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Sous Kitchen, Inc.
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Nadine Johnson, CEO of Sous Kitchen, Inc., a food service
company based in San Carlos, CA, says, “Score was instrumental
from the beginning in helping our company get off the ground.”
In 2004, before starting Sous Kitchen, Nadine and her
sister-in-law, Diane Jacobson, brought their business plan to
the Silicon Valley Score counselors in San Jose. “The Score
counselors offered suggestions that made our plan more
attractive to financial institutions,” says Nadine. “With the
improvements they recommended, we were able to obtain about
$200,000 in start up financing from a national credit union,”
she adds.
Prior to starting Sous Kitchen neither Nadine nor Diane had
direct experience in the operations side of the food service
industry. Nadine, who has an undergraduate degree from Oregon
State University and an MBA from the University of Washington,
worked in the financial area with PricewaterhouseCoopers, with a
short-lived tech start up and with Covad Communications as
investor relations director. Diane, who has a BS degree from the
University of Puget Sound and an MBA from Carnegie Mellon
University, worked in marketing in the pharmaceutical and high
tech industries for over ten years. Both women loved cooking and
had been encouraged since childhood to explore creative cooking
arts. They had toyed with the idea of opening a store that would
allow stay-at-home moms and working women to prepare delicious
and convenient home-cooked meals with fresh, local ingredients
for their families. In 2004 while Nadine was still on pregnancy
leave from Covad, she and Diane decided to seriously pursue this
idea.
At first the women considered buying a franchise, but after
visiting the operations of a major, national franchisor and
tasting the food, they decided that they could only offer the
quality, fresh ingredients and unique menu choices that they
wanted as an independent company. With money they borrowed and
more from their own savings, Nadine and Diane opened their
store. They wanted a location close to their homes and were
fortunate to find a site in a business park in San Carlos near
US 101 that had a supportive landlord who provided partial
financing and paid for some of the required leasehold
improvements.
Before opening the store, Nadine met with Norton Pearl from the
San Francisco Score chapter. Norton had extensive experience in
the food service business as owner of the Le Pot Au Feu
restaurant in Menlo Park. “Norton’s advice was very specific and
right on the mark,” says Nadine. “He provided guidelines for how
much we should spend as a percent of sales for everything from
food to utilities. He also gave us insurance and marketing
advice,” adds Nadine. She and Diane continued to meet with
Norton after they opened the store in March of 2006. He
recommended that they not advertise in newspapers or on the
radio, but rather offer discount coupons to attract customers to
the store. “Norton told us to anticipate and plan for
seasonality in our business. If not for this advice, we wouldn’t
have recognized the swings in demand for what they were and
probably would have freaked out,” she adds.
The original business model for Sous Kitchen was for the company
to provide fresh ingredients and a facility where stay-at-home
moms or groups of friends or co-workers could prepare high
quality, home style meals that could be taken home, cooked and
served to their families. In the original business plan,
however, Nadine and Diane foresaw the potential for developing
the corporate market as well. They envisioned providing the same
high quality, home style prepared meals for busy employees at
local companies to take home from their places of work.
Fortuitously, in 2006, Nadine and Diane found another partner,
Brad Rolfe, who could help them develop this market.
Prior to joining Sous Kitchen as VP of Business Development,
Brad had many years of experience selling to corporate accounts.
“I’d always been a fan of great food,” he says. After what he
terms as an epiphany, he and his partner decided to start a
business similar to Sous Kitchen. “In an effort to learn more, I
came down to San Carlos to meet with Nadine on the premise that
I might be interested in being a customer. Of course, actually I
was spying,” he admits. “We really hit it off,” says Nadine,
“and Brad and I spent most of a day together discussing
everything from recipes to how we buy fresh, local ingredients.”
She continues, “However, I didn’t hear back from him after that
meeting until later that year when I bumped into him at a
conference of current and prospective food preparation business
owners.” She adds, “When I confronted him and said ‘you were
spying on me, weren’t you’, we had a good laugh, but actually
began discussions on how we might work together.” Brad and his
partner invested in Sous Kitchen and Brad became a full time
employee chartered with responsibility to develop the corporate
market.
In 2007, Sous Kitchen established a strategic alliance with
PurpleTie™, a neighboring company that provides dry cleaning,
laundry, clothing alterations, photo processing and other
personal needs services with pick up and delivery from home or
work places. “Partnering with PurpleTie™ was vital to our
ability to enter the corporate market,” says Brad. “Through
their ‘@Work’ program they deliver meals that we prepare to
corporate employees,” he explains. By the end of 2007, Sous
Kitchen’s revenues increased over 65% from 2006 with just two
corporate accounts – Electronic Arts and Genentech. The focus on
corporate accounts drove revenues another 30% up in 2008 with
the addition of companies such as Lockheed Martin, Microsoft and
Oracle. “We were up to 78 corporate accounts that comprised
about 90 percent of our revenues in 2008,” says Nadine.
In September 2008, Sous Kitchen won a prestigious award from the
Count-Me-In foundation, a national non-profit that is devoted to
encouraging and supporting the growth and success of women-owned
businesses.
“We’re very proud of our growth and expect to exceed $1 million
in revenue in 2009 even in the current poor economy,” says
Nadine. “However, we still need to focus on operational
efficiencies so we can fund our expansion and that’s our
immediate objective,” she adds. With this in mind, Nadine has
met with Jill Breckenridge of Silicon Valley Score to take a
hard look at Sous Kitchen’s financials. “Although I watch the
numbers pretty carefully,” says Nadine “it’s always useful to
have a ‘second pair of eyes’ to check what you’re doing and to
play devil’s advocate.” In addition, Jill is providing advice on
public relations and marketing to help Sous Kitchen reach its
goal of 200 corporate accounts by the end of 2009.
Nadine, Diane and Brad have big dreams for the future of Sous
Kitchen. They’re in negotiations for retail placement of frozen,
prepared dinners and are considering ways to implement national
distribution to corporate clients. “Diane, Brad and I have
complementary strengths,” says Nadine. “I think we make a strong
team and we have a strong business plan. But, there’s one thing
I’ve learned from our experience and that is ‘don’t be afraid to
ask for help’.” She concludes, “Score counselors have a wealth
of experience in all aspects of business, and because they are a
national organization, Score clients can access all of these
resources. And, amazingly, it’s free. Where can you get a better
deal that that?”
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©2011 Silicon Valley SCORE
We are open during most business days from 9AM to 5PM
234 East Gish Road, Suite 100, San Jose, California 95112
1-408-453-6237 info @ svscore.org |
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