Private Equity Is Betting Millions on Bagels. Here's Why the Breakfast Food Is Raking in the Dough.
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Private Equity Is Betting Millions on Bagels. Here's Why the Breakfast Food Is Raking in the Dough.
"Private equity firms are pouring millions into bagel chains, convinced that new baking technology and social media hype have finally cracked the code for profitability."
"Americans are drinking more coffee and eating breakfast on the go, making portable foods one of the fastest-growing segments in the $350 billion quick-service industry."
"New ovens can bake bagels to order throughout the day, eliminating the need for massive production facilities and allowing for fresher products."
"The real money isn't in bagels with schmear- it's in $15 bacon, egg and cheese sandwiches, which are driving profitability in the bagel market."
Private equity firms like Stripes and Invus are investing millions in bagel chains, driven by new baking technology and social media trends. Stripes' $35 million investment in PopUp Bagels led to rapid expansion from one Manhattan location to 29 nationwide. The rise in coffee consumption and on-the-go breakfast options has made portable foods a fast-growing segment in the quick-service industry. New ovens allow for on-demand baking, reducing the need for large production facilities. However, concerns remain about maintaining quality during rapid scaling.
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