The premium bakery-café chain began franchising internationally in 2010 and is now turning to the expansion model to scale its 12-store presence in New York, Los Angeles and Chicago
Magnolia Bakery will kickstart domestic franchising next year in a bid to scale its bricks-and-mortar presence in the US.
Founded in 1996, the premium bakery-café chain has steadily expanded to 12 US stores across New York City, Los Angeles and Chicago. Its first domestic franchised outlet is set to open in Utah’s Salt Lake City in 2026, before the brand accelerates franchise expansion on the US East Coast.
Magnolia’s domestic franchise plans come four years after the brand was acquired by New York-based private equity firm RSE Ventures, which also holds stakes in boutique specialty coffee group Bluestone Lane, synthetic coffee brand Atomo and sustainable micro-roaster manufacturer Bellwether.
Popular for its banana pudding and premium cupcakes, Magnolia began nationwide e-commerce rollout in January 2012 and also partners with delivery platforms DoorDash, Wonder and GoPuff to serve direct-to-consumer in the US. The group has been serving Peet’s Coffee as part of an exclusive coffee partnership since 2013.
While Salt Lake City will mark a first domestic foray into franchising, Magnolia can lean on over a decade of international franchise experience. The brand opened its first international store in Dubai in 2010 as part of a master franchise agreement with UAE-based luxury retail firm Al Tayer Group and currently works with seven international franchise partners to operates 35 licensed stores abroad – including nine in India, seven in the UAE and six in each of Turkey and the Philippines.
