How This Small Local Bakery Turned Itself Into a Wholesale Powerhouse Tres Lecheria transformed from a local Seattle favorite into a wholesale powerhouse by securing deals with major grocery chains.
Key Takeaways
- Keep a sharp eye on finances and product quality as you expand to ensure you’re creating a customer experience that aligns with your target market’s expectations.
- In order to be more profitable and stand out to consumers, consider focusing on one or two products that you can provide masterfully, rather than keeping a menu of moderately performing products.
- Keep in mind that expanding into new markets might mean adapting to new customer demographics and tastes. A business strategy in Oregon might not work the same in California.
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In the heart of Seattle, Tres Lecheria has evolved from a quaint bakery into a significant player in the wholesale market, supplying grocery chains with their beloved tres leches cakes. This transformation is a testament to the vision and resilience of its co-owners, Vincent Beretta and Kevin Moulder.
Related: How Tres Lecheria started their business from the ground up
Initially, Vincent's career was in cloud SaaS sales, but when his path crossed with Kevin, a seasoned cake decorator, they used their individual skills to embark on their first business venture. They started by opening Cube's Baking Company, which focused on cube-shaped pastries like "cupcubes" (cube-shaped cupcakes), pretzel cubes, and muffins. However, it was their tres leches cakes that saw explosive popularity, and that was the turning point. Vincent and Kevin pivoted their focus entirely to this product, rebranding as Tres Lecheria. Listen to the episode below to hear directly from Vincent.
Their decision to lean into the tres leches cakes paid off. They secured a deal with New Seasons Market, expanding from one store to all 18 of the chain's locations. This success was a springboard for further growth, with Tres Lecheria now in 80 stores and eyeing expansion into 80 more.
Related: How an Annoying Backbreaking Chore Sparked the Idea for This Entrepreneur's Thriving Business
Transitioning from a local bakery to a wholesale supplier wasn't without its hurdles. Vincent emphasized the importance of maintaining product quality, even when considering co-packers (companies contracted to package products for their clients) to meet growing demand. "No one is going to treat your product as well as you treat it yourself," he said, highlighting the need for stringent quality control.
Vincent knows Tres Lecheria's customers have high standards and aren't afraid to contact him about their concerns. He shared how customers act as "cheerleaders" and even "tattletales," providing valuable insights into product performance and store displays.
"We hear from everybody now," he said. "Customers let us know if a store isn't carrying a flavor they love or if there's an issue with the product display. Their feedback is invaluable."
Financial acumen has also been instrumental in guiding Tres Lecheria's growth. Vincent stressed the importance of making data-driven decisions as they expand.
"You have to track your expenses and know your numbers," he emphasized. "It's the only way to confidently say which products to invest in."
Once your business is ready to expand to new counties, or even states, Vincent cautions other entrepreneurs to be mindful about how they'll strategize growth geographically. Testing the waters with a temporary location or other promotions can help businesses determine the demographics of each area and whether they align with their target market.
"Can you run ads that'll bring this neighborhood [to a different location]? Can you do a pop up once in a while, like a farmer's market in a place you want to try out? We got in a little bit of trouble with that when we were trying to expand into California. You can't always recreate the exact same thing that made you successful in the first place. Every situation is going to be different. There's going to be different luck or bad luck involved."
Tres Lecheria's journey is a testament to the power of adaptability and customer engagement. As they continue to expand, Vincent and Kevin remain committed to these core values:
- Adapt and pivot. Be ready to shift focus based on market demand and product performance. Sometimes narrowing down to a specific product or service can become a successful niche.
- Maintain quality. Ensure product quality remains high, even when scaling up. Interview partners involved from production to distribution about their quality assurance procedures to ensure the final product meets your standards.
- Engage customers. Use customer feedback to guide product development and business decisions. Knowing your customers as your business evolves will help you stay relevant to them and maintain their loyalty.
- Plan for growth. Anticipate future needs and build capacity accordingly. Consider where you'll be in three years and how much space, inventory, and staff you'll require.
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Editorial contributions by Kristi Lindahl
This article is part of our ongoing America's Favorite Mom & Pop Shops™ series highlighting family-owned and operated businesses .
