Going Mobile

Interview with Gary Ele

Executive Pastry Chef/Proprietor

Oz Patisserie Mobile Dessert Truck

www.ozpatisserie.com

By Kathryn Gordon and Jessie Riley

Kathryn:  Hi Gary!  Jessie and I have known you for several years from working with you at the World Pastry Championships.  We see updates all the time on Facebook about your food truck business!  How long have you had it?

Gary:  I physically started the truck business in July of 2010. The planning phase started in December 2009.

Jessie:  What did you do before you opened the truck business?

Gary:   My background includes: US Navy, CA, IL, HI, VA; Norwegian Cruise Lines America, Honolulu HI; Sandia Resort and Casino, Albuquerque NM; Casino Arizona, Scottsdale, AZ. 

Kathryn:  How did you come up for the idea for a truck versus another format?

Gary:  I wanted to work for myself for years but could not afford a “Brick and Mortar” business.   I was a little ahead of the curve and started looking outside the box and came up with the idea of a Mobile Dessert Truck. There are many Food Trucks across the country, but I wanted to do a fine dining style of desserts.  My goal is “Michelin Quality at Street Food Prices.”

Jessie:  How's it working out for you running your business in a truck?

Gary:   Business is booming! I enjoy being my own boss and setting my own schedule.  

Jessie: Is it what you expected?  

Gary:   Actually it is more than I expected. I enjoy making the desserts that my customer base wants and what I want to experiment with and if something does not sell it comes off the menu.

Kathryn:  Is anything more difficult than you anticipated?  How many days a week are you open?

Gary:  The hours can be long when I get back-to-back events.  Normally I am open 6 days a week, but that is flexible dependant on the weather or booked events. I may not open prior to a very large event in order to have time to prepare, depending on the expected customer count.

Jessie:  What's your customer base like?  Are you in the same location on certain days of the week so you have regular followers?

Gary:  The majority of my daily customer base is post high school educated professionals.  I try to stick to a certain schedule of locations around Albuquerque for the daily operations, I have a very strong and loyal customer base that have on occasion driven up to 20 mile or so just to get the soufflés or some of my one-time-only specials.

Kathryn:   How do you post your daily location for people to find you?

Gary:   I use Facebook, Twitter and Foursquare and post updates daily. I can be located on Facebook at OZ Patisserie Mobile Dessert Truck , Twitter at @OzPatisserie or Foursquare at Gary Ele.

Kathryn:   Where do you bake?

Gary:  I bake in the truck. It is fully equipped with a convection oven, induction stove, mixers, sinks, refrigeration and storage. I do not require a separate commissary.

Jessie:  Do you have staff to help you?  If you suddenly have a run on something you’re selling, does it mean that you’re “out for the day?”

Gary:   Currently I am my own staff.   I normally carry enough stock to get through the day, but if I do run out of something I either make more on the truck or apologize to the customer.

Gary: As I am the “staff,” I am out with the truck daily. I do some wholesale to other trucks for the late night crowds.  My days run between 10 to 16 hours and I prefer to bake early in the mornings this time of year due to the hot weather.

Jessie:  Because it seems like you're always running "specials" when I see your facebook postings -- clearly you're always thinking up new menu items.

Gary:   I normally carry between 10 and 15 different items. Anyone in this business knows you have to constantly keep up with either new trends or go way back to the classics.

Jessie:  Is a truck format very expensive?

Gary:   The truck format can go from reasonable to the absurd depending on your budget. I am fortunate to have a strong mechanical background so I bought the basic shell and did the majority of the work on my own.

The capital investment someone needs to set up something like I have would vary between about $20,000.00 to well over $100,000.00 dependant on whether you have the need for a full kitchen or have a commissary to cook in and just serve. A truck I know of in Orlando just does Cup Cakes and everything is done in their commissary, packaged, loaded on speed racks and put in the truck.

Kathryn:   On your website, it says you can rent the truck for a party?

Gary: I do private catering where customers rent the truck based on a person count. More and more I am doing unconventional weddings; no cake, but an assortment of desserts.  Dependent on the extravagance, location and the budget I will vary the cost.  At some pay-as-you-go events I will set a minimum fee.

Jessie:   Gary, is there anything else that you think about, or whatever that I have not asked about that we should include? 

Gary:  This has been the most exciting time of my Culinary Career. I get excited when I see the faces of my customers as they try either something familiar or new. I have never been happier with the place in my life.

Kathryn:  Thanks Gary! 

Want to Learn More About Our Services? Visit us and learn more at

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Creating an alternative to soft drinks

Healthier Options

Interview with Philip Crouse and Laura Smith

Cup & Compass

www.drinkcnc.com

With Jeff Yoskowitz and Kathryn Gordon

Jeff:  Hi Philip and Laura.  Tell us how you started with Cup & Compass?

Philip:  I founded the business about a year ago.  It started with a passion to create a natural and lightly sweetened horchata.  I didn’t grow up with horchata and only discovered it a few years back while visiting my girlfriend in Philadelphia.   I was fortunate to have worked for a few food companies before starting my own.  I quickly brought on Carlos who was a classmate of mine in business school.   He had restaurant experience so brought a different perspective than my own.

As we continued to learn more about the beverage industry, we identified a larger opportunity in the dispensed beverage category in fast casual restaurants. It was really then that our mission was born to provide a wholesome alternative to the soda fountain.  I approached Laura at the beginning of 2012 to help out on the Finance and Operation side of the business.  She left her Wall Street career to join us full time in May and we couldn’t be happier that she did!   

Carlos, Laura and Philip of Cup & Compass

Laura:  I worked with a few start-ups before and I have a passion for the natural food industry, health and wellness.  Cup and Compass married my passion for healthy food with my business background. We have a lot of complimentary experiences from our diverse backgrounds which come in handy given we are currently doing all the sales, marketing, manufacturing, delivering, finance and operations for the business!

Kathryn:  Can you tell us about your current product line?  

Philip:  We partner with fast casual restaurants and a talented group of tastemakers to develop customized products for each restaurant’s customer base and menu. Only basic, pure ingredients are used and we lightly sweeten our products with organic cane sugar. We are currently in 2 Mexican taquerias where we offer a Hibiscus Lemonade and a Horchata. We will be introducing Limeade shortly as well. 

All products are handmade, in-house. 

Philip checking the temperature of the Hibiscus Lemonade

We manufacture at the Organic Food Incubator in Long Island City.  We do all of the manufacturing ourselves!  We work there once every week or two, but as our demand grows we can increase our time commitment via the incubator’s shift schedule.   We can make about 150-200 gallons in a shift.

Note:  read about Organic Food Incubator and Bad Ass Organics in our earlier blog entry on “Creating An Organic Incubator Kitchen” at www.foodstartuphelp.blogspot.com

Jeff:  How long is the shelf life you’ve been able to create?    

Philip:  It depends on the product.  Our horchata can last three months before the taste starts to change noticeably.  The Hibiscus Lemonade lasts longer.  It does have to be refrigerated after it has been opened though.

Kathryn:  You install a dispenser near the soda fountain at a restaurant?  How does that work?

Laura:  We manufacturer the beverages and package them “ready-strength” in 2 ½ gallon bags with a dairy hose cap.  Our dispensers are made specifically for our packaging.  We have a fantastic design team that retrofits each of the dispensers so that it really stands out at our partner stores.  It’s refrigerated at about 37º F.   We are continuously improving our dispensers and packaging and are currently working on a new version of the dispenser which will agitate the product and make it easier for retailers to operate.

Jeff:  It’s a very interesting product, so what are the comments you’re getting back from clients?

Philip:  People have loved them so far!  A lot of people appreciate that the drinks are only lightly sweetened.  We’re currently in the West Village and the Upper East Side, and the demographics of each area are completely different, so it’s very interesting trying to optimize the sales in each location.  We are also in the process of developing new products and flavors based on customer feedback and our own ideas.  

Jeff:  What have been the biggest challenges to date?

Philip:  Finding a bag that would work for our production process and also be compatible with the dispenser was quite a challenge.  We found that the bags that we needed for our machines were not compatible with our hot fill production process.  After speaking to a ton of folks who said that it couldn’t be solved, we were fortunate to end up finding an amazing vendor who partnered with us and solved the issue with a customized bag. 

Laura: Another challenge is minimums. We consistently run up against minimum order sizes. We have created great partnerships with vendors who are excited to grow with us. Without their help we would have 10,000 bags, 100s of pounds of hibiscus and 50 dispensers that we wouldn’t know what to do with!

Kathryn:  How are you identifying additional clients for your products?

Laura:  We like to try and meet people at target restaurants through friends and industry contacts.  It also has been helpful to connect with other food and beverage entrepreneurs in NYC.   We hope to be build successful relationships with our current restaurants and retailers so that other potential targets hear about us through word of mouth. 

Philip:  One of the reasons why we enjoy the Organic Food Incubator so much is because it’s a like minded community of entrepreneurs, and Mike Schwartz (one of the partners of the incubator) is a teacher (and fellow Chef/Instructor at ICE with Kathryn and Jeff) and has been instrumental in helping us perfect our production process.  It was challenging to scale up ¼ gallon batches to 55 gallons, and Mike’s insights have been tremendous. 

Our long term goal is to create a platform in fast casual restaurants across the US for customers who want natural, lightly sweetened beverages that pair well with the food they are eating.

A happy Cup & Compass horchata customer at Dos Toros Taqueria 

Kathryn:  Did you think about bottling the beverages and selling to grocery stores?

Philip:  No.  The bottled beverage is brutally competitive and very expensive.  We think that there is a large opportunity to create healthier dispensed beverages with no preservatives that customers can get at their favorite restaurants.

Jeff:  Working in a start-up; how are controlling your costs?

Laura:  We have augmented our small team with talented interns from ICE and NYU to help with the production.  We were also lucky to get taken on by Orrick, as a pro-bono legal client. They have been nothing short of amazing.  Lastly, Columbia has been very supportive.  The university has sponsored an office space at Spring and Varick Street, Columbia Business Labs, which we will be working out of for the next year.  We share the office with 20 businesses and around 30 entrepreneurs.

Kathryn:  Tell us about the name:  Cup and Compass.  What’s the significance?

Philip:  It wasn’t our first name, actually.  The first name was Tiny Kitchen, since we started in my home kitchen.  As we approached our launch date, we found out from our lawyers that that our name wasn’t going to fly because of trademark issues.

Laura with Bags of Hibiscus Lemonade

We were very invested in the name Tiny Kitchen so it was painful letting go.  However, it gave us the opportunity to step back and take a look at the business again as it had changed significantly since we first named it.  We decided we wanted to contextualize “beverage” in the new name, and we wanted something sentimental, invoking tools that have basic, functional uses.  Finally, we wanted to bring in the idea of discovery since we are trying to get people to discover something new.  That is how we landed on Cup & Compass.

Jeff:  Thank you so much, we’ll check in with you later on.  Next time we look forward to trying the limeade!   

Want to Learn More About Our Services? Visit us and learn more at

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Ready to Jump In

Ready to Jump In

Interview with Cameca Johnson by Kathryn Gordon

www.creationsbycameca.com (website should be live in June)

Kathryn:  Cameca, you graduated from the pastry program at ICE August 2011, and since then you’ve said that you’re baking cakes for friends and family? 

Cameca:  I went to ICE initially with the idea that I would master plated desserts in a restaurant and open a dessert bar.  But after going through the program, a friend asked me to make a cake for her daughter’s birthday, and I continued doing that as more friends and family asked me to do it.  Now I’m really interested in all the different aspects of cakes, decorating and sugarcraft, and driving myself to learn as much as possible.

Kathryn:  How are you doing that?

Cameca:  I currently subscribe to a cake decorating magazine, and I work my way through each of their “projects” systematically.  I’ve also taken a lot of advanced classes, and I go anonymously to various classes offered at bakeries to check out what they’re doing and how they operate.  But that was difficult to do during the day with my 9-5 job.  So I’ve just resigned my day job!  Going forward, I’ll have more time flexibility. 

(Kathryn interviewed Cameca on the annual ICE Cuisine Course in France.  Cameca’s last day at her finance job was just before the trip to the Loire Valley.  www.moulinbregeoncuisinecourses.com)

Kathryn:  Wow, you quit!  Ok, so let’s talk about that decision making process.  How are you planning the steps to take to go from not charging friends and family anything except base ingredient costs – to quitting your day job and jumping into this business?

Cameca:   I took a 16-week workshop in business opportunities designed for business entrepreneurs to learn how to make their businesses sustainable, versus supporting an “expensive hobby.”  I’m just finishing those last classes now:  Workshop in Business Opportunities www.wibo.org.  I have my last session when we return from France.

Kathryn:  So you have a business plan, from having finished that course?

Cameca:  The WIBO program gives you a structure, and then you fill in the aspects of the business plan for your own specific business, customer base, etc.  They provide a wealth of information.  And they bring in actual entrepreneurs to give insight regarding their own experiences.  They provide mentoring resources via direct contact as well as seminars, workshops, etc. to participants who need specific legal or accounting questions addressed, before someone is ready to start paying for those services on their own. 

Kathryn:  So having gone through that program, what about your business incorporation, liability insurance, websites/marketing, your overhead/food/labor cost analysis…  Where are you with all of that part of the process? 

Cameca:  I did cost out each of my cakes, and know what it costs me to make using wholesale ingredient prices and packaging costs.  

Kathryn:  Up till now, you’ve worked in finance – so that must help!  Since you have that skill-set, are you planning to keep up with all of your own accounting, or use a program?

Cameca:  Right now, I am manually maintaining my own general ledger. 

Kathryn:  What about paying yourself? Do you think that your customer base will support it as compared to other market prices for cakes?

Cameca:  I think so.  Honestly, I didn’t think about paying myself at first.  But I think I should “pay myself,” because it is taking me 8-10 hours to make, decorate and deliver each cake.  I’ve also looked at what people are willing to pay for cakes – people in other markets besides people living within Manhattan.

Kathryn:  How are you charging for the cakes? By the serving?

Cameca:  Yes, but I do charge differently for simple buttercream versus the more expensive fondant, and I charge additional fees for sugarpaste flower decorations (which require more labor skill and time).

Kathryn:  How do you get your cakes to your customers? 

Cameca:  I am actually about to buy a second hand car. Friends and family can continue to pick up their cakes from me, or I will charge a delivery fee from my production place in Queens with gas and tolls.

Kathryn:  Where will you be doing your production?

Cameca:  I will be using an incubator kitchen in my area on a shift-by-shift basis (The Entrepreneur Space).  Not too many of their customers are cake bakers – so the incubator has cake pans I can use, as well as additional equipment.  I pretty much just have to schedule time to bake and bring in my ingredients.  My friend’s husband goes to Restaurant Depot, so that is one way I can get wholesale ingredients.  So I have no overhead cost unless I have a customer order.

Kathryn:  What if this takes off, what would be your next step for production?

Cameca:  Next, I would sign a lease for monthly space at an incubator kitchen that would be open 24 hours a day.  After that, I would try to rent and renovate a studio space for a commercial kitchen. I think that jumping to a retail storefront as a next step is too expensive.

Kathryn:  What does the incubator require besides the fee for the 8-hour production shift?      

Cameca:  In addition to the application, the incubator requires:  1) a security deposit; 2) proof of insurance (including worker’s compensation if applicable; 3) Food Handler’s certificate; 4) business registration and tax ID number; and 5) emergency contact information.

After I start using the kitchen I will apply for the 20C Food Processing Establishment License.

Kathryn:  How are you marketing your new business?

Cameca:  After France, I am meeting a high school friend of mine shortly to work on the website and Facebook page.  I am trying to obtain some free PR through doing competitions and charity events.   I will make samples for a charity event for 500 people in June, so I am hoping to have brochures ready by then with the website up live.  Another strategy I plan to try is advertising in small local papers.  Friends are also already helping me with referrals.  And I’ve been trying to take my own photos of all my cakes, to help get the website and Facebook pages up and my brochures ready.

Kathryn:  How many flavors of cakes are you offering, and are you doing tastings?

Cameca:  I have about 7 standard flavors, but I will customize.  I do tasting consultations and that cost is included in the final proposal to the client.  So far, most of my current customers want round, tiered cakes with fondant and “wow” colors.  Maybe from watching TV!

Kathryn:  What kind of deposit do you require?

Cameca:  Currently I collect 25%, but I am considering going to 50% upfront. 

Kathryn:  Cameca, I hate to ask, but how are you financing this?   You rent your apartment now, right?  How are you going to be able to pay for all of this?

Cameca:  I have some savings from my prior job in the finance industry that will cover me a few months, and some employee stock that will be automatically liquidated shortly since I am leaving.  This, together with the rehire policy from my employer (since I left on good terms), is my safety net.  The stock sale may actually generate some tax losses, so I am hoping that I will not have to pay any taxable income penalty.

I also still have a part-time (evening and weekend) job that I got after my externship that will be continuing, for now.  And I’m lucky it allows flexibility in scheduling, because it’s in catering and I can tell them when I’m available, and when I’m not.  If I had to start working there full-time, the catering job would pay for my rent. 

Kathryn:  So what words of advice would you give to some other person, like a recent graduate, who thinks they might also be ready to make this kind of a move?

Cameca:  Think everything out.  You need a plan prior to doing anything.  Don’t just quit your day job without a plan – if you work for someone, find out what that company’s termination procedure is.   In some positions, you might be vested.  Determine if this the right time strategically to leave, or if you wait a bit longer is it more beneficial to you in terms of future retirement pay?  Do you have any unpaid vacation days that they will owe you based on how many years you’ve worked there?  And finally, how many months will all of that accumulate to help pay your production and living space rent(s)? 

Kathryn:  OK Cameca, those are very useful questions that anyone else in your shoes who is considering jumping into this industry on your own should be ask themselves.

Thanks for sharing those thoughts, and we’d like to follow-up with you in a few months of baking cakes in the incubator kitchen!

Want to Learn More About Our Services? Our Primary Website is

www.foodstartuphelp.com

Can I start my business by just cooking at my house?

Need to Know More?
This interview is the first in a series of questions posed to experts in their field.

Interview by Jeff Yoskowitz

Marc Lehmuller is a Vice President of RBL Associates with over 25 years of insurance experience. Marc insures food companies of all types and sizes.

Jeff: Marc, I get questions all the time about baking at home to get your business started. What is your perspective from an insurance point of view?

Marc: The answer to your question, about using your home to bake your goodies, is that it is illegal in most places. You must bake in a commercial kitchen to have the proper licenses.

Your homeowners or renter’s insurance policy does not cover “Business in Pursuit.” That means if you have a home-based business it should have a separate insurance policy only covering what you do. Home-based businesses are usually consultants, CPAs and other professionals not related to food manufacturing.

Starting a food business, you should incorporate first to protect your personal assets in the event a claim or suit is brought against you. The most important aspect is to get Liability insurance for your business, which will protect you for product liability (someone getting ill from your product for instance).The limits vary, but most landlords, farmer markets, street fairs and public parks require $1,000,000 each occurrence (each claim that is brought against you) and $2,000,000 general aggregate (maximum payout for the policy period) as well as naming them onto your liability policy as an additional insured. This protects them and also people who buy and consume your products.

Here is a scenario of what can happen if you don’t have Liability insurance for your company:

Your neighborhood church is having a bake sale or you are giving away your cookies for free as a promotion or let’s say you are selling them at a farmer’s market. Mrs. Smith buys from you and claims that there was a foreign object or that the cookies made her ill and she had to seek medical help. She contacts you and wants to be compensated for her illness and asks if you have insurance to pay for her bills and lost wages. If you don’t have insurance she could give you the medical bills and tell you what she lost in wages or seek an attorney who will look to sue you personally putting your home and personal assets at risk.

THE most important thing is to get Liability Insurance for anything you bake or give away. You are responsible not only for everything you make but also if a friend of yours gives her product to you to sell or give away.

 Remember, set up your corporation and get Liability Insurance before you hand out your product.

Jeff: Thank you Marc, great advice.

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Want to Learn More About Our Services?  Our primary website is www.foodstartuphelp.com