Shrinking bagel scene sees a new contender
Louisville-based Dooley's also will sell sandwiches
at location in King Cole building.

By Dana Knight
Indianapolis Star
October 24, 2000

Even as other bagel companies call it quits in
Indianapolis, citing a saturated market and some consumer
indifference, a national chain is set to make its debut
Downtown.

Dooley's Bagels and Deli will open its doors early next
month in the King Cole building at the corner of Meridian
and Washington streets.

The president of the Louisville, Ky.-based bagel chain
said he has no doubts that his half-broiled, half-baked,
chewy rolled product will prosper.

"I don't know that Indianapolis needs another bagel
shop, but that isn't exactly what we are," said Bill Squitieri.

"We are a sandwich shop that sells bagels, not a bagel shop
that sells sandwiches. We differ very basically from the
others."

Since Dooley's fare is similar to that of other bagel shops,
location could be key to making this business a success, said Terry Sweeney, director of real estate development with
Indianapolis Downtown Inc.

"With any of these restaurants, there is contraction and
expansion. It looks like we've gone through the contraction,
and it's time again (for expansion)," he said. "And look at the
location. That's a home run for them. They're at the corner
of Main and Main."

But the Indianapolis bagel-shop industry hasn't been
thriving of late. It hit a low in May, when Bruegger's Bagels
closed its four area shops just weeks after Big Apple Bagels
closed two stores. Local Big Apple owners filed for Chapter
11 bankruptcy protection.

Bruegger's blamed its closing on added competition in
the Indianapolis area compared with other markets. Big
Apple said it grew too quickly, opening four shops in 14
months.

"The bagel industry as a whole had an incredible rise
five years ago and then an incredible crash," Squitieri said.
"We've kind of grown slowly and kept up with customer
tastes as we grew."

Dooley's opened its first store in 1994 on Long Island,
New York. Since then, it has opened company headquarters
and eight shops in Kentucky. Dooley's already operates two
shops in Indiana, one each in Columbus and New Albany.
"But we're really branching out into our first large
market as we enter Indianapolis," Squitieri said.

The Downtown store will open Nov. 6, and, Squitieri
said, the chain likely will expand to suburban areas.
Squitieri already is in talks with a franchisee who likely will
open a store in Greenwood.

Einstein Bagels, located on South Illinois Street, likely
will feel a pinch of increased competition. Until now, it
dominated the Downtown bagel market and operates eight
other shops in the area.

"The advantage for us is we've been there three years,
and we have a good customer base," said Joe Hoog, vice
president of operations for Einstein's eastern district. "The
disadvantage is that people like to try a new place."

Hoog has high hopes that the new store will broaden his
customer base by bringing bagel lovers Downtown in force.
"And I don't know what Dooley's serves, but at the end
of the day, if we continue doing our thing, we'll be fine," he
said.

But even Einstein has faced challenges in the
specialty-food market in recent months. In late April, the
company filed for Chapter 11 bankruptcy protection to
reduce $125 million in debt and closed stores in Los Angeles, Boston, Philadelphia and New York. The troubles didn't
affect the company's nine Indiana stores.

Developer Bruce Bodner, who owns the King Cole
building, said he doesn't anticipate that his new tenant will
face the same struggles.

Dooley's will be in the heart of the district where the
employment base is the highest, and its neighbors will be
Qdoba Mexican restaurant, formerly Z-TECA Mexican
Grill, and Nicky Blaine's, a martini and cigar bar.

"They should do terrific business there," Bodner said.
"There's no question."