Detroit Institute of Bagels abruptly closes as some workers quit after business was sold

Detroit’s Core City neighborhood is buzzing with the abrupt closure of Detroit Institute of Bagels, with no immediate plans to reopen after a third of its workers resigned over its recent sale to the building's landlord, well-known Detroit developer Philip Kafka.

The well-known bagel shop on Grand River, commonly known as DIB, is typically open 8 a.m.-2 p.m. Wednesday through Sunday. But on Wednesday, a sign posted on the shop's door announced its closure as they “work through changes to our menu, business model and physical space.”

Ben Newman, who began DIB first in Corktown and then in Core City in the space previously occupied by Ochre bakery, sold the business to Kafka, president of Prince Concepts, a real estate development company.

Kafka, 37, a Texas native, arrived in Detroit from New York City in 2015 after selling his billboards business and began developing a 22-acre project in the Core City neighborhood. The project, west of Detroit’s Woodbridge neighborhood and about 2 miles from downtown, is a village-like mix of eateries and office spaces within six adaptively reused commercial buildings, plus newly created urban parks and about two dozen minimalist apartments.

The bagel shop's sudden closure was due to inadequate staffing after several employees resigned because of the sale. Out of 15 DIB employees, which included bakers, managers and general staff, five resigned, according to a Kafka spokeswoman.

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BridgeDetroit reported that some DIB employees referred to the sale as a "takeover" and more than half of them quit because they were not comfortable with Kafka and his "political beliefs about Israel and business reputation."

"If they wanted to do this correctly, they could have actually just got a company meeting together, explained the situation several weeks in advance, instead of being notified by email,” DeMarco Havard, a former DIB baker, told BridgeDetroit. “But instead they decided ‘we’re gonna blindside everybody;’ damn near feels like the dark of the night.”

Corktown and Core City

Newman's first iteration of DIB was in Corktown on Michigan Avenue. But after seven years of boiling and baking bagels, Newman closed DIB in September 2021, in part due to the pandemic, and put the business up for sale. The location is now James Oliver Coffee, which also offers bagels.

In February 2023, Newman reopened DIB in Core City. In a text message to the Free Press, Newman said he had not paid himself for the past 18 months, using his savings for funding.

Newman also stated that he sought another full-time job last fall, "balancing both roles to continue operating DIB.”In a July 14 email, Newman informed DIB staff of the sale, saying: "I am excited to share news about the next iteration of Detroit Institute of Bagels. A version that, I believe, sets everyone up for long-term success."Newman stated that "starting Monday, July 15, Philip Kafka and Arad Kauf, from Cafe Prince, will begin working with you and will begin to oversee the operations."

Cafe Prince, a coffee shop with several food items including toasts with a variety of toppings and other dishes, is also owned by Kafka.

Emails question sale

A chain of emails provided to the Free Press revealed employees had questions about the sale, ownership, pay rates, changes and leadership.

The emails revealed that some workers were not comfortable working for Kafka, because of his Prince Concepts business, his past support of Israel (Kafka is Jewish), which is embroiled in a controversial war in Gaza, and the "transparency in the 'sale.' "After an initial email introduction from Newman to the existing DIB employees, Kafka made several attempts to meet with staffers but was met with reluctance. Early emails went unanswered and later, some employees’ responses indicated that they were unavailable to meet in a group setting and unwilling to sit down one-on-one with new leadership.

When Kafka suggested the team present a new meeting time of their convenience, the resignations began pouring in.

Since the news of the DIB closing, Delia Diedrich, a DIB line and prep cook who is among the DIB employees who resigned, said the group has received "incredible support across the bar," including job offers within the restaurant industry and other industries. A fund is also set up through the Orenda Coalition to support the employees who resigned.

What's next

Kafka said his plans for DIB included starting things to make the business profitable, such as expanding hours and days open, which would give employees more and more hours to work.

"A bagel business should really be open seven days a week, because you need to develop a routine during the week," he said.Kafka said he's received numerous and vitriol comments in the wake of the Bridge story and the closing of DIB.

"The result of what happened was the worst thing for me, my reputation because of this story, and most importantly, the park in the public space in the neighborhood loses energy, and it's so hard to collect energy in these Detroit neighborhoods."

Contact Detroit Free Press food writer Susan Selasky and send food and restaurant news to: sselasky@freepress.com. Follow @SusanMariecooks on X (formerly Twitter). Support local journalism and become a digital subscriber to the Free Press.