
The answer to the question “What is a bagel?” is not just bread with a hole. It’s a financial powerhouse that’s built thriving businesses for centuries, showcasing a rich history. What looks like a simple ring of dough, like New York bagels, has created more successful cafés and bakeries than perhaps any other single food item in history.
The numbers don’t lie. In 2025, the global bagel market stands at $11.8 billion with steady 4.2% annual growth. Behind every successful café owner in Jewish communities is often a perfectly crafted bagel strategy.
But why? What makes this circular bread so irresistible to both customers and business owners?
I’ve seen bakeries fail within months while bagel shops across the street thrive for decades. The difference isn’t just good marketing or location—it’s understanding the fundamental appeal of this deceptively simple food.
A good bagel has that perfect tension between opposing forces and uses traditional bagel dough made with wheat flour: chewy yet crisp, dense yet light, with a crisp exterior, familiar yet infinitely customizable. This duality mirrors the tension every business owner faces: how to be consistent yet innovative, traditional yet fresh.
The true magic of bagels isn’t their taste—it’s their business model, which is often created at high temperatures. Low production costs, high profit margins, minimal spoilage, and endless customization options make them essential in commercial bagel production and the perfect foundation for a profitable food business.
Whether you’re a new entrepreneur considering a bagel shop or an established café owner looking to boost profits, understanding what makes bagels both culinarily and commercially exceptional is your first step toward success.

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The Making of a Bagel: A Simple How-To Guide
Learn the authentic bagel-making process from dough to golden-brown finish
Discover why the boiling step creates that distinctive chewy texture
Master professional techniques used in top bagel shops across North America
Preparing the Traditional Bagel Dough
The foundation of a great bagel starts with the right ingredients and technique. Unlike other bread products, bagel dough needs to be firm and elastic.
Gathering Your Ingredients (Such as Wheat Flour, Salt, Sugar, etc.)
For a basic batch of 8 medium-sized bagels, you’ll need:
4 cups high-gluten bread flour (this is essential for the chewy texture)
1½ teaspoons salt
1 tablespoon sugar
1 tablespoon vegetable oil
2 teaspoons instant yeast
1¼ to 1½ cups warm water (around 110°F/43°C)
The Mixing Process
In a large bowl, combine the flour, salt, sugar, and yeast
Gradually add the water and oil, mixing until a stiff dough forms
If using a stand mixer, use the dough hook attachment on low speed for 5-7 minutes
If mixing by hand, knead the dough on a floured surface for 10-12 minutes
The dough should feel firm and smooth when properly kneaded. This is different from other bread doughs that might feel soft and pillowy, and often leads to a shiny appearance. Bagel dough should feel dense and slightly resistant.
A well-kneaded bagel dough passes the “windowpane test” – when you stretch a small piece between your fingers, it should stretch thin enough to see light through it without tearing, just like the meaning of a Yiddish word. This indicates proper gluten development, which is key to that chewy bagel texture.
First Proofing
After mixing:
Place the dough in a lightly oiled bowl
Cover with plastic wrap or a damp cloth
Let it rise at room temperature for about 1 hour, or until doubled in size
For better flavor, you can refrigerate the dough overnight after this initial rise
This initial rise allows the yeast to create carbon dioxide, which forms tiny air pockets in the ring-shaped dough. These air pockets will give your bagels their proper structure.
What makes bagels special is this dense, less airy dough. Regular bread usually has a much longer proofing time to create more air bubbles, but bagels intentionally limit this process to maintain their characteristic chewiness.
Shaping and Boiling
The shaping and boiling stages are what transform ordinary bread dough into true bagels. These steps are critical for achieving authentic results in bagel-like bread.
Dividing and Shaping
After the dough has risen, punch it down to release air bubbles
Divide the dough into 8 equal portions (use a kitchen scale for consistency)
Roll each portion into a smooth ball
Let the balls rest for 10-15 minutes (this makes them easier to shape)
There are two traditional methods for creating the bagel’s signature hole:
Method 1: The Poke Method is often employed in Jewish cuisine.
Press your thumb through the center of each ball
Gently rotate your thumb to widen the hole
Carefully stretch the dough outward to form a ring with a 1.5- 2-inch diameter hole
Method 2: The Roll Method (Preferred by professionals)
Roll each portion into an 8-inch rope
Wrap the rope around your hand, overlapping the ends by about 2 inches
Roll the overlapped area against your work surface with your palm to seal
Second Proofing
After shaping the dough into a ring-shaped form :
Place the shaped bagels on a baking sheet lined with parchment paper and dusted with cornmeal
Cover with a damp towel
Let rest for 20-30 minutes at room temperature
The Critical Boiling Step
The boiling step, sometimes enhanced with eggs, is what truly defines a bagel. This process gelatinizes the starches on the surface, creating that distinctive chewy crust, perfect for topping with lox.
Fill a large pot with water (at least 4 inches deep)
Add 1 tablespoon of honey or malt syrup and 1 tablespoon of baking soda to the water
Bring to a gentle boil
Carefully lower bagels into the water, 2-3 at a time (don’t overcrowd)
Boil for 1 minute on each side (30 seconds for softer bagels, up to 2 minutes for chewier ones)
Remove with a slotted spoon or spider, allowing excess water to drain
The malt or honey contributes to the bagel’s golden-brown color and slight sweetness. The baking soda makes the water more alkaline, which helps develop that shiny crust.
Baking to Perfection
The final stage transforms your shaped and boiled dough into golden-brown, aromatic bagels with the perfect crust-to-chew ratio.
Adding Toppings
Immediately after boiling, while the bagels are still wet:
Place the boiled bagels on a baking sheet lined with parchment paper
If using toppings, apply them now while the surface is still wet and sticky
Common toppings include sesame seeds, poppy seeds, dried onion, garlic flakes, or everything bagel seasoning
For best results, place toppings in shallow dishes and gently press the top of each bagel into the topping
The Baking Process
Preheat your oven to 425°F (220°C)
Place the topped bagels on a baking sheet with enough space between them
Bake for 20-25 minutes, or until golden brown
For even browning, rotate the baking sheet halfway through baking
The bagels should sound hollow when tapped on the bottom when fully baked
Professional bagel shops use specialized ovens that can bake hundreds of bagels at once. Their stone decks provide even heat distribution that’s hard to replicate at home. For home bakers, using a pizza stone can help achieve a similar effect.
Cooling and Storing
Transfer the baked bagels to a wire rack to cool
Allow them to cool for at least 20 minutes before slicing
Enjoy fresh, or store properly for later use
Freshly baked bagels are at their absolute best within the first 4-6 hours. After that, proper storage is key:
For 1-2 days: Store in a paper bag at room temperature
For up to 5 days: Store in a sealed plastic bag at room temperature
For longer storage: Slice, then freeze in airtight bags for up to 3 months
When ready to eat a frozen bagel, you can toast it directly from frozen or let it thaw at room temperature for 30 minutes first.
Exploring Bagel Varieties and Flavors
Learn about classic bagel varieties and what makes each unique
Discover how to create exciting new flavor combinations
Find out which bagel types are trending in today’s market
Popular Bagel Varieties
The bagel world offers something for everyone, contributing to its widespread popularity. Traditional varieties have stood the test of time, while specialty flavors continue to attract new fans. Understanding these options helps both consumers and café owners make informed choices.
Plain bagels serve as the foundation of bagel culture. They showcase the perfect chewy texture and slightly sweet taste that defines a good bagel. Their neutral flavor makes them versatile bases for any topping. Plain bagels also highlight the quality of the dough and baking process—there’s nowhere to hide imperfections.
Sesame bagels add a nutty flavor and a slight crunch. The seeds toast during baking, releasing essential oils that enhance the bagel’s aroma. Sesame seeds also contain beneficial nutrients, making this variety slightly more nutritious than plain options.
Everything bagels represent perhaps the most famous specialty variety, particularly in New York. They feature a mix of poppy seeds, sesame seeds, dried garlic, dried onion, and salt. This combination creates a savory explosion that pairs well with cream cheese or forms the base of hearty sandwiches. The Everything Bagel has become so popular that its seasoning is now sold separately for other culinary uses.
Among sweet options, cinnamon raisin bagels hold a special place. The warm spice and chewy fruit bits create a dessert-like experience that still works for cooking breakfast. These bagels often contain brown sugar or honey in the dough for additional sweetness.
Blueberry bagels bring fruit-forward flavor to the bagel experience. Most contain dried blueberries and natural or artificial blueberry flavoring. The subtle sweetness makes them perfect with plain cream cheese or butter.
Experimenting with Creative Flavors
The rise of café culture has pushed bagel innovation forward. Today’s consumers, influenced by Jewish immigrants, expect both classics and creative new options. This trend aligns with the broader focus on health and wellness, driving demand for healthier bagel options.
Herb-infused bagels offer fresh, aromatic qualities. Rosemary-olive oil bagels pair beautifully with Mediterranean toppings. Dill bagels complement smoked salmon perfectly. Fresh herbs are typically kneaded into the dough before shaping, allowing their oils to permeate throughout.
Spice-forward bagels draw inspiration from global cuisines. Jalapeño bagels add heat that cuts through rich toppings. Asiago cheese bagels bring savory depth. Even curry-spiced bagels have found audiences in some markets. These bold flavors help cafés differentiate themselves in competitive markets.
Sweet and Savory Combinations
The most exciting bagel innovation often happens at the intersection of sweet and savory flavors. This contrast creates memorable eating experiences that keep customers coming back.
Maple bacon bagels exemplify this combination. The sweet maple flavor woven through the dough balances against salty, smoky bacon pieces. Cafés sometimes finish these with a maple glaze after baking for extra impact.
Fig and black pepper bagels offer a sophisticated contrast. The sweetness of dried figs pairs surprisingly well with the sharp heat of freshly cracked black pepper. These bagels work especially well with goat cheese or ricotta spreads.
Dark chocolate and sea salt bagels bring dessert-like indulgence to breakfast. Small chocolate chunks melt slightly during baking, creating pockets of richness throughout. The finishing salt enhances both the sweetness and depth of the chocolate.
Seasonal flavors also drive customer interest. Pumpkin spice bagels appear in fall, strawberry bagels in summer, and peppermint chocolate varieties during winter holidays. These limited-time offerings create urgency and excitement.
The growing interest in plant-based alternatives has also influenced bagel creation. Vegan bagels using plant-based ingredients and gluten-free bagels as toppings are gaining popularity, appealing to health-conscious consumers and those with dietary restrictions.
Leveraging Bagel Business Opportunities
Bagel businesses can generate $250,000-$800,000 in annual revenue with 10-15% profit margins.
Location selection and quality ingredients are critical success factors
Diversifying revenue streams through catering and wholesale improves profitability
Starting a Bagel Business
Starting a bagel business requires careful planning and investment, especially considering the effects of low temperature on dough. The startup costs typically range from $60,000 to $100,000 for a small shop, with higher investments needed for larger operations in prime locations. These costs cover lease deposits, equipment, initial inventory, permits, and working capital for the first few months of operation.
The first step is conducting market research to identify gaps in your local bagel market. Look for areas with limited bagel options but strong breakfast and lunch crowds. It is best to analyze the competition by visiting existing bagel shops to assess their offerings, pricing, and customer experience. This research will help you develop a unique selling proposition that sets your bagel shop apart.
Creating a Solid Business Plan
A comprehensive business plan is essential for your bagel business. Include detailed financial projections with startup costs, expected monthly expenses, and revenue forecasts. Banks and investors will require this information if you seek financing. Your business plan should also outline your marketing strategy, staffing needs, and growth plans for the first three to five years.
For equipment, budget for commercial mixers ($2,000-$5,000), proofing cabinets ($1,500-$3,000), industrial ovens ($5,000-$15,000), and refrigeration units ($3,000-$8,000). Many successful bagel shop owners recommend buying quality equipment from the start rather than upgrading later, which can disrupt operations.
Finding the Perfect Location
Location selection can make or break your bagel business. Look for spots with high morning foot traffic, as bagels are primarily a breakfast food. Areas near office buildings, colleges, residential neighborhoods, and transportation hubs tend to perform well. Consider visibility, parking availability, and surrounding businesses that might complement yours.
When negotiating a lease, try to secure favorable terms such as:
Rent abatement during the build-out phase
Tenant improvement allowances
Options to renew at predetermined rates
First right of refusal for adjacent spaces if you want to expand
The size of your shop will depend on your business model. A small retail-only location might need just 800-1,200 square feet, while a shop with seating and on-site production could require 1,500-2,500 square feet or more.
Sourcing Quality Ingredients
The foundation of a successful bagel business is product quality, including different dough types. Establish relationships with reliable suppliers for flour, yeast, malt, and other ingredients that are essential for bagel bakeries. Many top bagel shops use high-gluten flour, which provides the chewy texture customers expect.
“The secret to our bagels? A whole lot of love and a dash of expertise,” notes one successful bagel shop owner. This sentiment highlights the importance of quality ingredients and proper technique.
Consider these factors when selecting suppliers:
Consistency of product quality
Reliability of delivery
Price stability
Minimum order requirements
Payment terms
Developing backup supplier relationships is also important to prevent inventory shortages due to supply chain disruptions.
Obtaining Necessary Permits and Licenses
Before opening a meal service, you’ll need various permits and licenses, which vary by location but typically include:
Business license
Food service permit
Health department certification
Fire department approval
Certificate of occupancy
Employer Identification Number (EIN)
Sales tax permit
What Is A Bagel with Cream Cheese
Bagels have stood the test of time for good reason. Their unique texture and flavor have made them a staple in cafés worldwide, creating both loyal customers and solid business opportunities. From the simple process of mixing, boiling, and baking to the endless flavor combinations, bagels offer business owners a product that customers keep coming back for.
Whether you’re starting a café or looking to add something new to your menu, bagels provide a high-margin option that meets customer demands, alongside other pastries. Their popularity isn’t just about taste—it’s about flexibility. They work for breakfast, lunch, and even casual catering events, making them a smart addition to any food business.
Success in the bagel business comes down to quality ingredients, consistent preparation of a chewy product, and attentive customer service. By understanding both the craft and business aspects, you’re well-positioned to turn this circular bread into a profitable venture.
As food trends come and go, the bagel remains. Its staying power in the food industry proves that sometimes, the classics are classic for a reason. Your bagel business isn’t just selling food—it’s serving a slice of culinary tradition that customers will always crave.