Bagel franchise looking for a home in Rockford

By Melissa Westphal

BusinessRockford.com

Einstein Noah Restaurant Inc., known for its casual bagel and bakery cafes, is looking to expand its stores to Rockford.

Einstein locations were almost all company-owned less than two years ago. That included all the Chicago stores and the 150 licensed stores in venues such as airports and colleges.

The idea for franchising gained momentum in 2007 after the company-owned and licensed models had been built.

“It was naturally the next model,” said Kevin Kruse, vice president of franchise development for Einstein Noah Restaurant Groups Inc.

The Colorado-based Einstein has three brands: about 500 Einstein Brothers Bagels across the country; about 50 of the West Coast-based Noah’s New York Bagels; and about 70 of the East Coast-based Manhattan Bagel.

The company did $402.9 million in sales last year, according to Hoover’s.

Kruse said the company has been growing despite tough economic times because its focus is affordable breakfast and lunch menu items.

“We think that consumers still want to visit restaurants,” Kruse said. “What we think they may be doing is still enjoying breakfast or lunch and spending $7 here and then cooking at home in the evening if they can’t afford to go to dinner (restaurants), where the average ticket is higher.”

Two-thirds of Einstein’s sales represent breakfast traffic and the other third is at lunchtime. The stores close at 5 to 6 p.m. in most locations.

The closest Einstein Brothers Bagels is in suburban Lake in the Hills. Einstein has 23 company stores in the Chicago area and three licensed stores, along with six stores in Milwaukee and five in Madison, Wis.

Kruse said the company is looking for restaurateurs who want to expand their portfolios and enter into multiunit development agreements. He has talked to prospective franchise owners in Rockford, as well as in Kane and DuPage counties.

Einstein representatives will be in the Chicago area the week of July 21. Anyone interested in franchise opportunities should e-mail Kevin Kruse at kkruse@einsteinnoah.com.

Staff writer Melissa Westphal can be reached at 815-987-1341 or mwestpha@rrstar.com.