Bagel shops are a volume business. That is the trap.
A 10-cent over-portion of cream cheese or bacon turns into real money by lunch. Add coffee refills and labor-heavy sandwiches, and your “simple” menu stops being simple.
This guide is a U.S.-focused bagel shop cost calculator. It uses BLS price benchmarks, portion math, and real menu examples. Use it to price classic bagels, schmears, breakfast sandwiches, and lox.
Quick Summary
- Cost bagels by dough weight + schmear grams, not by item name
- Use a separate cost line for cream cheese and proteins
- Coffee refills are a real variable cost
- Lock portions and reprice quarterly when ingredient costs move
Why Bagel Shop Costing Is Tricky
- Cream cheese over-portioning is common.
- 10-15 extra grams per bagel adds up fast.
- Sandwiches hide high-cost proteins.
- Eggs, bacon, and salmon swing your food cost %.
- Bagels are cheap, toppings are not.
- The base can be profitable, the build kills margin.
- Coffee refills are invisible cost.
- A $0.30 extra cup matters at scale.
- Labor and speed matter.
- Your costs jump when the line slows down.
If you do not cost by portion, you are guessing.
The Core Bagel Cost Formulas
Bagel dough cost = Dough batch cost / Bagels per batch
Bagel base cost = Bagel dough cost + boil/bake loss
Schmear cost = Cream cheese cost per oz x Portion oz
Sandwich cost = Bagel base + Protein + Cheese + Egg + Sauce
Food cost % = Plate cost / Menu priceTrack all add-ons as separate line items. That is where the money is.
U.S. Price Benchmarks (Retail, City Average)
These are BLS average retail prices via FRED. They are retail, not wholesale. Use them as a sanity check when suppliers change fast.
| Item | Latest U.S. city average | Unit cost | Why it matters |
|---|---|---|---|
| Flour, white, all purpose | $0.554/lb (Dec 2025) | $0.03/oz | Bagel dough base |
| Eggs, Grade A, large | $2.712/dozen (Dec 2025) | $0.23/egg | Egg sandwiches |
| Bacon, sliced | $6.760/lb (Dec 2025) | $0.42/oz | Bacon egg and cheese |
| Milk, fresh whole | $4.047/gal (Dec 2025) | $0.03/oz | Dough + coffee |
| Coffee, 100% ground roast | $9.053/lb (Dec 2025) | $0.57/oz | Refill cost driver |
Price conversion formulas:
Price per oz = Price per lb / 16
Price per egg = Price per dozen / 12
Price per oz (milk) = Price per gallon / 128Price Outlook (Why Repricing Matters)
USDA ERS reports food-away-from-home prices rose 4.1% in 2024 and 3.8% in 2025, with a 4.6% increase forecast for 2026. If you sell high-volume breakfast, you feel every bump. Reprice quarterly if you want to protect margin.
Portion Standards to Lock In
Write these down and enforce them every shift.
- Bagel dough weight (grams)
- Schmear size (oz)
- Egg count (1 or 2)
- Bacon portion (oz)
- Salmon portion (oz)
- Coffee cup size + refill policy
Portion drift is the #1 bagel shop profit leak.
Example 1: Classic Bagel + Cream Cheese
Assumptions (example):
- Bagel dough cost per bagel: $0.38
- Boil/bake loss: $0.03
- Cream cheese price: $2.40/lb
- Schmear size: 2 oz
- Packaging: $0.18
Cost Breakdown
| Item | Portion | Unit Cost | Line Cost |
|---|---|---|---|
| Bagel base | 1 each | $0.41 | $0.41 |
| Cream cheese | 2 oz | $2.40/lb ÷ 16 | $0.30 |
| Packaging | 1 set | $0.18 | $0.18 |
| Total item cost | $0.89 |
Target price for 30% food cost:
$0.89 / 0.30 = $2.97Menu price range: $2.95-$3.49
If your schmear jumps to 3 oz, your cost climbs 50%.
Example 2: Bacon, Egg & Cheese Bagel
Assumptions (example):
- Bagel base: $0.41
- Egg: 1 each ($0.23)
- Bacon: 2 oz ($0.42/oz)
- Cheese slice: $0.18
- Butter/oil: $0.06
- Packaging: $0.22
Cost Breakdown
| Item | Portion | Unit Cost | Line Cost |
|---|---|---|---|
| Bagel base | 1 each | $0.41 | $0.41 |
| Egg | 1 each | $0.23 | $0.23 |
| Bacon | 2 oz | $0.42/oz | $0.84 |
| Cheese | 1 slice | $0.18 | $0.18 |
| Butter/oil | 1 portion | $0.06 | $0.06 |
| Packaging | 1 set | $0.22 | $0.22 |
| Total sandwich cost | $1.94 |
Target price for 32% food cost:
$1.94 / 0.32 = $6.06Menu price range: $5.95-$6.49
Example 3: Lox Bagel (High-Margin or Margin Killer)
Lox is a premium add-on. If you underprice it, your margin disappears.
Assumptions (example):
- Bagel base: $0.41
- Cream cheese: 2 oz ($0.30)
- Smoked salmon: 3 oz at $1.10/oz
- Capers/onion: $0.20
- Packaging: $0.22
Cost Breakdown
| Item | Portion | Unit Cost | Line Cost |
|---|---|---|---|
| Bagel base | 1 each | $0.41 | $0.41 |
| Cream cheese | 2 oz | $0.15/oz | $0.30 |
| Smoked salmon | 3 oz | $1.10/oz | $3.30 |
| Capers/onion | 1 portion | $0.20 | $0.20 |
| Packaging | 1 set | $0.22 | $0.22 |
| Total item cost | $4.43 |
Target price for 32% food cost:
$4.43 / 0.32 = $13.84That is why lox bagels sell at $12.95-$15.95 in most markets.
Bundle Strategy: Protect Margin Without Raising Prices
Bagel shops win with bundles. But bundles only work if you control the add-ons.
Profitable bundles:
- Bagel + cream cheese + coffee
- Bacon egg and cheese + hash brown
- Dozen bagels + 2 schmear tubs
Bundle rule:
Keep high-cost items (lox, avocado, bacon) as paid add-ons. Do not hide them inside “value” bundles.
Coffee Refills and Cup Size
Coffee feels cheap. It is not when refills are unlimited.
- Track cups sold vs. coffee pounds used
- Set a standard cup size (12 oz, 16 oz)
- Offer free refills only for dine-in
Even a $0.15 swing per cup changes your margin on a $1.99 coffee.
Waste Control: The Day-Old Plan
Bagel waste destroys margin if you guess.
Pick one:
- Sell day-olds as a discounted bag
- Turn day-olds into breadcrumbs or croutons
- Partner with a local food rescue program
But do not throw them out with no plan.
Weekly Costing Checklist (10 Minutes)
- Update eggs, bacon, flour, and coffee prices
- Weigh a standard schmear (2 oz) and sandwich build
- Recalculate costs for your top 5 sellers
- Check coffee usage vs. cups sold
- Adjust prices or portions before the weekend rush
How KitchenCost Helps Bagel Shops
KitchenCost lets you build recipe cards for bagel dough, schmears, and sandwiches. Track every portion, every yield, and every price change.
- Store dough batch yields and bagels per batch
- Lock schmear portions in ounces
- Price sandwiches by ingredient, not by guess
- Recalculate menu prices in seconds
Want to stop guessing? Try KitchenCost - free to start.
Related guides:
- US Food Cost Calculator
- US Menu Pricing Calculator
- US Breakfast Diner Cost Guide
- US Coffee Shop Pricing Guide
- US Restaurant Portion Control Guide
- Food Cost Ratio Guide
- Prime Cost Guide
- Home Baking Pricing Guide
- Pizza Cost Calculator