Deli is the concept of choice for franchisees looking to diversify their portfolios with the best: best quality for customers, best returns for operators, and best positioning in what they refer to as “The Growth Sector” of the restaurant industry.
This fast-casual deli chain serves up the award-winning salads, gourmet sandwiches, and pizzas guests want, with premium breads, fresh toppings, and sides that add value.
“We have a wonderful product,” says CEO Ken Reimer. “People can come in and get a meal made to whatever specification they like and enjoy an upscale, quick-casual dining experience for a very fair price.”
At the same time, the company’s business model works hard for operators. The efficient counter-ordering format minimizes labor costs, and service times of just three to four minutes help increase transactions to maximize profit. Store-level marketing and on-site training give franchisees everything they need to succeed.
“We have sophisticated, efficient systems that are pretty unique in the industry,” Reimer says. “That is why our margins are strong and sales are growing as much as they have been.”
Company-owned restaurants open more than five years average more than $1.3 million in sales, and the numbers keep getting better. Over the past four years, aggregate sales are up 36 percent—well above the industry average. Baker Bros was also named one of Fast Casual magazine’s “Top 100 Movers & Shakers” in 2007.
The Dallas-based chain has opened eight company-owned or -operated units since 1999, and more than 30 franchise locations are either open or in development. The company hopes to add another 30 to 40 restaurants by 2009, working toward its goal of 100 units committed in the next two years. Franchisees can get a piece of the action with opportunities for exclusive area development agreements in promising markets throughout the continental U.S.
“Our long-term growth players are really going to be existing franchise restaurant operators that have the infrastructure and knowledge base to build a nice, big system of their own,” Reimer says. “We want multi-unit people, and we’ll support them in a way that they’re probably not accustomed to.”
Startup requirements include a minimum of $750,000 in liquid assets, with at least $1.5 million in total net worth. Initial investment costs range from $416,000 to $686,000 per unit, and franchise fees are just $25,000 for each 3,000- to 3,500-square-foot location.
“Our franchisees see a very strong ROI because we insist on keeping the investment side of the equation at very fair levels,” Reimer says. “At Baker Bros, we never lose sight of the fact that, ultimately, their success determines our own.”
For more information about franchising opportunities with Baker Bros American Deli, visit www.bakerbrosdeli.com.