RISE - Menu Monitor

Einstein Bros. Bagels
Headquarters
555 Zang St. Suite 300, Lakewood, Colorado 80228 USA
Tel: (303)568-8000 Fax: (303)568-8039
www.einsteinbros.com
Ownership: Private
Segment: Limited Service Bakery/Café
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 328,500 301,436 309,958
Company-owned ($000) 295,000 279,431 292,996
Franchised ($000) 33,500 22,005 16,962
U.S. Number of Units 414 419 425
Company-owned 341 351 371
Franchised 73 68 54
International Sales ($000) - - -
International Units - - -
Average Sales/Unit ($000) 866 827 729
Concept Positioning |
Open seven days a week from early morning until late evening, the bulk of Einstein Bros.’/Noah’s NY Bagels’ quick-casual
bakery sales are during the breakfast and lunch day parts. Customers place and pick up orders at a service counter for either
on-premise dining or takeout. Bulk containers of its cream cheeses, coffees and teas are also available for carryout. Einstein
Bros. is a wholly owned subsidiary of Einstein Noah Restaurant Group, Inc., headquartered in Lakewood, CO. The company
operates 340 locations and licenses over 100.
All units, regardless of brand, average 2,200 sq. ft. with table or counter seating available. Where feasible, outdoor seating is
also provided. The overall atmosphere of an Einstein unit is reminiscent of a neighborhood coffee shop, complete with a rack
of daily newspapers for customer enjoyment. In 2004, Einstein Bros. introduced the Einstein Bros. Café prototype, a more
urbane concept designed to encourage guests to dine in, rather than carry-out. Orders are served on plates with flatware, and
a serving staff is available for guests. The exterior features glass, steel and aluminum. The company originally planned to
convert all of its units to the new Café prototype—an idea that has since been scrapped due to underperformance of Café test
units. In 2006, Sodexho USA announced the opening of its first Einstein Bros. unit in spring 2006 at the Pearl Harbor naval
base in Honolulu, HA. The opening comes from a five-year deal between Sodexho and the chain.
Einstein/Noah Bagel Corp. was formed in early 1995 by Boston Chicken through the acquisition of several regional bagel
chains that were then converted to its flagship brand. Noah's was acquired in early 1996 for some $100 million in cash and
stock. In 1999, the company began testing the Einstein Bros. Bagel concept in the Los Angeles area by converting three to
five of the 39 Noah’s New York Bagels units to Einstein restaurants. In 2000, the company filed Chapter 11 bankruptcy. In
2001, following a protracted battle, New World Coffee-Manhattan Bagel, Inc. and its affiliates, Einstein Acquisition Corp. and
Greenlight New World LLC, became the winning bidder for the assets of Einstein/Noah. Bankruptcy court approved New
World’s bid of $160 million in cash plus assumption of up to $30 million of certain operating liabilities. The deal includes
Einstein/Noah’s roughly 485 units, a manufacturing facility in Los Angeles, a support center in Golden, CO, and all trademarks
and intellectual property rights. Einstein Bros. is currently expanding its franchisee base, primarily in the Southeast U.S. In
2007, it was reported that New World Restaurant Group, Inc. planned to propose a public offering of its stock.
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