Habits and Hustle - Episode 136: Susan Sarich – Founder/CEO of SusieCakes, 22 Locations and Counting, EY Entrepreneur of the Year

Episode Date: October 5, 2021

Susan Sarich is the Founder/CEO of SusieCakes, 22 Locations, and Counting, EY Entrepreneur of the Year. In this episode, Susie runs us through from start to finish how and why she started SusieCakes, what conflicts and struggles she had to overcome and how she managed to, and what she’s done now through the pandemic to keep her company afloat and thriving. With a desire for simple desserts with recipes that work, care and appreciation for her staff and the craft, and the persistence to get her company to where it is now, Susie explains how bringing cupcakes to a landlord every day got her property, how trips to Hawaii after 10 years at the company have become a staple, pet insurance, and so much more. For a woman who was told over and over again that her idea wouldn’t work and she should just give up, Susie certainly doesn’t seem to be stopping anytime soon. Listen in and you might just find your new favorite company founding story and your new favorite desserts. Youtube Link to This Episode Susie Cakes’ Website – https://susiecakes.com/ Susie’s Instagram – https://www.instagram.com/susiesarich/ ⭐⭐⭐⭐⭐ Did you learn something from tuning in today? Please pay it forward and write us a 5-star review on Apple Podcasts. 📧If you have feedback for the show, please email [e-mail]  📙Get yourself a copy of Jennifer Cohen’s newest book from Habit Nest, Badass Body Goals Journal. ℹ️Habits & Hustle Website 📚Habit Nest Website 📱Follow Jennifer – Instagram – Facebook – Twitter – Jennifer’s Website Learn more about your ad choices. Visit megaphone.fm/adchoices

Blazing deals, boundless options. It's Hot Grill Summer at Whole Foods Market from June 14 through July 4. Fire up the grill with quality cuts at the best prices. We're talking animal welfare certified meat. Check out the sales on Bone-In-Rib-I, Beef Cabobs, and New York Strip Steak. Round out your barbecue with plant-based proteins, slice cheese, soft buns, and all the condiments. Plus, sales on fresh strawberries, peaches, and more. Don't forget to pie, either.

Get grilling at Whole Foods Market Terms Apply. When there's a penalty on the field, referees are there to sort it out. When there's an accident on the road, that's where USAA steps in. We help make the claims process easy, so drivers can get back on the road fast. Making the right calls. That's what we're made for. Membership eligibility and product restrictions apply in our subject to change. USAA means United Services Automobile Association and its affiliates.

San Antonio, Texas. I got his Tony Robbins you're listening to habits and hustle, fresh it. All right guys today on habits and hustle we have Susan Sarich, otherwise known as Susie Cakes. For those of you who are not living in California or Texas, I'm telling you this is the go to destination if you are someone who needs to satisfy that sweet tooth, they have over 22 locations and just growing nationally. They are known for their service, for the quality, and just overall just amazing cakes and desserts. They are from when Susie was a little girl, her grandmother had these

recipes that she made for Susie and Susie wanted to create something from this. So she took this with an idea and a concept and she made it something truly special as a successful business. That's like I said, growing. Suszy shares her insights with us, how she did it, taking that idea and making it a reality, how she raised money, the trials and tribulations that come with being a new business owner, dealing with COVID, the pandemic, how she was able to survive.

This is a really great podcast for anyone who is looking to start a new business, who has an idea, who has a concept, but just doesn't have that inspiration or that we're having that self-doubt. This would be a podcast for you to listen to. Suzy also won Ernest and Young's Entrepreneur of the Year award in Greater Los Angeles, and she now serves as a judge for that event. She is a great lady and I'm just so happy to share this talk with you. Enjoy. All right you guys. Today on Habitson House so we have a friend of mine actually which I'm really excited about. Her name is, it's gonna sound funny, Suzy Sarah, Su Sarah, right? I've never said your last name until like five seconds ago.

And Susie is the one and only woman who's the Susie, she's a Susie in Susie Cakes. And for those of you who don't know what Susie Cakes is because it's mostly a California and Texas brand, it is one of the most popular dessert chains that I've ever seen. I mean, people are insanely crazy over this place here. And I am really, really happy to have you.

So thank you for coming on to have this hustle. Thank you for having me. I'm excited to be here. Oh gosh, I'm excited to have you. Suzy also, because it's a small, you run a small business and we're kind of, I don't know if we're like kind of getting out of a pandemic, we're kind of in a pandemic. I think're kind of, I don't know if we're kind of getting out of a pandemic, we're kind of in a pandemic,

I think it kind of changes every day. I really wanted to get a sense for me of how it is, how was it to be running and dealing with a small business in this time because I think that a lot of people are having obviously struggling. How did you kind of make your way through? Yeah, navigate through it. It was the hardest, it's been the hardest 18 months since starting the company 15 years ago because every day is a new challenge. And so when you think you got it

down pat, there's another change in a law or regulation or how the team is feeling about coming to work or about how people are feeling about coming to the bakery. So the last 18 months has been really hard. And what we had to do as an organization was figure out how can we operate in this new world. So we changed our entire business model. And how can we operate in this new world with far less people who are working right now Right, and I want to get more into that afterwards

But I wanted to kind of talk about that right up the map because I think that that's what we're currently what everyone seems to be dealing with Especially if you're an entrepreneur and if you have a small business and you're trying to survive We all have they you know We all seem to have to pivot and struggle in some way. And like I said, I wanted to kind of bring that up right off the bat. But I guess we should first start with, how did you even come up with why?

Why Susie Cakes? Yeah, okay, this is my favorite part. So I grew up in Chicago, and my two grandmothers are milder to Madeline, and they lived across the LA from each other. That's how my parents met each other. Okay. And my dad was a firefighter. So I spent a lot of time at both of my grandma's

houses because he was working these 24 hour chefs. Wow. Yeah. And I became very close with both of them. Mildred was from Poland. Madeline was from Italy. So they were first generation and their whole essence was about, we came to this country for a better life, and you can do anything you want.

I mean, it was like from my earliest memories where you can do anything. And I would come home from school and just go to their house on the weekends, and there would be this like amazing pound cake or cherry pie or oatmeal cookies. I mean, you name it. And it was like there when I came home. And we would literally sit at the table like this from when I kindergarten, right? And just taught and they'd say, what'd you learn today?

And were you nice to people? And what would you do differently? And they were teaching me morals and values. And I didn't know it at the time. Right. So I was just like happy to eat the cookie or the pie, but really strong stoic women. And so they were great bakers and so later in life, I inherited their recipes. So that's part one of the story. OK. Part two is that I always knew that hospitality was my calling or my purpose from when I was young.

So for me, it wasn't necessarily about the baking piece, but about the connection that baking brings people together, brings people joy, it brings them together. And so from a young age, you know, we didn't have a lot of money, we would vacation in Wisconsin at the holiday in that had the pool in the parking lot with the chain link fence.

If anybody knows what that is, when I say that sometimes people get this like, like, what is the pool in the parking lot with the chain link fans. If anybody knows what that is, when I say that sometimes people get this like like the cycle is the pool in the parking lot. So, yeah, it was a vacation spot. It was a total vacation spot. And so, but I would save the shampoo in the, so the amenities, and then when my girlfriends came over for sleepovers, I'd make an amenity, right?

Like, so I was very like hospitable, right? Like that was like, yeah, yeah, yeah, yeah, yeah, or domestic and just wanting people to feel at home when they were with me. Right? Whatever that meant. And so fast forward, I wanted to go to college for hospitality and I was fortunate enough to get into Cornell, which was a really big deal for my family to be the first person to go to college. And then to Cornell. Yeah, and so I took that, I took what I did very seriously and was just, I felt so fortunate to be there.

And I loved my classes and I loved college. And it was really the business of hospitality. And so, it was like an undergraduate degree in hospitality, it grew out. So the whole, it's yeah, hotel administration. And so, but within that, it's HR, it's marketing, it's design and development, culinary, every aspect that goes into a restaurant or a hotel. Wait, where else did you apply? What would that, what if there was no other, that's like the top

school for it. So the only place there's other schools for it, but that's, no, but did you, did you only like at the big, did you only apply there because that was, no, I applied to other schools. And I was hopeful that I would get a new got it. And I got it. Yeah. Okay, gotcha. And then when I graduated, I was very intentional about I want my career path to be working for companies that still have a founder who's running it that have a deep value system and culture. Right. Right. So I and I didn't know I wanted to open Susie cakes at the time. It was more about, you know, what do I want to learn right now? Because at 21, I didn't know I wanted to open Susie Cakes at the time.

It was more about, you know, what do I want to learn right now? Because at 21, I didn't think I knew everything. I actually thought I needed to learn stuff. And I'm very glad I did because I think that's part of, was part of my journey was getting experience. And so I worked for Hyde Hotels in Chicago when the Pritzker family was still running it back in the 90s. I worked for Let Us Entertain You Enterprises, which is Richard Melman. He's like a restaurant icon in Chicago. We're for e-intrigger hotels and the Clifft hotel in San Francisco. What were you doing for them? What was your job?

I was doing catering, restaurant management, catering, catering sales. So always, um, front of the house. It was really kind of, I was not in the kitchen. So when you say, friend of the house, explain that so people who don't understand, like, hospitality means not in the kitchen, cooking or baking, but we're the guest, guest interfacing. So you're just kind of like customer, like kind of like client relations. Yeah. Okay. So while it was planning somebody's wedding or, you know,

seating people on New Year's Eve in the ballroom, anything like that, because I like people, right? You sure do. And I am extroverted, and like that is, you know, kind of again, what the piece that brings me joy. And then also worked for House of Blues and Isaac Tigret, who started Studio 59.

And so when he had the, no, I'm sorry, that's Ian Schrager. That's okay. Ian Schrager. So you worked for all these people, though. You had a ton of great experience. You had Ian Schrager, Richard Malman. Would it reach your Malman own though?

What was his restaurant? Let us entertain you. He's got like 40 restaurants in Chicago. He is still a huge restaurant. He is still the guy in Chicago. And you always just did front of the house stuff. Is that the terminology? Yes, front of the house.

Yes, the terminology. And so would you kind of be doing also sales? Like where you kind of, I did sales as well for some of these things. Like at House of Blue in Chicago, I was in charge of events. And so at the House of Blue there, we were doing everything from Oprah's,

Christmas party for her, her studio to like a private party with, you know, a wreath of Franklin, right, and everything in between. Wow. So kind of I'd done the gamut. Yeah. So did the gamut from fine dining, I worked at a mobile five star French restaurant, again,

in the front, catering sales. So I learned what it's like to never making food. Yeah, but never making, never making, never making, never making. Never in the kitchen. So, you know, between that, the nightclub, the hotels, I felt like I had this really great rounded experience. So around the age of 30, I saw a lot of my friends leave the business,

especially females, because it was really hard to have a career in hospitality and then have a family, right? At least alone, I always say like a date, like I never date it, because I was like, yeah, I'm working. Because the hours are crazy. Yeah, the hours are crazy. You're there until, you know, sometimes the wee hours in the morning, if you're closing

the bar or the restaurant, you're working every single New Year's Eve, every single every holiday, every holiday. Every holiday is when people are, you know, dining out. So I was just like, wow, there's like so many of these really smart women who love hospitality, but just can't deal with this 50, 60, 70-hour week thing that it requires. And crazy. I think. And you cannot like in the daytime. You're like, going into the middle of the night.

Into the middle of the night. Yeah. Like there were nights when I would like, go home at three o'clock Saturday night, and then I have to be back for Sunday brunch at like 9 a.m. Did you work at a house that blew brunch Sunday? Yes, the gospel brunch. at three o'clock Saturday night and then I have to be back for Sunday brunch at like 9 a.m. Did you work at a house of blues brunch Sunday? Yes, the gospel brunch. The gospel brunch is so fun. Oh my God. I've heard about that.

They still have it. I think they do. I think they do. It's so fun. People love that thing. They do. It's a thing. It's a thing.

It's a thing. And I just, you know, and I reported every time you know my general managers or food and beverage directors were always Man and that was fine and they you know, they were great mentors and I learned a lot from everybody But I was I was like, oh, this is so unusual right? It's like late 90s, right? Like there's just no women really in upper really upper management Least alone at like the VP and off-line or they were few and far between. Exactly. So I wanted that's when the wheels started turning a little bit and saying like I got I would love to build a business model around women having careers in food service and hospitality

without having to work on New Year's Eve and Christmas Day and et cetera, et cetera, et cetera. How did we do that and not be open 24-7 and close it a reasonable hour so somebody could go out to dinner with their spouse or put their kids to bed? So that was kind of the one piece of it. And then the other piece was, I really wanted to honor the women of all of our grandmother's generation, that greatest generation who dedicated their lives to being here so we could be here so that you and I could have the freedoms, the careers that we have, right, and they never once were like, what was me? I don't have a career, I'll look, I'd just cook and bake free people. They were like, right, they just didn't have a wearable. They were just

stoic and like, this is what we do. And I think that honoring them and really that whole, whatever all the grammas and the generation of grammas, right? Like what a great way to honor those women. Right. By creating a company where women of our generation, our age can have careers without having sacrifice, you know, family and other things.

So that was kind of part of your like mission statement already. Like you were kind of very far away thinking because that wasn't what people were thinking about. Correct. Because it wasn't even, there was no role model to even correct. You had to be kind of pioneered this entire ideology. So then how did it go from this concept into an actual business then? So I wrote a business plan, which I don't think a lot of people do.

And when people say, what should I do? I say, what about a business plan? Because it's really important to say, this is what I stand for. This is what my business will be. And this financially is how I will get there. Because I think a lot of people underestimate how much money you actually need to start a business once you take into account insurance and attorneys and all that stuff, all that stuff. But did you, you didn't have a finance background.

So how did you do your business, but did you have to help you? I had, we had, I did have not finance, it's not my forte, trust me, but definitely. You learned something. I did, I learned it, you know, we took finance in school, um, in college, but, um, I literally did it. Genit was so rudimentary. It was like, okay, I think on a Saturday, I can sell 800 cupcakes. You know, so we're, you get that number, right? I would, uh, go to different bakeries. I took, like, six months to travel and go to different bakeries. I took like six months to travel and go to different bakeries in different cities around the country and just sit outside

sometimes in count cars, see what people were buying. Like, okay, Mondays, Slow Days, Saturdays, a Peak Day. I kind of learned the business from observation and also had this little notebook that said like, things I wanna do when I open my company and things I don't wanna do. So I'd be like, going to a place and I'd be like, oh, I love that they sell birthday candles.

I hate that their sign has neon lights on it. Like, whatever that was, right? That's great. So that it was starting. I'm like super detailed oriented. I'm that everything has to be like, exactly right to make this work. OK, I don't mean to interrupt you,

but I just want to make sure I understand. So you wanted to honor all of these real non-negotiables for you for a business, but where did the idea come from? Where I wanna take my grandma, my grandmother's recipes and create a big career. Like where did that, where was it connected? Yeah, it's a great question. Okay, so there was a huge aha moment

was living in San Francisco, and I moved around a lot for my career. And I was unpacking a box and I had the little 10 boxes of three by five handwritten recipe cards, right? And I kept saying like, okay, I inherited these like I, you know, I'm never going to make the stuff at home for myself, because I'm never home, because I'm working. Right. Right. But, um, but, um, at that time, this was like in the early 2000, this is when, if you remember when desserts were like, super deconstructed and silly, you'd go into restaurant, and I always, my greatest example is the pineapple upside down cake.

Like the pineapple should be part of the cake, but it was like cake, pineapple, and caramel sauce. And like this is not pineapple upside down, it was like some dehydrated pineapple on the top, like to insult injuries. It was like everything was super complicated. And I think people, you know, I'd go to restaurant and the top, like to insult to injuries. So it was like everything was super complicated. And I think people, you know, I'd go to a restaurant and be like, oh my gosh, can we just have a piece

of chocolate cake with chocolate frosting? Nobody wants this. Yeah. Nobody wants rose oil in their, yeah, exactly. Whatever in their seven layer bar, right? Like, so it's like people are over complicating desserts. And so it was kind of like, wow,

if we could just get back to simplicity and like desserts from the Midwest that I grew up with that had five ingredients, you know, butter flour, sugar,aves, vanilla, maybe one or two other things, right? Also at this time, John, if you remember early 2000s was when nutritional labeling came out and was required by the government. So you go into a grocery store and there'd be chocolate chip cookies and one of those awful clam shell things, right, with the label on it, and you'd go, what is all this stuff? Why are there 85 things in my chocolate chip cookie? Like this is wrong. And so I think people, consumers were starting to get smarter about, I don't want to buy that cookies from the grocery store because they're not made like, I make them at home,

or grandma makes them or whatnot. So those two things kind of converged along with having these recipes, and then it was like, Bingo, this is the plan. This is the business. Like, I need to bring really good Midwest desserts to people in California because they do not know what good desserts should taste like.

Like that's really what I felt my mission was. And then have any recipes that you even kind of inherit? I mean, oh my God, boxes and boxes, like boxes and boxes and boxes. And so when they baking all the time, we also had all the ethnic stuff, you know, like the Polish Kalachki's and the Italian canola. So I have all those recipes. So it's not just baked. Yeah, yeah, yeah.

It's like everything, yeah. So but I was focused on, you know, what I thought was kind of missing in the market place. And then as you know, to my friends, it's like, where'd you go for cakes? And there was like, you can go to these super high-end wedding cake places to spend $8,000 on a cake that's made with fondant, that nobody eats.

What's fondant? It's, you know, that it's really smooth, that tastes like I think it tastes a little pasty. It's like you could peel it in a sheet off of a kind of, but you're such a connoisseur now. I'm not. I probably don't know, I don't know the difference at all. It's fancy.

It's fancy. It's like Mars Van. It's fancy, right? Yes, it's worth more, I'm just kidding. Yeah, I don't know. And so, and so you there was that, and then there was grocery stores, and then there were sometimes mom and poppy bakeries, but not generally someplace that was like, yes,

I've got to go here to get a birthday. Right. There wasn't really, whether it was San Francisco or LA, it wasn't what I had vision, what Susie Kakes is now today, that just didn't really exist. It didn't exist. Yeah. So I put together this business plan, what I had vision, what Susie Cakes is now today, that just didn't really exist. It didn't exist, yeah. Yeah.

So I put together this business plan, and then my next goal was to start to raise money. But wait a second, before we get to the raising and the money, I got the question. Did you do some kind of market research as to, did you just kind of, because you didn't really see this type of thing, or did you have any way of kind of really seeing, like, did you have another kind of more

organized way of knowing what kind of, kind of like competition that was? Did you have that or that was just more like, I didn't see it. Did other people fail before you? Did you see any of that stuff? Yeah, I didn't see anyone doing what I wanted to do. Which gave me, it encouraged me to say this is something that has not been done prior. And the, you know, the concept is also about that baking on site, you know how in the bakeries, the kitchen is open with glass, right?

I think a lot of people don't know. So the whole concept, you can see people actually baking the goods. Correct. Right. And we don't have a central commissary that sends out baked goods to all 26 locations. People are baking in each location, trusting the cupcakes with their hands. These are people making baked goods. And I wanted to keep the kitchen open because I want people to see, like, look, it's butter. Look, it's chocolate chips. These, it's chock the chips, like these are all, like this is what we're doing at Susie Cakes and I'm proud of it.

Right. And I want them to see the cake decorators, you know, painstakingly, you know. Doing their work. Doing their work. And so the kitchens are open intentionally, and there's a lot of bakeries that you can't see, like that was one of the reasons I wanted the kitchen

exposed to most bakeries, you don't see the kitchen. Right. Which makes me think. What are they doing in the kitchen? What is going on wanted the kitchen exposed me, most bakeries you don't see the kitchen. Right. Which makes me think. What are they doing in kitchen? What is going on in the kitchen? Exactly. What are they doing in the kitchen? It's going in there.

Because, okay, so then you get your business plan together. Yeah. How long did it take you to put the business plan together? About six months. Yeah, about six months. Yeah. And then, and then what? And that was part of the research and, you know,

traveling and things of that nature. And, and then it was like, okay, I figured you just go to the SBA and you get along. Like that's how naive I was. And so I went to the SBA and I had a really, you know, I had experience, I had education and I had a real business plan. And we're like these men sitting around the table

and they said, Suzy, baking is a hobby. It's not a business. You should stick to hotels. You've had a really successful career. I was like, I can't, like, excuse me. What just happened? That's what they said to you. I was like, wait, this is the SBA.

Your whole role is to help people start small businesses, right? Like encourage them. And they did not think it was a good idea. So then I'm like, okay, well, whatever. The SBA doesn't know anything, right? They're antiquated. Yeah. Move on. I'm just going to a bank. So I started going to banks and every single bank told me Susie Cakes was a bad idea. Every banker, bad idea. This doesn't have legs. People in

California don't eat sweets. People are health conscious. And I kept saying, no, people have to celebrate life's moments. You don't have an, people are health conscious. And I kept saying, no, people have to celebrate life's moments. You don't have an anniversary party without a cake. You don't have a graduation party without a cake. Like everybody buys cake. It doesn't matter. So why not give people, well, our health conscious,

the best cake possible. So you're gonna eat cake, eat a cake that you at least know has eggs in it, right? Like eat real food, right? If you're gonna have an indulgence. So I was like, I knew it could work, but I mean, Jen, everybody thought it was a bad idea. The only people who really encouraged me were my parents,

and after the fact they told me that they were a little bit concerned at my fail, but they felt I needed to go down the boat, or I would have regrets arresting my life. So even they doubt it. And then my partner Houston, who's just, you know, been on my side this whole time. And he kind of the same thing. He's like, you have to do,

like whatever we have to do to make this happen for you. And whatever happens after that, it's fine. But you have so much passion around this business. Right. And conviction. And I don't know if it's like your grandmother's like channeling, you know, channeling and giving you strength to carry on when everybody's saying it's a bad idea. And so I think for people when they start business as I always say, like have just have one person

who's like your person to say you can do this. Because there's dark days and when everybody's saying it's a bad idea, you start to sometimes you think am I the crazy one. You have to have somebody be like, no, you're okay. And you have to be a champion and to support you. So what made you be so resilient? Like what was like after the fifth bank, or the how many 20 plus banks? 20, so 20 plus banks turned you down.

How much were you asking for? It was not a lot. I want to say like 150,000. That's all you were asking for. Yeah. Every single bank turned you down. Yeah. Yeah. So at that point, I guess you couldn't go to friends and family because you said your family had no money, right? Well, that's what I had to pivot. That was my only option. So instead of just saying, like, oh, hey, can someone write me this big check? I was like, okay, I've got to like say, Jen. Yes.

Can you give me $2,500? $5,000. You order, you own one. Yes. 90% of Susie Kigs. But, and I would carry, I had like copies of my business plan. And no matter where I went, like I tell the general, my dental hygienist or like, like talking to my hand in all hygienist, like my cousin in Palm Springs, he has a little money.

I'm like, give him this. Give him like, I would pass the thing out to anybody who would talk to me like literally. And you were not getting discouraged. You were not like, how did you maintain your spirit and I and your belief in yourself? I, you know, I don't know. Genet came from within. It was just conviction around the idea or stubbornness or, you know, I don't know, Janet came from within, it was just conviction around the idea,

or stubbornness, or wanting to prove this, or really thinking that this could ultimately bring so many great careers to women, and just so much joy to people, right? Like this, who doesn't like Kate? Who doesn't like Kate, right? So it was, Oh, and by the way, she has this amazing thing

called the Seven Layer Bar, and it is amazing. Okay, so we have to put that in there. We do, yeah, that's right, that's the seven layer bar and it is amazing. Okay. We do. Yes, that's right. That's a plumber. We do more than K. We do more than K. We do great pies.

And as lineups constantly, I mean, I have to just kind of like interject that. Okay. That's good. Continue. Because the resilience is necessary. I mean, you can't just after, after fifth or sixth or seventh of time, be being rejected as a rejection, rejection, rejection. How did you kind of, you know, kind of pick yourself up by the bootstraps?

And like, all right, let's go to bank number 14. I mean, it's not, it's not easy. It's not easy. And you had it used to help you. Yeah. But I think it made me just more like the more people said, no, the more I, I like, double down. Like they don't know what they're talking about.

Now they really don't know what they're talking about. And I'm going to show everybody. It was almost like wanting to prove that I can do it at that point in time because it was making me angry. Because I felt like I'm competent. And it's not like I'm whatever an accountant who's like, oh, I'm going to go bake cupcakes.

It was like very, very, very different. Blazing deals, boundless options. Its hot grill summer at Whole Foods Market from June 14 through July 4. Fire up the grill with quality cuts at the best prices. We're talking animal welfare certified meat. Check out the sales on Bone In Rib by Beef Cabobs and New York Strip Steak. Round out your barbecue with plant-based proteins, sliced cheese, soft buns, and all the condiments.

Plus, Salons on fresh strawberries, peaches, and more. Don't forget to pie, either. Get grilling at Whole Foods Market Terms Apply This episode is brought to you by FX's The Bear. The hit series returns with Jeremy Allen White and the Golden Globe winning role of Carmie. He and the team will transform their family sandwich shop into a next-level spot, all while being forced to come together in new ways as they confront their past and reckon with who they want to be in the future. FX is the bear, all episodes now streaming only on Hulu. Do you really believe that every single one of those people were really kind of not into

the idea or do you think it was kind of you're also a woman at that time 20 years ago? At that time, 20 years ago. Yeah, it was different. It was different. It was different. It was very different. It was very different. Do you think it was a kind of a combination of a lot of different reasons?

I do. And so then you had to kind of figure out the next, so you had to kind of like think out of the box or think of a good next thing. And you thought, okay, family and friends. And so you had to kind of like think out of the box or think a good next thing. And you thought, okay, family and friends, and so you're holding your basically like going around and you kind of cobble together how much 150 yes, how old together. And that was like exactly the money. It was my uncle, my uncle Tony wrote it the first check for 5,000, I was remember him giving it to us.

And I was just crying because I'm like, you're the, he said, I believe in you. He's like, he said, I'm bad. And remember what he said exactly. He's no one ever said, I'm betting on the, I'm betting on the jockey, not on the horse. He's like, I'm betting on the jockey. And this jockey is gonna win.

And he said that to me. That's Italian, you know, forget. Yeah. I know, I know. That's my Italian background. I love that. I love that. So he gave me the gold pinky ring.

Even like, just he's classic and like that. I'll never forget that because it's like, again, it goes back to that one person who tells you you can do it and that was like everything. And then once I had that, then I could start saying, oh, people have already invested, right? Yeah, exactly.

It's the Brown Coltony, but people have already invested. For five or even. You want to get in on this deal now because this is going fast. This is where you're Italian. Yeah, you. It's an uncle Tony, but people have already met. Five grand. You want to get in on this deal now, because this is going fast. This is where you're Italian. Yeah, yeah, yeah. It's spirit comes.

Yeah, yeah. So then now you have five grand. You can't do much with five grand. Yeah, yeah. So where did the other 145 come from? It came from small amounts from family and friends and friends of friends, right? So there's like this pretty extensive network.

Some people who I didn't even know. No, OK. Because people like to be in food service generally, they like this pretty extensive network. Some people who I didn't even know. No, okay. Because people like to be in food service, generally they like think it's fun. They like it more if they know what the concept is. Right. Or they like to eat. Yeah, they like cake.

Yeah. And so we also were able to, and this is like where karma in life comes into play. We had a friend who, well, my mom also also took a second mortgage out on her home for us. And we had a friend who used to my partner, had helped open restaurants previous, and he felt like he needed to kind of pay it forward. So he took out also a loan on his house for us. And like, so that actually made the whole thing way more real for me, right? Because I know it's people's livelihoods, you know, their home or what not.

And so that's how we got the money together. And then it became the next big hurdle to overcome was like finding a landlord who would run to me. Because it's an unknown concept. It's like, you know, landlords are like, no, I could put a Starbucks in here. John Majuse, why in the world would I give it to Susie? Right? Like who is Susie? Like, did you name it Susie cakes too? I named it Susie cakes. Yeah. And that was, you know, and that's my grandma's called me Susie when I was younger and,

you know, just kind of like all American, maybe all American bakery. So, um, that, so that came my next thing was like finding a landlord and finding a space. And so I knew we wanted and one thing we did learn in our real estate classes was location, location, location. And I knew I had to find for the first one the best location possible. It needed to be a neighborhood with families and kids and dogs and strollers and soccer camps and ballet schools and all of those things, right? And we were living in San Francisco at the time. I didn't even really, we didn't come down to LA until we couldn't find anything in San

Francisco because the laws were such that we were zoned as fast food because we baked on site and we didn't have chairs. So they are we baked on site and we didn't have seating. So they compared us to like a 24 hour drive through Taco Bell that where people were doing unsabery things in the parking lot. We're like this Disney-esque big ride. So the neighborhoods we wanted to be in, whether it was specific heights or rural village or any,

you know, the Marina, we were zoned, they wouldn't even look at Susie Kakes. So then that's like, okay, well, let's try this in LA where there's eight million people to bigger market and Figured out I had never even been here. So the first location was in LA. Yes, was it Brent? Location it was a Brentwood location and so Brent was like a really expensive neighborhood So that must have been crazy rent for it. It was crazy rent and that must have been crazy rent for this. It was crazy rent. And the landler, when we'd seen this spot,

I said, this is it. I got like, this is the spot, because we looked at all different areas. Santa Monica, studio city, Hancock Parkingham. When I saw the place in Brentwood, I'm like, this is where it needs to be. It was a bike shop, right? It was like this bike shop.

So it had converted to food service. I totally remember. And so I was like, it has to be here. So the land I had a meeting with the landlord. And he was kind of like, you know, you seem like a nice gal. A nice lady. A nice lady. But no, like, you know, this is prime real estate in Brentwood. Like, I'm not going to rent you. So I made him cupcakes, cookies, pies. I would go to his office and I'm well sure.

Near the bakery, we lived in West Hollywood at the time. I would go to his office with baked goods. And he would, wait, I knew what time we would come in and he was so funny. I'm like, Michael, hi. And he's like, hey, Suzy, he's like, again, you can bring me all the baked goods in the world, but like I, you know, it's not happening. And I was so persistent that I that what happened was I don't even know how many weeks it was after that he called me or I can't remember this part, but it was his wife and his daughter who said, if this woman has this much conviction around getting the space, imagine how hard she'll work her business.

No kidding. Yeah. So that is how I got the space. But that was like a real, that was like the second like, oh my god, that was perseverance. Yeah. And tenacity right there. So you had to really kind of have these qualities. Are those like natural qualities that you already have,

like tenacity, persistence, resilience, or was it because you were so passionate about this one idea that it kind of came from within? I think it was taught to me as a young girl. I think my grandmother's were teaching me that, like setting me up for my life, but I didn't know it at the time. But how am I doing that by sending you down? Just, yeah, just like it was kind of like the you can do anything.

Don't let people tell you, no. Stay true to what you know is, you know, the right thing is to you while you're sending down having your bakery good. Yeah, yeah, right. Exactly. And so it's like for me, all those life lessons are like, I can't look at a piece of cake without thinking of all of those things that they taught me. So I owe it to both of them, I really do. So it's interesting because right now,

a lot of people talk about how their childhood experiences or their trauma sometimes or whatever that is really do play a major role in how their adult life happens. And because you were taught very young about perseverance and not taking note for an answer, that kind of has like saved with you for your success. Basically, it's when I created your success or helped you with your success. Which is, I think this is amazing.

So again, that's why it's so important to be surrounded by people who are, you know, they say it was the five people closest to you or other people that you are gonna become or resemble the most. Okay, so now you have this location. Now the question is, what do you do now? You don't know how to like do it. You never do it in the big screen.

So what do you do? So we designed, you know, I, from all my bakery visits at different bakeries and just kind of knowing the industry designed the plan and worked with an architect. But again, I knew what I wanted, generally speaking, that I wanted it to be, you know, it should have like retro touches, you know, it should look old fashioned but modern and contemporary. The blinding. Yeah. Yeah, I mean, that's one thing I noticed. It's like, it's like so on target on point. Did you do the branding? Yeah, I did the branding.

I mean, I had a graphics designer worked with, but we were like developing Suzy and it was like to shift pearls, take the pearls off or her, just shift high heels, low heels. Like, what does her dress look like to shift in apron? It's like, I thought he was gonna fire me. He's like, yeah. He's like, I thought he was gonna fire me. He's like, yeah. He's like, I'm like, nobody has to be perfect.

Like your logo has to be perfect, right? That somebody sees it and they know exactly what it's going to be, right? Because I wanted Susie to be my goals to be like the Nike swoosh. Like people should see Susie cakes and just know it's Susie cakes, right? Right. So it's super particular about that. The blue is called Susie blue, but it was find grandmother's Pyrex mixing bowl colors. So if you remember from back in the day,

they were colored on the outside, white on the inside. Yeah. And I have those actually. And they're so special. So that's where the Susie blue came from. And then the Susie, the logo is at red, is a 69 Mustang, which called Cherry Red. And so it's like a little bit of a retro red,

but that's where the inspiration came from that. And red is a little bit of a nod to red, white, and blue of kind of the Americana piece of Susie cake. So that was all thought out. So we designed it. And then I had to find a contractor. That was a whole nother situation because we will, you know, on a shoestring budget.

And finally got a contractor. It took an extremely long time to build out. And everything that could have gone wrong, could have the city wanted us to put in a 25,000, 25,000 gallon grease interceptor, which is about the size of a Volkswagen bug, even though we don't have grease, right? And you had to build that into the ground.

And so I fought the city on this, I went to the city council and like, okay, we don't have grease, like we're not a donut shop or like we're not frying anything. But it was just like the law is that if you have food service, you have to have this grease trap interceptor thing. So how did you even not burn through the 150? We did.

And so then it came to the dark moment. Oh, this is the low moment. And here we go. This is the moment where it's like, okay, this is not happening, right? Like now I was feeling like the universe was maybe starting to give me signs. We had the grease interceptor thing. We had this water line that was one-eighteenth of an inch too small and they had to suck at this. And my contract was like, that's going to be another $35,000 to do that. I'm like, I don't have it. Like, we don't have it. And that is when

Houston, my rock in life, he sold his car to get that last amount of money. And I don't want to be like, all jewel. We weren't living in a car, but we had two cars and he sold the car. And it was a really sentimental car to him because he had gotten some money when his dad passed and his dad said, spend it on something that will mean the world to you. And so he said, I'm gonna sell this car because there's nothing more important than you doing this.

So I didn't know that story. Yeah. What kind of car did he buy? It was a Porsche Boxster. So he sold his Porsche Boxster to give you the money to do. I know it sounds like a lot of your ever-bend-a-thing time again. I know, but because it was money from his dad's, you know, a hundred percent.

It was a sentimental thing. A hundred percent. Yeah. Very sentimental. And he sold his car to give you the money So you can have your dream and that's it and we that was it then that was the money and we got all this crazy stuff done And now we had to open and so what and so what? I'm watching a movie and then what happened? I always say this could be lifetime many things. Yeah, I kind of feel like it's yeah

Then you know hired a few people. Like, we didn't know what we were gonna do. So I just like hired a few people. I hired an amazing executive baker, right? Because I know I'm not the person to be in the kitchen baking. Right. That was not a good start. Yeah, my soul had to bake anything though.

Like, do you know how to make the cake if you have to? And if I had to? Yeah. Like, you know, not a start. Yeah, my soul had to bake anything though. Like do you know how to make the cake if you have to if I had to yeah, like you know in a pinch or not. Is because you know, funnily enough Houston is an amazing show. And I mean, I had we had dinner a little while ago and Houston made the most phenomenal dinner. So I was thinking worst key scenario. He's like he's a chef. He can make the cake. Easy, you know? Why not? Yeah. Okay, so you're not you're not that you're more the idea person, the people person, literally the front-end person. Yeah, yeah. And you have no idea where really what to do with the back end. Okay, so then you hire. So yeah, Yeah, like so I'm also a believer in like hire people to do things better than you. Yes. And let them do things better than you do, right?

Right. And I always say that like if I was like if baking was the piece that was passion for me versus the connection and celebration about baking, I would have been in the kitchen with my head down baking, right? But I was out front being like, Jen, tell me about your kid school. Oh, you know, you know, working the neighborhood,

like in Brentwood, all those Italian restaurants, I'd go bring cupcakes at the end of night and say, give them to your guests. Like my marketing, we had no money. You were like a real host. So I was there. And I was like, and you're working it. And cause like, again, yeah, I had no money for anything.

And then like there was always traffic on San Vicente. So the end of the day, I like to have a tray where the traffic was stopped and I'd go out to cars and knock on windows and people were like, what is, like, do I don't want to? I'm not like, I'm not selling in. I just want you to try it. And this is my bakery.

Like people are like, okay, crazy lady, right? And I kept thinking like, someday the news needs to come and like, see, see, see, you know, out there with the tray, but it was, I had to work at it because you can't just open the door and hope people come in. It's like you have to build the brand. And so all of our marketing was through, I want to give back to the community that we're

going to be part of for a long time. And so it was through donations, right? Like that, what could I do? I don't have money, but I have cupcakes. I've got, I've got products so that if you're having, you know, went everything from the black tie, lupus event at the four seasons, to the local Girl Scout troop. And I said, yes, yes, yes. Anybody who said yes, it was like, I'm going to give this to you because I know if you take these 24 cupcakes to the PTA meeting, there's going to be 24 parents who go,

where'd you get these? Or amazing. Yeah. I had so much confidence in the quality of the product that I knew if I just got in into people's homes that we would be in their homes for a long time. So I have a bunch of questions. My first question is when you were dealing with the restaurants, were you telling them also to give it to their, to the restaurant, like the patrons, as dessert?

And you weren't charging the restaurant. No, no, just giving it to them. So you're giving them like very high quality products for them to kind of share. Yes, yeah. What I was going to say, what I find very interesting is you really haven't changed that much because when my kids were having things at their school,

you were giving me, yeah, that's right. Remember, you gave me all that stuff for your time, and it's up for the schools of, and that's right. Remember you gave me all that stuff for you. Yeah, I did stuff for the school stuff. And it's clever. Like, I understand, it's opportunistic, but at the same time, it's also coming from a good place, but it's smart. Here, take this stuff. And all of those mothers, all of those people,

all the people in that community are gonna get to know your product. So like, you're not very short-sighted at all. You always were very like, you always saw beyond the short game, you know? And that, and obviously it works for your advantage, right? Because all of those people now are like, are fanatical.

Like, literally, I don't know the proper word, like who are like, die out. Yeah, we call them, yeah, Susie Loyals. Like, call them, you know, even Demetrials. Yeah, you know, I mean, everybody, when I Loyals. Like, call them. You know, even Dimitri. Yeah. You know, I mean, everybody, when I posted that little thing, I, you know, on you with the, with Instagram, I could not believe the response of people like, oh, my God, I love it.

I love that. Carrot cakes, the best carrot cake or the fly. I want to lie though, because it's an emotional connection. It brings people back somewhere else to a happier, simpler time. I'm convinced of that. No, you're right. Or when you're at somebody's wedding,

they'll be like, oh my god, we had a U-edder wedding. And at an engagement party, then a wedding, then they have the gender reveal party, then they have the baby's birthday party. Then we're in somebody's home, and it's like, well, it's Susie, right? Like, you're like a family member. Yeah, we get our pump, and pie, everything's giving. Right, you get like, it's part, well, it's Susie, right? Like, you're like a family member. Yeah, we get our pump,

and pie everything's giving. Right, you get like, it's part, it is becomes a thing. It's a ritual. It's part of someone's rich habits. Their habits. Is there habits? Yeah.

And they're ritual. And they're routine totally. Yeah. I mean, the, I was gonna ask you, and I always ask people this question, like, what makes your product or whatever unique? But I think it kind of stays, you know, kind of like stands for itself like this, right? Because it does, like that, that first bite or whatever unique, but I think it kind of stands for itself like this, right?

Because it does. That first bite or whatever that has, it brings them back to that really good memory of that time they, the wedding or the bar mitzvah or the party or the poor kid and their grandmother made. Like something, right? Because those seven layer bars that I love, it reminds me of what my mom and my grandmother

made me when I was a little girl. And I haven't I haven't had them like that since until I had them at your I think when you gave them to me like a year ago two years ago. Yeah. So that's great. To them. Okay. So then let's say kind of fast forward and how do you take a business that you have that's one now you've one locate you have one location. How do you take that and then scale it? Okay, so great question again. I, um, I had opened the first location with standard operating procedures for everything, knowing I wanted more than one big gray. Got it. So my goal wasn't like let me just open one big green bromelot. It was like let me bring these recipes in this little tin box to the whole country. Everybody needs to try these. People need to connect more, they need to celebrate more. This is what I need to do. And so I started, we had a way for answering the phone.

I mean, I had like one, I had an intern from Cornell and like two other part-time people. And I was like, so we answered the phone. This is the procedure. Thank you for calling Susie. They're like, why can't we just say hello? Like I had a ritual for everything, right? Like it was very specific. This is what the case looks like every day. The strawberry cupcakes are always here, the chocolate are here, right?

Like because I wanted to duplicate Susie case. So I thought I'm not gonna recreate the wheel when we open location number two. Because I had this conviction that we were gonna get a second location and I do know how to do that. Did you learn that in school? Yeah, I learned that and that through my career, right? so You know through the different companies I worked for that. I knew that having the SOPs

For everything and checklist for opening the bakery and Give me some of the standard operating procedures that you thought really kind of help bring you to the map. I put you on the map. Yeah, so one of the things we did in the early days until of until COVID was we would call every guest back who ordered a cake to see how their cake was. This was not my original idea. This is Danny Meyer out of New York. He wrote a book setting the table and he said when he opened his first restaurant The every morning he would close the office door to the manager's office and call all the reservations back from the day before and Ask how their dinner was and if something was wrong he'd fix it in the moment and when I read that in that book

I'm like this is absolutely brilliant because with scratch baking, stuff can happen. It could be underbaked or overbaked or too much salt. I mean, whatever, it's human people doing stuff. Right, so it could happen. But I'd rather call you and I say, Jen, how was the Red Velvet cake? And you know what, Susie? It actually wasn't that good.

And I say, I'm so sorry about that. I'm gonna refund you. And I'm gonna send you gift card for your next celebration because I know we didn't deliver on that. And so what are you gonna tell people? It's not like you're going to go tell everybody that the cake was drier. You might say the cake was bad, but look what they did for it. 100% and so I was like, we just have to, again, it comes back to trust, right? Because people are trusting you with their milestone moments in their lives and they have to believe that you're going

to be able to deliver. And they're not going to show up to Susie Kakes on a Saturday morning and the cake's not going to be there. Exactly. They're not going to show up to Susie Kakes on a Saturday morning and the cake's not going to be there. Exactly. Which happens. Which happens. Actually, not all the time. Not to you. Not to you. Not to me.

Yeah, yeah, yeah. Three times. Sorry, Vaske and Robbins. Yeah. So we're cakes and then not there. So that's the only ice cream case my case. And don't take it personally. Yeah, yeah, yeah.

And I want you to be offended. I'm only going to be pissed. Vocal almond fudge. Sorry. That's OK. I can support Vaske. Thank you. I like it. I scream, basketball. Thank you. I like to scream, I'm like,

I get the pie and not the cake. Better make sure it's that nervous there and insult you. Like, what do you mean? I feel like, what? That's what's happening. You're gonna walk out on me pretty soon.

So that, so that's one standard operator procedure. You know, greeting people when they come in the door was another welcome to Susie Kakes offering a sample. Like all of those things kind of building inexperience or greeting people when they come in the door was another, the welcome to Susie Kakes offering a sample. All of those things, kind of building an experience so that people would want to be there, that would feel like welcomed into Susie Kakes.

So this is a business selling Kakes, but you're part of it. And one of our values is making days better. And so how does Jen come in? And maybe she's late to something or trying to pick up her kids or whatever. It's got a lot going on as everybody does. And right.

But how do we make Jen stay better? Do we walk the stuff out to her car? Or she's double parked and we see the ticket guy coming? Like, how do we make people know we care about? Right. DQ presents Picture this. You're getting together with all your best friends.

Now picture all your best friends are actually the delicious ingredients of the new cake batter cookie dough blizzard. That's DQ Soft Serve, Cake Butter Flavor, Confetti Cookie dough pieces, and DQ Signature Sprinkles. Oh hey, it sounds like you got some pretty sweet friends, and that's worth queuing the confetti. Cookie dough! The flavor party isn't gonna last forever, so hurry in and get your cake batter fixed today. Only a DQ. Happy taste good. the flavor party isn't gonna last forever. So hurry in and get your cake batter fixed today. Only a DQ. Happy taste good.

But you said something about the cases. Like they're gonna have to have a red cake here. And why? What is the, is there like some kind of, it needed to have order, right? And it needed to be like, I have the cupcakes on the bottom because kids like color, right?

So that's closest to the kids, right? Like so there was, there's, again, everything is super, super, super intentional. Nothing is by mistake. I'm mistaken. I'm mistaken. It's easy. It's every there's a why for literally everything. Um, and you came up with all of these wise. Yeah. Yeah. I'm looking so much. But yeah, yeah. So it was. So all the copies on the bottom. so the kids see the color. Yeah, yeah, I want one more I want one more. Yeah, this is very

And yeah, this is how you build a brand. Yeah, and then the top shelf closest to the point of sale is whatever is a seasonal coming up So people order it. So maybe it'll be like now apple pie order for Russia Shawna or order, you know Whatever football cookies for football. So some liminal people are doing things very, very, very, very close. So when they're standing there waiting to pay, they're like, oh, this is the next holiday coming up. We should order our Halloween cookies now. So top shelf closest is a marketing

for a future holiday. Right. So the lesson here everybody is like always be strategic and like think ahead and be intentional with what you're doing and stay on brand. I think that's another big one. Oh my gosh.

Being true to what you are and who you'd like, I admire in an out burger so much for just saying we do burgers. Absolutely. Fished sandwiches are chicken. So it's easy kids when people are like, do you make termi su? I'm like, no.

Like we are an all-American homestead bakery. Like termi su is an Italian dessert. Right. I'm Italian, but this is we are an all-American homestall bakery. Like, Termisu is an Italian dessert, right? I'm Italian, but this is not an Italian bakery, right? Or, you know, people who said, you know, they want, you know, the gluten-free items. And so I said, you know, we don't do that. Well, I don't, I don't have any recipes of my grandma's made with rice flour, almond flour.

And so it was like if it wasn't in the pantry in 1950, we don't bake with it. Right. Yeah, flourless, the closest. The flourless items, yeah, we just don't use flower in it, right? So those flowerless chocolate cupcakes, they just don't have flower, but I'm not trying to use a substitute flower. A substitute sweetener, like it's sugar. Right. And with by the way, if by the way, like regular natural sugar has been shown and proven to be so much better for you anyway. And much more, it's cleaner. It's cleaner. So then, okay, let's get back to the scaling of the business.

So how do you then scale the business? So then, right, six months in, we were doing really well. And people, you know, it's a wealthy area in Brentwood, people started saying, oh, I might kind of like this closer to my house in Malibu, have you thought about Calabasas? Have you thought about Studio City? Now people were like into it, right? Because they could see it, right? Now your insuasy cake, see it, feel it tasted it like you know what it is. So then I said, ah, okay, now instead of going back and raising money for one more bakery, let's raise money for three. Like I said, we just, I don't wanna keep going, doing this back to the well.

So let's raise enough money where we can open something in Orange County and in the South Bay in Manhattan Beach and somewhere up in the valley. Like this is where my, I think people sometimes get limited by, you know, I can't do it, or that's too much or whatnot. But like always say like think bigger than you think

you have the capabilities for doing. And so for me, I was like, I'm not gonna keep asking money every time I went open to Vagory. I wanna do this fundraising thing once, raise enough for three Vagrees. It actually mitigates the investor's risk because it's three Vagrees in case Calabasas

is a great Manhattan Beach. We'll be right, it's actually the same for back. It's less risky from an investment standpoint. So at that point, it was really easy. I think people are interested in that. So it's, say that again, so it's less risky for someone to open up three locations than one more location.

Because if one does badly, then you've, yeah, that's a better way. But if you have another one that, you know, maybe one will do badly, but there's a chance that the other one will do really really well and it would find us equilibrium. Yeah, right? Okay, that's an interesting point. Yeah, all right So It was far easier to raise money that round because we had proven financials Right, let's see if you let the original investor, almost everybody in that original group wrote checks again

for the next three bakeries because they were already getting dividend checks. So how much were you raising now for your second round? So there's a couple hundred thousand. I'd say I can't remember exactly, maybe like nine hundred thousand. So you went from a 150 to like a millionish, okay. Yeah.

And then you raised the money from, again, you went, you went now from your other friends and family, but were you now institutional money yet? No. No. No, that's really a small institutional. Okay. And then you started, then you built the three. And sequentially opened them.

We would seed new bakeries. We still do this today with people who had been with the company while so that they carry the culture. Kind of the, you know, the Susie torch, if you will. And it was about one a year when we got those four open and they were all doing extremely well. And then the naysayers came in again because I wanted to open in San Francisco and people were like, oh, this works in LA, but it doesn't work in San Francisco. I'm like, oh my gosh. Like really? Like I have four bakeries and they were all working well. Was there one that was kind of a dog? No, they're all doing well. They were all doing well. So what great locations. So basically you have

really kind of stuck to the whole location location location. They were all doing well. And I should say like, did it help that you had, it's such a celebrity favorite. I mean, maybe because you're living in LA, like everyone in their dog is eating these cakes. Like I would go and like Ben Affleck would be in line and like when a palatural being like driving, like it literally is like eight lists or after eight lists.

Does that kind of help build your brand? Would they promote it for you? Well, this was pre-social media, right? But we did have the tabloids. Right. We had like us weeklies and tie it, whatever. Like people, people, like the style. And then it was in stars, they're just like us.

Like, so there was a lot of that in the bag as branded. So when they're walking out, it's clear that it was. And we're taking these pictures. And people see that. So I think that absolutely helped. Because I'm thinking of that brand that Oprah was all crazy for the cupcake brand Sparkies. Not Sparkies. You just sprinkle sprinkles.

Yes, sprinkles. I couldn't remember the name of it. And like it loved it. Sparky sprinkles. You could tell I'm a huge dessert eater. Although I do like yourself, but you know, because of Oprah Yammering on about it and it being in all the magazines. And that's with every single lot of brand.

Exploded. I know you might have explored it. But at the time, that's how a brand really got traction. Those magazines were sometimes even more popular than what social media can be for some people. So that kept building your brand, elevating it and kind of like making it like the hot sex thing to have. So did you get a lot of people like tourists coming here

that who wanted to try it because they saw when I'm just taking up like Gelo eating a piece of it? Like we didn't actually. I think what more because I would say like Susie Cakes, yeah, it can be a snacky snack, but it's more of a the cakes for your celebrations, right? So more people like buying whole cakes was more of our business model. Not the cupcakes. I mean, we had the cupcakes and sell quite a few of them, but it wasn't necessary, predicated on, come buy one cupcake. Right, right, and that was more like

I make like because you're really selling or part're part of your again, your very strategic and very on point with your branding, being the celebratory, a connection point, not just like stuff and ram down a cupcake in the back of your car, you know, when you come here to try it, you know what I mean? So there's a whole different kind of selling feature there, you know, but there's a different, different, you see like, you know, you can see these people grabbing one and stuff to get you know when they're driving. It's not the same you're not having that same type of it's not the same type of experience. Okay so then you then when did you get institutional money? So then these people are saying no again you trying

to build in San Francisco and how did you call? So again I was like okay well we're just going to do this. There's no way this is not going to work in San Francisco. So went up to San Francisco and I think we built out those four up there again, really. Similar. So another four. No, they're very similar. Where'd you get the money for the next four? That we were doing through cash flow at that point.

Oh, yeah. So you were self-funding and self-funding. Maybe took a little bit of money for those three or four, but not a lot. How do you do that? So that's another also there's friends and family. Mm-hmm. There's like there's like private equity money where you can also do cash flow where you're taking what we're taking out of the business. Out of the business. You're putting it back in. Yeah. Putting it back in by opening. So yeah.

You were able to open four other locations just on cash flow. Cash flow and maybe a little bit of External money again through friends and family like that group just kept growing and then it was very easy to go back to Whoever and and get another check So this is it so you had eight locate so when did you even get institutional money at eight? So at eight once so I proven out San Francisco because that So at eight, once so I proven out San Francisco, because that began, we hit home run there again and the stores did extremely well.

And so at that point, we had a pretty good concept that was proven and so people couldn't say, well now then of course we were like, well now it doesn't go outside of California, but there's just always people who just want to break you down and it is crazy to me. It's a me, and'm telling the proven concept. It's over and over again.

That has actually been I think one of the most surprising things about running a business or owning a business or growing a business is that so many people just always wanna find a way to say why it won't work. Yeah, again, it's just really odd to me and it's like become my life's work to anybody who wants to open a business. We never discourage somebody from opening a business.

Ever. Even if it's not the greatest idea I've ever heard, I'm like, okay, here's how I might like, whatever, just up a little bit, but you have to do this. You need to do this. Well, I find it very interesting. I think it's a lot of times because you people are so they're so filled with fear and doubt. Yeah, they're for themselves, that they're projecting it with fear and doubt. They're for themselves, that they're projecting it on someone else. So then that's when you had to raise the money for, how much did you raise institutionally?

A lot. Like a lot, okay. Okay, and that was for four more. No, then we went on a pretty heavy Growth trajectory then once we had like some real you know gas in the tank Then it was like you don't have to open one every year. It was like let's open Three to five a year, right? So then you were all we started. Yeah, then we started That's where we went from eight to get to this 26 that we're at now.

So what was the jump? It went from eight to what? Eight to 26? I think it was like instead of one every year, it became like three a year. And were they all hitting home runs over and over again? We made some real estate misses. Was this because you had partners now that you were now,

you had people you had before it's a different game It's a different game. It's a different game And I think a lot of people talk about this because you're not the only one in control You get diluted when you go into institutional money and then you're not so someone else is running the ship kind Well, did you give away a lot of the company? Yeah, I mean you have to to. Yeah, you have to. You have to. So it's a different game in that you're working with much bigger numbers now, right? And so every mistake is magnified.

If there are mistakes or real estate mistake, like everything just becomes more because there's a lot more at stake monetarily versus a couple hundred thousand. When you're talking no millions, it becomes a different, it becomes a different game. Would you give, what would be one piece of advice you would give entrepreneurs who are in that same place that you were when raising money with institutions? I think it's really know who your partners are going to be. Like,

really know them your partners are going to be. Like really know them as people, because there's a lot of people who can write checks, but making sure that your values are really truly aligned. Right. Having the same vision. Yeah, because at the end of the day, there are some things that are absolutes for me. Like they, you know, have never said you need to change the butter, right? Like, they, like, butter is absolute to me. Like, I'm not going to

use cheaper butter. What kind of butter do you use? Okay, we use European style butter, which has the highest butter fat. That's why it's so yummy. Okay, so what is the difference? American butter. Is there Canadian butter? No, no, no, no. It's just European style butter.

Okay, so it's all other butter. Yeah. Regular butter? How about like rastad or organic and all that stuff? What's the difference? If you can get that butter that takes it into another stratosphere. It doesn't necessarily change the flavor profile. Oh, okay.

So you're talking only about the consistency and the flavor profile. Yeah. Yeah. Okay. So what is European style? It's higher, higher fat. Oh, that makes it so delicious. Yes, that's why it's so good.

Yeah. So it's also more expensive, probably, right? It is way more expensive. Right. Yeah. So, because a lot of times when people expand, and I've seen this with a lot of different restaurants and brands where I don't even go anymore, is that when they start to expand their quality becomes so much,

so much, it becomes diminished, it becomes, it changes and then it's like the whole brand is gone. Or when people sell, get a wire to a bigger brand, everything, the, the caliber of what it was gone. Yeah, but we have stayed really true. Well, as I've said, you put really, really true to what we are without compromise. So that's what Susie Cakes is. No one has ever said we should do croissants and witches, or we should have smoothies here, right?

Like you've seen concepts where that happens, right? Oh, 100%. Where you're like, what happened? This used to be Greek salad restaurant and now, but I'm not there selling, like, something crazy, great juice. So fresh juice, you're like, no happened? This used to be a Greek salad restaurant and now. But I'm not there selling like something crazy completely fresh juice. You're like, no, this doesn't work. So that has been really fortunate that

they supported my vision and what Susie Cakes is. Like what makes Susie Cakes so special? Because if we start cutting corners, then we just become another bakery. And I don't want to become another bakery. Like we are so special to people. Yeah. Because our baked goods are extraordinary.

And we give great service. You do. And you can count on us. And so if we start saying, oh, we can do this with less expensive ingredients or less people or this or that, it's no longer Susie Cakes. So why did you decide to do it this way

versus other brands, especially in the food industry, the franchise? Yeah. Is it because you wanted to make sure you had control of the quality? That's exactly why. That's exactly why. I think a lot of what we do is custom work, right?

And it's artisan, right? So it's not like most franchise concepts are kind of like turnkey where you open a bag and you add a oil, right? Like making Betty Crocker, right? You know, even brands here that do that, right? Yeah, yeah, okay. Or, or they don't really have like, you can't just hire somebody off the street and pick a city, whatever. We sold a franchise in Kansas City to then decorate a cake, right? Like, it's a trained art. And so I, you know, to kind of protect the brand

and the integrity of the brand, I intentionally chose to say, we're gonna stay a company-owned non-franchised model. Could it be a franchise model? Sure, you could totally change it up and you could probably do it, but at the stung sure that's not something that is of interest.

So then when did you put in place, because what you're kind of know, not what you're known, well yeah, I think you are known for this to some degree about how your employee packages are, how you treat your employees, the healthcare. What was it, the other thing that it was the animal rescue? The animal rescue. I mean, it's, you know, it sounds, I like to work for you.

I mean, you give your benefits, you could bake. If I could bake, exactly. Let's not care. I could barely even boil water. But if I was able to, because your benefits are so superior to so many other people in your world, was that something that was important to you at the beginning? I think what was in tension,

I think what the most important, what appeals to people working with CZK's is this not having to work 24-7, right? So people will come to us, coming in a pastry chef at a hotel and are like, I'm so happy that we close at 5, 6, 7, whatever, pick your time. Let's talk about the benefits.

I think this is what's extraordinary. That it is something that's very unusual. There's like, isn't that for like women? There's, you don't have to, if moms, we'll talk about it. Yeah, well, we do well, a lot of what I wanted to do was make it that women whether they were in their 20s graduating culinary school up to women in their 60s who were empty nesters, right?

Could find a place at Susie Cakes, right? And so we do have everything, and that's one of the things I'm most proud of of women, 20s, 30s whose kids are going to kindergarten other like I have some free time on my hand, 40, their kids are going to college or 50 they're like, I have some free time on my hand. 40, their kids are going to college or 50. You know, so everybody's in these different stages. They may not want like this like high powered career,

but to say like, I just love being around baked goods. I love baking or I love decorating or I love helping somebody plan their celebration, right? And so, you know, our workforce is almost 80% female. And I think that's because we are so supportive of whatever stage in life that you're in, right? You don't have to be on this career track. Okay, so what if I was, you know, if I was, if I was having a baby, yeah, I would. Yeah, we have a lot of pregnant women. And then some will come back

after the baby, some will some come back after the baby and they move into another role. Like maybe they were in the kitchen and now they're answering, you know, custom requests via email. Right. Right. So like you can, you know, when the company was bigger, there was more opportunity around that. We've scaled back since COVID, but generally speaking, we're going to get back to the circle back to the other. We're going to circle back to the other. Yeah, I forgot. So then whatever, like, they talk a little bit about the benefits, other benefits that

you might have. If you're birth, this is a new, we have your birthday off, right? So it's like a paid holiday to have your birthday off. Wow. 50% off all baked goods, which is, you know, which is pretty good. Yeah. 50% off all baked goods, which is, you know, which is pretty good. Vacation time, healthcare vision, dental, the pet insurance. Yeah, which is pet insurance. Pet insurance is really important.

If you have an animal who has a catastrophic illness, like I'm living through right now, with your doggy, yeah. It pays for their care. And those bills are like human bills. I mean, they are a couple thousand dollars. And for people, you know, a lot of people, their pets are their children. And that's a, that's a unique benefit. And then we do a dog and cat reimbursement. If you adopt an animal, we will reimburse you for the cost of rescuing that animal and what your expense

is to get set up at home. Because I think animals are important in people's lives and you come home from a hard day work and then it's like, oh my god, here's my dog, right? And oh my god, it's just, he keeps helping me get this dog and it saves an animal, right? Out of the animal shelters. So like it's just, it's just a, like, core value. How did you, so what I was going to say, is that something that, is that a, that has to be a core value?

I mean, are there other people that have been doing that? I don't know if anybody else is doing that. It came in a, a poor situation. No, the, the, we've been doing this for pre, oh, feel like skating that, yeah. We've been doing this for every embarrassment. Oh, I think since almost the inception of the company Look who thinks of this like I mean you just thought of that Because

Have you ever heard of that? Yes I've never heard of that either I mean are people like just clamoring to work for you for now? I mean you think so Right But I guess it's not like that. Well, I think now is a very difficult time with the pandemic. And let's we'll circle back there really quickly because what did you do to pivot in that time? So, because now, I think a big, a lot of a big problem that a lot of different people are having

in a lot of different industries is finding people. Yeah. Right? Because of big problem that a lot of different people are having in a lot of different industries is finding people, right? Because of the checks that people are getting. So you have to close down most of your shops. How are you going to deliver? What are you doing? So we had to say, OK, how do we, we couldn't just, you know, say, let's open up all the locations again. Like when the stay-in-home order came,

we shut everything down. And then we said, OK, how do you say in business though? Aren't you losing so much money? Like all the real estate, well you're negotiating like crazy without your landlords. It was just like a full-time negotiation without a landlord. It's just saying, I don't know money coming in.

But you must have been selling a ton of cakes. People are also depressed at home. Sure, so people were writing emails. Yeah. Just Sus were writing emails to Susie Kakes saying, I need that, like we need this in our life right now. There is nothing to look forward to. Like I want to take my kids to Susie Kakes to be in Susie Kakes. Like we need Susie Kakes, right? I think my husband was one of the people.

So we were like, okay, we need to reopen. We don't have a lot of people. We don't even know if enough people are gonna come in to reopen, you know, because reopening is expensive. You gotta bring all the ingredients back in. It's just a whole thing. The whole thing. Turn on the phones, the music system.

It's a whole thing. Right. So it's a whole thing. It's a whole thing. So we started, we said, okay, let's open up slowly and let's do only what we can with the people we have. So when we first opened up last April or May, we said, okay, let's open up one bakery in each district,

right? Orange County, LA, San Francisco and Texas. We're gonna open up one in each. But in Texas, wasn't it easier because it was much more lenient than California? It still was, they were more lenient, but we still had trouble. You know, people either they couldn't come to work because of childcare, or they were taking care of elders, or they lived with their grandparents.

Like there was a whole host of reasons when people, or they were just scared, right? Back in the early days or even now right So there was a multitude of reasons why people were not wanting to you know come back into the workforce And so it's like okay, we have less people we can't offer this whole menu I can't have 30 things. I can't have the seven laborers. I can't have the pudding right if those things that were like Smaller sellers for us. It's like let's stick to what people really want and that's the cakes, right? Let's start with the cakes, whole cakes, you know, like a lemon. Like two or three flavors. Yeah. So we only had a few cakes in the beginning and we told people we did our most popular, which is a vanilla celebration cake, the old fashioned chocolate chocolate, and the red velvet,

and then the marble. And then we kind of added in, we kind of looked at our sales mix from the last 14 years and saying, what are our best sellers? Let's just make those. Because we're limited resources and have to bring in less ingredients for less products. So we've kind of just stuck to that plan

as we were able to add people to the mix or people who wanted to come back, we're still significantly under, so we have about 50% of the team that we had pre-COVID. So you have- You have to get your guide to go in the kitchen and start baking. What are you doing? I mean, it's a perfect- So, example.

So we went from a seven-day model where we were open 10 to seven in most bakeries to five day a week model from 11 to five. So we went from, I think we're at about 50% of the hours we used to be open. So we shortened our hours, we're closed Monday and Tuesday, close at five o'clock now. So it's like all we can do, right? Like there's no point in like trying to do something that you just don't have the human capacity to do. So we made shorter hours, limited menu,

much more restrictive on like you couldn't come today and get like, you know, a wedding cake with Indian Hanna on the side of it. Like we just don't have the manpower the band with to do that kind of custom Work that we used to do so we streamlined it we said okay, we can't do the Indian Hanna But like here are the 10 decorations we can do for you, right? And so did you feel like there was way more Demand way more demand for the supply way more demand way more demand

Can you offer more money to these people say hey? I'll pay you double We have done many things to try to change the situation. And it just, I've landed on, it is what it is. And we will do the best we can until circumstances change. Like, you just gotta be in that mindset because that is something I cannot control. Right.

But is it better? Is it from Texas to California? Is Texas doing better because of the leniency, though? No. Not necessarily. Yeah. Not necessarily. So what was your trajectory?

Like, aren't you opening more bakeries where you're supposed to be opening more? Oh, sure. Yeah, we stopped. I mean, we stopped all development. What was supposed to be. So we were supposed to open, I don't know, two or three bakeries last year. And then that just stopped. Yeah. Yeah. So we stopped that. And we had

a couple leases that we were already, I think this Pasadena, where we're opening in a couple weeks, like we were already signed at least. And I have wanted to be in Pasadena since I opened in Brentwood. I think it's just like ground zero for us. So we knew, and then we had a great landlord there who said when you guys are ready, I'm gonna be here, right? Like he was awesome. And held it, didn't make us pay dead rent and said, I get it, I want you as a tenant. We're all in it for the long game.

I'm not gonna be shortsighted and try to sue you for rent when you don't have money. It's crazy. Right. So we've started up development again really slowly and with the expectation that by Q2 next year, life has got to start to come back to normal. Right. If not, we'll continue operating on this sort of recessed model because it works. And, you know, people will, you know, generally say, okay, I really love your XYZ, you don't,

the lemon squares, right? We don't have lemon squares, but we have our lemon cake, which is similar, not exact, but try the slice of lemon cake see if I can like move you into another treat. Right, right, right, right. But now, then we have to buy a whole cake. Oh my god. No, into another treat. Right, right, right, right, right. But now then we have to buy a whole cake. Oh my god. No, we do slices.

No, we do slices. We sell slices. You do sell slices? Yeah. Oh, I wish you didn't tell me that. Yeah, so that's not very good. No, I know. The carrot cake.

I know, I know. I know that carrot cake's delicious, but still those seven layers in my favorite. It's Jeep 4x4 season. Make your next adventure epic with Jeep Wrangler 4xE. Jeep Grand Cherokee 4xE and the three row Grand Cherokee L. Hurrie and now for great deals. Now get 3,500 combined bonus cash

and Texas residents get 2,000 bonus cash plus owners were less seized if competitive vehicles. Get 500 bonus cash in the 2023 Jeep Grand Cherokee Limited and Grand Cherokee L Limited. Competitive vehicles exclude all other FCA vehicles. Contact dealer for details. Take retail delivery by 531-23. Jeep is a registered trademark.

Well, okay, so then my, I think that's basically, oh yeah, I would like to ask you this because you've had a lot of different, you know, you've kind of had a lot of ebbs and flows in this career and like raising money and all that. What would you say would be some like some leadership take a ways that you can give to people? Or like that and for an entrepreneur. Like from what I gathered from this conversation,

resilience is extremely important. You didn't give up. You didn't listen to me sayers. Have conviction and have tenacity and persistence. Is there anything else that you would tell an entrepreneur who's wanting to start a small business or in the process of having to, in the expansion, from your lessons what you would tell people besides when they gave us about having partners that are aligned. Yeah, or anything else. I think it's just learning from other people speaking to as many people as you can because sometimes it sounds super fantastic and sexy to say, you know, we now have 26 locations. But a lot of responsibility comes with that financial responsibility

You know Human resources, you know, there's many things that you just magnitude Excuse me multiply, you know the stressors in your own life And on your team's life by becoming a bigger company and sometimes People always think bigger, better, but sometimes it's not a bad thing to have, you know, two or three or four of profitable places. Yeah, yeah, 10 million dollar business

instead of 100 million dollars. You have a 10 million dollar business where you know, bring two million to the bottom line, do you really need more? It's like, it's like personal, you just have to really know what your desire is and be really clear that bigger can sometimes be. And what do you think that for the leadership part,

because you really did, you kind of like instilled some really great stuff, the benefit package, the fact stuff, like how you, because what are some key things that you would tell someone that's important when as a leader? Well, one thing we did early on is we have core values of the company, which we had again back to my standard operating procedures, you know, before we started. And it allows you, if you really believe it, I mean, everybody's got these things with like 85 things, like we are honest.

And you know, it's like, how do you make values that people actually say, you want to work for that company because, right? So ours are super simple of, we start with, we take celebration seriously, right? So we are not just your selling cakes, your celebration means a lot to us. The next is your first bite is as good as your last.

It speaks to consistency. The next is we make days better. We talked about that. We build more than cakes, we build careers. So I'm firmly committed, it's core value that if you come to work for Susie Cakes, that I, I, all of us, the senior team, the leadership team want to see you have a long career with us. So that is another reason why I've always been inspired to keep opening more locations, because it allows us to keep people longer, team members longer.

And so we have this, I'll just go on a side note here, Jen, on benefits. We do, when somebody's with us 10 years, we send them to Hawaii for five days, two people, all expenses paid. When I came up with that benefit, I never thought anybody would really be at Suzy Cakes 10 years. We have now given away, I don't know, a dozen of those. Who even stays at a company for 10 years anymore, right? People don't shift fast.

That's, you know, but I think those people that goes back to the value we build more in the case, company for 10 years anymore, right? People don't shift fast. That's, you know, but I think those people that goes back to the value we build more in the case, we build more careers. Like I want people to feel that they, if they want to learn and grow and get promotions, like some people don't, like some people, you know, not everybody is meant to be, you know,

a head baker or general manager, and some people just like really enjoy coming to work and, you know, doing what they love to do. So there's that, and then then there's we are good neighbors which is about you know that one was about giving back to the communities that give to us and the last one is my favorite but it's important it's we remember where we came from and it's about being really humble. Right and like I never forget that no matter how big the company gets or whatever kind of car I drive or you know all those things like I know what my roots are and that's the

most important thing. So I think if you have values as a leader that you share with your team and then you actually live those values and walk the walk you can build a really strong culture. Live those values and walk the walk. You can build a really strong culture. Susie, you're such a sweetheart and this is like, you know, you really are you like you're so authentic. You're so good And I mean it shows I mean how you treat your employees and how you've kind of built your business and your core values. I mean I Wish you nothing but luck and success and growth. And I'm so happy you came on this podcast. Thank you.

I really appreciate it. I'm really honored that you chose to have me. So, oh my gosh. And you brought treats which make you even more of a special guest. I mean, I was like, where can people find you? Because the truth of the matter is you have too much supplies of people.

Find her, but don't order any cake from her. So you can know where the location is, but then just keep on driving or keep on walking. Because you're not taking any, you don't have, you don't deliver across the country yet. You were going to, oh, you are. We're working on that. Yeah, that's the next big thing we're working on right now.

A shipping cake. Shipping cakes. Shipping cakes. When would that be kind of out in the boat? Early next year. Really? We're working really hard right now to shipping cakes. Shipping cakes? Shipping cakes. When would that be kind of out in a boat? Early next year. Really? We're working really hard right now to get that going. Because we get a ton of requests for people

who used to live here, now live on these coasts, or like I need the celebration cake. Like I have to have it, or I want to send it to my best friend who lives in Boca-Rita, like people are like, we need, we need to be able to move these things. Oh, for sure. That's the next big one. Oh my, we gotta get more need to be able to move these things. Oh, for sure. Like, for sure. That's the next big one.

Oh, you guys get more on which is the lady. That's the only exciting item. Let's just hope that happens. But like I said, you can go on the website. Just don't order any cake. And, but if you do, try to maybe send an email about the seven layers and see what they are coming in. Those are the best.

So where is it? Susie Kakes. Susie Kakes. So calm. Yeah. And I think that's basically that's all. I mean, we're pleasure and thank you for coming on. Thank you. I hope you enjoyed this episode. I'm Heather Monahan, host of Creating Confidence, a part of the YAP Media Network, the number one business and self-improvement podcast network.

Okay, so I wanna tell you a little bit about my show. We are all about elevating your confidence to its highest level ever and taking your business right there with you. Don't believe me, I'm gonna go ahead and share some of the reviews of the show so you can believe my listeners. I have been a longtime fan of Heather's,

no matter what phase of life I find myself in, Heather seems to always have the perfect gems of wisdom that not only inspire, but motivate me into action. Her experience and personality are unmatched and I love her go-getter attitude. This show has become a staple in my life. I recommend it to anyone looking to elevate their confidence and reach that next level.

Thank you! I recently got to hear Heather to elevate their confidence and reach that next level. Thank you! I recently got to hear Heather at a live podcast taping with her and Tracy Hayes, and I immediately subscribe to this podcast. It has not disappointed, and I cannot wait to listen to as many as I can, as quick as I can. Thank you, Heather, for helping us build confidence

and bring so much value to the space. If you are looking to up your confidence level, click creating confidence now. much value to the space. If you are looking to up your confidence level, click creating confidence now.