Cheesecake Business

Business By LoveonCloudCupcake Updated 29 Dec 2013 , 3:24am by Stitches

LoveonCloudCupcake Posted 28 Dec 2013 , 3:43am
post #1 of 13

AI know it's not exactly cake but I was wondering if anyone had any pointers on starting up a business in cheesecakes? Under TX cottage food law I cannot sell cheesecakes out of my house, and to rent a commercial kitchen in the city is $37 an hour. We all know how long cheesecakes take. How do I get my cheesecakes out there for tasting and to build a following?

12 replies
enga Posted 28 Dec 2013 , 3:53am
post #2 of 13

http://www.culinaryincubator.com/maps.php?state=KY

If its legal to sell cheese cake out of a commercial kitchen, Check out winter festivals and fairs and rent a booth, offer samples to local businesses, advertise on social media, ect.

LoveonCloudCupcake Posted 28 Dec 2013 , 4:03am
post #3 of 13

AThank you for the link, sadly I am no longer in Ky. (Need to update that)

Just wondering, how long does anyone think I should bake/sell cheesecakes for before opening a store front ? How many years or so?

jason_kraft Posted 28 Dec 2013 , 4:08am
post #4 of 13

ADepending on supply and demand you may be able to negotiate a lower price on a commercial kitchen rental. Other alternatives may include church kitchens, renting a kitchen from another business during off-hours, or finding your own dedicated kitchen space (and potentially renting to others to recoup some of the cost).

It's possible that a low-volume cheesecake business is simply not feasible in your area (meaning a dedicated kitchen or storefront would be a necessity), I would work the numbers and see what rental options are available before worrying about tastings.

jason_kraft Posted 28 Dec 2013 , 4:11am
post #5 of 13

A

Original message sent by LoveonCloudCupcake

Just wondering, how long does anyone think I should bake/sell cheesecakes for before opening a store front ? How many years or so?

There is no one correct answer to this question. If you already have a recipe and process that differentiates you from your competition based on your market research then you should be ready to go as soon as your business plan/marketing strategy is complete and you have identified a rental option that works for long-term profitability. If any of these pieces are missing it may take months or years before a successful launch is feasible.

LoveonCloudCupcake Posted 28 Dec 2013 , 4:14am
post #6 of 13

ASo let me pitch you this idea. Cheesecake isn't big in my town (13k people) or the town next to me of 300k people. There's places solely dedicated to cakes/cupcakes and a few to pies but nothing to cheesecakes. A talk of The Cheesecake Factory have floated around but nothing is confirmed.

My husband came up with this idea.

Open a store, that serves different flavors of cheesecakes. Rotate flavors through out the week and have 2 or 3 simple main flavors for kids, and have a sort of candy bar with sauces. You know like frozen yogurt places have?

He told me to look into everything and see if it was possible.

jason_kraft Posted 28 Dec 2013 , 4:25am
post #7 of 13

A

Original message sent by LoveonCloudCupcake

Cheesecake isn't big

This is the key. Why isn't cheesecake big? What would you do to change that? How successful do you think you will be? Among product offerings from existing businesses in your area, which are substitutes and which are complements, and how will you address each one? What will be your differentiators? Are there wholesale opportunities?

enga Posted 28 Dec 2013 , 4:37am
post #8 of 13
Quote:
Originally Posted by LoveonCloudCupcake 

Thank you for the link, sadly I am no longer in Ky. (Need to update that)

Just wondering, how long does anyone think I should bake/sell cheesecakes for before opening a store front ? How many years or so?


Perfect and cost out your recipes, packaging and overhead. To see exactly how much it cost you to make each cheesecake. I believe in networking, check out a few small businesses and strike up a conversation, you will be surprised with the knowledge that they will share with you. Make a niche for yourself do something that sets you apart. And search for your target market, Maybe Love on a Cloud Gourmet Cheesecakes:lol:

 

That's what is so unique about incubator kitchens, they have a lot of resources for someone in your position. Once you get a feel for starting off small and establishing your brand you will be in a better position to decide if this is something you want to expand on or not.

 

Research, network, do your homework and really think about if this is something you want dedicate 60-80 hour a week to.

 

I wish you the best of luck!

 

Ooooops, just notices your post.

 

http://www.culinaryincubator.com/maps.php?state=TX

Stitches Posted 28 Dec 2013 , 4:08pm
post #9 of 13

Quote:

Originally Posted by jason_kraft 


This is the key. Why isn't cheesecake big? What would you do to change that? How successful do you think you will be? Among product offerings from existing businesses in your area, which are substitutes and which are complements, and how will you address each one? What will be your differentiators? Are there wholesale opportunities?

That comment in your post really jumped out at me, tread lightly if you think cheesecake isn't big in your area. I've worked in any different areas around Chicago and each suburb/area does have things they buy a lot of and items they just won't buy. For example the north shore people LOVE homemade cookies. But the town I live in no one will buy high quality scratch baked cookies.

 

Some purchases are based on perceived value, like why would I buy 6 mini scratch baked cheesecakes when I can buy a large (frozen name brand cheesecake) for less money. You've got to have customers who love cheesecake enough to pay more for yours than the frozen ones so widely available.

 

You're looking at a huge struggle if you've got to change peoples opinions to just try your product. If people in your area think cheesecakes aren't as exciting as eating ice cream.......you aren't going to get them to give up eating ice cream to buy your cheesecakes. Or if they think cheesecakes are too high in calories you've got to change their opinions of what they splurge on....make them believe your cheesecakes are better tasting than their ice cream.

 

From my experiences selling wholesale you can't break into that market. The big manufacturer's make really good tasting cheesecakes and sell them for less money than you can buy your ingredients for.......let alone the cost to turn on your ovens. The network of wholesale suppliers selling cheesecakes is huge like ice creams, you'd have to give yours away for free to compete.

 

BUT there are some small niche companies that are doing quite well selling cheesecakes. They've done their homework and are located in smart places and really are marketed well. You'll have to be very smart and very good to compete with this product.

liz at sugar Posted 28 Dec 2013 , 9:23pm
post #10 of 13

Quote:

Originally Posted by Stitches 
 

That comment in your post really jumped out at me, tread lightly if you think cheesecake isn't big in your area. I've worked in any different areas around Chicago and each suburb/area does have things they buy a lot of and items they just won't buy. For example the north shore people LOVE homemade cookies. But the town I live in no one will buy high quality scratch baked cookies.

 

Some purchases are based on perceived value, like why would I buy 6 mini scratch baked cheesecakes when I can buy a large (frozen name brand cheesecake) for less money. You've got to have customers who love cheesecake enough to pay more for yours than the frozen ones so widely available.

 

You're looking at a huge struggle if you've got to change peoples opinions to just try your product. If people in your area think cheesecakes aren't as exciting as eating ice cream.......you aren't going to get them to give up eating ice cream to buy your cheesecakes. Or if they think cheesecakes are too high in calories you've got to change their opinions of what they splurge on....make them believe your cheesecakes are better tasting than their ice cream.

 

From my experiences selling wholesale you can't break into that market. The big manufacturer's make really good tasting cheesecakes and sell them for less money than you can buy your ingredients for.......let alone the cost to turn on your ovens. The network of wholesale suppliers selling cheesecakes is huge like ice creams, you'd have to give yours away for free to compete.

 

BUT there are some small niche companies that are doing quite well selling cheesecakes. They've done their homework and are located in smart places and really are marketed well. You'll have to be very smart and very good to compete with this product.


Ditto.  Our food vendors sell some VERY delicious cheesecakes - and because they are perishable and must be frozen/refrigerated along the delivery chain, they don't need to add tons of preservatives and additives.  Some are very similar in ingredients to a house made cheesecake.

 

The fro yo shops where you add your own toppings have been a success because people think it is (or can be) a healthy snack . . . until you add the toppings.  It may be hard to sell cheesecake as the base product for the toppings - already high in fat and calories, and it just gets worse with the toppings.  Maybe that is why no one has tried this concept to date??

 

Best of luck in whatever you decide to do.

 

Liz

jason_kraft Posted 28 Dec 2013 , 10:01pm
post #11 of 13

AFrozen yogurt is a very different business model...the closest analogous mainstream business I can think of off the top of my head is Nothing Bundt Cakes: http://www.nothingbundtcakes.com/

There are a few local specialty shops that feature cheesecakes so it's not unheard of, e.g. http://www.thecheesecakeshoppe.com/

You could also look into a niche market, for example we sold a decent amount of vegan and/or gluten-free cheesecakes.

LoveonCloudCupcake Posted 28 Dec 2013 , 11:27pm
post #12 of 13

AAwesome! Thank you ladies. You all have gave me great tips and pointers. Is there a program anyone used to track their expenses & profit?

Stitches Posted 29 Dec 2013 , 3:21am
post #13 of 13
Quote:
Originally Posted by LoveonCloudCupcake 


Is there a program anyone used to track their expenses & profit?

Quick Books is what I use. But I'm not sure why you ask.......some simple math of costing out your recipes will tell you your profitability.

 

If you want a peek of some numbers (here's some numbers from my product costing):

 

$6.87 per 9" NY cheese cake

$2.77 per 9" graham cracker crust (baked from scratch)

$1.40 per Box & Cardboard (it's got to be a solid cardboard box for freezing not a cheap cake box)

pan spray

&

Labor to: mix, make crust, prepare pan, portion, de-pan, wash pan, put cake on cardboard, fold cake box, slice cake, make garnishes, decorate cake, deliver cake, office worker to type invoice, etc...

Overhead: rent, utilities, taxes, labels, etc....

 

It's got to cost you a minimum of $15.00 per 9" plain cheese cake made from a non-factory store with-out any garnish. Big distributors charge any where from $12.00 to $40.00 wholesale

Quote by @%username% on %date%

%body%