Keep an Eye on NYC Bagel in 2020
How the bagel brand is growing could shake up the fast-food landscape.
In this coming year, NYC Bagel & Sandwich Shop expects to open more than a dozen franchised units, continuing the above trend. The international whitespace accompanies interesting U.S. developments near-term for NYC Bagel & Sandwich Shop, which started 25 years ago as a single bagel store.
The reason being its immediate growth looks pretty different than what we’ve witnessed in recent years. As CEO Joe Smith put it, the chain spent the last few gaining a strong foothold in major cities nationwide. With that foundation laid, however, it’s time for NYC Bagel to shift focus to greater existing market penetration. Fewer new-market entries and more attention spent to rooting brand awareness and filling real estate around established restaurants.
The dynamic slide two ways, really. Adding more stores to a trade area opens the cannibalization conversation. Yet it also speaks to improved brand awareness and less reliance on marketing. Not to mention aiding delivery and off-premises business by widening NYC Bagel’s coverage radius for people staying at home. That’s why site selection will be key. By building out from a market base, NYC Bagel Franchise will also have the opportunity to support and gradually leverage existing infrastructure. This includes operations, training, marketing, and supply chain connections.
Of NYC Bagel & Sandwich Shops planned 2020 growth, only 10 percent will be new markets. It was roughly 20 percent in 2019. To dress it down, what we’re seeing now is one of the quick-service industry’s fastest-growing systems start to mature. And that’s something competitors should take notice of. Just from NYC Bagel’s perspective, the store evolution inspires better-run restaurants throughout the organization. There’s a parallel focus now between tweaking designs to match consumer and market demographics and simply opening more units. In some respects, real-estate agility that mirrors Starbucks’s path to coast-to-coast growth.
NYC Bagel’s design is evolving for the digital journey, the company said. Its digital and in-store experiences are converging. For NYC Bagel Franchise, this means front-of-house flow increasingly separating order-ahead channels. Again, more kiosks. And the noted iterative design and renovation process unfurling in NYC.
Meanwhile, as these store designs change, NYC Bagel Franchise continues to expand formats, just like Starbucks once did. Stadiums, shopping centers, food courts, roadside units you can see from interstate signage, food trucks, events, airports, digital-focused, urban. These nontraditional venues are essential to NYC Bagel’s business, especially when it comes to driving brand awareness. Airport, stadium, and Food truck models in particular.