The encyclopedia · Marketing & Brand · Marketing decision · 2015–2022
The Rainbow Bagel store closed 'due to health concerns' — fame outlived the business
Scot Rossillo's rainbow bagel went viral and drew long lines, but the shop closed in 2016, again in 2019 over taxes, and for good in 2022.
The Bagel Store · Rainbow Bagel · 2022-05
What happened
Scot Rossillo, a longtime baker who called himself the 'World Premier Bagel Artist', had sold oddly shaped and coloured bagels out of Brooklyn since the mid-1990s. But it was only after a video of his rainbow bagel rippled across the internet around 2015 that the phones and the queues began — lines of fans, knockoff rainbow bagels, and a signature confection the world recognised on sight.
The viral moment was a marketing gift and a management trap. Demand at his two stores — one in Park Slope, one on Metropolitan Avenue in Williamsburg — became so intense that he had to close temporarily just to catch up. When the fad faded, the knockoffs stayed and the novelty became a commodity anyone could bake.
The business that sat on top of the viral hit never stabilised. In February 2016 the shop shut down indefinitely, and in May 2019 state authorities issued warrants and seized the Williamsburg location over unpaid taxes, putting a second closure on the record before the brand had recovered.
Rossillo reopened in Park Slope in 2020, but the final closure came in May 2022: the shop's Instagram announced it was closing 'due to health concerns', and the location was marked permanently closed. The rainbow bagel that made the business famous had outlived the business itself.
Why it happened
- A viral product is rented oxygen: the rainbow bagel drew a crowd, then the crowd left and the knockoffs stayed.
- The demand spike forced unplanned closures the business could not turn into durable revenue.
- By 2019 the shop was behind on taxes and had its location seized — the viral fame had not built a stable enterprise underneath it.
The lesson
Rossillo's rainbow bagel went viral, but fame is not a business — the shop closed over taxes, then for good. A viral product that cannot become a repeatable business is a headline, not an asset.
Aftermath
The Rainbow Bagel lives on as a culture-wide meme and a copycat staple, but The Bagel Store itself is gone. Its arc is cited as the cautionary tale of a small business buried by its own internet moment.
Sources
- New York Post, 12 May 2022 — NYC's Rainbow Bagel store closed 'due to health concerns' (The Bagel Store on 5th Avenue in Park Slope shuttered; owner Scot Rossillo; Williamsburg location seized in May 2019 over more than $128,000 in unpaid taxes)
- Brooklyn Paper, May 2022 — the second and final closure of the rainbow bagel shop (Scot Rossillo 'rose to viral fame' for the rainbow bagel; the Park Slope shop closed for good in May 2022)
- NY1 (Spectrum News), July 2019 — Rainbow Bagel store in Williamsburg closed over taxes (the store was shut down amid the unpaid-tax dispute)
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