How to Write a Bagel Shop Business Plan

Why You Need a Bagel Shop Business Plan

A bagel store is, above all, a business. 

And as with any small business, there are lots of things to keep track of, from finding the best location and obtaining the necessary permits to planning the space, the budget, and the menu. The best way for business owners to organize all this information is to write it down in one place and then break it down into separate tasks. 

This approach will help budding entrepreneurs transform themselves into bagel shop owners.

Elements of a Bagel Shop Business Plan

Executive Summary

Get started by introducing your bagel shop to potential investors, fellow owners, and future managers by providing a business overview. 

What are your business goals and core values? What’s your budget? What products and services will define your brand? 

And the most determining question for any bagel connoisseur: will you sell New York- or Montreal-style bagels — or your unique creation?

Company Overview

The company overview elaborates on the executive summary with practical details about your business model: ownership, corporate structure, and vision for the customer experience. 

It also includes information about your shop’s location and service capacity: how many people it can hold, if there will be tables for lingering or a coffee bar, and its hours.

Don’t forget to include the business name. Share aesthetic information, like the logo, the color scheme, the decor, and the overall vibe you want to create.  

Team and Management

A great bagel shop is nothing without its bakers, but who else will be minding the store? What sort of management structure will you be using? Will you need additional kitchen staff or baristas, and will they require additional training like, for example, using a meat slicer or espresso machine? Will staffers take turns at the register, or will there be designated cashiers? 

Don’t forget to incorporate the people responsible for the shop’s marketing and publicity: will you hire an outside firm, or will you do it yourself?

Develop a clear hiring plan, identifying which employees you need immediately, which you can add as the business grows, and how you plan to go about hiring them. 

Also, make a point of describing workers’ compensation packages. These packages are more than just salaries: they also include benefits, flexible scheduling, and how you’ll handle on-the-job injuries.

Sample Menu

Now to the important part: what will your bagel shop serve? This doesn’t have to be a definitive list of menu items. However, this section should give investors a sense of the size and the scope of offerings, along with the customers you most hope to appeal. 

For example, will you stick to traditional bagel toppings or experiment with original flavors? What types of cream cheese will you offer — and will you buy them from a supplier or make your own? How many bagel sandwiches will you serve, and where do you plan to source the fillings? Will you serve espresso drinks or just drip coffee, and where will you find your beans?

Planning out a sample menu will also get you thinking about how you’ll serve your food, the sort of dishes and cutlery or paper products you’ll need, and the logistics of processing and assembling orders for delivery. Will you do off-site catering? And if so, how will you make time and space for it with the rest of the business?

Market Analysis

Bagel shops occupy a niche between breakfast-oriented doughnut shops and cafes serving coffee, snacks, and light meals all day. And, bagel shops face intense competition from both sides. 

You’ll need to persuade potential investors that there’s an opening in your target market. Start by identifying your customers and then explain how you will attract them. Include demographic information about the community and details on other dining options in the area. This shows that you’ve done your research, identified a specific need, and chosen the best location.

Marketing and Publicity

A bagel shop relies heavily on repeat customers. 

A marketing plan should include strategies for attracting these customers and getting them to return. Consider offering discounts and giveaways during the initial grand opening period to get as many people — potential regulars — to try your bagels as possible. But don’t just rely on word of mouth: social media is essential to let people know you’re open and what you offer. 

Plus, positive online reviews can help build trust within the community.

Business Operations

How will your shop operate once it’s open and serving customers? 

An operations plan outlines customer service, the point of sale system you plan to use, how you’ll track sales, and how you’ll manage the supply chain and inventory. It also explains whether you’ll be running the shop yourself or if you’ll delegate that to a manager.

Serving food requires permits and licenses, which take time and money to acquire. You’ll need to build this into your plan, along with business insurance. You should also bear in mind all the things that can — and will — go wrong and let potential investors know how you’ll handle them. 

What will you do, for instance, if supply chain shortages prevent you from getting essential ingredients or if you find yourself suddenly short-staffed?

Sales Forecasts and Operating Expenses

Potential investors will want to know how much this endeavor will cost them and if the shop will need regular infusions of cash to stay open. 

A break-even analysis will determine exactly how many bagels, sandwiches, and cups of coffee you’ll need to sell to recoup expenses. 

A cash flow analysis will show investors exactly where their money is going: how much you’ll be spending each month on labor, supplies, and maintenance. 

A smart tip is to provide a financial model in a spreadsheet, accounting for all your expenses, including rent and permits. All this will let investors know how long their support will be necessary before your shop reaches the point where it’s self-sustaining.

Financing and Loans

All this, of course, requires money unless you already know you’re going to win the lottery. 

Will you be relying on primarily investors or taking out bank loans? Or maybe you already have a chunk of money set aside or have lined up private lenders. 

Either way, you have to know where the money’s coming from. Don’t forget real estate: will you buy your space or will you rent? Will your space require renovations or a full build-out? The answers to these questions will also factor into your startup costs.

How to Present a Bagel Shop Business Plan

Remember that the only person who knows and understands everything you want to do with this bagel shop is you. 

Be as clear as possible when you’re presenting your plan to potential investors, and be prepared to answer any questions thrown your way. 

You should be able to cover the concept quickly in a 30-second elevator pitch and also go into greater detail about the market analysis, menu, and operating expenses. You’re not just selling your bagel shop concept - you’re selling yourself as the person who can bring it to life.

Bring Your Bagels to Life

Making a great bagel is a challenge, and so is opening a great bagel shop. But remember - a bagel is one of the best cheap luxuries out there. Once you strike the right balance, you’ll make your neighborhood — and the world — a better place.

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