Starting with an Ending

 

So, how is Butter Bakery as 2023 starts up?

I've always been somebody who considers one day to be as much as another - each being a gift to be grateful for, and especially, to take one day at a time.  But, since I did complete the purchase on December 31, 2006, every January 1 does mark a milestone as I add up another year to owning and operating Butter Bakery Cafe.  In the spirit of thinking about beginning another year, I've been thinking a lot about where we have been this past year.

 

What can perhaps best help describe where we are is the recent news (Dec 28) that our partner in sustainable restaurant operations - Common Roots - closed after 15 years in business. They will be dearly missed as a community hub, a model of integrity, and good friends in the effort to provide values-based dining.  Their struggles to survive are the same ones we face - and your wondering if Butter might be able to survive is fair.

I've always admired Common Roots for its mission and values-oriented operation.  Danny Schwartzman inspired me and challenged me, gave me great insights and tools to become a more transparent and committed part of the local food system.  We shared many of the same vendors, same customers, and same desires for our businesses and community.  Along with Tracy Singleton at Birchwood, I often felt like the "little brother" to their grander efforts.  Because Butter never considered itself as "dinner" we didn't face as many staffing and supply challenges as Common Roots and Birchwood.  Yet, as a trio we held each other's hands as we prepared for and launched no-tip pricing models and sought to increase wages, benefits and compensation as independent small businesses. I am a better business because of their accomplishments and experiences.

I was also motivated to show up for legislative and civic action because of Tracy and Danny - starting with the effort to bring paid sick time to all Minneapolis workers.  Danny's efforts to create and support the Restaurants Rising, the Hate Has No Business Here, and the Shop Your Values campaigns here in Minneapolis, gave me outlets to lift my voice, leverage our business presence, and create meaningful change.  And I knew that my own foray into organics composting would have stronger influence because of support from people like Danny and Tracy.  I learned from Tracy about history of tipping, and together the three of us charted a path to offer it our restaurants, knowing we truly needed each other for efforts like these.

 And just as Danny noted in his goodbye letter to the Common Roots community, the efforts to be a values-based independent restaurant don't translate into big profits and smooth day to day operations.  I understand those stressors and feel them as well.  Butter has indeed suffered heavy losses over the past three years and, like Common Roots, I too have to consider on a regular basis whether our model has the ability to survive another year.

 Is Butter's closing on the horizon as well?  Fortunately, no, I haven't reached that point.  But Butter Bakery Cafe won't last much longer either unless conditions improve soon or we can find additional ways to adapt our business model to get back to break-even.  I do have reasons to remain hopeful, but the reality is that there are still lots of troubles ahead that continue to weigh heavily on me.

In the spirit of transparency, and because it's usually quite difficult to be able to have a full conversation across the bakery case when I get asked - How's it going? -  here's the longer version of "oh, it's going ok - the doors are open again today."

 on the "hopeful" side

We've begun a connection to Children's Theater for intermission cookies that gives us a little extra cash flow.

We're preparing to restart our Community Supported Bakery again - bringing an upfront investment and a small, steady core group through the shop on weekday afternoons.

Our Saturday brunch activity is rebounding after being closed for Saturdays in September when we were short cook staff.

We are seeing requests to support events, school connections, office meetings and family gatherings again...slowly.

We learned during the pandemic's early months how to manage the cafe with a smaller crew - and my ability to be here as the back-up barista and cook keeps our doors open for now, until customer traffic can allow for more hiring.

We have a new partner in the Curry Diva, holding pop-ups at our cafe, to help a little with our increased rent cost.

The pandemic taught us how to be better with online and delivery options, as well as offering more "pantry" items and ingredients for sale.

Nicollet Avenue (and indeed directly behind us on 37th Street) housing developments are already bringing new neighbors, with many more to become part of our neighborhood in the year ahead.

on the "troublesome" side

The lack of kitchen staff often means less available for sale - and kitchen sales have been a necessary part of our model to sustain the rest of the staffing.

Last year's inflationary ingredient cost increases (nearly 20%) pushed us into another round of menu price increases that might have put us past our hoped-for "affordable" range for neighbors we depend on for daily activity.

I was fortunate to receive an Emergency and Injury Disaster Loan (EIDL) from the SBA early on in the pandemic that provided cash flow cushion while awaiting other assistance like the PPP.  That cushion is however nearly gone now with loan deferment running out in the next few months.

There are few expectations that additional grant support from the city, state or federal government are on the way in the coming year.  The overall "attitude" is that things seem to be back to normal and businesses should be able to make it on their own now.

Our 16-year relationship with Big River Farms CSA (30 members on average) ended last fall - so I would like to find another CSA farm program to fill that gap in customer connections this coming summer.

Our average daily transaction count is still 20-30% below pre-pandemic levels and at this point I'm not sure it will return fully, A busy Saturday/Sunday Brunch originally covered about 30% of shop revenue, and we still aren't in a position to reopen on Sundays.

Slower traffic means more spoilage and loss of product - we're not selling everything we purchase and prepare.

 

So, why am I still sticking with it this year?

I see a great opportunity to participate as a business voice for support in this year's state legislative session.  After six years of organizing, we may finally see Paid Family and Medical Leave become available as a benefit to workers of small businesses like mine and Common Roots.  My costs for caring for staff leave times have always gone well beyond the "earned" time benefits we offer as a part of being a Minneapolis business.  While the pandemic brought some options to support these extended leaves, those supports are gone and yet the needs continue.  I want to be there when Paid Leave for All finally does pass, and then to be able to offer it to my employees.

I just signed a new five-year lease with our landlord, Beacon Housing, and it carries a big financial responsibility to fulfill.

We have made many connections to newer businesses and ones preparing to open, and I'm really trying to prove that it's possible to run a socially responsible business in this environment.

We received funding for projects to complete this coming spring as a part of neighborhood efforts to improve pollinator habitat and be better water stewards, so I want to honor those commitments.

And somehow, 20 just seems like a number of years to aim for before turning this business over to another intrepid entrepreneur - that's 3 years out still...and it would get me closer to something like a "retirement" stage.  Although having already "retired" from teaching to operate Butter Bakery Cafe, I recognize that I'm not likely to sit down quietly after this adventure.

 

Congratulations Danny and the Common Roots staff and community.  15 years is remarkable and indeed an accomplishment to be proud of.  Your gardens and cistern will provide a next business with a "way better than you found it" starting place.  And your positive influences on the small business community, the local food system, and indeed the city itself will be ever-lasting.  You will be missed.

 

I can only hope to fill a small part of the void that is created by loss of Common Roots, but I am indeed committed to doing so.

 

peace in this new year as we walk the green path together

Dan