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Photo by Bob Pennell Tara Oldfather serves up bagels at the Northwest Bagel Co. in Bear Creek Plaza. The company's second store opened there early this year. The original store is in Black Oak Shopping Center. Bagel business is booming Northwest Bagel Company opens second Medford store Whether you're a discriminating bagel lover or you just want to grab a bagel on the go, there's now another shop in Medford where you can whet your appetite. Northwest Bagel Company has opened a second store in town at Bear Creek Plaza Shopping Center. Between Papa Murphy's and Baskin-Robbins, the bagel shop offers about 21 varieties, from plain to spinach parmesan. Owner David Kaufman, a 29-year-old graduate of South Medford High School, set up shop in the former American General office around the first of the year. He also owns the bagel eatery in the Black Oak Shopping Center, which opened in June 1995. "It's been a very positive expansion for us, but it has not come without a few hiccups, if you will," Kaufman said. A "hiccup" was running over budget in the initial inventory. With a good percentage of revenue going toward debt retirement, he predicts the shop won't be on its feet for another year. But business has been going well. While he sits to take a break, Kaufman stops to take calls from customers and says goodbye to a patron who tells him, "We'll be back through." "We're keeping everybody fed. All the bills are being paid," Kaufman said. The entrepreneur segued into the bagel industry in the San Francisco Bay area, where he played soccer and attended school. To supplement his income, he took a part-time delivery position at a bagel store. The owner offered to teach him the business. Kaufman soon learned how to bake the chewy rolls, and as nationwide bagel chains were starting to pop out, he saw an emerging trend. He and his former business partner could have set up shop anywhere, but chose Medford because they'd grown up here. And while there was some competition here, other shops didn't make their own bagels from scratch. "We felt there was a good opportunity here," he said. Kaufman remembers getting "a lot of no's" back then as Northwest Bagel Company tried to market its product. But eventually, his foot got in the door and the business developed a reputation. Kaufman said his business has grown so much in the past four years that he hasn't had time to sit down and analyze the growth. But he said it has probably quadrupled production, if not more. He now has a head baker and two part-time bakers who produce about 2,500 bagels a day. The rolls are sold not only in the two stores, but also to Costco, hospitals, athletic clubs and coffee shops. The bagels aren't steamed on any pan -- they're boiled in water with a little sweetener to give them a nice crust and some shine, and baked on a hearth. The most popular flavors? Probably plain, sesame and "energy," Kaufman said. An energy bagel is loaded with cinnamon, raisins and walnuts. Customers can also come in for breakfast and pick an "eggel" with ham and cheese, or order a pizza bagel or a bagel dog. There are also sandwiches, soups, salads, espresso and cappuccino. Kaufman also plans to expand the menu to include muffins and scones. He's working on low-fat muffin recipes. A single bagel costs 55 cents; premium bagels, such as the jalapeno cheese flavor, cost 15 cents more. Northwest Bagel's customers include high schoolers eating on a budget and women who are looking for a healthy lunch or breakfast. "We're trying to offer a consistent, high-quality product that is at a fair price," he said. "We're by no means perfect, but we strive for it. "Overall, it shows." Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA