Crave Cookie

Cookies straight from the oven delivered to your door

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July 23, 2020 We were on the Indie Hackers podcast!

We are a unique business that was experience success during the economic downturn. By using software engineering skills, we were able to distinguish ourselves at a local level and carve out a niche. It's more work than a digital-only product but success is success.

https://www.indiehackers.com/podcast/166-sam-eaton-of-crave-cookie

Sam Eaton

2 Comments

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    This comment was deleted 5 years ago

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      This podcast episode was mentioned on this shopify forum post. https://community.shopify.com/c/Shopify-Discussion/Bakery-challenges-Local-delivery-scheduling-capacity-Anyone/m-p/826620

      1. Enable a limit PER DELIVERY DATE on number of units
      2. Prompt customers to place an order at least one day before, with a cut off time of 10pm (so we know how many doughnuts to make).
      3. Restrict customers to local locations.
      4. Get customers to select delivery date and time.
      5. Still allow for the sale of the leftover units on the day.
      6. Output the orders per delivery date into a summary for a baking schedule.
      7. Keep the delivery locations and routes neatly organized.
April 1, 2020 We're in the 6-figure-per-month club!

We made over $110k in February! Crave has been seeing growth every month, except for a large dip last November when we were moving to a larger kitchen. I expect that we would have passed 85k this month had the virus not cause a quarantine.

Ready For The Quarantine

We were a delivery-only business from day one. We never relied on a physical location, so naturally we had everything in place once the quarantine hit.

Using Our Own Software for Deliveries

We've never used a 3rd party delivery service like Doordash. Our volume is high enough that it would be very difficult to manage the Doordash drivers coming into our warehouse for a single order. Instead, we are able to send our own drivers out with several orders so the cost is shared across a handful of customers, meaning the customer doesn't have to pay such a high delivery fee like with Doordash.

Our software for managing deliveries is completely custom and we've been improving over time.

Sam Eaton

3 Comments

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    Really impressive growth! Just curious, what are your overall margins?

    Something I'm learning from reading your posts is the importance of not being in saturated markets. I think being in the Fresno area really set you apart as it's less served compared to say the bay area. What do you think?

    Do you get a lot of repeat customers or is it mostly new ones?
    How have you managed to grow the business? Purely social media? Ads? Word of mouth?

    All the best!

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      Margins are about 40-45%. We have a physical product so our biggest costs are paying employees and for the ingredients. That's with only one kitchen though so as we expand and multiplying our revenue that margin will look really good and probably get better with economies of scale.

      The location might play a part because people in Fresno take more pride in supporting local than in the bay area. But I'm not exaggerating when I say these are the best cookies I've ever had. We focus on making sure they are always delivered warm so really its a high quality product. About 60% of our sales are repeat customers. I'm pretty sure we would do well in most areas. I actually don't live in Fresno, thats where the kitchen (and other co-founder) is.

      Growth is mostly word of mouth with "reminders" we send to instagram followers. No other marketing except for being on a few local news stations.

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        Amazing! Keep going and all the best!

February 14, 2020 Made $20,000 in one week!

We've been steadily growing month over month, but this week has been NUTS!

Lesson Learned? People want to gift our cookies on Valentine's Day.

Now that we know that Valentine's day is so busy, next year we'll launch a dedicated campaign and try to make it more convenient for people to gift our cookies.

We also had a limited flavor available for 3 days this week: Red Velvet White Chocolate.

https://www.instagram.com/p/B8fyN5mg38w/

We discovered a bug, too. Growing pains... Having so many orders open in our admin dashboard actually exposed a huge bottleneck in our code where we were fetching each order from the database individually instead of fetching them all in the same query. Our dashboard was taking 13+ seconds to load and even brought down the site a couple of time. We fixed it and now it loads under a second.

Sam Eaton

1 Comment

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    This comment was deleted 5 years ago

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      Margins up to 40-50% if you factor in cost of drivers and equipment. You start to figure out the best way to offer your product to minimize costs. For example, hiring a fleet of delivery drivers was expensive, but so is opening a store front. Opening a store has a large upfront cost, whereas drivers are pay-as-you-go.
      We know that to minimize costs we should deliver the maximum amount of cookies with the least amount of employees. For us that meant getting a contract with local coffee shops and deliver large orders in one trip.
      We still have lots of drivers, but the margins for our on-demand delivery is not nearly as high as our business delivery, but there are still margins. But if we got rid of on-demand delivery then less people would remember us when they "get that craving" for our cookies, so its kind of a go-to-market tactic.

February 1, 2020 Broke $55k in Monthly Revenue

Our previous milestone was breaking $40k, which occurred in the same month. We added new flavor at the beginning of the year so that we had 2 flavors on our menu. This fundamentally changed our offering since we ONLY offered Chocolate Chip before. We also expanded to a few more zip codes.

We partnered with a local coffee shop this week and started delivering cookies to them but have not yet sent an invoice. That should help our next month's numbers.

(NOTE: cash orders make up about 10-15% of our revenue so it won't be reflected in our Stripe graph)

Sam Eaton

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January 24, 2020 Broke $40k in monthly revenue

Our revenue has been steadily growing every month. The biggest difference this month was adding a second permanent flavor, the Churro Cookie. It adds a little more variety so customers have more reason to buy multiple boxes. Also, many simply like it better than our chocolate chip cookie (myself included).

The growing revenue is allowing is to expand to more zip codes and serve more customers. Our drivers average 3-4 deliveries an hour.

Sam Eaton

3 Comments

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    I'm curious to know the tech stack you're using to build the efficient delivery system you're talking about in the About page ;)

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      Using Crystal on the server, react on the front end.

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    Love seeing that you can make money from cookies :)

    Does $40k pm make it sustainable/profitable?

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    This comment was deleted 3 years ago

January 3, 2020 Launched our Second Staple Flavor

We'd experiment with limited-time seasonal cookies but we officially launched our second "long-term" flavor—the Churro Cookie. We had done trials with it a couple times and our customer relentlessly asked us to bring it back.

Several customers took to Instagram to let their subscribers know that the "best cookie they've ever had" was now available.

Our post on Instagram announcing this flavor was our most liked post to date. https://www.instagram.com/p/B63yebogqY6/

Sam Eaton

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April 1, 2019 Moved to a Bigger City

The little town we started in was just for testing the waters. It was very successful and there was a lot of hype, so we were confident that moving to a denser location would increase sales. We shut down for the month of march so we could moved all our baking equipment and file for licensing in the new city.

Sam Eaton

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November 7, 2018 Got Our First Paying Customer

We joined some Facebook groups in town and started following people on Instagram who lived nearby. Sure enough some orders started to come in. My sister would bake the cookies, put them in a insulated bag and start delivering to their house. We had 21 orders in the first week.

Sam Eaton

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November 6, 2018 Finished MVP

In one week I put together all the branding, a simple website, and with checkout form connected to Stripe. I also built a simple admin dashboard page that showed order information.

All orders sent a notification to a Slack channel which we used for notifications.

Sam Eaton

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October 30, 2018 Came up with the Idea

My sister makes the best cookies I've ever had. She was talking to me about her possibly going into business with another family member. Me being a software engineer and wannabe IndieHacker said "NO! We can sell these online!". I bought a domain, signed up for Stripe, and got to work on an MVP.

Sam Eaton

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About

The cookies are seriously the best—the Tom Brady of cookies. With cookies this good I knew i could set up a delivery business just like pizza delivery. We've delivered over 300,000 cookies in less than 2 years!