Einstein Bros. CFO plans expansion amid bagel boom

Fans of tasty carbs, rejoice: Bagels are having a moment.

It’s a “bagel chain frenzy,” Nation’s Restaurant News declared a few months ago. Chains like TikTok-famous PopUp Bagels, which boasts celebrity investors like Paul Rudd and Michael Phelps, and Bagels & Co., which went viral for its Oreo bagels and Cookie Monster schmears, are expanding. New York stalwart H&H Bagels began franchising in 2024 and as of April, had 19 locations in five states and deals signed for another 100, according to Franchise Times.

What does Will Evans, CFO of Bagel Brands, the company that owns Einstein Bros. and Bruegger’s Bagels, think of all the trendy competitors cropping up? “We love that people are thinking about bagels,” he told CFO Brew.

In fact, Einstein Bros. plans to capitalize on the craze. Earlier this year, the chain announced a goal of opening 300 shops in the next three years, which would bring it to well over 1,000 locations by 2030.

On a roll. The US bagel market is growing: It’s worth around $6.1 billion in 2026, according to Grand View Research, which estimates it’ll reach $8.6 billion in 2033.

But Einstein Bros. could have its work cut out for it. As the nation’s largest bagel chain, with 766 stores, it’s a “legacy” player. Founded in 1995, the parent company filed for an IPO in 2007, and was listed on Nasdaq before JAB Holding acquired it for $374 million in 2014. So Einstein Bros. is the jumbo-size player competing against scrappy, social media-savvy upstarts with very different value propositions.

PopUp Bagel is one of the up and comers. It focuses on delivering a small menu of high-quality bagels that customers are encouraged to “grip, rip, and dip” into tubs of schmear, rather than slice and spread. Its stores are bare-bones, which cuts down on labor costs. Another rising chain is Jeff’s Bagel Run, which features unusual bagel flavors like blueberry ricotta honey, cacio e pepe, and maple bacon.

“We certainly have to watch them,” Evans said of the new brands. “They’re doing some things really well.” Einstein Bros., in fact, now offers a “pull-apart” bagel reminiscent of PopUp’s tearable bagels.

Tried and true. But being an established provider gives Einstein Bros. an advantage, Evans said. “We have easily the most scope and scale of those brands,” he said.

Convenience and variety are Bagel Bros. main selling points, Evans said. Bagel Brands has stores in 46 states: “If you want to go find the nearest bagel in a bakery…it’s probably going to be us.” The chain makes bagel sandwiches for customers who want a lunch option, and does bulk orders and catering. “Our goal is to meet people where they want to be with bagels, not try and dictate anything to them,” Evans said.

As to adapting to market trends, Einstein Bros. appears to be taking a measured approach. It’s leaning into the cold-drinks craze with better iced coffee, cold foam, and more flavors, he said. But it’s not going overboard. Customers “want coffee along with breakfast, but does it make sense for us to offer a full line of complicated espresso drinks and all the alternatives?” he asks. “We’re doing our best to make sure that we’re relevant,” he said, “but you’re not going to see us become a beverage-first brand.”

IRL expansion. Einstein Bros. is eyeing the Midwest and Sunbelt for its expansion. Though bagel culture has traditionally been strongest in the Northeast, according to National Restaurant News, Bagel Bros.’s research shows that customers in the Northeast tend to be more loyal to independent local bagel shops; in the Midwest and Sunbelt there’s more “white space” to grow, and it’s easier for Einstein Bros. to play to its strengths of convenience and versatility, Evans said.

An outfit like Einstein Bros. should consider expansion “not when you want to but when you have the right pieces in place,” Evans said. Those pieces, he said, include the right team and leadership, enough capital to fund growth without putting the business at risk, and “a business model that works.”

“Everything can grow in a spreadsheet,” Evans pointed out, “but what grows in the real world is where the financial model actually produces the results.”

Evan’s advice for CFOs scaling a brand is to “surround yourself with intelligent people, surround yourself with people that are going to be willing to work really hard.” Growth isn’t a straight line. “You see the good headlines, but there’s a lot of work that goes in there. There’s a lot of grinding to get through it,” he noted. 

Talent and experience matter, Evans said, but so does fun. “If you’re going to be in the trenches with people, you want to be with people that you can trust,” he said, “and people that are going to be able to laugh at themselves.”