Feasibility Study: Einstein Bros Bagels Franchise

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Feasibility Study: Einstein Bros Bagels Franchise

Einstein Noah Restaurant Group

Due Date: December 3rd, 2009

By: Erika Quinones

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TABLE OF CONTENTS

EXECUTIVE SUMMARY…………………………...……………………………3

BUSINESS CONCEPT…………………………………………………………….4

MARKET FEASABILITY………………………………………………………..10

TECHNICAL FEASABILITY……………………………………………………12

FINANCIAL FEASABILTY……………………………………………………..15

Executive Summary

Einstein Bros Bagels will offer various types of food and beverages specializing in breakfast and lunch. The franchise will be conveniently located in a shopping center between University Medical Center and Texas Tech Health Science Center- Paul L. Foster School of Medicine in El Paso, TX. Therefore, it will offer an accessible location for our customers within walking distance. The bagel shop will be known for its comfortable and friendly store environment featuring sophisticated finishes and furnishings to a reasonably priced, high-quality food.

Currently in the El Paso TX area there are no Einstein Brothers Bagels franchises. The market for convenience foods is expanding rapidly in the El Paso TX area due to increase population growth and increased median family incomes. The competition is plentiful in the El Paso TX market due to increased food related franchises and restaurants opening in the area offering similar products and services. Aggressive advertising would have to be conducted to make the targeted customers aware of the business.

The resources needed have been identified by the franchisor. The needed expertise and skills to make this franchise a success is provided by the franchisor. Without adequate financing and net worth one cannot easily open a franchise for this corporation. Production is subcontracted through the corporate offices.

The cost to start the franchise is expensive relative to other types of food related franchises. Because of the amount of capital infused and structure of the business venture cash flow will be available to operate the business. Initially gross margins are low but do improve with time as does the return on investment. Financing will be outsourced by a bank, forming a partnership or in the form of a private investor or investors.

This business venture is economically feasible because of the location and the products of the business make it lucrative and exclusive. The timing is also good because of the growth of the Texas Tech Health Science Center in conjunction with the growth of the adjoining University Medical Center.

Business Concept

Mission Statement

At Einstein Noah Restaurant Group, our mission is simple: to redefine the quick casual neighborhood café.

“From our comfortable and friendly store environments featuring sophisticated finishes and furnishings to our reasonably priced, high-quality food, we offer places—quite simply—where people want to be.

The concept of quick casual is more than a trend. In fact, the $6 billion segment is one of the fastest growing niches in the restaurant industry. This significant growth is attributed to aging baby boomers who are willing to pay a little more for quality food in a comfortable environment and a youth culture that needs a place to, well, hangout. We provide both—with class.

From cozy, warmly lighted lunch cafés with comfy chairs and community tables to convenient counter-order bagel delis, ENRG offers an array of quick casual options. Whether customers want a piled-high sandwich to go or prefer to pause over fresh salads and talk business, one of ENRG'S five brands will accommodate. It’s all about convenience that isn’t rushed, atmosphere that doesn’t go stale, and service that comes with a smile.

And we do quick casual all over the nation. With a dough production facility and a coffee roasting plant, ENRG makes sure everything bagel-like—from standard hole-in-the-middles to the ingenious Bagel Dog—and not so bagel-like—from fresh salads to fudge brownies—are...
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