Home Articles Costs of Owning an 85°C Bakery Cafe Franchise: A Simple Guide

Costs of Owning an 85°C Bakery Cafe Franchise: A Simple Guide

by Celia

Are you considering venturing into the world of franchising with 85°C Bakery Cafe? Before you take the plunge, it’s essential to understand the various costs associated with owning and operating one of these popular cafes. In this comprehensive guide, we’ll delve into the intricacies of 85°C Bakery Cafe franchise costs, giving you the insight you need to make an informed decision.

1. Initial Franchise Fee

At the outset of your journey as an 85°C Bakery Cafe franchisee, you’ll encounter the initial franchise fee. This fee serves as your ticket into the world of 85°C Bakery Cafe ownership and grants you access to the brand’s proven business model, operational support, and renowned recipes. The initial franchise fee for 85°C Bakery Cafe typically ranges from $30,000 to $50,000, depending on various factors such as location, market conditions, and franchise agreement terms.

2. Build-Out Costs

Once you’ve secured your franchise agreement and paid the initial franchise fee, the next step is to build out your 85°C Bakery Cafe location. Build-out costs encompass a wide range of expenses, including leasehold improvements, construction, and equipment installation. These costs can vary significantly depending on factors such as the size of the space, the condition of the building, and local regulations. On average, franchisees should budget anywhere from $300,000 to $600,000 for build-out costs.

Leasehold Improvements: Renovating the interior space to meet 85°C Bakery Cafe’s specifications may involve costs such as flooring, lighting, plumbing, and electrical work.

Equipment Installation: Installing kitchen equipment, display cases, refrigeration units, and other essential fixtures is a crucial aspect of building out your 85°C Bakery Cafe location.

Construction Costs: Hiring contractors and construction crews to carry out the necessary renovations and build-out work will incur expenses that must be factored into your budget.

3. Inventory and Supplies

Once your 85°C Bakery Cafe location is ready to open its doors to customers, you’ll need to stock up on inventory and supplies to meet demand. This includes ingredients for baking, packaging materials, coffee beans, beverage supplies, and other essentials. The cost of initial inventory and supplies can vary depending on the size of your cafe and anticipated customer traffic. Franchisees should budget accordingly, with average expenses ranging from $50,000 to $100,000.

Baking Ingredients: High-quality flour, sugar, butter, eggs, and other baking ingredients are essential for creating 85°C Bakery Cafe’s signature pastries and bread.

Packaging Materials: From boxes and bags to labels and stickers, packaging materials play a crucial role in presenting 85°C Bakery Cafe products to customers in an appealing and professional manner.

Coffee and Beverage Supplies: Stocking up on coffee beans, tea leaves, milk, syrups, and other beverage supplies ensures that your cafe can meet the diverse preferences of its patrons.

4. Marketing and Advertising

To attract customers and drive traffic to your 85°C Bakery Cafe location, effective marketing and advertising strategies are essential. Franchisees are typically required to contribute to a marketing fund or cooperative that supports regional and national advertising campaigns. Additionally, franchisees may need to allocate resources for local marketing initiatives, such as social media advertising, signage, and promotional events. The average marketing and advertising budget for 85°C Bakery Cafe franchisees ranges from $10,000 to $50,000 annually.

Regional and National Advertising: Contributions to a marketing fund or cooperative support advertising efforts that raise awareness of the 85°C Bakery Cafe brand on a broader scale.

Local Marketing Initiatives: Franchisees can leverage local marketing tactics to target specific demographics and communities, driving foot traffic and building customer loyalty.

5. Ongoing Fees and Royalties

In addition to the initial franchise fee and build-out costs, 85°C Bakery Cafe franchisees are subject to ongoing fees and royalties. These fees typically include a monthly royalty fee based on a percentage of gross sales, as well as contributions to a national advertising fund. The exact percentage may vary depending on the terms of your franchise agreement, but franchisees should expect to allocate a portion of their revenue to these ongoing expenses.

Royalty Fees: A percentage of gross sales is paid to the franchisor as royalties, compensating them for the ongoing support, training, and resources provided to franchisees.

National Advertising Fund Contributions: Franchisees contribute to a national advertising fund that supports marketing and advertising efforts to promote the 85°C Bakery Cafe brand on a larger scale.

Additional Fees: Depending on the franchise agreement, franchisees may also be responsible for additional fees such as technology fees, training fees, and renewal fees.


Owning an 85°C Bakery Cafe franchise can be a rewarding and lucrative venture for entrepreneurs passionate about baked goods and specialty coffee. However, it’s essential to carefully consider the various costs and financial commitments associated with franchising before making a decision. By understanding the initial franchise fee, build-out costs, inventory and supplies, marketing and advertising expenses, and ongoing fees and royalties, prospective franchisees can make informed choices and set themselves up for success in the competitive bakery industry.

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