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Inside the auction house driving the rare-book craze in the Orthodox world
(JTA) – Israel Mizrahi joined dozens of fellow connoisseurs of rare Jewish books last December to watch the livestream of Genazym, the hottest auction house in the market. A bookdealer by trade, Mizrahi was also on the phone being paid to advise a wealthy client who had signed up to make bids.
But as the auction proceeded, Mizrahi’s advice had little use. His trigger-happy client didn’t seem to care about established valuations: He ended up paying about $50,000 for a book estimated at half that price. “He just pressed the button and kept on bidding until the bidding was over,” Mizrahi said. “There was no convincing him out of it. He spent nearly $600,000 that day and there was no sense to it.”
Behavior that confounds veterans of the rare Jewish book market has become routine at auctions organized by Genazym.
Mizrahi recalled the sale in 2021 of a Passover Haggadah printed in the 1920s in Vienna. With attractive illustrations of a prominent 19th-century rabbi named Moses Sofer and his family, the book makes for a nice addition to a collection. It also happens to be very common.
“I sell copies for $100, and I have probably sold 150 copies in my life,” said Mizrahi, whose shop in Brooklyn is a mecca for Jewish book lovers. “It sold for about $5,500 at Genazym’s auction. I currently have it on sale still for $100.”
At the highest end of sale prices, a 16th-century first-edition Shulchan Aruch, a book of Jewish law, commanded $620,000 at a Genazym auction last September, while a copy of Noam Elimelech, a classic rabbinic treatise, printed in 1788, fetched $1.4 million four months later — in both cases at least doubling or tripling what experts thought the items were worth based on past sales of the same texts.
“Genazym has come on like a freight train into the world of Jewish auctions. Some of the prices realized are far beyond what this market has seen before,” said David Wachtel, the former Judaica consultant for Sotheby’s auction house.
Since Genazym’s first auction in 2017, it has sold some 1,900 books, manuscripts and other collectible documents for about $26 million plus commission, roughly $12 million above total starting prices, according to an analysis by the Jewish Telegraphic Agency of auction records on Genazym’s website. Genazym has increasingly outperformed the longest-standing Judaica auction firms in New York and Jerusalem.
A page from an illustrated Passover haggadah printed in Vienna in the 1920s. (Courtesy of Genazym)
It’s hard to tell exactly what’s driving the boom because the identity of Genazym’s customers is confidential and few flaunt their collections widely. One of the auction house’s owners, in a rare public comment, ventured that Jewish buyers are craving a connection with their heritage. What’s clear is that at a time when traditional libraries are cutting back on buying Jewish texts, Genazym is tapping into an emerging luxury market among Orthodox Jews — and fueling the rise of religious texts as both a status symbol and investment vehicle in some communities.
“I know the sellers, the customers and everybody involved and there is a new wealthy class of Orthodox Jews that have a limited range of things they can splurge on,” Mizrahi said. “They don’t go to Vegas, they don’t do crazy vacations. They keep kosher. So this is a way that they can splurge and show off.”
Rabbi Pini Dunner, who collects rare Jewish books, said investing in Judaica is likely attractive for some in the Hasidic community, whose religious observance is stricter than that of congregants at his Modern Orthodox synagogue in the Los Angeles area.
“There are people I know here in Beverly Hills who’ve got car collections worth tens of millions of dollars,” Dunner said. “In the Hasidic world that has no currency, just as the wow factor of a Picasso has no currency. An original manuscript or first-edition of the Noam Elimelech has a real wow factor, particularly if you can tell people the book sold for more than a million dollars at a Genazym auction.”
The impression that the Hasidic world has grown wealthier over the last decade or two is widespread and based, at least in part, on the proliferation of luxury products and services tailored for the community in places like Lakewood, New Jersey, and Kiryas Joel, New York. Weddings have become increasingly expensive and elaborate, fine dining options are common, and high-end kosher wine and liquor are more readily available.
“It wasn’t that long ago that sit-down dining was looked down upon or not even available. Now there are a plethora of options,” said Chaim Saiman, a law professor at Villanova University who studies the intersection of commerce and Jewish law. “It’s no secret that $200 bottles of Scotch appear at kiddush clubs all the time. $50 used to be a big deal, then $100 was a big deal, now we are at $200.”
Where the new wealth is coming from is not totally clear. Limited survey and U.S. Census data suggests that Orthodox Jews feel crunched by costs associated with practicing religion and that there are large pockets of poverty among them, particularly in Hasidic communities, according to Mark Trencher, the founder of Nishma Research, a nonprofit dedicated to studying the Orthodox Jewish community. The prevalence of large families also means that generational wealth can be harder to accrue for Orthodox Jews.
But there have always been high earners whose philanthropy has buttressed their communities, Trencher noted. “There are a lot of people in that community that are very successful in their businesses and they have large amounts of wealth,” he said. “Those people generally are huge donors to charities. From a financial perspective, those communities are probably doing much better than you would expect them to.”
Many of those high earners make their money through entrepreneurship rather than professional success in the white-collar world. Many nursing home chains — an industry valued at an estimated $171 billion and where growth is expected — have Orthodox owners. Amazon has also created new opportunities for Orthodox businessmen. Orthodox landlords, meanwhile, have benefited from skyrocketing real estate prices in places like Williamsburg, Brooklyn.
A page from a 16th-century first-edition Shulchan Aruch, a book of Jewish law, which fetched $620,000 at a Genazym auction. (Courtesy of Genazym).
Recent reporting in The New York Times about the Hasidic education system has provided a window into another stream of revenue for private businesses in the community. Entrepreneurs in the community have responded to the increased availability of government funding for special education in New York in recent years by establishing companies to service Hasidic schools, with the government footing the bill. In one example highlighted by the Times, a married Hasidic couple opened such a business in 2014 when they were 21 and 19 years old; in 2022, their company received more than $38 million in government funding.
The owners of another set of companies providing services to Hasidic schools appear to have used their windfall to purchase rare books through Genazym. The owners were indicted in January for allegedly billing the government for more than $1 million in childcare services that they never provided and otherwise defrauding the government out of more than $2.8 million.
Prosecutors are seeking to have the alleged fraudsters forfeit seven books and other documents as listed in a federal indictment. They include manuscripts with a rabbinic signature and rare books of blessing and Jewish law, all of which match items listed on Genazym auctions, where they sold for a total of about $274,000.
Buying Jewish texts at auction can seem like a savvy investment for buyers seeking to safeguard or grow their wealth. Before Genazym launched, a typical Genazym buyer might have invested in U.S. Treasury bills or the stock market, according to Wachtel, the former Sotheby’s consultant.
“I think Genazym has been able to convince people that this is a good vehicle for establishing and growing wealth,” he said. “That also dovetails with your ability to, let’s face it, show off. Somebody comes to your house, you can show them a first-edition Shulchan Aruch. But you’re not going to say, hey, come look at my T-bills.”
The auction house’s tactics appear tailor-made for this growing market. Its motto is “Own your heritage,” and it’s printed on the catalogs the company distributes through popular Orthodox magazines like Ami or Mishpacha or podcasts, places where people with no prior interest in books might encounter the hype. The catalogs also appear in synagogues in heavily Hasidic areas like Brooklyn or Lakewood, but without the prices printed on them so as not to violate a Jewish prohibition against discussing financial matters on Shabbat.
The descriptions in the catalogs emphasize any links that exist between the items for sale and notable rabbis from history, especially figures who established rabbinic dynasties that continue to exist today and who are revered by yeshiva-educated Orthodox Jews. The link might be a signature of a rabbi in a ledger from an old fundraising tour that took place 200 years ago. Or it might be that an important rabbi owned the book in question or even prayed out of it. Like a pair of pants of a prominent Israeli rabbi that drew widespread attention when they briefly went up for auction last month, these texts are seen by some as conferring holiness onto those who possess them. By virtue of their pedigree, these artifacts might even be seen as a segula, or Jewish protective charm.
In its promotional materials and live auctions, Genazym also uses more colloquial and hyperbolic language to describe its items than traditional auction houses, which tend to stick to the kind of terminology used by academic scholars.
“Genazym found a formula to make books and manuscripts really exciting for the layperson, especially in the Orthodox community,” said Yoel Finkelman, a former curator of the Judaica Collection at the National Library of Israel. “They are not using the vocabulary of experts, they’re using plain ordinary language, like ‘very old’ or ‘very rare.’ No one at Sotheby’s would ever refer even to a thousand-year-old book that way.”
Genazym’s unique approach extends to the delivery of items to buyers. A traditional buyer in the rare Jewish book market, like Michelle Margolis, Columbia University’s Jewish studies librarian, might only care that the book they bought is safely delivered. But with Genazym, the books come wrapped in a proper clamshell and velvet bag. “I rolled my eyes when my delivery arrived, but at the same time that’s a lot of investment,” Margolis said, adding that many other auction houses have been cutting costs, for example, by doing away with their customary printed catalogs.
Jacob Djmal, who lives in Brooklyn, has dabbled in Judaica collecting for many years, an interest he picked up from his grandfather. He remembers suddenly seeing Genazym’s advertising everywhere. “They started reaching out to you in every way possible, finding a demographic that wasn’t aware before. Every Genazym auction I have people texting me — ‘Did you hear about this? Did you hear about that?’ — as if something is happening that had never happened before.”
Sometimes, that is true. A breakout moment came during the December auction, when Genazym cleared $4.4 million in sales, about $2.6 million above total starting prices.
“If there was any doubt that Genazym were now the most commercially remarkable rare book auction house on Earth, the results of their latest Judaica auction this week put paid to that: essentially almost every lot sold for at least twice [the estimated amount],” a major British book collector living in France said on his anonymous Twitter account, which has around 110,000 followers, in December.
If there was any doubt that Genazym were now the most commercially remarkable rare book auction house on earth, the results of their latest Judaica auction this week put paid to that: essentially almost every lot sold for *at least* twice estimate…. 1/https://t.co/iAC4sQudIz pic.twitter.com/eeunjqWzAs
— Incunabula (@incunabula) December 13, 2022
It remains to be seen whether Genazym can challenge Sotheby’s Judaica division as the destination for sellers with the rarest and most valuable books. Last year, a medieval prayer book sold for $8.3 million at Sotheby’s and this year, the New York auction house is accepting bids for the oldest known copy of the Hebrew Bible, which is expected to fetch as much as $50 million.
But Djmal considers especially remarkable about Genazym is not just the high prices but also the way in which rare books have caught on among Orthodox youth as something cool. “My son and his friends in yeshiva are talking about these items,” Djmal said. “These books represent rabbis they have heard about from a young age.”
The team behind Genazym’s success is led by three brothers from the Stefansky family who live in Jerusalem and New York. Before starting an auction house they worked for many years as private dealers in the rare book market. Their names, Chaim, Moshe and Bezalel, rarely appear anywhere and they almost never grant interviews. Chaim Stefansky made an exception for the Jewish Telegraphic Agency and requested that this article not put him in the spotlight nor portray Genazym’s success as a product of his business acumen.
Stefansky said Genazym has tapped into a universal and deep-seated desire of people to strengthen their identities by connecting with the past. The Jewish community, he said, has been poorly served by an emphasis on historical and even current persecution.
“Always, we are victimized and we cry,” Stefansky said. “What we have in common maybe is that your grandmother and my grandmother were sharing the same bed in Auschwitz. Give me something positive of my past to be proud of. Your heritage has not only sorrow but also a happy, rich, and huge intellectual tradition. So Genazym comes and tells people about their heritage. It’s yours. It belongs to you.”
He said the same thing can be done with any ethnic or religious group.
“If you go to the Irish community and press the right buttons in terms of what you know that every Irish person is extremely proud of, I think you’ll be very successful,” Stefansky said.
He rejected the impression that Genazym’s buyers come primarily from the ranks of the nouveau riche in the Hasidic world.
“It’s coming from all sections,” Stefansky said. “People will say that there’s a lot of fresh money in the market. But we also have very good old money. We have institutions. And, also, the regular man. Mostly, the regular man, who never knew he could have access to any of this.”
One of the only customers who agreed to be identified and interviewed for this article is Rick Probstein, who says he’s spent more than $100,000 at the company’s auctions. He can’t remember when he started seeing Genazym catalogs but he had never collected Judaica before, which is perhaps surprising given that he’s an Orthodox Jew who’s been working in the collectibles business since he was a child trading baseball cards.
Today, at 53, Probstein is one of the largest sellers of sports collectibles in the world, operating through a dedicated account on eBay. “I run a humongous business — I am doing something like $160 million a year,” he said of his sales volume.
Probstein, who lives in Passaic, New Jersey, had long felt a pang of guilt about the lack of Jewish content in his collection. “I collect things but what do I have of my own heritage?” he recalled thinking to himself. “So when I started getting the catalogs, I said, ‘I gotta be a good Jew.’ I started bidding on things and I got really into it.”
Once Probstein got started, the Stefansky brothers began checking in on him, providing concierge service and cultivating him as a client.
“This is a boutique run by a Jewish family with a personal touch,” Probstein said “They call me on the phone, saying, ‘Rick, did you get the catalog? What did you think? Here are some items that you could really like.’”
Bidding on Genayzm items is not purely sentimental for Probstein. “I’m putting real money into it because I think that from an investment standpoint, it has a lot of upside,” he said.
Still, the items he buys tend to have personal significance.
“I am partial to items relating to the Chofetz Chaim,” Probstein said, referring to the rabbi and Jewish scholar Yisrael Meir Kagan, who died in 1933. Probstein’s oldest son is named Yisrael Meir in his honor. The Chofetz Chaim also appeals to Probstein because of his writings about lashon hara, the prohibition in Jewish law against speaking evil of people. “I think that speech is important and he’s sort of the embodiment of that,” Probstein said.
Genazym has sold six letters and a handwritten blessing signed or written by the Chofetz Chaim at prices ranging from about $16,000 to $68,000.
Ever since Probstein started collecting Judaica, these items have served as a draw for family and friends visiting his home.
“People in my community that come over for kiddush [refreshments after Shabbat service] know that I have this stuff and they always want to see it,” Probstein said. “Nobody ever looks at my sports memorabilia collection because it’s in my office but my Judaica stuff is in my house. They look at the letters and talk about the historical context. People love it.”
The revelation that so many Jews appear fascinated with their own history and want to engage with scholarly tradition comes at a time when many Jewish libraries have been struggling.
The library of the Jewish Theological Seminary in Manhattan, which has the most comprehensive and significant collection of Jewish books outside of Israel, has seen its footprint downsized amid budget cuts at the Conservative movement seminary. Also under financial pressure, American Jewish University was forced to sell its Bel Air campus in Los Angeles, which housed a library. Hebrew Union College, meanwhile, opted to end its Reform rabbinical training program in Cincinnati and even though the campus library has survived the cuts, financial uncertainty remains.
Genazym’s populist approach might hold lessons for Jewish institutions and university libraries with significant Judaica collections that hope to engage the public around books.
“The lesson is to lay off the snobbery a little bit,” said Finkelman, the former Judaica curator at the National Library of Israel, which is slated to reopen in a new and more accessible space later this year. “The goal of public institutions is to enable preservation but also to enable public access and public education. There are great stories in books and archives.”
Finkleman said he has encountered sneering reactions to the way Genazym promotes books, and they are similar to the response in the United States when the pop star Lizzo played a crystal flute that belonged to James Madison on stage at the Library of Congress.
“There are echoes of the same thing here,” he said. “Get out of the snobby ivory tower and realize you are preserving history for people.”
—
The post Inside the auction house driving the rare-book craze in the Orthodox world appeared first on Jewish Telegraphic Agency.
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US, Iran No Closer to Ending War as Tehran’s Response Awaited
A billboard with a graphic design about the Strait of Hormuz on a building in Tehran, Iran, May 6, 2026. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
A state of relative calm prevailed around the Strait of Hormuz on Saturday, after days of sporadic flare-ups, as the United States waited for Iran’s response to its latest proposals to end more than two months of fighting and begin peace talks.
US Secretary of State Marco Rubio said on Friday that Washington expected a response within hours. But a day later, there was no sign of movement from Tehran on the proposal, which would formally end the war before talks on more contentious issues, including Iran’s nuclear program.
With US President Donald Trump due to begin a long-awaited visit to China next week, there has been mounting pressure to draw a line under the conflict, which has thrown energy markets into turmoil and posed a growing threat to the world economy.
Recent days have seen the biggest flare-ups in fighting in and around the Strait of Hormuz since a ceasefire began a month ago, and the United Arab Emirates came under renewed attack on Friday.
CLASHES TEST CEASEFIRE
On Friday, there were sporadic clashes between Iranian forces and US vessels in the strait, Iran’s semi-official Fars news agency reported. The Tasnim news agency later cited an Iranian military source saying the situation had calmed but warning more clashes were possible.
The US military said it struck two Iran-linked vessels attempting to enter an Iranian port, with a US fighter jet hitting their smokestacks and forcing them to turn back.
Tehran has largely blocked non-Iranian shipping through the strait since the war began with US-Israeli airstrikes across Iran on February 28. Before the war, one-fifth of the world’s oil supply passed through the narrow waterway.
The US imposed a blockade on Iranian vessels last month. But a CIA assessment indicated Iran would not suffer severe economic pressure from a US blockade of Iranian ports for about another four months, according to a US official familiar with the matter, raising questions over Trump’s leverage over Tehran in a conflict that has been unpopular with voters and US allies.
A senior intelligence official characterized as false the “claims” about the CIA analysis, which was first reported by The Washington Post.
Clashes extended beyond the waterway. The UAE said its air defenses engaged with two ballistic missiles and three drones from Iran on Friday, with three people sustaining moderate injuries.
Iran has repeatedly targeted the UAE and other Gulf states that host US military bases. In what the UAE called a major escalation, Iran stepped up attacks this week in response to Trump’s announcement of “Project Freedom” to escort ships in the strait, which he paused after 48 hours.
Trump said on Thursday the ceasefire, announced on April 7, was still holding despite the flare-ups, while Iran accused the US of breaching it.
“Every time a diplomatic solution is on the table, the US opts for a reckless military adventure,” Foreign Minister Abbas Araqchi said on Friday.
US PURSUES DIPLOMACY, STEPS UP SANCTIONS
The US has found little international support in the conflict. After meeting with Italian Prime Minister Giorgia Meloni, Rubio questioned why Italy and other allies were not backing Washington’s efforts to reopen the strait, warning of a dangerous precedent if Tehran were allowed to control an international waterway.
Speaking in Stockholm, German Chancellor Friedrich Merz said European countries shared the aim of stopping Iran from getting nuclear weapons and said they were working to bridge differences with Washington.
While pursuing diplomacy, the US also ratcheted up sanctions to pressure Iran.
Days before Trump travels to China to meet President Xi Jinping, the US Treasury on Friday announced sanctions against 10 individuals and companies, including several in China and Hong Kong, for aiding efforts by Iran’s military to secure weapons and raw materials used to build Tehran’s Shahed drones.
Treasury said in a statement it was prepared to act against any foreign company supporting illicit Iranian commerce and could impose secondary sanctions on foreign financial institutions including those connected to China’s independent oil refineries.
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Tehran Could Withstand Blockade for Four Months, CIA Report Shows, as Fighting Flares
A woman walks past an anti-U.S. mural on a building in Tehran, Iran, May 8, 2026. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
Efforts to end the war between the US and Iran appeared to stall as the two sides traded fire in the Gulf on Friday, while a US intelligence analysis concluded Tehran could withstand a naval blockade for months.
A CIA assessment indicated that Iran would not suffer severe economic pressure from a US blockade of Iranian ports for about another four months, according to a US official familiar with the matter, suggesting that US leverage over Tehran remains limited as the two sides seek to end a conflict that has been unpopular with US voters.
The Washington Post first reported the assessment.
A senior intelligence official called the “claims” about the CIA analysis “false,” saying the blockade “is inflicting real, compounding damage – severing trade, crushing revenue, and accelerating systemic economic collapse.”
Recent days have seen the biggest flare-ups in fighting in and around the Strait of Hormuz since a ceasefire began a month ago, and the United Arab Emirates came under renewed attack on Friday.
Washington is awaiting Tehran’s response to a US proposal that would formally end the war before talks on more contentious issues, including Iran’s nuclear program.
“We should know something today,” US Secretary of State Marco Rubio told reporters in Rome earlier in the day. “We’re expecting a response from them.”
Iran’s foreign ministry spokesperson said Tehran was still weighing its response, and none was reported by mid-afternoon in Washington, just before midnight in Tehran.
SPORADIC CLASHES IN STRAIT
Meanwhile, more sporadic clashes between Iranian forces and US vessels took place in the Strait of Hormuz, Iran’s semi-official Fars news agency reported. The Tasnim news agency later cited an Iranian military source saying the situation had calmed, but warning more clashes were possible.
The US military said it struck two Iran-linked vessels attempting to enter an Iranian port, with a US fighter jet hitting their smokestacks and forcing them to turn back.
Iran has largely blocked non-Iranian shipping through the strait since the war began with joint US-Israeli airstrikes across Iran on February 28. The US imposed a blockade on Iranian vessels last month.
Oil prices rose, with Brent crude futures above $101 a barrel, though still down more than 6% for the week.
Trump said on Thursday the ceasefire was still holding despite the flare-ups in the strait, which before the war handled one-fifth of the world’s oil supply.
The confrontation extended beyond the waterway. The United Arab Emirates said its air defenses engaged with two ballistic missiles and three drones from Iran on Friday, with three people sustaining moderate injuries.
During the war, Iran has repeatedly targeted the UAE and other Gulf states that host US military bases. In what the UAE called a “major escalation,” Iran stepped up attacks this week in response to Trump’s announcement of “Project Freedom” to escort ships in the strait, which he paused after 48 hours.
IRAN ACCUSES US OF BREACHING TRUCE
Iran accused the US of breaching the ceasefire, which had largely held since it was announced on April 7 but has come under strain this week.
“Every time a diplomatic solution is on the table, the US opts for a reckless military adventure,” Foreign Minister Abbas Araqchi said on Friday. Iran’s Mehr news agency reported that one crew member was killed, 10 wounded and four missing after a US Navy attack on an Iranian commercial ship late on Thursday.
Rubio, after meeting with Italian Prime Minister Giorgia Meloni, questioned why Italy and other allies were not backing Washington’s efforts to re-open the strait.
“Are you going to normalize a country claiming to control an international waterway? Because if you normalize that, you’ve set a precedent that’s going to get repeated in a dozen other places,” he said.
US IMPOSES SANCTIONS
While pursuing diplomacy the US also ratcheted up sanctions to pressure Iran.
The US Treasury on Friday announced sanctions against 10 individuals and companies, including several in China and Hong Kong, for aiding efforts by Iran’s military to secure weapons and raw materials used to build Tehran’s Shahed drones.
Treasury said in a statement it remains ready to take economic action against Iran’s military industrial base so Tehran cannot reconstitute its production capacity and project power abroad.
It also said it was prepared to act against any foreign company supporting illicit Iranian commerce and could impose secondary sanctions on foreign financial institutions including those connected to China’s independent “teapot” oil refineries.
The announcement came days before Trump plans to travel to China for a meeting with President Xi Jinping.
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What the private equity takeover means for the bagel industry
The bagel’s stock is, apparently, rising — literally.
Private equity investors have decided, apparently en masse, that bagels are the new frontier for expansion.
A fund called Stripe invested $8 million into PopUp Bagels shortly after the trendy bagel shop, which hawks “rip and dip” bagels, first opened in 2023. A year later, they added $24 million to their contribution and became the majority owner. Now, PopUp Bagels boasts 30 locations.
Invus, an asset management fund, is now the majority owner of Call Your Mother, which began in D.C. but has expanded to 15 locations across the D.C. metro area and, for some reason, Denver. And Manhattan Funds, a large private equity firm, has a specific Bagel Equity Fund devoted to taking over bagelries. The industry is, they write on their site, “under-optimized at the national level.”
Even H&H Bagels, the iconic New York City institution — famed for its cameos in shows like Seinfeld and Sex in the City — has gotten shoveled onto private equity’s giant bagel baking tray. Though Wall Street investor Jay Rushin bought the brand over a decade ago, H&H, too, is beginning its boom era, opening dozens franchises outside of the city.
It’s time, these investment firms all contend, to scale bagels. But can the art of the perfect New York bagel be scaled?
Making the New York bagel in bulk is famously hard. The rings are finicky to roll out, they require boiling, and — perhaps most importantly — the long mythos to the New York bagel has at its core the premise that New York bagels cannot be made without New York water.
Many connoisseurs believe there is an alchemical process to the sought-after chew and crust only achievable with the particular water flowing in the city’s pipes, cascading down from the Catskill reservoirs almost unadulterated. Food science has somewhat debunked that concept, but the legend remains so strong that H&H is promising to par-boil its bagels in NYC water before shipping them to its new franchise locations to be finished in the oven. Even if it’s only marketing, that marketing is powerful.
This is far from the first time that companies have attempted to scale the bagel. In fact, it has worked, in a way: “bagels” can be found, at mass scale, in every major grocery store in the country, offered in plastic sleeves of a half-dozen.
The problem is that those bagels are gross. They’re made by machine, and steamed instead of boiled, which gives a glossy surface, yes, but none of the chew of a true boiled crust. The grocery store bagels are convenient and shelf-stable, sure, but they’re the Wonder Bread of the form: mushy and milquetoast. They have none of the hallmarks of a true bagel.
It’s possible that the private equity masterminds have landed on a secret to scaling the bagel without eventually reducing it to a wan grocery store offering. The results of the Wall Street takeover of the form are still emerging, and the business model could be dependent — at least at first — on devising the perfect product, and not just a passable one.
It just seems unlikely. The investment firms are built around, well, investors, not consumers. Their goal is producing equity and capital for their investors, not making the perfect bagel.
The term “enshittification,” coined by writer Cory Doctorow, has been around for a few years. It describes exactly what it sounds like — the phenomenon of everything growing, uh, worse. Specifically, it describes the way that large companies, often funded by venture capital and private investors, make their products worse over time in the process of wringing money out of the business to serve their CEOs and investors.
Doctorow, in his book on the subject, Enshittification, focuses largely on tech platforms as he examines the term. There’s Amazon: Long gone are the days of a well-priced product you could find more easily online than in a store. Now, search results are polluted by whatever someone has paid to boost to the top of the page, and it’s not even that cheap anymore. Or Twitter, which once bought by Elon Musk, fired its content moderation team to cut costs and turned its user verification, which was once limited to public figures, into a pay-to-play feature. As a result, the platform may have more income streams, but any regular user can attest that their feed is now full of neo-Nazis who shelled out for an algorithmic boost.
But it’s not just platforms — culture and aesthetics are targets for cash extraction now, too, with bad results. Netflix now churns out a constant stream of shows that are, instead of cultural touchstones, basically interchangeable, a far cry from their acclaimed early efforts like Orange is the New Black. Clothing brands like Reformation and even high-end designers like Escala, once symbols of luxury, taste and quality, are turning to lower quality materials and production in an attempt to churn out more designs, faster, and make more money. I’m trying to buy a couch right now, and have found through my research that age-old companies once lauded for their design and durability have been bought by private equity and changed their frames from hardwoods to particle board. (That information took a lot of research because you know what else has fallen prey to enshittification? Review sites.)
That means, regardless of whether these bought-out businesses have suffered yet, bagels are likely to fare poorly in the private equity boom eventually because of the need to extract increasing amounts of cash out of the project; the product itself is ultimately secondary. The Bagel Equity Fund is running trials on steaming their bagels instead of boiling them in its projected 400 shops it runs, the exact strategy that led to the mushy grocery store bagel. And a Washington Post review for the hyped new H&H location in D.C. was brutal, calling the bagels “generally unappealing” and “flavorless.”
But the bagel itself is only part of the mystique of the food. Which brings me to the more spiritual offerings of a good bagel: an ephemeral cultural cachet. That may be at even greater risk.
Having a favorite bagel shop or loudly defending your bagel order as the only possible correct way to eat a bagel — untoasted, scallion schmear, with capers, red onion and lox, and anything else is heresy, thank you for asking — makes you a real New Yorker. Or, if you don’t live in New York, it’s the mark of a devout cultural (and maybe religious) Jew.
Other, earlier attempts to innovate on the theme, and make it trendier and more lucrative, were all one-and-done fads that eventually crashed and burned, becoming a kind of scarlet letter of cringe. (Remember the vanilla-flavored rainbow bagels that were all over social media in the 2010s? They came with funfetti cream cheese. Disgusting, and also deeply uncool.)
Bagel shops are not just places that produce chewy bread with a hole in the center. They have a cultural value. Each is often unique, with its own set of delightful quirks — the place selling Lactaid loosies behind the counter, the brusque man who nevertheless remembers your order. They’re a symbol of uniqueness and authenticity — which, of course, is definitionally impossible to buy. The more constructed something is, the less authentic.
Yet that’s really what the private equity investors are trying to monetize: the idea of a bagel. If it didn’t have that symbolic power, it wouldn’t be a particularly interesting business, given how difficult the baking is to scale well.
The Bagel Equity Fund describes its target market as “fragmented, inconsistent, and devoid of a dominant brand.” But isn’t that the charm of your local bagel place? Not to those investors, which promise to rebrand every store they take over as “Go Bagels,” likely alienating the exact “strong customer bases and community presence” at the stores they aim to acquire.
Bagels have long been a metonym both for New York and for Jewishness. See: the phrase “pizza bagel,” describing people of mixed Italian and Jewish heritage. Good bagels inspire poetic food reviews — and literal poetry — but also lengthy cultural takes. There are dissertations on its history — and I don’t mean that as a kind of humorous exaggeration, I mean actual papers filed to receive a doctorate.
They were also core to unionization of American workers. The Beigel Bakers Local, which conducted its meetings in Yiddish, led strikes over pay and conditions, and standardized the bagel’s form into the icon we all know. That union was so powerful that its members put the city, during strikes, into what is memorialized as a “bagel famine” — a near-emergency for the city’s devoted consumers. The bagel and its attendant culture is a product of the blood, sweat and tears of New York City’s Jewish workers.
The union was ultimately undone by the mechanized mass production of grocery store bagels — an inferior product, yes, but one accessible at a mass scale, exactly what private equity is attempting to reproduce. The fact that a paltry imitation of a bagel still had enough financial power to destroy a once-powerful union is also worrying. People in cities other than New York — cities, that is to say, with a poor selection of bagels — will probably eat the sub-par private equity bagels, because there’s no other option, a key element of enshittification, as Doctorow observes.
But once the big conglomerates have the power, will they be so strong that the bagels they produce take over even on the bagel’s home turf? Will they exterminate the original New York bagel, and with it, its cultural history?
I don’t want to overstate the symbolic power of private equity buying the bagel brand. But at a time when antisemitism is rising, and Jews are increasingly being accused of, once again, greed, malicious control and undue influence, it certainly can’t help. If the bagel represents Jews, and the bagel has sold out, well, that’s a bad look.
But the real deal can still shine through the enshittification haze. “I just stayed in Brooklyn for the first time and felt so alive surrounded by all those bagel shops!” wrote one user on Reddit. They were there to complain — about Denver’s newest private equity bagel. Clearly, the New York bagel’s brand remains strong, even to outsiders.
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