A MESSAGE FROM THE FOUNDER
"Claudia’s Bake Shop will be a place that feels like home. Inspired by the classic pastries that my family loves, we will have a rotating selection of cookies, cupcakes, scones, brownies, and cakes, while also offering traditional Jewish delicacies like babka, rugelach, and challah, introducing the Richmond community to new flavors. Visitors will also be able to rely on gluten-free and nut-free options that I’ve been baking for friends and families for years.
When I moved to Richmond by myself a few years back, I was welcomed by a wonderful and vibrant community. Now I want to give back to the community by providing a place where everyone can feel at home.”
—Claudia Strobing, Founder, Claudia’s Bake Shop
WHY YOU MIGHT INVEST
- Claudia’s Bake Shop will offer a variety of delicious baked goods to the downtown Richmond, VA area and will have gluten free and nut free offerings.
- Founder has nearly 30 years of professional pastry experience, including running a catering company and managing a bakery.
- Assistant has 5 years of experience in operations and marketing, 3 years of experience in coffee, and will spend the next 4 months as an apprentice learning to bake.
- Revenue projected to be $312,000 in the first year of operations and grow at a compound annual growth rate of 21.5% to $679,5365 in the fifth year of operations
Industry Spotlight
- The Coffee and Snackshop industry accounts for $50.7 billion in revenue
- Since 2014, the industry has seen a 4.6% growth, and is projected to continue positive growth into the 2020’s
BUSINESS MODEL
- We plan to serve a varied, rotating selection of pastries with a few cookie, brownie, and cupcake staples that will rarely change.
- We intend to begin social media and print advertising and will rely heavily on social media to communicate with customers.
- We will begin weekly Instagram competitions for a free cookie or brownie to encourage engagement on social media and reward loyal followers
- First year projections are based mostly on foot traffic; however, we will be pursuing wholesale contracts as soon as possible, looking to expand wholesale and catering contracts over time.
- We will also take custom wedding and birthday cake orders. Wedding cakes are time consuming but extremely profitable, so we will likely rely on this as a more consistent revenue source as we streamline operations over time.
- We are hoping to participate in pop-ups with breweries, shops, and other restaurants around Richmond to cross-pollinate with existing small business/restaurant-focused networks.
LOCATION ANALYSIS
- The new location on 800 West Marshall Street has an impressive 94 Walk Score and 81 Bike Score.
- The downtown Richmond area is densely populated (~8k per square mile), with a majority of residents in their 20s.
- Located across from a VCU parking structure, making us a prime location for professors and staff to get a morning coffee before class
CLAUDIA'S BAKE SHOP
Claudia has been a professional pastry chef for nearly 30 years, working in world class kitchens, founding her own catering company, and most recently, managing a Publix bakery. Claudia's favorite part of baking is sharing delicious pastries with friends and family, and now she wants to bring her expertise to the greater Richmond community. Furthermore, there's a lack of Jewish delicacies in Richmond, and Claudia is excited to introduce locals to the delicious world of babka (chocolate braided bread) and black and whites (cake-y cookies with vanilla and chocolate icing), among other classics. Claudia's daughter, Nicolette, is both a non-profit management professional and a Starbucks-trained barista, making her well suited to manage marketing, operations, and hiring, as well as the coffee bar.
The space, which will be fully renovated, will offer state-of-the-art baking and espresso equipment, an open floor plan with bar seating, and a friendly and inviting color scheme.
The Market
The bakery will be aimed primarily at three distinct markets: the millennial generation in Carytown, the Greater Richmond Jewish population, and students and staff at VCU.
The location of the bakery in the Carytown area automatically makes it accessible for millennials. Carytown and neighboring areas are seeing a boom in local businesses, restaurants, and shops, supported by younger residents. In addition, since many millennials do not seem interested in owning a home, they are capable and willing to spend disposable income on specialty coffees and “treats”. The bakery will have both.
The Jewish population of Richmond is about 12,000 people. There are no kosher butchers, kosher bakeries or kosher restaurants in Richmond or the surrounding area. By attaining a Kosher Dairy designation, the bakery will be a draw for the Jewish population. Richmond is a growing city and the Jewish population will grow with the city. Jewish individuals and families moving to Richmond will likely come from cities which have Jewish food and they will be looking for someone to fill that void.
Our most likely location will put us right outside a new parking structure for VCU. This will put us right in the path of hundreds of staff members who may want a pastry and coffee before their morning classes. We also intend to take VCU dining dollars, making Claudia's Bake Shop an attractive option for students looking to eat off-campus without taking money out of their own pocket.
