Starbucks rolls out New York bagel balls at more than 7,000 locations

Starbucks to sell Bantam Bagels at 7k locations
Starbucks to sell Bantam Bagels at 7k locations

The husband and wife team of Nick and Elyse Oleksak have a lot to celebrate. Starting Tuesday, their New York City bakery is bringing cream cheese-stuffed bagel balls to Starbucks' more than 7,000 U.S. locations.

Starbucks first began selling Bantam Bagels in a few dozen of its New York shops in 2015, before rolling them out to some 500 stores in New York City, Philadelphia and Indianapolis. On Tuesday, the coffee company revealed that the itty-bitty bagels would hit stores nationwide.

"We always said, 'Wouldn't these be a perfect fit for Starbucks?'" Elyse Oleksak, co-founder of Bantam Bagels, told CNBC. "The Starbucks customer looks for elevated versions of iconic food and they're always on the go."

This isn't the first bakery deal Starbucks has struck this year, as it tries to make food a larger piece of its business. In July, the company partnered with Italian baker Rocco Princi to bring artisan bakery items to its upscale Roastery locations. Those are slated to open in cities like New York and Shanghai starting in 2017.

Oleksak and her husband did not disclose how much the deal between Bantam Bagels and Starbucks was worth. However, she did note that having Bantam Bagels in more than 7,000 Starbucks locations was like "being in every single national grocery chain, times two."

Business has been booming for the bagel bite bakery. In the eight months after the husband and wife team appeared on ABC's "Shark Tank" in 2015, they raked in more than $2.1 million in sales. That compares to $200,000 before appearing on the show.

"We reinvented an iconic food in one of the most cynical cities on earth that is founded on the bagel," Oleksak said.

While the co-founders of Bantam Bagels have made it big, they told CNBC that nothing is going to change the way that they make their bagels.

"Everything is still made in New York," Nick Oleksak told CNBC. "Everything still has that New York City tap water. Everything's made in Brooklyn. We are literally able to bring a bite of New York anywhere in the country."

Customers can expect three different varieties of Bantam Bagels at Starbucks:

  • The Classic — a plain bagel stuffed with plain whipped cream cheese
  • Everybody's Favorite — an everything bagel stuffed with veggie cream cheese
  • French Toast — a cinnamon nutmeg egg bagel stuffed with maple butter cream cheese

Starbucks restaurants will be selling two bagels for $2.95 and six bagels for $7.98. Each Bantam Bagel is about 100 calories, according to the company.

Representatives from Starbucks did not immediately respond to CNBC's request for comment.

In addition to the Starbucks deal, the bakery's famous bagels will be available in the frozen section of more than 600 grocery stores starting in October, including Kroger, Fred Meyer and QFC.

Disclosure: CNBC owns the exclusive off-network cable rights to "Shark Tank."