20 Years of Breadsmith: Whitefish Bay Company Shares Recipe for Success

Twenty years ago, a small bakery opened its doors on Downer Avenue, making a name for itself with high quality European breads.

Today, Breadsmith still bakes fresh bread daily on Downer Avenue. But with insight from its headquarters in Whitefish Bay, the company has expanded to a total of 34 stores in 15 states. What started as a $300,000 operation now brings in an estimated $22 million per year in sales.

Breadsmith President Tim Malouf started as a retail clerk and has had experience with nearly every facet of the business over the last 20 years. Malouf said Breadsmith's recipe for success includes top-shelf ingredients, knowledgable and passionate franchisees, and a corporate philosophy that prioritizes quality over quantity.

"We're different than most frachisors. Most of them are all about growth, and they are doing everything possible to sell more stores and more franchises," Malouf said. "Our approach is to take care of our existing stores. We want them to be successful. We'll add one or two stores a year, but that's the extent of it."

Breadsmith’s headquarters started out in the basement of the original Downer bakery. Then in 1996, they moved across the street to the Sendik’s building. In 1997, the company moved to a building on Oakland Avenue for about a year, and in 1998, moved to the basement of the Whitefish Bay bakery.

When the company decided to expand its corporate headquarters, it looked no further than the Berkeley Building across the street, where it has been since 2000.

"For us, Whitefish Bay was key because we wanted to be in an area that allowed us to have an office that was close to the bakery, as well as fit the demographics of a community we are looking for," Malouf said.

Having a bakery across the street from the corporate headquarters also allows the company to test new recipes at its convenience. Over the past 20 years, Breadsmith's recipe book has expanded from 30 to 300, offering a wide array of flavors for tastebuds in different regions of the country.

The Whitefish Bay store also serves as a training studio for new franchisees, who learn how to make bread with raw ingredients, knead with their hands and bake with stone hearth ovens. Unlike other bread companies, Breadsmith does not use additives or preservatives, and franchisees oversee the production of fresh bread every day at their store.

"The main stores are taking raw ingredients, mixing it, shaping it, and baking it," he said. "It's all done on location."

Franchisees visiting the Whitefish Bay store also get an opportunity to see a working case study of how to build a successful Breadsmith store in their area.

“We love bringing our franchisees to Whitefish Bay to show them the types of communities our stores thrive in,” said marketing manager Kristi Carlson. “There is a community culture here, with walk-by traffic and good local businesses nearby.”

Breadsmith contributes to the local community in return by donating to local events, holding in-store fundraisers for community organizations, sponsoring a Whitefish Bay Little League team and being involved with events like the Whitefish Bay Farmers Market. Day-old bread is also donated to local food pantries and soup kitchens.

Breadsmith bread is also available in the Milwaukee-area at select Sendik's and Pick 'n Save stores, as well as local restaurants – a distribution model the company plans to continue.

While Breadsmith may not have any plans to conquer the bread world with multi-national distribution, Malouf – sometimes known as "The Bread Guy" by people outside of the company – said he and the rest of the Breadsmith team feel good about delivering a quality product and being a part of local communities.

"We tell franchisees that it's not about making a lot of money. It's about making an honest living," he said. "We tell them upfront that if you're looking for a business that makes a lot of money, this isn't it. If you want something that you can feel good about, something that gives back to the community and something that is fun, then this is the right business."