Bruegger's

PUGET SOUND BUSINESS JOURNAL: Bruegger's Bagel wants Seattle redo

Bruegger’s Bakery-Cafe wants to re-enter the Seattle market and is looking to attract people interested in investing in franchises.

Chris Cheek, the company’s vice president of franchise development, will be in the area for a few days starting Aug. 26. Cheek said he thinks the Seattle-Tacoma area could support as many as 25 stores over time. Meanwhile, Portland might be big enough for 15.

The Burlington, Vt.-base bagel chain used to have 22 stores in the Seattle area during the bagel craze of the mid 1990s. But the company known for its New York-style bagels was sold, and new owners closed the local shops.

But now Bruegger’s is giving this area a second look.

Cheek said Seattle is an attractive market with a broad employment base that has fared better than some other areas during the recession. Bruegger’s also likes the region’s medium household income, which is hovering around $50,000 a year, and its educated, healthy consumers.

Bruegger’s sells coffee from Green Mountain Coffee Roasters Inc., another Vermont-based company that is expanding into this market. Cheek did not know that Green Mountain is opening a new roaster in the region. But he said Green Mountain and Bruegger’s could both benefit from expanding here at the same time.

Despite the recession, Bruegger’s is growing and approaching 300 stores in 22 states and Washington, D.C. The company, which competes with Corner Bakery Cafe, Panera Bread and Einstein Bros. Bagels, also is looking at several cities in Texas.

Bruegger’s likes to locate in shopping centers and malls near big-box retailers or office parks. But Cheek said that Bruegger’s also has opened in airports and on college campuses.

A big question for Bruegger’s is: Will the company be able to find potential franchise owners willing to open a new store? Cheek said it costs up to $500,000 to get a Bruegger’s up and running, including an initial licensing fee of $30,000. Bruegger’s also collects 6.25 percent of gross sales.