Business resources
/ Jun 15, 2017
Rachel: We are a full service bakery so we make everything from breads, cookies, and pies, to customer wedding cakes. Cookies, pies, and brownies are our primary wholesale products.
We bake all of our products from scratch. They don't contain preservatives so they are pretty perishable compared to many bakery products. This makes distribution a bit more challenging. We deliver most of our items frozen or refrigerated to assist with the shelf life. Hopefully, we'll be able to purchase a refrigerated van later this year to help with deliveries.
Currently, we are DSD suppliers with all of our customers, which meas that we Direct Store Deliver -- delivering directly from 'Laines to the retail locations. We are working to move away from this model so that we can focus more on production and growth instead of delivery logistics.
Kiva: What packaging guidelines do you need to follow (e.g. state regs, store requirements)?
Rachel: We have to adhere to FDA guidelines for packinging, and some of our vendors have more stringent rules. These rules govern everything from the type of package, how it's sealed, to all of the information on the label.
Kiva: Please describe the process you took to identify stores you wanted to work with.
Rachel: First, we identified our branding strategy. After that, it was very easy to select stores. Within the chains that we work with, we were given a small test market of stores. When we were ready to expand, we worked with retailers to identify stores that made sense logistically (that were on our route or adjacent to it) to expand to.
Kiva: How did you approach/get connected with stores?
Rachel: We participated in a local supplier program for Whole Foods to get into our first three stores. From there we reached out to each store with samples, spoke with the managers, and spoke with the category leads at the regional office to get on the shelves. We received referrals to Starbucks and Amazon Fresh based on the work we'd done with Whole Foods. All three companies have pretty arduous requirements, but we pride ourselves on striving to exceed their expectations. The process with each is pretty similar: similar rounds of sampling and feedback, select products to start with, paperwork and review process, and facility inspection.
Kiva: What kind of marketing pitch did you create?
Rachel: Generally we prepare samples of our products, an overview of our company and what makes it different, and pricing sheets with our products, ingredients, allergy information, and pictures.
Kiva: How do you evaluate pricing?
Rachel: We have a recipe costing system called Cake Boss which is really made for home bakers, but the price point is right so we've been able to make it work. We are able to track all of our raw ingredients, labor, and packaging costs here. Whenever something changes, all of the recipes and packages are updated. Pricing is exported from this software to a spreadsheet to add in the distribution and marketing costs and necessary margin. If I import the prices and an ingredient cost changes making the profit margin no longer sustainable, the spreadsheet quickly shows me where we need to make pricing adjustments.
Kiva: How do you manage inventory?
Rachel: We manage wholesale inventory through Xero, our accounting system. Retail inventory is handled manually currently, but we're moving towards keeping track of it in our POS system, Shopkeep.
Kiva: How do you handle shipping?
Rachel: We use software called Ship Station which I connected to our UPS, FedEx, and USPS accounts. It simplifies a lot of the pricing and administrative work for us.
Kiva: What challenges have you faced?
Rachel: Our biggest challenge is that we are severely under-capitalized which limits our growth and means that we temporarily have to wear more hats than we'd like.
Kiva: What successes have you celebrated?
Rachel: Landing in all of the Whole Foods stores in Illinois, being invited to Starbucks headquarters and meeting the CEO, creating our Community Partner Program and social enterprise model, and opening our first retail shop have been some of the highlights so far.
If you're in Chicago, stop by 'Laines at 11057 South Homewood Avenue for a sweet snack! Online, find 'Laines on their website, Facebook, Instagram, and Twitter.
One of the truly special things about Kiva entrepreneurs is that so many are highly mission-oriented -- seeking to support, innovate, and grow their communities. We recently checked in with Rachel Bernier-Green of 'Laines Bake Shop in Chicago -- a Kiva entrepreneur, 5-star rated bakery, and community champion!
We exist to bring people together through authentic, good food as a way to catalyze urban revitalization starting with the south side of Chicago.
- Rachel Bernier-Green
Kiva: Tell us about 'Laines!
Rachel: 'Laines Bake Shop, located on the southside of Chicago, is a family operated artisan baking company with a social mission. We accomplish this in 3 ways:
- Through our Community Partner program
- Hiring from the hardest hit communities (geographically and by background)
- Sourcing from like-minded suppliers
We operate a retail bakery in Chicago's Morgan Park neighborhood, cater throughout Chicagoland, and supply scratch made treats to Illinois Whole Foods Markets, Starbucks, Amazon Fresh, and more!
Kiva: What products do you sell? What features make them easier/harder to distribute?Rachel: We are a full service bakery so we make everything from breads, cookies, and pies, to customer wedding cakes. Cookies, pies, and brownies are our primary wholesale products.
We bake all of our products from scratch. They don't contain preservatives so they are pretty perishable compared to many bakery products. This makes distribution a bit more challenging. We deliver most of our items frozen or refrigerated to assist with the shelf life. Hopefully, we'll be able to purchase a refrigerated van later this year to help with deliveries.
Currently, we are DSD suppliers with all of our customers, which meas that we Direct Store Deliver -- delivering directly from 'Laines to the retail locations. We are working to move away from this model so that we can focus more on production and growth instead of delivery logistics.
Kiva: What packaging guidelines do you need to follow (e.g. state regs, store requirements)?
Rachel: We have to adhere to FDA guidelines for packinging, and some of our vendors have more stringent rules. These rules govern everything from the type of package, how it's sealed, to all of the information on the label.
Kiva: Please describe the process you took to identify stores you wanted to work with.
Rachel: First, we identified our branding strategy. After that, it was very easy to select stores. Within the chains that we work with, we were given a small test market of stores. When we were ready to expand, we worked with retailers to identify stores that made sense logistically (that were on our route or adjacent to it) to expand to.
Kiva: How did you approach/get connected with stores?
Rachel: We participated in a local supplier program for Whole Foods to get into our first three stores. From there we reached out to each store with samples, spoke with the managers, and spoke with the category leads at the regional office to get on the shelves. We received referrals to Starbucks and Amazon Fresh based on the work we'd done with Whole Foods. All three companies have pretty arduous requirements, but we pride ourselves on striving to exceed their expectations. The process with each is pretty similar: similar rounds of sampling and feedback, select products to start with, paperwork and review process, and facility inspection.
Kiva: What kind of marketing pitch did you create?
Rachel: Generally we prepare samples of our products, an overview of our company and what makes it different, and pricing sheets with our products, ingredients, allergy information, and pictures.
Kiva: How do you evaluate pricing?
Rachel: We have a recipe costing system called Cake Boss which is really made for home bakers, but the price point is right so we've been able to make it work. We are able to track all of our raw ingredients, labor, and packaging costs here. Whenever something changes, all of the recipes and packages are updated. Pricing is exported from this software to a spreadsheet to add in the distribution and marketing costs and necessary margin. If I import the prices and an ingredient cost changes making the profit margin no longer sustainable, the spreadsheet quickly shows me where we need to make pricing adjustments.
Kiva: How do you manage inventory?
Rachel: We manage wholesale inventory through Xero, our accounting system. Retail inventory is handled manually currently, but we're moving towards keeping track of it in our POS system, Shopkeep.
Kiva: How do you handle shipping?
Rachel: We use software called Ship Station which I connected to our UPS, FedEx, and USPS accounts. It simplifies a lot of the pricing and administrative work for us.
Kiva: What challenges have you faced?
Rachel: Our biggest challenge is that we are severely under-capitalized which limits our growth and means that we temporarily have to wear more hats than we'd like.
Kiva: What successes have you celebrated?
Rachel: Landing in all of the Whole Foods stores in Illinois, being invited to Starbucks headquarters and meeting the CEO, creating our Community Partner Program and social enterprise model, and opening our first retail shop have been some of the highlights so far.
If you're in Chicago, stop by 'Laines at 11057 South Homewood Avenue for a sweet snack! Online, find 'Laines on their website, Facebook, Instagram, and Twitter.
