Muginowa Otaru, first opened as Otaru Bagel Factory in 2005, is the first shop specializing in bagel in Otaru. The bagel of this shop is made from Hokkaido flour with salt, sugar, yeast and Otaru's quality water as ingredients.
It comes in several different flavor, and sandwiches; smoked salmon +cream cheese, BLT, egg+lettuce+ bacon, liver paste+cabbage+ tomato are available, too. The bagel is big and chewy, so a sandwich is substancial enough as a meal.
The shop is on Yuragi Street which leads to Jozankei. From JR Asari Station, go up the road to Route 5.