MANHATTAN BAGEL IS ROLLING UP SALES

ROSEANNE HARPER

MANALAPAN, N.J. -- A Super Foodtown operator has more than quadrupled its bagel sales with the addition of a Manhattan Bagel Shop inside its store here, officials said.

Francis Markets, owner of the 50,000-square-foot Super Foodtown, operates the bagel shop as a licensee of Eatontown, N.J.-based Manhattan Bagel Co.

Prior to opening the shop last month, the retailer had bought fresh bagels from a local supplier and retailed them in its in-store bakery.

At that time, the store sold an average of 200 to 300 dozen bagels a week. Now that figure hits 1,000 dozen.

The 250-square-foot Manhattan Bagel shop is situated in the front corner of the store, the first in the traffic pattern, and that location contributes to the sales success, said Paul Tarantino, vice president and chief financial officer of Francis Markets. The company also owns a Super Foodtown in Neptune City, N.J.

The in-store bakery, where bagels had previously been sold, is across the store in the opposite corner.

"The location of the Manhattan Bagel shop certainly has a lot to do with sales. And there's some name recognition, too," Tarantino said. The name could possibly be drawing new customers into the store, he added.

Like all Manhattan Bagel operations, this one features open production. Customers can see the bagels being boiled as well as put into the oven.

The company's logo, which incorporates a stylized drawing of the Manhattan skyline, is featured large above the shop's counter.

Tarantino suggested, however, that the fact that Manhattan Bagel's bagels are "New York style" is not likely to be the only element that is driving sales up.

"The bagels we sold before were New York style, too, but we do think the quality of Manhattan Bagels' product is superior," he said.

While they have 21 flavors to choose from, Super Foodtown's customers have so far favored the plain bagel, Tarantino said. Plain is clearly the best-seller, but a surprise top seller is a spinach bagel, he noted.

"That was a surprise to me that it sells so well. I had never heard of a spinach bagel," Tarantino said. The spinach bagel is not green, he said, but flecks of spinach are visible in it.

To give the new concept a send-off last month, Super Foodtown devoted a half page in its ad circular to touting the grand opening of the bagel shop.

Coupons in the ad offered bagel breakfast sandwiches for $1.99, a lunch special that featured a buy-one-get-one-free bagel sandwich, and $1 off any 7-ounce gourmet cream cheese.

Besides the bagels themselves, the shop offers 25 varieties of gourmet cheese spreads and made-to-order bagel sandwiches for lunch and breakfast.

Most sales are in the morning now, but Tarantino said he's aiming to build the lunch business at the shop.

Asked if he would open a similar operation in the company's Neptune City store, he said he would if it were possible, but there is already a freestanding Manhattan Bagel Shop near that store.

Manhattan Bagel Co., meanwhile, has been increasing its presence in other supermarkets. Vons Cos., Arcadia, Calif., and Kroger Co., Cincinnati, are two of the chains that have Manhattan Bagel shops inside some of their stores.

In all, Manhattan Bagel franchises or operates more than 275 stores in 15 states, the District of Columbia and Canada.