If you think that owning a cookie business isn’t as lucrative as it seems, then you should know that an average person in the U.S. consumes 35,000 cookies in their lifetime.
When combined, each American eats an estimated 300 cookies every year or around 2 billion pieces. More than 95% of households buy them as a snack, so it doesn’t take much effort to realize that running a business can be a sustainable one. More specifically, becoming a franchisee allows you to capitalize on the strong demand for baked goods.
Bits and Pieces
Cookie consumption in the country surpasses the rate of anywhere else in the world. In fact, people spend more than $550 million on just Oreos. Baking equipment remains part of their expenses to satisfy their sweet tooth, particularly for chocolate chip cookies that make up 50% of all home-baked cookies. Those who have been thinking about profiting from a cookie business should know that competition is a crucial obstacle.
While demand remains strong, it can be difficult for a start-up business to penetrate its target market, especially when there are well-known brands in this segment. A franchised business provides you with a competitive edge by no longer thinking about establishing your customer base. However, that doesn’t mean that a franchise is an easy prospect. For instance, the associated costs might be your top concern.
How Much It Would Cost You
A Dunkin Donuts franchise doesn’t just allow you to sell cookies and other sweets, although you should expect to invest at least $228,621. Not only that, prospective franchisees should have a net worth of $500,000 and liquid assets worth a minimum of $250,000. It might be better to focus on a low-cost franchise first if you are a first-time franchisee.
If you change your mind now and switch to frozen snacks, a Pinkberry franchise would require an initial investment of $310,000. Your net worth and cash liquidity should be worth $400,000 and $200,000, respectively. These expenses don’t include the cost of franchising fees and royalties among other things, so the total investment would be more expensive.
In case you still want to run a cookie store, another thing to figure out involves the majority preference among consumers in your home state. An indication of this is the most popular Girl Scout cookie in your area, based on a survey of more than 5,000 cookie aficionados. It showed that Thin Mints are the favorite of residents in Arizona, Arkansas, California, and 21 other states mostly from the West Coast.
Caramel deLites/Samoas ranked second as the top choice in 18 states including Washington, Pennsylvania, Texas, and New Jersey. Peanut Butter Patties and Tagalongs are the best-sellers in Connecticut, South Carolina, Wisconsin, and six other states.
A low-cost cookie franchise might be a better option for first-timers. When choosing among different brands, find one that reflects your attitude on the baking business. This can help since you won’t have much creative control on how to run the store.