Never Knew I'd Be Having So Much Fun

Interview with Liz Fife

Creator of Batter & Cream

www.batterandcream.com

with Kathryn Gordon of Food Startup Help

Kathryn:  Hi Liz!  How’s everything going for Batter & Cream – it’s been a few months since you’d hired Food Startup Help to get you launched with the whoopie pies!    What’s new?

Food Startup Help worked with Liz for completing a business plan, product R&D and production efficiency optimization.  

Lineup of Batter & Cream Whoopie Pies

Liz:  Things are going great!  I was in Brooklyn Flea outdoor market thru till the holidays.  I will definitely do that again this spring – and may actually take a booth in the new indoor Smorgasborg market, depending on availability for February-March.  It was great being able to meet my customers directly.

        Liz at Brooklyn Flea in the fall

Kathryn:  How were sales?

Liz:  We sold out every weekend!

Kathryn:  And are you still doing your production at Hana (an incubator kitchen in Sunset Park, Brooklyn)?

Liz:  Yes, I am with 1-2 baking assistants depending on my sales volume.  I am however a bit frustrated with sharing the ovens – sometimes I have to fight bigger companies for oven space, so I am looking at “my next production options” for this year as well.

Kathryn:  I can see from your social media that you’ve been doing some events. Tell me about the one with the Brooklyn Nets?

Liz:  Deron Williams has a charity to raise funds for autism.  I had reached out to an events planner I knew and was very pleased to be able to provide whoopee pies for the fundraising event.

Liz and Deron Williams at the autism fundraiser event; Batter & Cream was the dessert sponsor 

Kathryn:  Remind me when you started working on Batter & Cream, and why you decided to focus on whoopee pies? 

Liz:  The company official launch date was September 25, 2013 – but I think I began working with Food Startup Help around April, batting around potential product ideas, and then worked throughout the summer getting the recipes down.

Why whoopie pies?  I wanted to open my own business.  I had made a bunch of desserts for a party, and it just kind of occurred to me nobody was doing whoopie pies in the tri state area.  I knew people were sick of eating cupcakes, and looking for the “next thing,” here I am with delicious whoopie pies!  Which are much easier to eat than messy cupcakes!

Kathryn:  And you have a variety of flavors and sizes?

Liz:  We feature the flavor-of-the-month, and have seasonal specialties that rotate in and out throughout the year.  I offer flavors that are sophisticated – not too sweet – and appeal to adults equally as children.  The whoopie pies are also available in 2 sizes, so people can pick up one to eat right away, or order a selection in a special package for a party.

Selection of whoopie pies from the website in custom, clear packaging

Kathryn:  What’s next for Batter & Cream?

Liz:  I feel like we’re in a phase where we have to “go for it,” to drive up our sales volumes.   I can reach some customers through direct sales at farm markets and sell on the website – but I really need volume.  In the beginning, I think new businesses rely a lot on “friends and family” sales.  Now we’re ready to grow, not just hold our heads above water.  So this week I’ve narrowed it down to 2 PR companies, and will be hiring one to help me get more market exposure.

Kathryn:  Can I ask you how much a PR firm costs?  Knowing that would help our blog readers who have thought about doing that for their food companies, but aren’t sure if they have the budget for it.

Liz:  $3,500 to $5,000 a month. 

Kathryn:  I think that will really pay off for you.  I’m happy you will be able to do that for the business.

 A delicious, unique  flavor with goat cheese, fresh figs and honey

Liz:  At this point I am constantly talking about the business, and figuring out how to expand.  I have also been looking at pop up stores, to try a location with good foot traffic for a few months.  I know I will get a good profit margin also offering beverages – and can offer other ancillary products like “fillings in a jar,” if I have a retail location.  I expect to be open in a pop up within the next few months; an excellent location is waiting to tell me when the next dessert slot is available.

Kathryn:  Then you’ll need more employees!

Liz:  That’s right!  One of my bakers is interested in helping with weekend sales, and I recently hired a friend as my right hand person to help me with the business end, paperwork, etc.

Kathryn:  What has been the biggest obstacle to starting the business?  Was it some of the production obstacles you and I encountered when we first transitioned from R&D at your apartment to a commercially licensed kitchen? 

Liz:  No, I knew that would work itself out.  I’d say that the website was the issue – it took 3 times as long as it was supposed to, and still doesn’t do everything exactly as I want.  I recently parted ways and have hired a new website company.  It really was a horrible process because every time I lined up my production and marketing to begin selling – the website wasn’t ready yet and I lost customers and sales.

An early event for People's Style Watch Magazine

Kathryn:  And what’s the overall conclusion so far, as you leave a “friends and family phase” and are poised for growth?

Liz:  This has been an amazing experience overall – I constantly find myself doing things I never thought I’d be dealing with.   There are so many different parts to opening your own business – it can be overwhelming at times, but it is so much fun!

Liz Fife

Looks Sell First

Interview with Vicki Wells

Consultant and former Executive Pastry Chef

Magnolia Bakery

www.magnoliabakery.com

With Jeff Yoskowitz and Kathryn Gordon

Event theme table, a growing business for Magnolia Bakery 

Kathryn:  Hi Vicki!  Can you tell us a bit about what Magnolia Bakery is up to, 17 years after it opened?

Vicki:  Originally there was just the (Greenwich) Village location (the Sex in the City one...).  Now we have 5 retail (brick and mortar) stores in Manhattan, one in Chicago and another in LA, and 4 franchised stores in the Middle East – with additional locations opening this year. 

Jeff:  Vicki, we’re talking with you in the Magnolia Bakery centralized NY production kitchen for online orders and product development.  You seem to be preparing a lot more than cupcakes in this location.  Can you tell us about the product line?

 Chef Vicki's baby hand-held cherry pie for Valentine's Day

Vicki:  It has evolved over the years.  Originally there were layer cakes, but cupcakes became popular, and essentially Magnolia was the first cupcake store – and cupcakes still account for 53% of sales.  Now we offer wholesale, and more large cakes, cheesecakes, bar cookies, cookies and seasonal large and baby pies.  We have been doing dessert tables for weddings and parties.  Still, vanilla-vanilla and vanilla-chocolate cupcakes are the best sellers. 

Kathryn:  How would you describe the product line?

Vicki:  Everything is homey-style and freshly produced.  Our motto is American affordable luxury.  Everything is appealing but simple – like "made by mom."

Looks sell first!  So I work on product development – but one of the fun parts of my job is to develop seasonal décor for our cupcake specials. 

Last Christmas elf hat meringue decor for a seasonal cupcake 

Jeff:  You started working for Magnolia about half a year ago.  What’s the rest of your job scope?

Vicki:  Magnolia Bakery evolved from one simple store, and was sold in 2006 to an ownership group who has been rapidly expanding its locations.  What worked in one location (measurement in volume) does not work for franchises and additional corporate owned stores.  I have now converted all the cupcake recipes to measurement by weight, and standardized the yield (60 cupcakes per batch).  The equipment in each location is still small, and not geared for production.  Busy locations like Rockefeller Center work continuously baking fresh batches – no location has large industrial size equipment.  I am now working on converting all the cupcake icings.  Everything takes time, to make changes and implement controls.

Kathryn:  And you said that one of those locations actually had converted your recipes (by grams) back to volume measurements, when you visited it…

Vicki:  Unfortunately, yes!  One issue has been that there has been a very decentralized structure in each store – no hierarchy.  That means no central person to talk to, for me, when I have to make changes in the procedures or formulas.  I am working now to have a head baker assigned to each bakery.

Jeff:  What other issues have you encountered, as the original formulas have been replicated in each new location?

Vicki:  It’s interesting, I visited Chicago because they were having issues with a cupcake.  I learned by going to Target and buying Arm & Hammer baking soda (which is available nationally) that the commercial baking soda in Chicago was different, and that was causing them issues with the recipe.

Kathryn:  I’d always heard that chemical leaveners around the world were regional!  Very interesting proof of that theory.

  Commissary production kitchen in Manhattan

Vicki: Also, now that we have (franchise) locations in the Middle East – we cannot use traditional vanilla extract because it is alcohol based.  So we have reformulated the recipes.  Actually, all of the baking ingredients for those locations have to be shipped from NY, because the ingredients there are just different, or just not available (like in Dubai).

Kathryn:  You have an enormous number of Styrofoam shipping components here.

Vicki:  Everything that has to be shipped is test shipped.  We send shipments to family and friends to ensure it all arrives with the quality intact.  Everything is insulated in double boxes.  In fact, we’ve determined that for cupcakes to be shipped – they have to be frozen over a 3 day period to be solid enough and ship intact.  Temperature alone isn’t enough.

 3-day frozen cupcakes ready for internet order shipping, with signature frosted swirl

Jeff:  What’s your next project here at Magnolia Bakery?

Vicki:  I am continuing to work on having a head baker in each store because I need someone who I can contact with a clear line of communication, and who understands new standards when we introduce them, and who will be responsible for training all their staff to produce new and existing products consistently.  We have a great staff training program – but consistency is key as we get ready to open additional national locations.

Entrepreneurship: Never Wanting to Work for Another

Interview with Esty Hirsch

Whimsical Confections - Your Imagination. Our Creation.

http://www.whimsicalconfections.com

With Kathryn Gordon and Jessie Riley

Jessie:  How did you learn to bake?

Esty:   Like many others, who started baking as a child, I loved to watch my mom bake as I was growing up. My mother was into baking and also liked to try new ideas and designs,  My siblings loved to practice on the Wilton Practice board while I, the youngest tried to mimic the shells and scrolls. I also felt I was born with the gift of being artistically talented.  Play dough was one of the things I loved to create food items with starting at a really young age.

At about the age of 10, I was looking through one of the Woman's World magazines, and was astounded to see a featured backgammon or checkers game made out of cake! That photo really inspired me and I had to try to recreate that edible art piece on my own.

As the years went by one of my favorite places to shop was the NY Cake and Art supply store, and so the collection of baking supplies started growing, and I loved experimenting on new recipes and new ideas.

Kathryn:  I first met you when you took some classes at ICE. Do you take a lot of classes?

Esty:  I am always on the look out to learning new techniques or at least trying to create some on my own. I think people always look for something new or something that has never been seen.  Hands-on cookie decorating classes for birthdays, bridal showers, etc. are also always helpful in keeping updated with the latest trends. We now teach our own classes. We bake the dough, bring the icing, and I teach people how to decorate their own cookies.

Jessie:  How did you decide to start your own business?

Esty:  I always wanted to run my own business, never wanting to work for another soul. It started out with selling to friends and family. I think that is a good thing, because it took a while to gain professionalism in a lot of different aspects and this was a good trial and error period for me.  I also started offering hands on baking classes and that has been a hit ever since, and for all age groups.

Kathryn:  Knowing that you are Kosher, has it been a challenge, not being able to taste foods prepared in classes at culinary schools you have attended?

Esty:  I did not really find the non-kosher pastry classes being a challenge (aside for being able to taste). I mostly knew how to recreate the recipes in a kosher version and the chefs were very helpful if I had a question regarding substitution of ingredients.

I think if I would have taken on the culinary challenge, versus artistic baking, then it would be much greater of a challenge do to the many diversified ingredients used as opposed to pastry where mostly neutral ingredients like eggs, flour and sugar etc. are used.

Jessie:  From a baking perspective, to make everything parve (non-dairy) – how difficult has that been?

Esty:  At first some of the substitutions were difficult because I did find that by using other ingredients the batters or specific cupcakes did not at first come out as moist or tasty, and it did take a while of experimenting.  There are plenty of kosher bakeries, but I would not really think of contacting them for help because my bakery is a very specialty type bakery as opposed to the regular kosher bakeries who mostly produce items in bulk and I assume don’t produce a lot of products from scratch.

Kathryn:  Can you tell us about your Rabbinical Certification?

Esty: The Rabbinical supervision was difficult to obtain because there are so many kosher supervisions out there, and most communities tend to rely on their local Rabbinical supervision unless it is a well known supervision that many communities rely on So making a decision was difficult but we did land on the right decision and we comply with all of the kosher standard rules that are required.

Jessie:  How do you market your business? 

Esty:  We don’t spend a lot on print advertising, and mostly drive new sales via the web, word of mouth and Facebook.

Facebook is all inclusive: great word of mouth/web advertizing.  A big percentage of our clients are repeat customers, especially when it comes to a personal occasion like a birthday party or a specific holiday where we know to expect calls from these repeat clients.

See Whimisical Confections, Brooklyn page on Facebook

Kathryn:  Do you deliver?  I imagine the cookies are easier than the cupcakes, whoopie pies, etc.

Esty:  I ship, or the clients have an option of picking up the order or we deliver for a minimal fee.

Jessie:  What’s new or trending for Whimsical Confections now?

Esty:  There are always new trends. One year it was stacked custom wedding cookies, now it’s the Chevron design on the custom cookies and the trend of adding bling to the very tasty French macaron.

Jessie:  Have you experienced demand for other gluten free decorated cookies (besides French macarons)?

Esty:  Regarding allergy related baked goods, we know there are many people looking for the specific gluten free product, but because we are so small we are mostly trying to keep up with latest trend requests and of course make everything from scratch using the most pure, natural and local ingredients available.

Kathryn:  What’s next for you and your staff?

Esty: I have been trying to determine if I want to focus more on teaching classes and have my staff decorate cookies.  Cookie sales are somewhat cyclical given holidays, etc.  I am also looking to understand my food costs better and optimize our kitchen design, and when we get a chance given the cookie demand, to do a bit of remodeling.  We have outgrown our current freezer and refrigeration space, and need to reorganize.  I am also trying to redo our website, but I keep getting too busy!

Wholesale vs. Retail: Interview with Diane Stevens

Cupcakes are no fad.

Interview with Diane Stevens

Sara’s Cookies, Long Island City, New York

By Jeff Yoskowitz and Kathryn Gordon

Kathryn:  Hi Diane, it’s nice to meet you and be able to see your production facility, since I know that Jeff has known you for a long time! 

Diane:  I met Jeff after I completed the professional baking program at FCI (French Culinary Institute). Before that I was in graphic design. I used to rent production space from Jeff for my cookie business and I worked with him at Maurice Pastries for 3 years.

Jeff:  How many years have you been in this production kitchen in Long Island City?

Diane:  7 years now! 

Jeff:  I see tons of cupcakes. Are you still selling cookies?

Diane:  No actually, I’m really not.  There is more profit in cupcakes than cookies, even using 100% butter and quality ingredients because there is more labor for miniature items like cookies.  I also produce bars, brownies and loaves.  My current business is 70% wholesale production of jumbo cupcakes for numerous distributors. I now have thousands of cookie cutters in storage!!

Kathryn:  How did you find this space?  Did you build it?

Diane:  No, it was the original production location for Tom Cat Bakery.  This area is pretty food oriented.  My landlord lives here, and owns the building next door which is a loft where Bobby Flay cooks.  In fact, Bobby used to say that cupcakes were just a fad – but they definitely lead the production mix 3 years later.

Jeff:  Over the years, how would you say business has changed?

Diane:  This is definitely a business “based on pennies.”  I have to keep food costs very low.  Packaging alone is $2 for a giant cupcake, because it has to be sturdy enough to stack in a freezer for distribution.

I've seen orders for large cakes cut back in the economic recession.  I used to work with several large caterers, such as Great Performances.  They used to order gifts such as gingerbread houses for clients such as Google, but that business is now gone.  

Jeff:  What do you think is the biggest surprise the entrepreneurial bakers need to know about an established, profitable business structure?

Diane:  Everyone has the idea that everything is baked fresh every day, and that what you are buying in a store was baked somewhere just that morning.  It’s not.  There may not be long term freezing involved, but to organize production runs efficiently, some items are frozen for a period of time.  So you have to allow for freezer space in your kitchen plan.

Jeff:  What’s your least favorite part of running a large kitchen like this?

Diane:  Maintaining the grease trap!!  We constantly have to rotor-outer the grease trap.It’s also hard if a piece of equipment isn't working since suddenly, nobody knows anything.  I don’t care what happened or who managed to break something.  I just need it reported immediately, so I can address the issue and get the piece of equipment up and running again before we need it.

Kathryn:  What are your hours, as the owner and primary production manager?

Diane:  We start by 8 in the morning and usually finish by 5 depending on the season.  I find there are less distractions early in the day – no phones ringing!

Jeff:  How is the product distributed? 

Diane:  My distributors each have a key and pick up at night between 11 and 12 pm. The drivers just want to get in and get out and go home.  The drivers have been coming here for years.  Their employers are reliable businesses and by supplying to distributors it is less volatile and has less turnover than selling to restaurants or other parts of our business.  I have to trust them. 

Jeff:  What’s your highest operating expense with such a large facility?

Diane:  The electricity, because of the air conditioning required to counteract the heat generated by the equipment.  Utilities are about $3000 per month.

Kathryn:  Do you experience a lot of staff turnover?

Diane:  No, I have 7-14 staff members depending on the time of year.  I have both loyal employees who have been with me from the beginning and people who come and go.

Kathryn:  What advice would you give a new entrepreneur?

Diane:  You should consider the wholesale route, because there is definitely money to be made that route versus having the overhead of a brick and mortar retail store.  You always will mentally worry about your business!

You should also be proud of yourself and what you produce.   Don’t give up even when people come at you from all different angles!  You just have to be driven and motivated, and focused. 

Jeff:  Thank you Diane, it’s been really great seeing you again!

Want to Learn More About Our Expanded Services? Visit  Us At Food Start Up Help

Opening a New Business In a Campus City

Interview with Katalina’s Bakery Owner Kathy Riegelmann

www.katalinasbakery.com

New Haven, CT

By Kathryn Gordon and Jessie Riley

Jessie:  Kathy, you have a pretty big space here!  How did you get started with your bakery business and find this particular location?

Kathy:  Several years ago I had a coffee shop in the area, so I knew people and people knew me.  I had been taking baking classes and was interested in getting back into the food business.  Yale University had begun a local economic development program to generate more foot traffic in this neighborhood near the campus.  There were some new schools and dorms nearby, and they were looking for a cupcake type business so Yale helped me to find this space. 

Kathryn:  Can you tell me more about your relationship with Yale?

Kathy:  Yes.  Yale is like a partner in that they paid for the commercial architect.  The construction bids went to Yale, and the university arranged the build out for $150K, and arranged my loan.  Yale takes a percentage over my break-even rent each month.  They have been motivated to support several other local businesses in this way because they want this neighborhood to be vibrant.

Jessie: That’s a great opportunity!  How many days a week are you open?

Kathy:  Currently we are open 6 days a week, but we are planning to expand our hours until later at night for the students and to open on Sundays because the families in the neighborhood have been making it a destination location.  I am also taking out a small loan to remodel the back retail area and have a tea counter, and add in loose teas for purchase by the pound.

Kathryn:  Looking around the front counter, you have a frequent buyer type card system here. Can you tell us about it?

Kathy:  We are working with a new automated rewards card system called “Spot On” (www.spoton.com).  It allows me to learn about our customer base through a loyalty card system tied to social media reporting. 

Jessie:  With the “neighborhood focus,” you have a nice space with room for more chairs and tables.  Are you planning to fill that in more?

Kathy:  Actually, no.   You can get wireless internet (Yale) access here but I do not want Katalina’s to become a free parlour (like Starbuck’s) for people to sit around in all day.  We’d rather turnover the tables.  That’s why I am trying to expand my menu in terms of what appeals to different customers buying at different times of the day.

Kathryn:  We came here today to offer a hands-on macaron baking class.  I know you already have regular baking classes, and host birthday parties; are you planning to expand the school part of your business?

Kathy:  Yes, we’d like to.  We have a good open production area.  I can even hear what’s happening at the front retail counter when I am in the back, and go back and forth if I need to. 

Jessie:  Are you here baking personally every day?

Kathy:  At the moment, yes.  But I have staff and I am not here all day!  I still teach at a local fitness center and coach my son’s hockey team (I’m a single parent).  Being in touch with the local athletics world gives me access to our customer base, and helps get me out there.  I have also been able to develop some catering contacts that way.

Kathryn:  Are you happy with your branding?  Do you think that has helped you attract more outside business?

Kathy:  Yes, and I think the bakery has become successful because local people recognize the logo. 

Kathryn:  I see that you do both catering and decorated cakes here.

Kathy:  Yes. I have an assistant Briana who is mind blowing in terms of cake decorating.  I am not as proficient; I don’t have enough patience.  We are doing more catering however.  For example, I was recently approached by the New Haven Symphony.  People know I am a food snob and believe in only good ingredients – and I will not compromise. 

Jessie:  That must help drive up your food costs!

Kathy:  My sister helps with the accounting.  I know that we cover our costs and are able to put some money in the bank each month.  I’m not yet paying myself a salary because I am still earning money teaching at the gym.  I don’t have a precise handle on food costs.  But the customers have no problem putting their money down for good product.  Grad students have more funds than undergraduates, though!

Kathryn:  Thank you Kathy, I can’t wait to eat a cupcake!

Want to Learn More About Our Expanded Services? Visit  Us At Food Start Up Help

Up From the Basement

Interview with Denise Anderson

Bagel Basement, Hanover, NH

www.bagelbasement.com

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.

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