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The $34 Million Dream: What REALLY Happened To Bantam Bagels At Starbucks And Their Shocking Relaunch

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For years, the mini, cream cheese-stuffed Bantam Bagels were a staple of the Starbucks pastry case, representing one of the most successful food partnerships in the coffee giant's history. As of late December 2025, however, the nostalgic "Bagel Bites" are no longer available at Starbucks locations nationwide, a discontinuation that marks the end of an era for the beloved grab-and-go breakfast item. This article dives deep into the full timeline of the Bantam Bagels journey—from a literal dream to a multi-million dollar acquisition, a quiet exit from Starbucks, and the shocking new chapter for the brand.

The story of Bantam Bagels is a masterclass in entrepreneurial success and the harsh realities of scaling a business with a major corporate partner. Fans who miss the convenience and flavor of the mini bagels have been left wondering what exactly happened to the company and if they will ever see their favorite flavor—like "The Classic" or "French Toast"—return to the Starbucks menu.

The Founders and The Empire: A Bantam Bagels Biography

The concept for Bantam Bagels was born from a simple, yet brilliant, idea: a mini bagel pre-stuffed with cream cheese, making it a mess-free, portable breakfast or snack. This simple innovation was the brainchild of founders Nick and Elyse Oleksak.

  • Founders: Nick and Elyse Oleksak.
  • Background: Both Nick and Elyse were former Wall Street stockbrokers before pursuing their entrepreneurial dream.
  • Founding Date: 2013.
  • Original Location: A small retail bakery in New York City's iconic West Village.
  • The Big Break: Appeared on ABC's reality show Shark Tank in Season 6 (2015).
  • The Deal: Secured an investment from "Queen of QVC" Lori Greiner, who invested $275,000 for a 25% stake in the company.
  • Starbucks Partnership: Launched in 2015, quickly expanding to over 8,000 Starbucks locations nationwide.
  • Acquisition: Acquired by T. Marzetti Company (a subsidiary of Lancaster Colony Corporation) for a staggering $34 million in 2018.
  • Discontinuation at Starbucks: Phased out from 2020, with a final nationwide exit around 2022.
  • Corporate Exit: Lancaster Colony announced its decision to exit the Bantam Bagels business in 2022 due to financial underperformance.

The deal with Lori Greiner and the subsequent partnership with Starbucks propelled the company from a small New York City bakery to a national frozen food brand. The sheer scale of the Starbucks distribution network was monumental, instantly turning the cream cheese-filled mini bagels into a household name and a multi-million dollar business.

The Rise and Sudden Fall: Why Starbucks Dropped the Mini Bagels

The partnership between Bantam Bagels and Starbucks was initially a massive success, proving the market demand for a convenient, high-quality, stuffed bagel product. The product was a hit with commuters and busy customers looking for a quick and satisfying bite.

The Starbucks Phenomenon and Popular Flavors

The mini stuffed bagels, often sold in two-packs, were a unique addition to the Starbucks pastry lineup, competing with items like croissants and loaf slices. They were designed to be eaten hot, with the cream cheese center melting slightly into the bagel dough.

The most popular Bantam Bagels flavors sold at Starbucks included:

  • The Classic: A plain bagel filled with classic plain cream cheese.
  • French Toast: A cinnamon-sugar bagel stuffed with a buttery, maple cream cheese filling. This was often cited as a fan favorite due to its sweet, dessert-like quality.
  • Everybody's Favorite: An Everything Bagel packed with a chopped vegetable cream cheese.

Despite their popularity, the Bantam Bagels had a relatively short lifespan on the national Starbucks menu, lasting from 2015 until their eventual phase-out.

The Discontinuation: A $34 Million Investment Goes Sour

The beginning of the end for Bantam Bagels at Starbucks started around 2020 and was fully realized by 2022. The primary reason for the removal was a combination of corporate strategy and external factors:

  1. COVID-19 Pandemic Impact: The global pandemic significantly disrupted supply chains and drastically changed customer behavior. With fewer people commuting, the demand for grab-and-go breakfast items like Bantam Bagels declined sharply. The brand's distribution in Starbucks was a major casualty of this shift.
  2. Financial Underperformance: After the 2018 acquisition by Lancaster Colony (T. Marzetti Company), the business failed to meet profitability expectations. The loss of the massive Starbucks distribution channel was a critical blow to the brand's volume and financial health.
  3. Corporate Exit Strategy: In 2022, Lancaster Colony announced its decision to *exit* the Bantam Bagels business entirely. The company stated there was "no foreseeable path to profitability" for the brand, leading to a restructuring and impairment charge of over $22 million. This move effectively signaled the end of Bantam Bagels as a major national retail and foodservice product.

The discontinuation was a massive disappointment to the dedicated customer base who relied on the mini bagels for a quick, convenient breakfast solution. The high-profile success story from Shark Tank had become a cautionary tale about the challenges of scaling a niche food product within a massive corporate structure.

The Search for Alternatives and the Shocking Relaunch

For fans mourning the loss of the Bantam Bagels from the Starbucks menu and grocery freezer aisles, two main paths have emerged: recreating the magic at home or visiting the brand's unexpected return to its roots.

The Copycat Craze: DIY Stuffed Bagel Bites

The simplicity of the Bantam Bagel concept—a small, boiled-and-baked bagel stuffed with a single scoop of cream cheese—has inspired a wave of "copycat" or "dupe" recipes online. Many food bloggers and home bakers have perfected recipes for "Bagel Bombs" or "Stuffed Bagel Bites" that mimic the texture and flavor of the Starbucks original.

The basic method involves:

  • Making a small, simple bagel dough (or using a pre-made dough).
  • Freezing small cubes of seasoned cream cheese (like plain, maple, or vegetable).
  • Wrapping the dough around the frozen cream cheese cube.
  • Boiling the mini bagels briefly (the "bantam" step).
  • Baking until golden brown.

These homemade versions offer a nostalgic taste of the discontinued product and provide a fresh, customizable alternative for those who miss the convenience of the frozen breakfast item.

The Brand's Unexpected New Chapter: A NYC Relaunch

Despite the corporate exit by Lancaster Colony in 2022, the Bantam Bagels brand has shown signs of life, offering a glimmer of hope to its most loyal fans. In a surprising turn, the brand has focused on its origins, announcing a relaunch of its popular, original retail bakery in New York City's West Village.

This move suggests that the brand, or at least the original retail concept, may have been salvaged or reacquired by the founders or a new entity focused on a smaller, more specialized market. This retail-focused strategy moves away from the high-volume, low-margin frozen food distribution model that led to its financial struggles under Lancaster Colony. For now, the only way to experience the original, fresh Bantam Bagels and their unique flavors is to visit the relaunched New York City retail location. This return to the original West Village shop is a strong signal that the Bantam Bagels dream is far from over—it's just no longer a drive-thru item at your local Starbucks.

The $34 Million Dream: What REALLY Happened to Bantam Bagels at Starbucks and Their Shocking Relaunch
bantam bagels in starbucks
bantam bagels in starbucks

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