Connecticut’s crowded market for bagels and coffee is the next target for Einstein Bros. Bagels.
The Colorado-based chain with roughly 400 restaurants nationwide recently announced plans to open a dozen Connecticut restaurants over the next five years, adding to the two already operating at Bradley International Airport and in Fairfield.
Einstein Bros. focuses on coffee, bagels and a lunch menu to draw in customers, putting it in direct competition with Dunkin’ Donuts, Starbucks and Panera Bread.
The market may be getting a little less crowded, given Starbucks’ announced plans to close five Connecticut stores as part of its 600-store pullback nationwide.
Meanwhile, Einstein Bros., a subsidiary of the Colorado-based Einstein Noah Restaurant Group, is headed in the opposite direction.
“We see Connecticut as a great market,” said Paul Carolan, senior vice president of franchising and licensing for the Einstein Noah Restaurant Group. “We’ve seen great customer demand and we’re looking at Connecticut because it’s densely populated.”
Einstein Bros. has a strong concentration in the Southeast, but it plans to push for new franchised locations primarily in the Midwest and New England.
It hasn’t yet selected its new Connecticut locations or restaurant operators.
“We literally just started our franchising push and we’re growing as fast as we can,” Carolan said. “We had been focused in certain areas, like the Southeast, and we just reached a point where we decided to open up the whole country.”
The early response to franchise opportunities has been encouraging, Carolan said, as potential owners are drawn to Einstein Bros., and other breakfast restaurants for several reasons.
“First, you’re not dealing with grease,” he said. “Secondly, you’re not dealing with booze or selling alcohol. And thirdly, you’re usually closed by 5 or 6 p.m. every night. It’s very appealing.”
Carolan said Einstein Bros. is keenly aware of the multitude of competitors in Connecticut and will do its best to stand out. For starters, Carolan said, there won’t be three different Einstein’s within a mile of each other.
“We don’t go into the level of density that Dunkin’ Donuts does,” he said. “There won’t be an Einstein’s at your gas station. What we do best is setting up locations that make people feel like it is their location, not just a location.”
Dunkin’ Donuts has an established customer base in Connecticut, with 21 locations in Hartford alone and more than 400 statewide.
“We definitely acknowledge that Einstein Bros. is competition, but we’re definitely comfortable in the Connecticut market,” said Robert Bernarduci, a Dunkin’ Donuts spokesman. “We’re pleased to state that Dunkin’ Donuts is the largest retailer of bagels in the country, we’re always looking for more convenient locations in Connecticut and across the country.”
Panera Bread has 1,185 stores nationwide and 21 in Connecticut.
Company spokesman Andrew Carlson said his company boasts some of the highest customer satisfaction scores of any concept in the country.
“With all the competition out there, we have to stand for something in order to stand out,” Carlson said in a statement. He cited Panera’s fresh-dough, zero-trans-fat menu items and handcrafted bread.
Starbucks, meanwhile, announced earlier this month that it would be closing 600 locations nationwide. That includes five stores in Connecticut at 137 Prospect Hill Road in East Windsor, 1201 Kings Hwy. in Fairfield, 682 Wethersfield Ave. in Hartford, Evergreen Walk in South Windsor and 209 Ella Grasso Tpke. in Windsor Locks.
Starbucks chairman, president and CEO Howard Schultz said in the announcement that 70 percent of the closures were at stores opened since fiscal year 2006 and were focused on stores that were either not profitable or predicted to not be profitable in the near future.
To raise its profile to compete against Starbucks and the other established brands, Einstein Bros. plans a modest advertising campaign.
“We have a unique, sort of guerrilla way of advertising,” Carolan said. “We try to contact the customer directly, whether that’s through billboards, newspaper ads or direct mailings.”
