My take: the kids are standing along a counter of either a Greek or Italian bakery. (My money's on Greek.) Multiple loaves of bread have been baked and assembled with ribbon as a publicity stunt, to look like "world's biggest" bread loaf. It's in preparation for some religious community feast day (eg the nameday of the saint of their church.) The two guys on the left look like a father and son baker team, the guy on the right is a priest. Kids know they are not allowed to touch or eat the bread (at this point), and are just cooperatively posing with their mouths open. I wouldn't infer there is anything at all sinister going on. Recently people who enjoy sexual perversity saw something they liked in this old photo. Sign of our degenerate times.