Today, we’re diving into a crucial topic for any growing business: how the power of shared information in business growth helps increasing labor expenses without resorting to layoffs. We’ll also explore how to create a culture where information is freely shared among employees to boost production and grow your business.
Our guest this week is Traci Alderson, the co-owner of Brown Butter Cookie Company. Tracy and her sister Christa started their cookie company 15 years ago. What began as a tiny deli is now a blossoming cookie company with three store locations in their regional area, including their largest store in Cayucos.
From Humble Beginnings
Before Brown Butter Cookie Company was a thriving business, Traci and Christa owned a small deli offering paninis, homemade hummus, salads, cheese, and wine. They also had a little tray of brown butter sea salt cookies, which quickly became a customer favorite. Encouraged by this response, they decided to focus entirely on cookies, launching their website and rolling 10,000 cookies their first December after hours at their deli. This bold move paid off, and they closed the deli to concentrate on their new venture.
Leveraging Past Experience
Before diving into the cookie business, Traci worked in the fragrance and cosmetic industry for Calvin Klein Fragrances, where she gained valuable experience in branding, marketing, and management. This background in managing and leading teams has been instrumental in building and growing Brown Butter Cookie Company.
The Evolution of Their Product
The original brown butter sea salt cookie remains the company’s star product. Over the years, they have expanded their offerings to include a range of flavors, including classics like chocolate chunk, oatmeal raisin, and peanut butter. The company also recently launched a new product line with Ghirardelli chocolate, further diversifying their offerings.
A Solution to Increasing Labor Costs
Traci emphasizes the importance of finding efficiencies and optimizing production processes to manage labor costs. For instance, they invested in new ovens and a portioning machine to streamline their cookie-making process. Although these investments initially seemed like they would save time, the company’s growth quickly consumed any time savings. The key is to balance the need for more employees and equipment with creating a sustainable business model.
The Power of Shared Information
A crucial aspect of Brown Butter Cookie Company’s success is its culture of shared information. This approach ensures no single person is solely responsible for building and owning critical information. For example, when they launched their new frozen custard product, they involved multiple team members in the training and development process. This collective approach fosters buy-in and allows for a smoother, more efficient operation.
Traci believes in building processes collectively rather than having one person dominate. This method ensures everyone feels valued and contributes to the company’s success in a way that maximizes their talents. Creating value in the process itself and making everyone feel part of the solution has been essential in their operational strategy.
Collaboration with Ghirardelli
One of the company’s significant milestones was collaborating with Ghirardelli. This partnership began serendipitously when Traci visited Ghirardelli Square in San Francisco. Although initially unsure about opening a store there, the visit led to a fruitful collaboration. Brown Butter Cookie Company now offers cookies made with Ghirardelli chocolate, significantly boosting their sales.
Advice for Business Owners
Traci acknowledges how running a business is challenging, especially during tough times. Her advice to other business owners is to stay in the moment, lead from the middle, and constantly re-evaluate their business strategies. She emphasizes the importance of believing in your product, creating a true point of difference, and seeking counsel when needed.
Conclusion
Tracy Alderson’s journey from a small deli to a successful cookie company underscores the importance of adaptability, efficiency, and shared information. By involving her team in the decision-making process and continually seeking ways to improve, Tracy has built a resilient business that thrives on collective effort and innovation. Her story is a powerful reminder that with the right approach, challenges can be turned into opportunities for growth and success.
Stay tuned for more inspiring stories and practical business tips on Small Business Celebration!
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Reach out to our guest’s website: Brown Butter Cookie