Bagels Take Center Stage in the Bakery Aisle

Bagels, though a smaller category within the bakery sector, play a vital role in attracting customers to retail bakery departments. From unique flavors to innovative promotions, retailers are finding creative ways to make bagels a staple for breakfast, snacks, and gatherings.

Variety and Freshness

Retailers like Dorothy Lane Market and Stew Leonard’s are leading the way in offering diverse bagel options to cater to evolving customer tastes.

• Dorothy Lane Market in Dayton, Ohio, bakes 16 varieties daily, including traditional options and creative flavors like asiago-jalapeño and blueberry-cinnamon crunch. Hand-shaped and baked fresh, Dorothy Lane’s bagels are inspired by the classic New York bagel recipe.
  • Corporate Accounts: The retailer has grown its bagel sales by catering to businesses, delivering fresh bagels to local hospitals, cafes, and more.
  • Complementary Services: The adjacent coffee bar offers self-serve toasters and spreads, making it convenient for customers to enjoy their bagels on-site.
• Stew Leonard’s, a six-store chain based in Norwalk, Conn., is known for its boiled and hearth-baked bagels, which are crusty on the outside and soft on the inside.
  • Seasonal Flavors: Unique options like gingerbread bagels, rainbow bagels, and even unicorn bagels with edible glitter are a hit.
  • Community Engagement: During graduation season, the chain creates bagels in local high school colors, fostering community connections.
  • Health-Conscious Options: Mini bagels and better-for-you varieties like 9-grain and quinoa bagels cater to wellness-focused customers.

Competing with Local Bagel Shops

Chains like Marketplace Foods in Minot, N.D., rely on frozen dough to prepare fresh bagels daily. While competing with local bagel shops, they focus on availability and affordability, offering bagels individually and in grab-and-go packs.

Turning Shoppers Into Bagel Buyers

Retail bakeries have an advantage: proximity to shoppers already in the supermarket. According to the International Dairy Deli Bakery Association (IDDBA), 45% of bagel buyers purchase them because they’re “already there,” and 21% view them as a cost-effective option compared to foodservice establishments.

Recommendations to Boost Bagel Sales:

1. Ensure Availability: Fresh bagels should be ready early in the day to catch morning shoppers.
2. Offer Convenience: Introduce bagel “holes,” pre-sliced options, and grab-and-go boxes for busy customers.
3. Leverage Technology: Use apps for pre-ordering and personalized recommendations.
4. Incentivize Purchases: A bagel rewards program can encourage repeat purchases and build customer loyalty.

The Bottom Line

Bagels, with their universal appeal and adaptability, offer retail bakeries an opportunity to stand out. By focusing on quality, variety, and convenience, grocers can turn shoppers into loyal bagel buyers, elevating their bakery departments as destinations for freshness and flavor.