I guess this is a space-saving measure? A now-defunct company called Modern Maid once produced the KBT-100, a hideaway toaster meant to be mounted and hardwired inside a wall:
I did find a video of it…
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…but the guy giving the demo doesn't tell us the one thing I want to know: If you push it back into the wall when it's toasting, does it automatically turn off? (If it doesn't, I can see why these aren't on the market anymore.)
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Have one; came with the house in San Diego, built in 1991. Works flawlessly. Yes, it turns off when pushed in; contacts with power separate. Needed broken coil repaired about 2 years ago. Specialty toaster repair company in Illinois (or similar) sent a box with custom molded styrofoam for this exact model to ship to and back.
Matt, what was the name of the company you found that could work on it, I couldn't find something called Specialty Toaster in Illinois