St. Pete's beloved bagel shop Pete's Bagels, located at 2361 1st Avenue South, is expanding into a new production kitchen and adding more to its menu due to the ever-growing demand for their baked goods.

Owners Steven and Sara Peterman and Operations Manager Erica Gonzalez, who debuted Pete's General in 2019 in St. Petersburg’s Historic Uptown, have executed a lease for a 1,500-square-foot retail building in Gulfport.

They are currently converting the space at 1407 49th Street South, formerly home to Rico’s Pizza, into a production warehouse. 

"Currently, we bake in the back of the St. Pete location and are at our limit of what we can do," Steven said in an interview with St. Pete Rising.

"Instead of expanding the kitchen in St. Pete, we wanted a space we could grow into. The biggest issue with bagels is having enough storage for thousands of bagels to proof overnight."

The new Gulfport location will have a walk-up window where customers can order fresh to-go bagels from the oven as well as bulk cream cheese and coffee/espresso. However, sandwiches and seating will not be available.

"It's exciting to open a location in a new city,” Steven said. “Hopefully it will reduce the wait time for bagels in St. Pete. Customers can come here and grab six or a dozen hot bagels."

He said they will have a "hot bagels" neon sign, a nod to Krispy Kreme's iconic "hot doughnuts" signs.

In a few short weeks, the bakers will move from St. Pete to the Gulfport location, which will open by the end of February. In addition to bagels, baked goods and all their house made ingredients will be produced in the new commercial kitchen and delivered to both the St. Pete and Ybor City stores daily.

As the new facility frees up space in the existing Grand Central District store, the owners are adding a full coffee bar.

The shop, which was previously only offering cold brew, is now serving lattes, cappuccinos, and other espresso-based drinks with homemade syrups.  

"Since we moved here [to the Grand Central District], we've wanted to serve espresso drinks, but It didn't feel feasible because we were busting at the seams for space," Steven said. “We've lacked on the coffee side, only focusing on the bagel business for the past five years. It will be fun to bring in that half-coffee and half-bagel shop vibe.”

Pete's still carries cold brew and drip coffee by King State. Espresso-based drinks will be made with beans from Look Alive Coffee, a specialty coffee roaster opening next month a few blocks away at 1920 1st Avenue South.

“Look Alive is stoked to partner with Steven, Erica and the rest of the amazing crew at Pete’s,” said co-owner of Look Alive Coffee Kelly Packard.

Over the next few weeks, the Petermans will add new "comfy seats" and tables to the St. Pete store to give it more of a coffee shop vibe.

Additionally, Pete’s Bagels is still working on plans to open a drive-thru cafe at St. Petersburg’s oldest gas station, located at 2439 4th Street South, the historic Harbordale Standard Oil Station constructed in 1926. 

The team is currently waiting on permits for the exterior site plan, Steven said. Pete's Bagels expects to serve bagels, sandwiches, and coffee at the drive-thru, which he hopes to open later this year.  

There will be a walk-up window for customers who want to dine at a table under the building’s covered awning.

To stay up to date, follow Pete’s Bagels on Instagram and Facebook.