Hi,
I would like to start a small bakery franchise in NorCal (not in the Bay Area). Now I have two options. One is buy an existing store that already has kitchen equipments and sink that I can use for my own business. Or I would lease a space that doesn’t already have a kitchen and I need to do the built out myself. I can’t decide which one would be more cost effective? I know the existing store is trying to sell for 100K, I could try for a lower offer. How much exactly will a built out of a complete kitchen cost?
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My wife owns a bakery. You can expect to easily spend between 50k to 100k on equipment. A lot will depend on what, exactly, you need and whether you can get some stuff second hand. For example, we just recently bought a second large mixer. 60qt Hobart… We bought a used one for 6k. A new one would be closer to 30k. We’re also looking at a large roll-in oven, which if we find a used one, would likely cost us around 10k to 15k but new would be in the 50k to 60k range.
However, at least where I am, the largest hurdle you’re likely to face is zoning, permits and inspections. If you find a location that already has an approved kitchen you’ll be in for a much easier time than if you have to build a kitchen from scratch with all of the regulations that go along with that.
There is a process for locating a new retail store.
First step is to determine if the trading area has enough unmet demand to support another store.
If it does, next step is to estimate the amount of sales you can expect to capture.
The amount of sales is then used to determine how much store (i.e. SF, parking spaces, etc.) you need to service this demand.