Big Apple Bagels Makes Last-Ditch Push to Survive
July 28, 2016 at 4:25 p.m.
By Daniel [email protected]
In many ways, it’s like anywhere else.
First there needs to be capital. As Big Apple Bagel co-owner and manager Todd Earl pointed out Monday, 75 percent of new businesses fail within the first year due to under-capitalization.
There has to be a need for the business. There needs to be a marketing strategy and competent people to run it.
Things like location also play a role in whether a business will flourish or fail.
The city of Warsaw has made a concerted effort to revitalize business in the downtown area.
Meanwhile, businesses have sprung up along the Ind. 15 corridor.
But where does that leave other businesses in other parts of the city?
Earl and his dad, Don, reopened Big Apple Bagels a year ago.
Now they are in what they call their “last ditch marketing push.”
The reality is profit margins are tight, there’s a pre-conceived notion that Earl’s shop is solely a bagel shop. The location, despite being off U.S. 30, may be less than ideal.
Earl recently went through a market research study.
In his previous career in advertising, Earl had a lot of experience with such studies.
There are things businesses like Big Apple Bagels can’t control.
Food costs have risen by double digits. The cost of coffee has quadrupled. So Earl has looked for alternatives.
But he’s still trying to find the answer of getting people in the door. He said he’s had discussions with the owners of The Party Shop, who are housed in the same retail strip along Lake City Highway in Warsaw. He’s talked to several local business owners who are feeling the same pinch he is.
“Before, people would make two or three stops on the way home,” said Earl. “Now with money tight they feel like they can stop at a big box store or fast food chain. And those places are fine. But if you don’t shop local you won’t have these places anymore.”
The 3/50 Project is a national campaign to get people to shop locally by spending a total of $50 at three local businesses.
Earl said that push helped his business, but as the push for the 3/50 Project died down, so did business.
An issue many local businesses face when going against big box stores and massive chains is price.
Big Apple Bagels is considered in the market study to be high-priced. Earl said he tries to combat that by arguing the quality and value of his product outweighs any cost concern.
Despite the fact that bagel is in the name, Big Apple Bagel offers sandwiches, salads, artisan items and cakes. Earl wants people to see his business as a deli and not just a bagel shop.
It’s uncertain whether a push to more closely associate as a deli will be able to change people’s perceptions.
Earl said that’s hard to overcome where people are more likely to gravitate toward a fast-food chain.
“We’ve got a greasy burger, dollar menu mentality in this town,” said Earl.
He said he gets business from traffic along U.S. 30 of people going to Fort Wayne or Chicago.
But that’s not what is going to keep him in business.
He said that his loyal customers have kept him open.
About 50 to 60 percent of customers at the store come in anywhere from two to four times a week.
Earl is trying to build wholesale accounts. He’s trying to work with other businesses in town to cater events. They’ve taken to delivering on an order more than $25 within an eight-mile area. They donate thousands of dozens of bagels every year to local shelters to build community awareness.
Monday, Earl talked with Dudley Allen.
Allen recently had to shut down 8WW Cuisines in downtown Warsaw.
He and a new group of investors are now poised to reopen it as a Mexican restaurant known at La Troje.
Big Apple Bagel uses e-mail marketing and has a database of more than 1,100 e-mail addresses.
Earl’s used that to send out updates and coupons.
“But I’ve couponed myself to death,” said Earl.
Now he will use more social media efforts like Facebook.
And while Facebook is a great way to get out information, though a business may have a high number of “likes” that doesn’t necessarily translate to money in the cash register.
When Big Apple Bagel first reopened they were doing upward of 180 sales receipts a day. Now that number has been cut in half.
Earl said that in his market research he was pleased that the overwhelming majority liked the restaurant, felt the food was good and it was a clean, friendly atmosphere.
A lack of those things will often doom a business. But in Earl’s case, it hasn’t allowed it to thrive.
He hasn’t paid himself in months, opting to makes sure his eight employees get paid first.
That is a decision many business owners have to make in a tough economy.
In terms of location, Earl also struggles with the idea there is nowhere to park despite a 50-space parking lot begin adjacent to the business.
Despite all the research, the advertising, the e-mail marketing, Earl still worries that one thing he can’t combat is an over-saturation of the market.
He wondered if there is a market for a place like Big Apple Bagel or if it was only needed in more metropolitan areas.
With all these challenges, Earl is fast approaching a decision.
It’s either find an investor or face the possibility of shutting the place down.
Earl said what sustains him is his faith in God and that he will let that guide whatever happens.
Earl also knows that his story is much like other business owners in Warsaw and beyond.
With unemployment lingering around 8 percent and a spike in gas prices, Earl knows that those things hurt local business.
And he understands the need for families to go to big box stores or fast-food chains.
“All I’m saying is to spread the love a little bit. Or these places will be gone,” he said.[[In-content Ad]]
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In many ways, it’s like anywhere else.
First there needs to be capital. As Big Apple Bagel co-owner and manager Todd Earl pointed out Monday, 75 percent of new businesses fail within the first year due to under-capitalization.
There has to be a need for the business. There needs to be a marketing strategy and competent people to run it.
Things like location also play a role in whether a business will flourish or fail.
The city of Warsaw has made a concerted effort to revitalize business in the downtown area.
Meanwhile, businesses have sprung up along the Ind. 15 corridor.
But where does that leave other businesses in other parts of the city?
Earl and his dad, Don, reopened Big Apple Bagels a year ago.
Now they are in what they call their “last ditch marketing push.”
The reality is profit margins are tight, there’s a pre-conceived notion that Earl’s shop is solely a bagel shop. The location, despite being off U.S. 30, may be less than ideal.
Earl recently went through a market research study.
In his previous career in advertising, Earl had a lot of experience with such studies.
There are things businesses like Big Apple Bagels can’t control.
Food costs have risen by double digits. The cost of coffee has quadrupled. So Earl has looked for alternatives.
But he’s still trying to find the answer of getting people in the door. He said he’s had discussions with the owners of The Party Shop, who are housed in the same retail strip along Lake City Highway in Warsaw. He’s talked to several local business owners who are feeling the same pinch he is.
“Before, people would make two or three stops on the way home,” said Earl. “Now with money tight they feel like they can stop at a big box store or fast food chain. And those places are fine. But if you don’t shop local you won’t have these places anymore.”
The 3/50 Project is a national campaign to get people to shop locally by spending a total of $50 at three local businesses.
Earl said that push helped his business, but as the push for the 3/50 Project died down, so did business.
An issue many local businesses face when going against big box stores and massive chains is price.
Big Apple Bagels is considered in the market study to be high-priced. Earl said he tries to combat that by arguing the quality and value of his product outweighs any cost concern.
Despite the fact that bagel is in the name, Big Apple Bagel offers sandwiches, salads, artisan items and cakes. Earl wants people to see his business as a deli and not just a bagel shop.
It’s uncertain whether a push to more closely associate as a deli will be able to change people’s perceptions.
Earl said that’s hard to overcome where people are more likely to gravitate toward a fast-food chain.
“We’ve got a greasy burger, dollar menu mentality in this town,” said Earl.
He said he gets business from traffic along U.S. 30 of people going to Fort Wayne or Chicago.
But that’s not what is going to keep him in business.
He said that his loyal customers have kept him open.
About 50 to 60 percent of customers at the store come in anywhere from two to four times a week.
Earl is trying to build wholesale accounts. He’s trying to work with other businesses in town to cater events. They’ve taken to delivering on an order more than $25 within an eight-mile area. They donate thousands of dozens of bagels every year to local shelters to build community awareness.
Monday, Earl talked with Dudley Allen.
Allen recently had to shut down 8WW Cuisines in downtown Warsaw.
He and a new group of investors are now poised to reopen it as a Mexican restaurant known at La Troje.
Big Apple Bagel uses e-mail marketing and has a database of more than 1,100 e-mail addresses.
Earl’s used that to send out updates and coupons.
“But I’ve couponed myself to death,” said Earl.
Now he will use more social media efforts like Facebook.
And while Facebook is a great way to get out information, though a business may have a high number of “likes” that doesn’t necessarily translate to money in the cash register.
When Big Apple Bagel first reopened they were doing upward of 180 sales receipts a day. Now that number has been cut in half.
Earl said that in his market research he was pleased that the overwhelming majority liked the restaurant, felt the food was good and it was a clean, friendly atmosphere.
A lack of those things will often doom a business. But in Earl’s case, it hasn’t allowed it to thrive.
He hasn’t paid himself in months, opting to makes sure his eight employees get paid first.
That is a decision many business owners have to make in a tough economy.
In terms of location, Earl also struggles with the idea there is nowhere to park despite a 50-space parking lot begin adjacent to the business.
Despite all the research, the advertising, the e-mail marketing, Earl still worries that one thing he can’t combat is an over-saturation of the market.
He wondered if there is a market for a place like Big Apple Bagel or if it was only needed in more metropolitan areas.
With all these challenges, Earl is fast approaching a decision.
It’s either find an investor or face the possibility of shutting the place down.
Earl said what sustains him is his faith in God and that he will let that guide whatever happens.
Earl also knows that his story is much like other business owners in Warsaw and beyond.
With unemployment lingering around 8 percent and a spike in gas prices, Earl knows that those things hurt local business.
And he understands the need for families to go to big box stores or fast-food chains.
“All I’m saying is to spread the love a little bit. Or these places will be gone,” he said.[[In-content Ad]]
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