Magnolia Bakery's First New York Franchise Just Opened on Staten Island. What It Takes to Bring a Famous Brand to Your Borough
The West Village bakery famous for banana pudding opened in New Dorp on Nov. 3, run by a local franchisee, its first franchise owner in New York State. A look at the opening and at what Magnolia's franchise program asks of would-be owners.
NEW YORK — For 30 years, getting a cup of Magnolia Bakery’s banana pudding meant a trip to Manhattan, or at least to LaGuardia. As of this week, Staten Island has its own, and the person behind the counter owns the business.
Magnolia Bakery opened its first Staten Island location on Tuesday, Nov. 3, in the Hylan Commons shopping plaza at Hylan Boulevard and New Dorp Lane, Time Out New York reported. The shop is owned by Staten Island local Ereny Ghobrial and is the brand’s first franchise location in New York.
“Magnolia Bakery is a brand synonymous with New York, and I’m excited to bring it to a new borough with our Staten Island opening,” Ghobrial said, as quoted by Time Out from SILive.com.
A Homegrown Brand Learns to Franchise
Magnolia opened on a West Village corner in 1996 and became a destination for its cupcakes and banana pudding. It has grown to 50-plus locations worldwide, according to Time Out, but it didn’t start franchising in the U.S. until 2025, with a first franchise in Salt Lake City.
Hoodline, citing SILive.com, reports that New Dorp is Magnolia’s 12th location in New York State, after 10 in Manhattan and one at LaGuardia Airport. The shop sits between an Aldi and a Planet Fitness and includes a dedicated banana pudding bar with four specialty flavors, caramel brownie, cookies and cream, red velvet and chocolate hazelnut, at $10.95 for a two-serving cup. CEO Nathan Louer told SILive.com the company would like to open three to five more locations in the area, with the goal of reaching all five boroughs, according to Hoodline.
“Franchising with passionate local operators is so important to us,” Louer said, per Time Out.
Staten Island is part of a broader rollout. Hoodline, citing QSR Magazine, reports franchised shops opening in the second half of 2026 in Salt Lake City, Las Vegas, Detroit, Louisville, Fairfield County, Conn., and Cleveland, plus two Philadelphia-area stores, the first scheduled for Nov. 17 in Mount Laurel, N.J.
What Magnolia Asks of a Franchisee
Owning a famous brand’s storefront is a different path from opening your own bakery, and it is not a cheap one. Magnolia’s U.S. franchise page lists these terms:
- Initial investment: $696,000 to $1,198,270 for the first bakery
- Initial franchise fee: $49,000 for the first bakery, $39,000 for each additional one
- Royalty: 6% of revenue
- Marketing fund: 3% of gross revenues
- Net worth required: $3 million or more
- Liquid capital required: $900,000
The page describes a multi-step approval process: an introductory call, an eligibility questionnaire, a review of the Franchise Disclosure Document, a background and financial verification, a market review with the company’s outside real estate firm, a Discovery Day at the company’s New York City home office, and a committee review. Franchisees sign an Area Development Agreement along with their first franchise agreement, which means the company is looking for operators who plan to open more than one shop.
Lessons for New York Entrepreneurs
Franchising is a capital game. The $3 million net-worth bar puts a Magnolia franchise out of reach for most first-time owners. But the trade-off is the heart of franchising: you pay for a proven product, a recognized name and a playbook, and you give up a share of revenue for as long as you operate.
Read the disclosure document closely. Under the FTC’s Franchise Rule, franchisors must give prospective owners a Franchise Disclosure Document before they sign, and Magnolia’s page points to Item 19 of its April 2026 FDD for revenue figures from its company-owned bakeries. That section, along with the fee and obligation sections, is where a candidate learns what they’re really signing up for. Have a franchise attorney and an accountant review it before you commit.
The outer boroughs are a growth story. A brand that spent decades in Manhattan chose a Staten Island shopping plaza, next to a grocery store and a gym, for its first New York franchise. For local operators, that’s a reminder that national and city brands are looking for owners who know neighborhoods outside Manhattan.
If franchising isn’t for you, the playbook still applies. Magnolia’s growth rests on a few signature products customers line up for. Independent bakers and food makers can take the same lesson: a focused menu built around one or two items you do better than anyone is easier to grow, whether that means a second shop, wholesale accounts or shipping.
The Bottom Line
The New Dorp opening gives Staten Island a famous New York dessert without the ferry ride, and it shows how a 30-year-old Manhattan brand is now growing through local owners. For anyone weighing a franchise, Magnolia’s published terms are a clear picture of what a premium food franchise costs to get into.