Interview
with Denise
Anderson
Bagel
Basement, Hanover, NH
By
Jeff
Yoskowitz and Kathryn
Gordon
Kathryn: Denise, how
was the transition from being a lawyer to becoming a baker?
Denise:
It was a long transition and did not happen overnight, although the final
jump off the bridge only takes one step!
It started with a divorce and an opportunity to move to NYC from Kansas
City (KC) to be near some of my kids.
My
friends told me to just be honest with myself and admit that I loved to
bake. Being a lawyer, I of course analyzed
the options of a second career. I had a
successful practice and my own law firm, so whatever I did would take some
planning. Eventually I hired a head
hunter and sold my firm to the highest bidder.
I almost signed a lease on a bakery in KC, when I asked myself; what
happened to your one-time dream of living in NYC?
I
looked at the Institute of Culinary Education (ICE), amongst its competition in
NYC, and liked the attitude, the way everyone shared experiences, and the idea that
I could get a pastry and management diploma in less than one year. I kept a few cases and practiced part-time in
NYC. It paid the tuition and rent. I felt "at home" with
the environment even though at my age it was scary going back to school,
particularly with people who never went to college, and of course in a city
where I was a complete stranger.
Kathryn: What advice
do you have for another professional thinking about changing careers, and
ultimately becoming an entrepreneur? Was
it worth it?
Denise:
When I first decided to leave law, I was afraid to admit what I wanted to
do was not as glamorous and lucrative as my career as a lawyer. What would my family and friends think?
I
made the shift in my career because I was burned out and, at the time, I wanted
to do something that was a win/win. My passion is baking, being in the kitchen,
making others happy with food. Making this transition in my career, so
late in life, I learned we are who we are because of our experiences. I
am a lawyer of 23 years. I have skills and a way of thinking because of
having practiced business and trial law. I bring that to being a pastry
chef.
I struggled with how to join the two parts of my life, but then realized I
always have had both parts. I have always been an entrepreneur and love
to build a vision. I did it with my law firm, which was not easy but a
huge success. I will do it in this industry too, but this time I will enjoy
the ride.
Jeff: How much
baking experience do you have, besides your externship at ICE?
Denise:
I have been baking since I was very young. I learned from my grandmothers,
both of whom were very skilled at baking. My dad's mother was a baker in
Germany and worked as a baker after she came to America. I was self-taught
until ICE.
Kathryn: How did you wind up moving to NH and finding a
place to acquire there?
Denise:
When I was practicing labor and employment law in KC, the owners of
Bagel
Basement, one of whom is my son, contacted me to consult on the finances and
structure of the company. I advised the owners on contracts and other
business issues.
After
I moved to NYC and was working as a pastry chef/cook, one of the owners
contacted me. On behalf of the company, he asked if I would consult
again, this time on the labor and management side. They wanted a full
analysis of the cost of goods sold and whether the business was able to
continue. They had gone through several managers and the business was
losing money.
At
the end of January, I moved temporarily to NH to advise on Bagel Basement.
If Gordon Ramsay had approached me for a segment on Kitchen Nightmares, we
would have aced the deal! It was the worst. Anything that could go wrong,
went wrong. Being a lawyer, coming from my work ethic and having had the
training at ICE and working in NYC, I was able to negotiate and save the
business.
Jeff: How long
was the bagel place in operation before you obtained it and why was it for
sale?
Denise:
It was started in the late 70's by a couple who wanted to steam bagels.
It was the cool thing to do. It was the only bagel place in the
area. The current investor group purchased the Bagel Basement around
2004, with the idea it would remain the historical, unique bagel college
hangout (near Dartmouth College).
They
have had several managers, none of whom have had the passion to run it to make
a profit or grow it beyond just bagels. When
they contacted me, the business was not worth anything. I doubt they would
have been able to sell it for anything more than the equipment.
A bankruptcy would have been the final outcome.
Jeff: And now you
believe you’ve turned it around?
Denise:
After the consulting period, the owners asked me to stay for another 30
days, which I agreed to, because I could see the business turning around. To
convince me to stay on, the owners offered me a majority ownership interest,
with full control of the daily operations.
Today,
I am the CEO and majority owner. I feel that my legal background has
fully transitioned into part of who I am and what I am doing. My investors are absolutely the best partners
I could ask for. I am now in conversations with a couple who want to
invest in the business, to grow it into a full bakery.
Kathryn: The location
was originally a bagel place. Are you continuing to offer bagels as you expand
the bakery aspect?
Denise: When I began my consulting, I was faced with a
business that had been mis-managed and employees who were used to doing things as
they pleased, without rules or care for the premises. Several of the
employees ended walking off the job when I ran the schedules, held them accountable
for the cash drawer, and implemented processes. I had to find another lead
baker. I had to find staff/employees, etc. Everything was wrong and
nothing was a standardized procedure or process. It was everything it
should not be. I mean dirty, smelly, etc.
The
last General Manager was selling premade frozen muffins. I sold the rest
to empty the freezer and began making our own muffins. I have since
created and designed a process and procedure for our own dry mix and muffins. I have added cookies, coffee cake, cinnamon
rolls, baked bread, and much more, on a daily basis. We make everything
everyday, from scratch, in our ovens. We
also have sandwiches, soups and salads. We also have a retail location in the
Medical School, which I have completely revamped. The menu is entirely
in-line with the guests and customers.
Kathryn: Have you
had to buy new equipment for the new production?
Denise:
We have a 23-year old Excalibur oven and bagel former. There was a
mixer that was probably 10 years old, which has since been replaced.
Since the bakery was bagels only, with muffins frozen, I have supplied the rest
of the equipment. We recently purchased
a Viking 7 quart mixer, food processor, baking pans, pastry equipment, etc.
Jeff: What’s next
for you at Bagel Basement?
Denise:
I am finally writing a training manual. I have put in place many processes
and now need to get them in a binder. I am hoping to franchise the
business model and open another bakery.
I may also rename the establishment.
Meanwhile,
I am targeting local residents and business owners to help expand our customer
base beyond the Dartmouth student population. We have 10,000 people in Hanover,
in the surrounding area, and on campus. The downtown is mainly a Main
Street, and we are located on a side street.
Jeff: How are you
financing the purchase of the establishment and your new equipment for the
bakery?
Denise:
I have paid for the new mixer and other new small equipment with revenue
generated from sales. We have not borrowed money, yet.
On
a good note, the current investors have made current our past due accounts.
I have since been able to make current the old loan and other bills with
revenues being generated through our sales.
Editors: Thanks Denise! We will check up on your progress with the turnaround in a few months.
Editors: Thanks Denise! We will check up on your progress with the turnaround in a few months.
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