In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the Corner Bakery Cafe franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Corner Bakery Cafe franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of Corner Bakery Cafe’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 average, median, high, and low gross sales for the 58 franchised cafes, 95 company-owned cafes, and 153 franchised and company-owned cafes (combined) that have been operated continuously throughout the company’s 2015 fiscal year
- 2015 average, median, high, and low gross sales for the 28 mature franchised cafes, 89 mature company-owned cafes, and 117 mature franchised and company-owned cafes (combined) that have been operated continuously during the 36-month period from December 31, 2012 through December 27, 2015
- 2015 average gross sales, cost of goods sold, labor costs, other operating expenses, advertising expenses, occupancy expenses, imputed royalty fees, and restaurant adjusted EBITDA for the 95 company-owned cafes that have been operated continuously throughout the company’s 2015 fiscal year
- 2015 average counter breakfast gross sales, counter lunch gross sales, counter dinner gross sales, and catering gross sales for the 58 franchised cafes, 95 company-owned cafes, and 153 franchised and company-owned cafes (combined) that have been operated continuously throughout the company’s 2015 fiscal year
Section I – Background Information
Healthy Quick Service
With an emphasis on a menu that offers dozens of produce choices and other healthy ingredients, Corner Bakery Cafe is a little different from most quick service restaurants.
The chain placed No. 5 on a 2016 list of 10 Healthiest Fast Food Restaurants by CBS News. The chain was lauded for its “fantastic breakfast menu,” which CBS news said is not easily found in quick service restaurants. The Farmer’s Scrambler and the Swiss oatmeal, both packed with lots of healthy extras, got mentions, as did the oven roasted chicken that is available in the restaurants’ pastas and salads.
Chain Started as Bakery Only
Corner Bakery Cafe, which seeks to provide space for people to relax and get together with family and friends, began in 1991 in Chicago as simply a bakery. It evolved to offer a menu that also features sandwiches, soups, paninis, salads, breakfasts and desserts, including selections from creative seasonal menus. The chain has been franchising since 2006.
CBC Restaurant Corp. owns and operates or franchises the more than 190 company-owned and franchised locations in 25 U.S. states. CBC is a subsidiary of Il Fornaio, a small chain of upscale Italian restaurants that is owned by Atlanta-based private equity firm Roark Capital.
Franchising Growing in South, Midwest
Corner Bakery Cafe has growth markets in the Midwest and South, as well as some New England states and Alaska and Hawaii. The chain is looking to increase development in Austin, Texas, as well as the rest of the state. A number of states in the West have limited availability.
The company says a new store opens every two to three weeks.
New Locations in Montana, Washington, Oregon
Corner Bakery Cafe opened three new stores in June 2016 in Montana, Washington and Oregon.
The Washington location in Tukwila is the first of 16 that Northwest Corner LLC expects to open in the state. The Oregon location in Hillsboro is one of 12 stores that NW Ventures plans to open within the Oregon and Vancouver, Washington areas. The Montana franchise, located in Bozeman, is led by David Morehead and Brian Anderson of Anderson Management Group.
Paci Named CEO of Both Corner Bakery Cafe and Il Fornaio
Frank Paci became CEO of both Corner Bakery Cafe and Il Fornaio in October 2015. He took the place of Mike Hislop, who stayed on as chairman of the board.
Paci has more than 25 years of leadership experience with retail and food service companies. He was most recently president and CEO at Einstein Noah Restaurant Group, Inc.
LTO Menu Features Italy
Corner Bakery Cafe is highlighting Italy with a complete new menu featuring Italian dishes. The limited-time Italian Inspirations menu features an Italian Classic Sandwich, Rustic Italian Panini, and Italian Chef Salad.
“We’ve combined traditional Italian meats and cheeses to create classic Italian flavors in our cafes,” Ric Scicchitano, the chain’s executive vice president, food and supply chain, said in a news release. “Guests will experience the fresh tastes of Italy with capicola ham, Genoa salami, Provolone, fresh Mozzarella, and pepperoncini featured in our new sandwiches and salads.”
The menu debuted July 26, 2016, and will be available until Sept. 26.
Grilled Flats Join Lunch, Dinner Menu
Corner Bakery Cafe in June 2015 introduced “unflat” Grilled Flats to the lunch and dinner menu.
The four flatbread sandwiches are offered in four varieties – Southwest Chicken, Chicken Caesar, Caprese and BBQ Pork – all of which have less than 300 calories.
Section II – Estimated Costs
- Please click here for detailed estimates of Corner Bakery Cafe franchise costs, based on Item 7 of the company’s 2016 FDD (updated).