Barry Bagels expands with major deal in Texas, uses hub-and-spoke model for growth

Restaurant Operator

In this episode of the Restaurant Operator Podcast, podcast host Mandy Detwiler, editor of Pizza Marketplace and QSRweb, talks to Jim Nusbaum, CEO of Barry Bagels. Nusbaum shares the brand's origin story, its expansion strategy into Texas, and the unique hub and spoke model that supports franchisees. He discusses the importance of employee culture, maximizing revenue streams through catering and wholesale, and ensuring consistency across locations. Nusbaum emphasizes the support provided to new franchisees and the qualities sought in potential partners, highlighting the investment opportunities within the brand.

Barry Bagels was started by a 21-year-old operator named Barry Greenblatt who along with his partner, bagel-maker Peter Johnson, opened their first location in Sylvania, Ohio in 1972.

Since then the brand has grown to Kentucky, Indiana, Michigan, Ohio, and a recent development deal signed for 30 units in Texas.

Nusbaum talked about the hub-and-spoke model in which the "hub" is the first store in any market with about 1,600 to 2,200 square feet. That store has the bagel-making capabilities. The bagels are then delivered to the "spoke" locations.

"Spoke locations, which need no HVAC, no walk-in cooler (and) no walk-in freezer, can be built for a fraction of the cost of the hub location. And since we're not baking there, you don't need a grease trap or the HVAC or anything like that," Nusbaum said.

To learn more about Barry Bagels' operations, click the link at the top of the page.