Aiming to take its recognizable brand name to other parts of the nation, H&H Bagels recently signed several multi-unit deals in multiple markets.
The brand signed franchise agreements for a total of 22 units, with another three company-owned stores announced as well. The agreements come just under two years after the brand established its franchise system in fall 2021.
The latest deals marking H&H Bagels’ expansion include a 10-unit agreement for the Washington, D.C., area, a five-unit deal for Los Angeles and a five-unit deal for Tampa, Florida, as well as two single-unit agreements, for Boca Raton, Florida, and Stamford, Connecticut. A PR representative said the company couldn’t share names or other information about the new franchisees.
The brand is also opening a company-owned store in Chicago.
“Partnering with multi-unit franchisees started just naturally, but we’re now at the point where we’re almost only accepting multi-unit deals,” CEO Jay Rushin said. “There might be an occasional smaller city exception, but now we’re focused on the multi-unit expansion.”
Those types of deals will remain moderately sized, Rushin said, with the brand signing agreements with a unit count between three and 10.
“I think we’re going to stick with that range,” Rushin said. “Bigger deals come with their own set of risks and we like the size of that range better. Plus, everyone who signs that kind of deal will still have the opportunity to re-up down the road and get bigger.”
H&H Bagels CEO Jay Rushin
Rushin said planning for the franchise system began many years ago.
“Growing this company has been my goal since I took it over,” Rushin said. “But we had to perfect the model and customer experience. We also had to build the right team and everything in between. We also were delayed a bit with the pandemic and those complexities.”
H&H Bagels was founded in 1972 and over its history gained recognition by appearing in television and film. When Rushin acquired the brand in 2014, though, the company only had locations in New York City, and he saw that it could grow beyond that market.
To do so, Rushin said the brand will use a mix of company-owned locations and franchised units.
“We thought a franchise system would be perfect, with operators on the ground who have skin in the game and really care about the brand and customer experience,” Rushin said. “We also thought we could grow faster that way. We’re still going to do company-owned growth, but the amount of interest and momentum is on the franchising side.”
To support the new expansion, Rushin said the brand is also opening a new 20,000-square-foot bakery facility in Queens, New York. That type of support has helped recruit potential owners to the system, he said.
“On discovery day, they get to walk through our process and they are blown away,” Rushin said. “The numbers-focused people are ecstatic about the labor model we present, too. It’s extremely different than most operators in the bagel category. We’re a one-shift model, open 7 a.m. to 3 p.m. You’re talking about a massively reduced labor need. We also have a very specific menu, which makes it easier and more productive to make bagels and items to go.”