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Sold! Bruegger’s Bagels to Caribou Coffee

Bruegger’s Bagels has signed an agreement to sell its brand to JAB Holding’s Caribou Coffee. Its parent company, Le Duff America, which owns Mimi’s Cafe and Broice Doree, announced today the sale of Bruegger's but it did not disclose the amount. The sale is expected to close by the end of September.

Bruegger's Bagels Outlets, 2013-2016The Texas-based Le Duff America is part of the France-based Group Le Duff, which has nearly 2,000 bakery-cafes worldwide. Disclosures from Bruegger’s Franchise Corporation to state regulators show that Bruegger's Bagels has been dwindling for years in both its number of franchised restaurants and total outlets. It has dropped from 284 U.S. outlets at the end of 2013 to 260 by the end of 2016.

Bruegger’s Franchise Corporation discloses that its average net sales for its franchised bakeries during fiscal year 2016 was $729,369. According to its Franchise Disclosure Document, Bruegger’s EBITDA for its company-owned stores is 0 percent of sales for bakeries with a net volume less than $500,000 and 13 percent for company-owned bakeries that have greater than $1 million in net sales. Caribou Coffee, which has also been dwindling in outlet count, is far less transparent than Bruegger's when it comes to outlet performance. It chooses to disclose no such figures for its franchises or even company-owned stores.

Le Duff America’s chief executive officer Olivier Poirot said, “The recent transactions strongly reinforce our balance sheet and shift our mindset so we can focus on our French heritage brands, including the upcoming U.S. launch of Brioche Doree, and continued growth in North America through franchising.”

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Don Sniegowski is editor of Blue MauMau, the daily news journal for franchise & small business owners. Call him at +1 (270) 321-1268, tweet @bluemaumau or email