Bagel Business

Opening up a bagel business can be a dream come true for bakers and food artisans alike. Bagels are a staple of American cuisine, and in fact, data by the Simmons National Consumer Survey (NHCS) showed that over 202 million Americans ate bagels in 2020!

Bagels are allowed to be sold under most cottage food laws. Cottage food laws are laws that allow the sale of homemade goods without the need for a commercial kitchen license. These homemade goods must be non-perishable, meaning they can be safely left out at room temperature.

Bagels, breads, scones, cookies, cakes, and other pastries made without potentially hazardous fillings can all be sold as cottage food! This makes starting a bagel business a great idea for first-time bakers that want to sell their goods from home without having to go through the hassle of obtaining commercial licenses.

Starting a bagel business from home can be a cost-efficient and profitable business, as the cost of a bagel is usually over a dollar, yet making bagels only requires cheap ingredients including:

• Water
• Yeast
• Flour
• Sugar
• Salt
• Outer toppings like seeds and spices

If you want to start selling bagels from home, research your specific state's requirements for cottage food. You might not be able to sell toppings with your bagels, such as cream cheese, cheese, deli meats, or even pickled goods, as these can all be considered potentially hazardous. It's best to stick with a simple, yet delicious recipe for your bagel business.

How to Start a Bagel Shop

Whether you want to start a bagel shop from home or at a commercial kitchen, it's fairly easy to set up shop. You will first need to set up a bagel shop business plan which includes things such as your budget, business partners, and who you want to include in your business.

After you've set up a plan, you can purchase bagel shop equipment or improve your kitchen equipment. If you're making bagels at home or are wondering what equipment do I need to open a bagel shop, the answer is the same for both:

• Bowls
• Mixers
• Pots to cook the bagels such as bagel kettles
• Wire skimmers
• A bagel divider
• Oven (industrial or at home)

For people wondering how much does it cost to open a bagel shop, you must factor in the bagel oven cost which can range from $15,000 to $50,000, costs to open a commercial property, and costs of hiring labor. This, coupled with permits and other fees, will cost around $240,000 to start a medium-sized bagel shop.

Although this might seem like a lot of money, it's important to know bagel shops are profitable businesses when ran correctly, whether at home or professionally. If you're wondering how much does a bagel shop make a year, it depends on the average cost of a bagel at your store (between $1 and $6), other items you sell like coffee, and sales per day coupled with overhead costs. Profits can range from $50,000 to over $200,000 annually. How much does it cost to make one bagel? It typically only takes about 10 to 35 cents!

Bagel Shop Ideas

It is fairly costly to open up a bagel shop on your own. To avoid high costs, you can partner with a bagel shop franchise such as Noah's bagels, Einstein bagels, or coffee shops that sell bagels such as Starbucks. Franchising comes at a lower risk and allows you to have more assistance. Plus, you will have an established customer base already!

You can also start your own homemade bagel business. If you're wondering how much profit does a bagel shop make, it all depends on the production costs compared to sales. If you run a business from home, you don't need to pay commercial rent or labor costs, meaning you virtually have 100 percent profit minus materials costs!

To keep your business running smoothly from home, an app like Castiron can allow you to set up your store in minutes, keep track of all your customers, and get paid instantly, all the while using automated marketing tools to make your bagel business a success!