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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.
The post What the private equity takeover means for the bagel industry appeared first on The Forward.
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Graham Platner drops out of Maine Senate race, citing push to ‘end the genocide’ in parting message
(JTA) — Maine Democrat Graham Platner announced Wednesday evening that he will drop out of the U.S. Senate race following new allegations that he had committed sexual assault.
“We believe that for the movement to continue, it can’t be me, and for that reason, we are suspending campaign operations,” he said.
Platner’s withdrawal came two days after Politico reported that a former girlfriend had accused him of entering her home uninvited about five years ago and forcing her to have sex with him.
“All we were asking for was healthcare, was to end the genocide, to use our taxpayer dollars at home to uplift our communities instead of waging war overseas,” Platner said in a Facebook address announcing his exit. He denied the allegations against him in the address, adding that a “corporate media system and the political establishment got to act as judge, jury and executioner.”
The allegations were the latest in a series of controversies that have hit Platner’s campaign, including his since-covered-up Nazi tattoo, unearthed Reddit posts and other reports about his behavior toward women.
Platner, who won his Democratic primary in June on an anti-Israel progressive platform, denied the fresh allegations, telling Politico that “any accusation of non-consensual behavior is categorically untrue.”
But the report prompted a rapid collapse in support for Platner among Democratic leaders, progressive allies and organizations that had backed his bid to beat GOP Sen. Susan Collins. It also sparked a scramble among Maine Democrats to find a different nominee ahead of the July 27 deadline for a replacement to appear on the ballot.
On Wednesday, the Maine Democratic Party announced that they had voted to hold a nominating convention to fill Platner’s vacancy.
“There is an unprecedented amount of energy and enthusiasm among Maine Democrats, driven in part by many of the dedicated volunteers and supporters who were inspired by Graham Platner’s campaign,” the party said in a statement. “We look forward to coming together and harnessing that energy around our new nominee as we work to defeat Susan Collins in November.”
The state Democratic Party leadership called on Platner to withdraw as the Democratic nominee on Monday, adding that the party needed to “refocus this campaign” on the fight against GOP Sen. Susan Collins. The seat is key to Democratic hopes of taking back the Senate.
Vermont Sen. Bernie Sanders, one of Platner’s most high-profile supporters, as well as New York City Mayor Zohran Mamdani also called for Platner to step aside on Tuesday.
Senate Minority Leader Chuck Schumer, who initially backed Platner’s opponent before she dropped out, had said in a joint statement with New York Sen. Kirsten Gillibrand that the Democratic Senatorial Campaign Committee “will not invest in the Maine Senate race if Platner remains on the ballot.”
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Rahm Emanuel: Democrats who support Israel can still lead the party to the White House
(JTA) — TEL AVIV — Pausing as he looked out at the packed hall at Tel Aviv University, Rahm Emanuel offered his audience a warning about what he was about to say.
“Hold your applause, because you may not like this,” he said, before laying out his proposal for U.S. sanctions targeting Israelis who attack Palestinian civilians and property, Israeli officials who voice support for that violence, and companies and banks that support “illegal settlements.”
The crowd applauded anyway — three separate times.
Under a 2017 law, Israel bars foreign nationals who publicly call for boycotts of Israel or its settlements from entering the country. Emanuel issued his call for sanctions from a stage in Tel Aviv, a measure of how far Democratic politics on Israel have shifted since Hamas’ Oct. 7, 2023, attacks.
Widely viewed as a possible contender for the 2028 Democratic presidential nomination, Emanuel, a former congressman, White House chief of staff, Chicago mayor and U.S. ambassador to Japan, and one of the most prominent Jewish figures in American politics, arrived in Israel on Sunday. His speech Wednesday afternoon, billed as “An Honest Conversation: The U.S.-Israel Relationship, Where It Stands Today and The Road Ahead,” was the keynote of the visit, and was meant to signal the need for a “fundamentally new and different approach” to the U.S.-Israel alliance, as he put it.
Whether Emanuel’s critique will land with the Israeli establishment, or with the ruling coalition, remains to be seen. Emanuel made a point of avoiding Israel’s elected officials during his visit, including Prime Minister Benjamin Netanyahu, saying he did not want to interfere with elections set for the fall. He did meet with President Isaac Herzog, who is appointed by the government, as well as visit hospitals in Tel Aviv and Nablus that partner with each other.
But it was clear that it was resonating with attendees. Moti Porath told the Jewish Telegraphic Agency that he believed Emanuel correctly diagnosed the ailment at the heart of the Israeli government, a leader who has become an outcast abroad but remains too skilled a politician to easily dislodge.
Porath, who splits his time between Newton, Massachusetts, and Tel Aviv, and who attended the Massachusetts Institute of Technology at the same time as Netanyahu, said he recognizes the prime minister as a singularly talented political operator. “He’s a fantastic politician,” Porath said. “Maybe he’s a manipulator.”
To the attendees who spoke with JTA, Emanuel’s message was not anti-Israel but pro-Israel, in Porath’s telling, what a good friend is obligated to do when the other is acting out of line. Emanuel put it similarly from the stage, “True friends tell each other the truth.”
Porath said he hopes the United States and Israel can once again find “a common political vision,” but that doing so will require tough love from America’s next president.
The event was hosted by Tel Aviv University’s Center for the Study of the United States and moderated by its founding director, Yoav Fromer, alongside Yael Sternhell, the professor who heads the university’s American studies program. Organizers solicited questions from students in advance and said more than 100 were submitted.
But with a university audience likely to skew liberal, attendee Yoam Barash said the program would have benefited from a right-wing voice to push back on Emanuel’s comments, since most Israeli voters lean right. A February poll by the Midgam Institute for Israel’s Channel 12 news found 68% of veteran voters and 75% of those voting for the first time identify as right-wing. “Why didn’t they bring somebody from the right?” Barash asked.
Barash is the uncle of Daniel Barash, a managing director at the public affairs firm SKDK who helped organize the event He attended with Hannah Winkler, a friend from his army days and now a doctor in the Tel Aviv area. She said she pins her hope not on the U.S.-Israel alliance but on a left-wing victory in the upcoming elections. “Without that, I have no hope,” she said.
Told that some attendees had wanted a more politically diverse lineup, Fromer defended the format. “This is academia,” he said. “The goals here are very different than they would be on a political panel.”
At the same time, Fromer echoed the attendees’ view that Emanuel’s message was that of a friend rather than an adversary. “To say to someone, look, I’m trying to save you, if you don’t change your behavior, you’re going to self-destruct — that’s someone who cares,” he said.
The stakes, in his telling, are high for Israel and for the university. “Israelis have become pariahs. We used to be admired, the most admired,” he said, echoing Emanuel’s own warning from the stage that Israel’s leadership has turned it into a “territorial pariah.”
The damage is not merely reputational, he argued. “It’s not just feeling bad. It has practical implications,” he said, speculating about investment and capital that will stop flowing, students and tourists who will stop coming, Israelis who will lose their jobs.
During the anti-Israel protests that swept U.S. campuses in 2023 and 2024, ties with Israeli universities, including Tel Aviv University, were frequent targets of divestment demands. Emanuel himself warned in his speech that Israel’s scientists face exclusion from international research networks and that its artists and academics are being shut out of exhibits and conferences.
Inside the hall, at least, the message was received. “Most of the people in this room are quite sympathetic to what you have to say,” Barash told Emanuel on stage. “That is not the case across Israel.”
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Synagogue targeted by picketers inspires Ann Arbor ordinance to protect houses of worship
Ann Arbor, Michigan has become the latest city to pass legislation aimed at protecting houses of worship from protests, echoing similar policies passed by New York and proposed by California earlier this year.
But while New York and California introduced such legislation in response to occasional anti-Israel protests outside synagogues, Ann Arbor has been home to the persistent and brazen protest of a Holocaust denier who shows up to picket the same congregation every week on Shabbat.
While synagogue leaders are moved by the city council’s gesture, they don’t expect the protests to end anytime soon.
“The significance of the resolution is that a city council in a highly progressive city had the bravery to call out the antisemitism of Jew haters,” said Rabbi Nadav Caine, the spiritual leader of Ann Arbor’s Beth Israel Congregation. And that’s no small thing.
For the past 23 years, a small group of protesters have gathered outside Beth Israel on Shabbat carrying signs with hateful slogans like “Jewish Power Corrupts,” “No More Holocaust Movies” and “Antisemitism is earned, never given.”
Partly in response to those decades of hateful demonstrations, the Ann Arbor City Council on Monday unanimously passed a resolution directing the city manager to develop a plan for protecting houses of worship during protests, which can include protest-free buffer zones.
Jerry Sorokin, executive director of Beth Israel, expressed gratitude for the city council’s sentiment — though he also believes the measures “won’t make any real difference.”
The protesters carry “incredibly offensive” signs, Sorokin said. But they also stay off synagogue property and don’t interfere with congregants trying to enter, he said, making it unlikely that a security perimeter would affect their demonstrations.
“They’ve found out exactly what the limits of their legal rights are in terms of what they can say, where they can say it, and how they can interact with the public, and they push it right to the limit without going over,” Sorokin said.
A court agreed. In 2019, a congregant and local Holocaust survivor lost a lawsuit against the Beth Israel protesters and the city of Ann Arbor, with a court concluding that the protesters were engaging in protected speech.
Buffer zones across the country
The measure in Ann Arbor reflects a broader national debate about balancing protesters’ free speech rights with worshippers’ ability to safely access religious services, as New York and California have also moved to enact buffer zones outside houses of worship.
In May, demonstrators outside Park East Synagogue in Manhattan chanted “We don’t want no Zionists here” and “There is only one solution, intifada revolution,” outside an event promoting real estate sales in Israel and the West Bank. New York lawmakers approved a 50-foot security buffer around houses of worship proposed by Gov. Kathy Hochul. Meanwhile, New York City Mayor Zohran Mamdani allowed a bill that requires the New York City Police to develop a plan for managing protests at houses of worship.
In Los Angeles, protesters targeting Wilshire Boulevard Temple for hosting speakers affiliated with the Israeli defense contractor Elbit Systems prompted California lawmakers to introduce a buffer-zone bill that would make it a crime to approach a person within 100 feet of a synagogue in order to hand out a leaflet, hold a sign, or “engage in oral protest.” First-time offenders would face up to six months in jail.
At the federal level, U.S. Rep. Tom Suozzi of New York introduced the SACRED Act, which would make it a federal crime to intimidate, obstruct or harass people within 100 feet of a house of worship.
But those proposals all face the same constitutional constraint: They can regulate how protests are conducted, but not the viewpoints being expressed. There’s no legal remedy to the offensive messages painted on placards and yelled at passing drivers, Sorokin said.
“I think what the city council did is laudable, and it is reassuring to us that they’re showing support for freedom of worship and for access to synagogues, churches, and mosques,” he said. “But I don’t think it’s going to change what goes on outside our building every Saturday.”
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