A NEW YEAR
I just can't believe another year has passed...it has flown by! As with any start-up, we have had our ups and we have had our downs. I truly believe that most of the battle is just continuing to get back up again when you fall, adding a big dollop of problem-solving and a splash of heart.
Some of the challenges this year, CAPACITY: All year we were making croissants and sourdough at max capacity and still selling out and disappointing our guests. REGULATORY: On Oct 27th, we were required to close, pending completion of a kitchen renovation, and Jenny and I experienced one of our toughest days yet when we let go 27 of our team members (and made sure they all landed safely).
I'm proud of what our team has been able to accomplish this year. With our October closure, we ended up being closed 21% of the year but were still able to grow our sales 37% over last year. The closure ate up our $175k net profits for the year, but I am stoked that this year we proved a path to profitability. And while we've been closed, our IZOLA CORE team has tested over one hundred new, original recipes. And let me tell you friends, there is some amazing food headed your way.
Jenny and I focused on both the current guest experience and prepared for the future - ensuring our guests continue to be delighted by our service and food while putting the necessary pieces in place to scale. We launched a new workforce management system and found our key partners for the IZOLA Main build, including the manufacturer of our croissant production equipment, sourdough equipment, material handling, and MES (Manufacturing Equipment System) software.
THANK YOU to each one of you for inviting IZOLA into your lives. We appreciate each guest who has shared with us when they are delighted and even more so when they are disappointed by their experience so that we have the opportunity to do better. And to each IZOLA team member who provides feedback on how we can improve IZOLA, making it a rewarding place to work, and to our friends and families who support us every step of the way, even as we sacrifice our time with them to push IZOLA forward.
We wish you and yours a very happy new year!
Cheers!
Jeffrey and Jenny
HAPPENING TOMORROW!
I know we've been coming at ya for over a year now with our equity raise...our plans are bold as we expand our disruption of the American bakery experience. Join us tomorrow January 3rd at 7p on Google Meet to learn about how we're utilizing the funds raised to scale our justice-based mission and bring great-tasting, high-quality croissants, sourdough, and delight throughout San Diego County (and possibly beyond!).
This equity raise will close on February 29th, so if you've considered investing, now is the time.
*Please only invest an amount you would feel comfortable losing. Investing in private businesses involves risk. Though potential returns are designed to reflect that risk, there is a possibility that you will lose your entire investment.
Our bellies are full and happy after having just had our last taste test of the year...And now Jenny and I are winding down as we get ready to spend a few days with family over the holidays.
It is a very different holiday season for us this year. Normally we would have a Christmas tree decorated at the bakeshop and we'd be gearing up for a holiday party with the team for some fellowship. I loved serving hot wassail to guests and encouraging them to join me in singing the Wassail song.
This year we are still surrounded by an amazing team and accomplishing some really exciting things, but it's a quieter holiday season here at the bakeshop...We are so appreciative of the IZOLA Core team and the hard work they've been investing into IZOLA. Thank you Jeff, Lidia, Jesus, Lane and Alejandra.
And to the entire IZOLA Family, we wish you a very happy holiday season. We hope it's filled with lots of love and great fellowship!
RENOVATION UPDATES
With our plans finalized, we're kicking it into high gear to get the renovation started in January. We had about 15-20 subcontractors come to walk through the project. Once construction begins, we'll be running 6 days a week, 10 hours a day to reopen as soon as possible.
Our project manager, Alejandra, has been on the phone and email non-stop working on obtaining estimates, contracts, scheduling tests and walkthroughs. This week she organized a test on a possible high-temp dishwashing machine.
If you've dined in the bakeshop before, you might have noticed that most everything we serve you with is reusable. As part of our environmental justice mission the only item that is thrown away is a small sheet of parchment paper that we line our serving trays with. We wash a thousand dishes BY HAND each day. Adding a new dishwashing machine during this reno is going to allow us to work much more productively while still staying true to our environmental justice goals.
Thank you to customers Muna and Omar! They read about our testing with za'atar and came by to offer a tasting of the za'atar they bring back whenever they travel to Palestine. Here you can see a comparison of the za'atar we were using against theirs. Not only is the color richer, but the mouthfeel and flavor were on a whole other level! Yum!
OVER 500 INVESTORS!
Round 3 of our Equity Raise ended on a high note on Wednesday - we now have over 500 investors and owners of IZOLA. This truly has been a community effort and we are so grateful for the faith the IZOLA fam has placed in us...thank you for joining us on this journey!
We did come up $33k shy of our goal - and so onto Round 4! Round 4 will be the last round in this current equity raise, ending February 29th, 2024. Once this raise closes we'll be re-assessing the offering and also re-certifying with the SEC for a new round.
To renovate 13th Street and bring the kitchen up to commercial standards will cost over $300k alone.
IZOLA Main, our planned zero-emission dough factory in City Heights, will allow us to expand our production capacity by 20x, increase efficiency, improve food quality, create high-quality job opportunities, and empower us to open distribution channels throughout Southern California. It's a bold vision that requires $6M+ in capital to bring it to life and maximize the value to our community for decades. Learn more about our plans at our next online IZOLA Investor Conversation on January 3rd at 7p PST.
THE RESOURCES WE RAISE THIS YEAR WILL DETERMINE IZOLA'S IMPACT NEXT YEAR.
GROWTH. JOBS. JUSTICE.
*Please only invest an amount you would feel comfortable losing. Investing in private businesses involves risk. Though potential returns are designed to reflect that risk, there is a possibility that you will lose your entire investment.
MILESTONES ACHIEVED!
WOOOHOOO! We had a big week last week, having achieved two super important milestones.
First, the San Diego Department of Health has approved our food service plans for the 13th Street renovation! Thank you to Ryan Johnson and his team for their responsiveness and guidance in navigating this process.
Secondly, with the leadership of Carlos and Barb at Heleo Architecture, we've completed our 100% CD Set. Woot!!! I will say, it was a very challenging task, bringing together teams of engineers, regulatory stakeholders, and IZOLA-specific production requirements to create a great new guest experience. Check out the full set (all 107 pages) below - pay close attention, there'll be a test at the end of this! 😉
The 100% CD set will be re-submitted to the San Diego Development Services Department (DSD) to satisfy their change requests, and also circulated to our General Contractor to shift the pre-construction process into high gear (and compress our renovation period as much as possible, I'm targeting a very aggressive 30-day construction window), and to the building ownership for final approval of our plans.
For the past several months we've been procuring materials and equipment in advance, as well as bids, so we can hit the ground running when construction begins. I've been working closely with our full team - our architect, food service consultant, MEP+S engineers, fabricators, suppliers and builders - to ensure our Construction Documents are accurate and detailed down to every plank, wire and screw.
Designing for IZOLA 13th Street is particularly challenging given its age - the 4th floor loft is very small, there is not a single flat spot in the roof of the loft or any "as built" plans. But now I know where every wire, pipe and vent in the space is and where all new equipment will go. The goal for all of this pre-work was to minimize the number of change orders (my goal is zero!) we'd encounter during renovation, which will save us both time and money.
Stay tuned for updates on construction and our reopening date!
CROISSANT BAR
As part of our renovation, we are planning a street level "croissant bar." We're still working on the regulatory permissions, but we think it will really help activate the block and public space, as well as just be a great spot to enjoy a croissant and cappuccino. It will also provide a faster in-and-out experience for pre-order pickups.
East Village Green, the 3.6 acre community park under construction across the street from IZOLA, is also due to be completed in 2025. It will be a vibrant addition to the neighborhood with a 2-story community center, off-leash dog park, children's playground, and much more, making our croissant bar a great stop for folks on their way to the park.
We've also applied for a type 41 license (for beer and wine only). We're thinking it would be nice to have a glass of bubbly with a croissant! Our vision is a highly curated menu...think 4 items, like one super mineral-forward Sauvignon Blanc, one Central California Coast Red Zin, a Prosecco (TBD) and one Belgian beer like Leffe, Chimay or Duvel.
So much in the hopper for IZOLA in 2024!
THE RESOURCES WE RAISE THIS YEAR DETERMINE IZOLA'S IMPACT NEXT YEAR
GROWTH. JOBS. JUSTICE.
We are reaching out to our community to join us and become an owner in IZOLA through our equity raise. Learn more in the video below, or join us for our next Investor Conversation on Google Meet - this Tuesday at 4p. Our 3rd round rolling close ENDS THIS WEDNESDAY, so join us on the call and come with your questions!
We have $57,500 left to raise to hit our goal for this round. It's gonna be a big stretch, but we know it's possible!