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Bagel And Doughnut Economics 101

May 17, 2017: 12:00 AM EST
Doughnuts and bagels have a similar shape, including (usually) a hole in the middle. But they are not the same, not by a long shot, and neither are their respective small business models. Doughnut entrepreneurs like Rebecca Gullo say the economics of bagels “don’t work” for her mainly because it’s “unbelievably difficult to make great bagels.” And they’re not as profitable as doughnuts, primarily because bagel shops aren’t yet able to charge the premium prices for their product that doughnut shops do. Doughnuts are less labor-intensive to make: once glazed, they’re done. Bagels can be embellished with cream cheese or other spreads, sold as sandwiches, etc. But that requires extra work, and extra expense. 
Janelle Nanos , "Doughnut vs. bagel: a hole different game", The Boston Globe, May 17, 2017, © Boston Globe Media Partners, LLC
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