The Success Story Behind Greggs
John Gregg founded the company in Newcastle upon Tyne with a vision to create a bakery that offered fresh, high-quality products at affordable prices. His dedication to excellence led to rapid growth, and today, Greggs is a household name in the UK.
The key factors contributing to Greggs franchise UK success include:
- Consistent Quality: Greggs has focused on providing customers with fresh, delicious products from high-quality ingredients.
- Innovation: The company continuously innovates its product range, catering to changing consumer tastes and dietary preferences, such as introducing vegan options.
- Strategic Locations: Greggs has a strong presence on high streets, shopping centres, and near transport hubs, ensuring its stores are easily accessible to a wide range of customers.
- Affordability: The brand has built a loyal customer base by offering tasty treats at reasonable prices, making it a popular choice for a quick meal or snack on the go.
Does Greggs franchise?
Greggs occupies a position somewhere between the franchise system and a traditional business model. In the vast majority of cases, it does not utilise the franchise system and will not offer individual, one-off franchise agreements. Therefore, there are no Greggs franchise opportunities available.
Historically, Greggs has preferred to keep the management of its stores in-house and retain control over the entire organisation. Whereas most companies would have turned to franchise to facilitate the rapid expansion it has achieved, Greggs was able to get there with its quality products, appealing pricing system and highly effective branding.
How Much is a Greggs Franchise?
Initial Franchise Fee
The initial Greggs Franchise cost in the UK ranges from £30,000 to £45,000, depending on factors such as store location and size. This fee grants you the right to use the Greggs brand name, logo, and proprietary systems.
Store Build and Fit-Out Costs
Expect to invest between £150,000 and £250,000 for store build and fit-out expenses. This includes costs for store layout, fixtures, fittings, equipment, and signage, among other essential elements, to ensure your store adheres to Greggs' high-quality standards.
As a new franchisee, you'll need to have sufficient working capital to cover operating expenses, such as staff salaries, rent, and utilities, during the initial stages of your business. Plan for a working capital requirement of around £40,000 to £60,000.
Training and Support Fee
Greggs provides comprehensive training and ongoing support to its franchisees. The training and support fee, typically from £5,000 to £7,500, covers initial and ongoing training and access to the company's support network and resources.
Additional Costs and Requirements
As a Greggs franchisee, you must pay a royalty fee of around 6% of your gross sales. This fee contributes to the franchisor's ongoing development, marketing, and support.
Franchisees are also required to contribute to the company's advertising fund, which is generally around 2% of gross sales. This fee supports national and regional marketing campaigns and promotional efforts that benefit all Greggs franchisees.
Minimum Net Worth and Liquid Capital
Prospective franchisees should have a minimum net worth of £250,000 and at least £100,000 in liquid capital to be considered for a Greggs franchise.
Benefits of Investing in a Greggs Franchise
Strong Brand Recognition
Greggs’s strong brand recognition and reputation for high-quality products make it an attractive franchise opportunity. With an established customer base and a loyal following, franchisees can benefit from the trust and goodwill of the Greggs brand.
Comprehensive Training and Support
Greggs offers a robust training program that covers topics such as operations, marketing, and financial management. In addition, franchisees receive ongoing support through field visits, performance evaluations, and access to a dedicated support team.
Proven Business Model
Greggs' business model has been tested over the years, resulting in a highly efficient and profitable system. By investing in a Greggs franchise, you'll adopt a proven model with a track record of success.
How to get involved with Greggs
It’s important to note that there are some occasions on which Greggs enters into a franchise relationship with corporate partners. Currently, the business has franchised out 11 stores in locations where it would be difficult to operate a company-run store. This includes service stations, petrol stations and educational establishments such as universities.
Generally, these partnerships involve a business committing to opening 10 or more Greggs franchise units on properties they own or manage over a scheduled period of time. Organisations that fit the criteria can register their interest on the Greggs website.
The baked goods market in the UK
In the UK, there is a large number of franchises operating in the baked goods industry. However, there are few that can compete with Greggs for market penetration and brand recognition. The vast majority of franchises in the sector are single-item specialists like Dunkin' Donuts and Cinnabon.
That being said, there are traditional bakery businesses currently using the franchise model to expand. The most obvious example of this type of franchise is Warrens Bakery. Here, we take a look at three different franchises in the UK and examine what they’ve got to offer.
Similar franchise opportunities
Have a look below at three bakery franchise opportunities.
Cinnabon was launched in 1985 in the US. Its first store opened in the SeaTac Mall in the north-western city of Seattle and, when it succeeded beyond expectations, the business began expanding across the US. This franchise specialises in retailing its world-famous cinnamon roll, served fresh out of the oven. It also sells a range of baked goods and speciality drinks, from lemonade to its very own MochaLatta Chill.
- Becoming a Cinnabon franchisee: To qualify as a franchisee, you’ll need to have food service management experience as an owner and/or operator. You should also have expertise in real estate, marketing, development, project management and HR.
- How much you need to invest: A total investment of around £140,000 is required to open a Cinnabon franchise.
- What you get for your investment: Franchisees can opt to run an in-line or kiosk-style store and will receive all the support, guidance, and assistance needed to succeed in the competitive baked goods market.
2. Bagel Corner
Founded in 2010, Bagel Corner already has 30 outlets selling its tasty selection of bagels, soups and salads in France. The ambitious business capitalises on the growing demand for quick, quality food, with many of us leading incredibly busy lives. To ensure that it really makes it mark in the quick service sector, Bagel Corner has established an innovative concept. Time-pressed customers can order their food from the Bagel Corner website before they arrive and pick it up. This also helps reduce long queues and makes it easier to maintain the 70-second service time.
- Becoming a Bagel Corner franchisee: The bagel brand is looking to expand its UK presence through regional and master franchisees, and there’s flexibility in the size of store and type of location you open. The largest is the restaurant concept, then the shop-in-shop concept and, lastly, the takeaway kiosk concept.
- How much you need to invest: If you want to play your part in Bagel Corner’s goal to open 100 restaurants in Europe by next year, you will need to make a minimum investment of £500,000.
- What you get for your investment: Bagel Corner provides a comprehensive 10-day training programme to ensure new franchisees get to grips with the business model and operational processes. This is followed by ongoing support, even when your business is up and running.
3. Baguette Express
Baguette Express is dedicated to providing its customers with fresh and healthy meals without breaking the bank. Also in the quick service category, this franchise serves up its baguettes in record time, and always with a smile. The baguette brand was born in 1999 by two brothers and has since expanded to more than 70 stores in the UK. This franchise satisfies customers by making pre-made and customisable baguettes, so there’s no more picking out tomatoes or scraping off mayo. Whatever filling customers choose, it will be served on soft bread, with fresh salad and quality meat.
- Becoming a Baguette Express franchisee: You don’t need any industry experience to become a franchisee with Baguette Express. However, you should have good business judgement and the enthusiasm to commit to this fast-growing brand on a full-time basis.
- How much you need to invest: To invest in this franchise, interested entrepreneurs will need to make a minimum investment of £30,000 and a total investment of £60,000.
- What you get for your investment: Baguette Express franchisees can benefit from initial training and ongoing support. They will be guided through finding the perfect location, sales, marketing and any other areas that are needed to make their business a success. Also, if you get on board with this franchise, you can expect to make an annual profit of approximately £50,000.
4. Warrens Bakery
Although Warrens Bakery isn’t currently in our franchise portfolio, it does have an excellent track record and place in the market. Selling hand-crimped pasties, freshly baked bread, scones and biscuits, this bakery franchise is a favourite among customers across England and Wales. This business has the objective of becoming the leading ethical franchisor in the retail bakery sector. It has been baking for around 160 years and its franchise network currently comprises around 50 franchise units.
- Becoming a Warrens Bakery franchisee: Warrens Bakery is looking for driven individuals to help expand the franchise and penetrate new markets. If you think you can effectively continue the legacy Warrens Bakery has created, this could be the franchise opportunity for you.
- How much you need to invest: In order to become a Warrens franchisee, you’ll need to invest at least £18,500. On top of this, you will also need to factor in property costs, working capital and equipment hire.
- What you get for your investment: Franchisees benefit from training, access to support systems, operations manuals and support with site design, marketing and PR. You can also enrol onto food safety and health and safety courses to make sure you’re running your business to the highest possible standard.
Get your bakery hat on
Everyone loves a sausage roll, pasty or crusty roll now and again, and there’s excellent scope to become a successful franchisee in the bakery sector. Browse our portfolio to find out about our bakery franchise opportunities.
Shaun M Jooste, Point Franchise ©