When my grandfather, Izzy Goldberg, started in the bagel business, in 1921, it was quite easy. Once he found a location he could just go ahead and paint some walls, install an oven, and build a counter. Store lay-outs and required drawings for building permits were often drawn on napkins and/or old flour bags.

The only products sold at that time were bagels and cream cheese. In essence you could build a bagel store back then for a substantial fraction of what it would cost today. In addition overhead costs such as rent, insurance, and utilities were far from what they are today. Building codes, construction costs, and cosmetic finishes such as neon signage were again nothing like they are today.

Also it was easier, quicker and less expensive to go into business. You had no downtime waiting for town approvals, architect drawing, or permits which take several months to complete. Today opening a store, at a minimum, is a six month process. First the planning, then searching for a location, negotiating a lease, dealing with contractors and getting town approvals, and finally beginning the construction. The construction time alone will last at least two months. That entails basic rewiring and preparing for a massive oven and kettle. Now you are out of work for at least six months if not a year. That's of course if everything goes according to schedule.

Today most people rent a space from a landlord. This is know as renting or refurbishing a space commonly referred to as a "vanilla box". Most of the time your dealing with buildings that are of age requiring you to update and enhanced the structure. Today most landlords give you their "vanilla box" totally outdated and not up to code. For you to update and enhance this location to serve as a bagel store you could easily spend up to $100,000 in construction costs. Imagine all that money you have invested in some else's property which you will never see a return from that investment. I have never spent less than $65,000 improving someone else's building, not to mention the over runs and unexpected costs. Naturally, this ate at my bagel conscience every day.

One of my customers that had a very successful bagel business for over ten years had his livelihood taken from him. It was quite simple, and happens all too often where the landlord receives an offer from either a chain bagel store or a franchised owned bagel company in which they offer the landlord great improvement to their building by investing money to update a 10 year old space. Imagine paying your rent on time for 10 yrs and your lease one day is not renewed. All that money, sweat and years of hard work are suddenly gone and you are virtually left with nothing. As my friend said "it was like a tornado came and took my life away".

Another landlord rented to two bagel stores in two shopping centers he owned directly across the street from one another. I could tell you hundreds off stories that would send chills down your spine and scare you from going into your own business. I've always considered my landlord as my partner because of all the control he had over my business and my livelihood.

Today's stores are more complex. The products you sell are varied, your employees must be experienced and courteous and the hours of devotion are intense. The last thing I want is a landlord. Frustrated with landlords I went to Pennsylvania where land is reasonable and buying my own commercial building was affordable. It definitely solved my problem of complying and dealing with a landlord. The money I now invested in my bagel store was not only an improvement to my building but to my business and my investment. I have done this in several Pennsylvania locations and I can tell you first hand it makes total investment and financial sense.

Now I solved one of my problems - I have omitted the landlord and I can protect my investment for a lifetime. But that sparked a new problem. I would have to improve the entire building, not just the bagel store area, which became very expensive. For example, the building I purchased needed a new roof, new siding, and other exterior and interior improvements which had nothing to do with the bagel store itself.

I retreated to my farm to get my bagel mind organized and solved the two last and most important problems, cost and time. Viola! Prefabulous bagel stores.

bagelguru22@yahoo.com

www.bagelequipment.com

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