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Ohio

Leavened

About Documents
436%
$43,550.69 Funded
$10,000 Target
Closed Time Left
57 Investors
$10,000 Min. Raise
$50,000 Max. Raise
60 mo. Term Length
11.25% Interest Rate
Closed

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Overview

Leavened is a from-scratch artisan bakery and cafe that will open in Cleveland, Ohio in the summer of 2020. Leavened will serve the Cleveland community by capitalizing on the need for a high-quality neighborhood bakery that offers not only top-tier products but also a space for community and gathering. The bakery will offer a range of artisan-style breads and pastries produced fresh daily in its retail location.

Leavened will differentiate itself from local competition with a superior product and a superior atmosphere. Ian Herrington, the proprietor, has been baking bread at On The Rise Artisan Bread, the highest rated bread bakery in the Cleveland area, for over 8 years. In that time Ian rose to the position of Head Baker and Production Manager. His expertise, and his dedication to being directly involved in the production process on a daily basis, ensures consistent high-quality products being sold from the bakery.

Leavened will provide high-quality naturally leavened breads, the best baguettes in the city, crusty rustic loaves and nutritious and tasty whole grain breads, offering the people of the near west side a high quality alternative to the high-cost, low-quality baked goods available at the West Side Market, local coffee shops, and local grocery stores. Croissants, morning buns, Danishes, buttermilk scones, cookies, hand pies and more are projected to make up over half of all sales. Grab and go sandwiches will be sold during the lunch hours, from 11 AM until 1 PM. High quality, locally roasted coffee and espresso beverages will be sold, along with a handful of other hot and cold beverages.

Leavened will establish itself on Scranton Road in Tremont. This neighborhood is the ideal target market for their product in terms of eating habits and disposable income. Tremont is the culinary epicenter of the city with numerous high end restaurants, bars, cafes and markets. Tremont is also within easy driving and biking distance of downtown, Ohio City, Detroit-Shoreway, and the western and southern suburbs, making Leavened a viable option for commuters who need coffee and breakfast on their way to work, a lunch pick-me-up during the day, or fresh bread for dinner on their way home.

Leavened is raising up to $50,000 at an interest rate of 11.25%, payed over a six-month interest-only period and a 54-month fully-amortizing period. The campaign ends on June 22, 2020 at 11:59pm.

 

 

The Project

Approximately $15,000 worth of the money raised with Honeycomb will be used to purchase initial stocks of raw ingredients and miscellaneous supplies. Initial raw ingredients include flour, sugar, eggs, milk, etc. –– all of the basic foodstuffs needed to produce the from-scratch baked goods. This money will also cover purchases of locally roasted coffee beans for the drip coffee counter and the espresso program. Also included in this figure are initial purchases of paper goods such as to-go coffee cups, paper bags, sandwich wrapping, napkins, etc.

The remainder of the money will be used to pay for the hiring and training of bakery staff. Leavened will need an expertly trained staff in both the front of the house and the back of the house to ensure not only that the goods being sold are of the highest quality, but also to ensure that our retail employees can provide the highest level of customer service possible, from being able to knowledgeably relate to customers' pertinent information about the bakery goods, to being able to make a delicious cappuccino or mocha.

The ability to properly train staff cannot be understated. A goal of Leavened is to have a retail staff whose knowledge of the products can rival a professional waiter at a high end restaurant. The retail staff will of course be able to relate expected information about ingredients, allergies, etc. What will set Leavened apart is the ability of its staff to present novel information about the bread and pastries, such as flavor profiles, possible meal planning ideas, and what kinds of foods and beverages compliment each baked good. This level of service is unprecedented within the Cleveland bakery scene. The ability of staff to be truly knowledgeable about the products being sold is common in fine dining, but is almost non-existent in the bakery or cafe market, and this heightened level of service will keep customers coming back in the door. The only way to elevate Leavened to this level of service is through careful training, which will be accomplished with the money raised through Honeycomb.

Another way that the funds raised with Honeycomb will allow Leavened to set itself apart from the rest of the bakeries in Cleveland is that it will allow for the purchasing of high-quality, locally produced raw goods. Cleveland food consumers have made one thing abundantly clear: they will pay a premium for food that places a priority on using quality ingredients that are sourced locally. No bakery in the immediate Cleveland area is currently using local flours in their breads or pastries, despite the fact that there is a vocal demand for it. Ohio milled flours, produced with grains grown in Ohio, area readily available from a small number of Ohio based producers, but their prices are of course far higher than large national flour millers like General Mills. The funds raised with Honeycomb will allow for the purchase of these high quality, but also higher cost, local flours, eggs, butters, etc.

 

We are looking to purchase high-quality, local raw ingredients.

Business

Past and Present

The specialty food market in Cleveland is experiencing steady growth. Throughout the west side, small, high-quality eateries and markets are appearing at an increasing rate. Clevelanders are increasingly turning to traditional foods that have been produced with great care and high quality ingredients. Residents are interested in not only what they are eating, but in who is preparing their food and from where the raw ingredients are being sourced.

Leavened was born out of an interest in participating in this booming renewal of Cleveland's food scene. Ian Herrington, a career baker and Cleveland resident, saw the demand for the establishment of a high quality retail bakery equipped to meet the needs of the changing Cleveland food market. As such, Ian jumped at the opportunity to partner with Sustainable Community Associates, a local property development group, to bring Leavened to fruition.

 

Leavened will establish itself on Scranton Road in Tremont. 

 

The Future

Leavened will open in the summer of 2020 as a mostly retail bakery with a handful of premium wholesale accounts. A priority will be placed on steadily growing the wholesale side of the business. Wholesale bread to restaurants, cafes and markets is a reliable way for the bakery to establish an additional stream of revenue that is a bit less susceptible to day-to-day market fluctuations.

The retail business will be expanded with additional product lines as the bakery grows and more employees are able to be hired on. There is an almost limitless variety of baked goods that can be made and sold, the only limiting factor being the labor and space needed to produce them. As the bakery grows, Leavened plans to introduce new products on a regular schedule until the ability of the space to produce more product is exhausted. These new products include various types of bars (brownies, blondies, etc), new varieties of cookies, different specialty breads, and more.

Once the bakery has established itself (within 2-3 years) Ian plans to expand on the retail side of the business by offering a pizza program on Friday and/or Saturday evenings. This would be a cost-effective way for the bakery to expand its market while keeping costs in check. No new equipment would have to be purchased for this venture, making it an ideal way for Leavened to grow with a new revenue stream.

 

Helping the front-liners during COVID-19.

 

Why We Stand Out

Leavened is a community bakery and is committed to making its products available to the whole community. The bakery will be offering a high end product in a mixed-income neighborhood. In order to make sure that people within the lower economic spectrum are able to purchase goods at Leavened, the bakery will offer “happy hour” pricing during the last hour of business on any given day. This happy hour will be defined by offering any remaining unsold baked goods at a discounted rate in order to (1) maximize products sold throughout the day, and to (2) ensure that individuals at any income level can enjoy Leavened’s great products.

Within a half mile of Leavened’s location are two Cleveland public schools. These two schools as a necessary part of our target market. As such, the plan is to incentivize purchases by the students and administrations of these two schools. One possible idea for this includes discounted pricing for students/teachers/administrators during certain hours before and after school. Another idea is to offer donations to these schools for fundraisers, staff meetings, assemblies, etc, in an attempt to improve brand recognition and community goodwill toward the bakery.

Leavened's commitment to neighborhood involvement in the bakery, and its interest in overall neighborhood wellness, differentiate it from other businesses in the area. Investment in Leavened is also an investment in an up-and-coming neighborhood and in the people who live there.

Local partnerships will be a focus of Leavened from day one. Partnerships with local coffee roasters, cold-brew bottlers, cheese-makers and raw goods producers and purveyors will provide an excellent opportunity for marketing, with social media being used to its maximum effectiveness to highlight these partnerships. These partnerships will not only bolster the Cleveland's culinary culture and economy as a whole, but will also cement Leavened’s place as a neighborhood institution.

 

Cinnamon rolls.

 

Fast Facts

  • Proprietor Ian was profiled in the Spring 2017 edition of Edible Cleveland in an article titled Creativity Awakens.
  • Ian has been involved in the Cleveland arts scene since 2012, having performed in multiple bands, in many of Cleveland's numerous concert venues.

 

 

About the Owner

Ian Herrington, the proprietor, has worked as a baker in the Cleveland area for over nine years, first at The Stone Oven Bakery and then at On The Rise Artisan Bread in Cleveland Heights. At On The Rise he is Head Baker and Manager of Bread Production. Ian has attended multiple bread and baking related seminars and continued education classes throughout his career and prides himself on being abreast of the latest trends in artisan bread and pastry.

 

Owner Ian Herrington.

Deal Summary

Summary

Issuer

  The Common Oven LLC

Security Type

  Secured loan

Loan Purpose

 Working capital, inventory

Offering Amount

  $10,000 - $50,000

Interest Rate

 11.25%

Payments

  Monthly, disbursed to investors quarterly

Maturity

  6 months interest only + 54 months amortizing

Personal Guaranty  

 Ian N Herrington

Security Interest

 Purchase money interest in assets to be purchased

 

Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to The Common Oven LLC.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount One-Time Fee

Potential Quarterly

Return: Interest-Only Period*

Potential Quarterly

Return: Amortization Period*

Potential Total Repayment*
$100 $1.40 $2.81 $7.11 $133.52
$500 $7.00 $14.06 $35.53 $667.61
$1,000 $14.00 $28.12 $71.05 $1,335.22
$5,000 $37.25 $140.62 $355.27 $6,676.12

Your ongoing responsibilities from investing are very limited. Over the life of the loan, you will receive a yearly 1099-INT, which is a simple tax document similar to what you receive for most savings accounts.*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest; they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a hybrid interest-only + amortizing loan, which means that there is a specified interest-only period followed by a an amortization period. There are no prepayment penalties and The Common Oven LLC may pay down their loan early, which may impact your earnings potential. Please note: returns are not guaranteed and investors could lose some or all of their investment.

The Common Oven LLC pays as agreed. You will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the administrative agent to manage the collections process on the investors' behalf.

 

How Honeycomb is Compensated

Honeycomb charges The Common Oven LLC a $100 posting fee and a 6.0% loan origination fee on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 1.40% investment fee capped at $37.25 per investor.

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Comments

Q & A

+ Will you be selling a low carb option?

Currently we don't have a plan for low carb offerings, but we are considering this for future additions to the menu. Thanks for your question, we appreciate the input.