Paris Baguette America Sees Record Sales in 2020, Accelerates Plan for 1,000 Domestic Units by 2030

Paris Baguette, the bakery-cafe brand with more than 4,000 units across the globe, first arrived in the U.S. just over a decade ago. Since then it has established nearly 100 locations in markets across the country, slowly but steadily becoming one of the premier franchise opportunities in the bakery-cafe category. 

But it wasn’t until 2020, a year in which most of the foodservice industry saw record losses and dramatically scaled back operations, that Paris Baguette truly emerged as one of the best bets in franchising. The brand opened more than 15 U.S. locations last year, and now the franchise is preparing to hone in on the unique benefits of its brand DNA to reach 1,000 units across the U.S. over the next 10 years. With 52 new locations in the pipeline and 30 additional franchise agreements in place, it’s off to a good start. 

Even in a dismal economic climate, Paris Baguette franchisees pulled in enviable sales volumes. According to the brand’s Franchise Disclosure Document, Paris Baguette stores enjoy a whopping $2,235,198 average unit volume across the system. 

“We believe that the strength of our franchise can be measured most accurately by the strength of our franchisees, so we are laser-focused on ensuring that they prosper,” said Darren Tipton, CEO of Paris Baguette America. “Our high AUV shows that we’re continuing to make good on that promise.”

Throughout the COVID-19 crisis, which forced the vast majority of restaurants to dramatically pivot their operational models, if not shut down entirely, Paris Baguette remained open and maintained consistent sales without having to alter its core business model. 

Not only did the brand continue serving customers throughout the year, it actually saw marked increases in key areas. On Mother’s Day, one of the biggest sales days of the year for cakes — one of Paris Baguettes’ specialties — the franchise sold more cakes than any previous year. 

Nailing the Brand DNA Story: Finding — and Sharing — Joy

According to Pete Bell, Paris Baguette America’s chief marketing officer, the franchise’s success in 2020 can largely be attributed to the brand’s core commitment to “sharing moments of joy” — something sorely needed throughout a year marked by unprecedented challenges.

“All of our values as a company are centered around sharing moments of joy, and that’s something that was especially important to people last year,” Bell said. “We’re not just sharing joy with our guests by providing amazing items and experiences, we are giving them a way to share joy with their loved ones, whether through a beautiful cake for a celebration or even just a perfect cup of coffee and a croissant for breakfast. You can’t discount how much those moments mean to people.”

Paris Baguette is not the only foodservice brand to find success in 2020, but it is one of the very few to do so without pivoting heavily towards off-premise services. The franchise does offer a number of off-premise options, including online ordering for pickup and delivery, but Bell says sales through those channels accounted for only five percent of the brand’s overall sales for the year.

“We’ve made sure that franchisees are equipped with everything they need to accommodate customers, but what we found is that most of our guests really appreciate the act of visiting a store, seeing the beautiful cakes and pastries, and picking something out,” he said. “It’s a genuine source of comfort for many people, and that joy for the customer translates directly back to joy for the franchisee.”

A Streamlined Operational Model Ideal for Multi-Unit Operations

Unlike so many other bakery and cafe concepts that have expanded to full-service or otherwise adapted their model in an attempt to combine the benefits of other segments with their own, Paris Baguette has stuck steadfastly to its small-footprint, grab-and-go model, which not only proved critical in the time of social-distancing and the mass closure of dining rooms but also allowed the brand to carve out an enviable position for itself as the dominant player in its segment. A decade ago, the brand may have had to compete with cafe-chain behemoths, but those brands have largely vacated the space, opting instead for full-service models that proved ill-suited for the new COVID-shaped restaurant landscape.

“You see so many other brands spreading themselves too thin,” said Mark Mele, Paris Baguette’s chief development officer. “They’re moving into full-service and generally trying to do too much — they lose focus. And what we saw last year, unfortunately, was that many of those brands were unable to stay afloat when the consumer landscape shifted.”

A Dedication to Quality and Craft, Yet Labor-Friendly

Paris Baguette’s clarity of focus extends beyond its operational model and can be seen (and tasted and smelled) in the brand’s consumer offerings, the unusually high quality of which further differentiates the brand from its competitors. Each location requires just a small team of focused professionals — ”Cakers, bakers and baristas,” as the brand informally refers to its store-level staff — who are dedicated to perfectly executing the brand’s artisanal recipes: elevated cakes, cookies, pastries and seasonal specialties, plus perfect cups of tea and coffee that are more than a step above what traditional bakery and cafe chains are able to offer.

“If you look at most chain bakeries, the food might have been made hundreds of miles away from the store, and you can tell. It’s not baked fresh. The store doesn’t feel like there’s actually any baking going on there, and that’s not the feeling people are looking for when they’re buying a cake or picking up a loaf of bread for dinner,” Mele said. “Our teams are in their cafes every morning working, and you can instantly see the art, skill and passion that goes into every item we sell.”

Moreover, Paris Baguette’s operational model was engineered to reduce labor and allow franchisees and employees a favorable work-life balance. All items are prepared in the morning, so kitchens close early and employees don’t have to work late. 

A Uniquely Lucrative Investment

By combining a streamlined operational model and small footprint with a unique dedication to handcrafted, house-made offerings, Paris Baguette has established an easy-to-run operation with a high upside that has proven uniquely durable to economic shifts and other external factors. The ease and efficacy of that model have made it an attractive proposition for first-time franchisees as well as experienced multi-unit investors looking to expand their portfolios with a profitable and turnkey operation. 

Now, the franchise is gearing up to bring its increasingly sought-after concept to new franchisees and customers in markets across the country. Paris Baguette’s ambitious growth plan — 1,000 units in 10 years — has already kicked off, with more than 47 new stores sold since January 2020, and Mele says his team is confident it will hit its first benchmark of 40 new units open by the end of 2021, starting with Kansas City, Dallas, Philadelphia and a host of other markets in states from Oregon to North Carolina.

“We’ve had an influx of inquiries from aspiring franchisees in markets we haven’t even entered yet,” he said. “But we’re not growing just for growth’s sake — we’re growing where we see opportunity, and right now we see a huge demand for Paris Baguette — both from potential owners and customers — in cities across the country, and we’re excited to make the most of those opportunities.”

“This is not a hard sell,” Bell added. “So many people dream of owning their own business, and a bakery and cafe — with all the sights, smells and tastes that go along with that — is often right at the top of their list. Add to that the support of a corporate team and an operational model that has proven highly profitable and recession-resistant, and it’s hard to find a more attractive business opportunity.”

The total investment to franchise with Paris Baguette ranges from $709,193 to $1,386,292, including a $50,000 franchise fee. If you enter into an area development agreement, you must develop a minimum of four stores. For more information on franchising with Paris Baguette, please visit https://us.parisbaguettefamily.com/