Bagel Business Torn Apart by Family Feud

Trust, loyalty, and a lot of bagels—sounds simple, right? But it seems betrayal has unravelled the success of a $50 million-a-year venture.

This Queens-based company, famed for selling 100 million bagels annually, is currently engulfed in conflict over its future. The rift exists between the offspring of founders George Menegatos and Nicholas Evangelinos.

Stefanos, Mr. Nicholas’ son, has initiated a $25 million lawsuit in Brooklyn federal court. He accuses Mr. Evangelinos of removing his children from the business and blocking access to their rightful shares following Mr. George’s passing.

Stefanos claims he was considered a 50/50 partner with George. He insists he played a crucial role in the company and should have been treated more like family. Now, he feels that trust has been exploited.

George’s sons, Spiro, 43, and Stephen, 40, had been part of the Long Island City operation for over two decades. Under a 2016 shareholder agreement, they were slated to inherit half of their father’s company stock.

But after George Menegatos died from COVID-19 in March 2021, Evangelinos reportedly denied the existence of that agreement, as per the lawsuit.

The Menegatos family alleges that Mr. Evangelinos misled George’s widow and his three adult children, as well as the estate attorney and accountants, asserting that New Yorker Bagels was run solely on verbal agreements.

A year prior to his death, George supposedly had a conversation with Stefanos, making it clear that the family’s future at NYWB rested in his hands, expecting him to be truthful and respectful of the succession plan.

The journey began in 1981, when George and Nicholas opened Bagel Buffet in the West Village. They quickly outpaced their competitors, pivoting to wholesale and moving to Astoria. Now, their operations run from a factory in Long Island City.

Despite their deep ties—evidenced even by George’s decision to continue paying Stefanos during a period of injury—the Menegatos family now feels abandoned. After George’s passing, it seems the focus shifted solely to financial gain.

It’s claimed that Evangelinos pressured Spiro Menegatos into signing a document that imposed a $600,000 obligation. Allegedly, he funneled company funds to friends and family and ultimately pushed George’s children out of the enterprise.

Attorneys for Spiro and Stephen Menegatos have chosen not to provide comments on the matter. Requests for comment from Mr. Evangelinos went unanswered.