By Agnes DeFranco, Minwoo Lee, Hospitality Analytics and Innovation Lab, Conrad N. Hilton College of Global Hospitality Leadership, University of Houston; Hawon Shim, Korean Broadcasting System (KBS)
In the heart of Houston, Texas is a thriving bakery that embraces traditions, technology, and innovation.
From Fine-dining to a Thriving Cupcake Business
Brad Dorsey graduated with a hospitality degree, worked with a large restaurant group, and even owned a fine-dining restaurant in Los Angeles. But, when the heart calls, he returns to Houston, Texas. Together with a business partner who has a creative and film background, they opened a bakery. And at the late stages of that planning, unique and memorable surfaced as their two guiding words, and they decided to specialize in cupcakes. However, when the bakery started, they offered croissants from scratch, muffins for breakfast, and all kinds of products. But the customers all gravitate to their cupcakes and as one would say, the rest is history. Brad also stresses that he and his partner always feel that cupcakes is kind of an American classic, everyone likes cake.
That was 2008, and 18 years later, there are two amazing locations and business is good. Why is Crave so popular? Brad notes two reasons: local products and high-quality products!
Crave make everything from scratch every day. They crack eggs in the bakery, use high quality butter, and everything on the shelves is sold today. Then, they start all over again the next day. As Brad confirms, in the bakery business it is high quality and freshness that are the key to success.
Production Pairs with Philanthropy
To have fresh products every day when the bakery opens means there are no products at the end of every day. Brad has production down to a science. The daily demand is estimated from walk-in customers and pre-orders. The crew comes in early and begins to leave around noon. The baking is done in smaller batches. By closing, anything that is still on the shelves will be sold at a discount and whatever is not sold, it will be collected and donated to charity.
The Faves at Crave
Crave has a standard menu they offer all the time, like vanilla, strawberry, dark chocolate, and milk chocolate. To entice the palate of their customers, they will add unique flavors like carrot,
lemon, coconut, salted caramel and the like. Of course, every holiday has its own favorites, such as pecan pie-filled cupcakes for Thanksgiving, ginger nutmeg spiced chocolate for Christmas.
Other than major holidays, Crave also has some special fun promotions and items that are unique. They often collaborate with some other local bakeries and businesses such as having a Dubai chocolate cupcake with a local chocolatier.
But what is their best seller? Drumroll…the red velvet cupcake. Brad attributes this to the contrast of a less sweet cake paired with a rich cream cheese frosting. Or maybe we are just in Texas!
The Cupcake Business Mix
At the store, customers carry out one box, two boxes, and sometimes even bags that a staff member has to help them to the car with the goodies. At Crave, about a third of the business are pre-orders, which could be for parties at home or a business luncheon. The other two-thirds are simply walk-in customers.
Cupcakes are great for celebrations. In a city of over six million, someone has a birthday every day.
Crave also works with Uber Eats, DoorDash, and their own delivery service. So, a cupcake is simply a few clicks away!
Oh, and do not forget the four-legged friends! Crave also has healthy dog treats with only four ingredients: peanut butter, apples, oats, and bananas. But if you want the recipe, you will need to pry it from Brad!
Traditions, Technology, and Innovations
Tradition – bake fresh daily has been a tradition since day one. Crave is committed to just baking every day, all day long, and is a commitment that has fueled its success for 18 years, so much so that it is even in their tagline.
Technology – 18 years is a long time when one talks about technology. The point-of-sales system can now communicate with the customers, capture their information, for them to opt in of Crave’s news, etc. This allows Crave to build that customer relation!
Innovation – Being a scratch kitchen, Crave uses a business platform to source items they need and has really benefited from using some business-to-business websites. One special innovation is that Crave source its vanilla beans from Uganda and now not only makes its own vanilla extras but also serves as suppliers to other bakeries, grocery stores, restaurants, and hotels across the United States.
A Sweet Cupcake Advice
As a successful entrepreneur, Brad still gives credence to good training after college. He believes it is of utmost importance for graduates to identify a company that he or she can grow and learn from out of college. Use the time to really learn from working as a team, learn a craft, learn a skill. He also stresses that one should learn something one is passionate about. This learning provides the graduates to find their own management style, what kind of leader they want to be, what kind of style they want to have, and how they develop people and develop teams. Then, when time comes, you are now prepared to really compete.
Lastly, in hospitality, graduates also need to create a sense of value for the customers and the employees. This is not easy and does not happen overnight, but this sense of value can make or break a business.
So, let’s keep learning and creating values! And, if you have not tried a Crave Cupcake, what are you waiting for?