Why Paris Baguette is One of 2022’s Most Exciting Franchise Opportunities

The bakery café concept Paris Baguette*, which boasts a staggering 4,000 locations worldwide, is officially heating up in the U.S. market after signing 121 new franchise agreements among new and existing franchisees in 2021. Now, as the brand looks to carry that momentum into 2022 and beyond with plans to open 1,000 U.S. units over the next 10 years, it is quickly emerging as one of the most exciting franchise opportunities in the country.

Mark Mele, chief development officer at Paris Baguette, is a key player behind the brand’s impressive U.S. growth. “Our goal is to bring back the neighborhood bakery café in every town and city, and our growth in the United States shows that we are making great headway in reaching that goal,” he said.

1851 Franchise spoke with Mele to hear more about the brand’s recent success, discuss why franchisees are increasingly joining the brand and outline the team’s plans for the future.

Big News from Last Year

Mele says 2021 was a banner year for Paris Baguette when it comes to franchise growth in the U.S. “We really spent the past year building a strong foundation for franchising, whether it be developing our real estate support, our training or our marketing procedures,” said Mele. “That has significantly helped boost franchise sales, and as a result we spent 2021 entering several new markets, including Michigan, Kansas, Florida and Ohio.” 

Additionally, Mele says the brand saw a whopping 44% increase in year-over-year sales in the U.S., suggesting Paris Baguette franchisees are better positioned than ever for growth. 

“Right now, there is a void in the high-end bakery café space,” said Mele. “If you look at all the brands that are in that space, we are number one — we are like what Starbucks is to coffee. That massive global presence is really starting to garner a lot of attention in the U.S., and the marketplace is seeing an explosion. All of that growth is generating a lot more interest from both prospective franchisees and customers.”

Recently, Paris Baguette took the number-one spot in the Bakery Café category on Entrepreneur's 2022 Franchise 500 list. Additionally, the brand ranked No. 129 on the list overall.

Why the Bakery Cafe Segment Is Poised for Growth

As the country begins to see the light at the end of the COVID-19 tunnel, Mele says the $11 billion bakery café category is particularly well-suited for what today’s consumers are looking for in a restaurant experience.

“Paris Baguette and other bakery cafés offer a place where customers can relax with friends or family, as well as a place where they can pick up a delicious cake for their long-anticipated get-togethers,” said Mele. “As most Americans start to return to normal and look for reasons to celebrate, bakeries like Paris Baguette offer a place where they can come and feel good about their choice.”

And while the overall bakery segment may be set for growth, Mele says Paris Baguette fills a specific void in the marketplace for top-notch quality goods. Most “bakeries” across the country now mainly focus on selling soups, salads and sandwiches, Mele says, which means many Americans simply don’t know where they’d go to find a simple yet delicious croissant made with an old world technique by a local baker, for example.

“We are a true bakery, which is hard to find today as the marketplace moves towards mass-produced eateries with less baking on-site,” said Mele. “People crave food brands that ignite all the senses and ultimately bring them great joy. In order to get to 1,000 locations, we have to give the guest something they are not used to in their communities. We are confident we can fill that gap.”

Why Franchisees Are Getting On Board with Paris Baguette

Mele says there are several reasons franchisees are eager to join the fast-growing concept, but the primary differentiator is the international strength of the brand name. “The Paris Baguette brand is truly iconic,” said Mele. “We’ve been baking for 70 years, and the brand was born out of a love for French-inspired bakeries and a passion for the products we bake every single day. We have a cult-like following all over the world, and now that we are looking to grow in the U.S., people can’t believe they have the opportunity to buy a Paris Baguette franchise here.”

Wen Li, the proud owner of three Paris Baguette locations in Northern California, says she recognized right away that Paris Baguette was a beloved brand around the globe, with loyal customers praising its fresh, high-quality offerings. “This is such a strong brand,” she said. “Paris Baguette is everywhere, and everyone loves it. I wanted to be a franchisee with this brand because I know the company is large enough to support me. I only take care of the customer and the quality.”

When it comes to the strength of the business, Mele says Paris Baguette empowers franchisees with a streamlined operational model for multi-unit operations and a dedication to quality craftsmanship. Artisan bakers, cakers and baristas make the high-quality goods live, in-house in a way that doesn’t break the bank on labor costs. 

Mele says the Paris Baguette team also prioritizes a robust support infrastructure for franchisees. “From the day the franchise agreement is signed to the day of a new location’s opening, the new store development manager spends a great deal of time with franchisees to make sure everything is running smoothly and that the franchisee and their team are set up for success,” he said. “This includes working through the real estate process, the construction process, training, marketing — everything.”

The Investment

While other bakery concepts continue to transition into full-service restaurants, leaving the lucrative segment largely free of competition, Mele says Paris Baguette remains focused on its mission to become the best neighborhood bakery café in the world. For investors who want to manage a booming business in an in-demand space that’s proven to be pandemic-resistant, Paris Baguette offers a distinctly profitable model.

The total investment to franchise with Paris Baguette ranges from $528,270 and $1,638,554, including a $50,000 franchise fee. Franchisees interested in signing an area development agreement must develop a minimum of four stores and, in addition to the total investment, will be required to pay an area development fee equal to $20,000 multiplied by the numbers of stores they plan to develop. 

With its small physical footprint, tightly honed menu and small labor force for each location, the brand’s business model offers enviable unit economics for franchisees. According to Item 19 of  Paris Baguette’s Franchise Disclosure Document, which provides insight into financial performance of franchised locations, 40 franchise units made an average of $1,653,454 from January, 1 2020 through December 31, 2020. The highest Average Unit Volume reported was $2,131,389.

Why the Leadership Team is More Excited Than Ever

Looking ahead, Mele says the Paris Baguette team is hyper-focused on achieving its goal of opening 1,000 units in the U.S. by 2030. So far in 2022, the brand has already signed 35 new franchise agreements. 

“We’ve worked hard to put the strongest infrastructure in place so we can support new franchisees as they join the system,” said Mele. “We want the brand to reestablish the neighborhood bakery café in every community. There’s so much joy to be had in having the opportunity to visit a neighborhood bakery café that offers expertly crafted baked and brewed goods to guests. We want our guests to be able to understand our values and the idea that our brand is really about spreading joy.”

To help emphasize this message, the Paris Baguette brand recently announced a comprehensive brand redesign, which will serve as the blueprint for all new locations and includes a community-driven store layout, elevated guest experience and enhanced digital and mobile presence. 

“The new prototype we are rolling out really lends itself to our neighborhood café approach,” said Mele. “Paris Baguette aims to be part of the fabric of the communities it serves by offering a space that is warm, welcoming and encourages connection and support. The redesign emphasizes this approach with a new display case showcasing the artistry behind the baked goods. There will also be windows where guests can see the bakers and cakers at work, murals in each new location that will highlight the connection to the community, new brand packaging and more.”

Now, Mele says he is most excited to help the Paris Baguette brand achieve its mission of expanding its U.S. footprint and redefining the bakery café segment in the country. “This has really been a flagship year for Paris Baguette in the U.S.,” he said. “As we continue to build out the franchise opportunity and recreate our beloved global presence here in America, there has never been a better time to join the brand.”

The total investment to franchise with Paris Baguette ranges from $528,270 and $1,638,554, including a $50,000 franchise fee. For more information, please visit: https://parisbaguette.com/franchising/