Earlier quoted context omitted.
Gosh I didn't know there were toaster chips but it seems so. One here 8 pin package with pin 3 being the bagel pin. https://www.diodes.com/assets/Datasheets/PT8A2514A.pdf
I have wondered for the longest time what the BAGEL button actually did, because on my cheap toaster, it seems to do very little. Unfortunately I still have more questions after reading the schematic. SW4 (BAGEL) allows current flow through R9/LED3 (BAGEL) which raises Vbe on Q2, forward biasing it, allowing current flow through Q2, dropping Vcs. Meanwhile, power has been flowing through the main switch, with RL3/RL4…
Source: I'm not married to toaster moguls but I do peer into operating toasters to see which wires turn red. Feel free to replicate my research and post your observations.