5 Generation Bakers

Specialty Food

Introduction

Pittsburgh natives, the Baker family opened the doors to the first bakery in the family’s lineage in 1875.  The Bakers baked for four generations until tragedy struck in 2006 with a Thanksgiving Day fire; followed by the dismal economy of 2008. Bernie Baker, the 4th generation, was forced to close the doors to Jenny Lee Bakery. This left the Pittsburgh community without their much loved baked goods.

Bernie’s son, Scott Baker, decided he couldn’t let his family’s legacy die out and two years later he founded 5 Generation Bakers, now a multimillion dollar, international company which has still managed to stay true to the coveted Baker recipe with its famous Jenny Lee Swirl Bread. Dedicated to giving back to the McKees Rocks and greater Pittsburgh communities, 5 Generation Bakers continues to enhance the lives of local residents with high-quality, non-GMO baked goods, community service outreach initiatives, and a family oriented company atmosphere.  

Anyone over 18 may invest.
 

 


Fast Facts

  • Products sold in over 5,000 locations across 26 states and internationally in France and Trinidad and Tobago
  • Up to $107,000 loan, secured
  • 9.5% interest rate for investors with additional investor perks
  • Purchasing equipment in order to expand product capabilities
  • Scott Baker was a finalist for Entrepreneur of the Year in 2017
  • Inc 5000 Fastest growing private companies in America 3 years in a row
  • Featured as one of the inaugural companies in the Grow with Google initiative. To learn more go here!

 


Investor Perks

Early Bird Perk

First 10 investors will also receive a Jenny Lee Good Luck New Year Pretzel

$500+

Four pack of Jenny Lee Swirl Bread + Tour of bakery

$1,000+

Limited edition t-shirt + Four pack of Jenny Lee Swirl Bread + Tour of bakery

$5,000+

Bread for a year* + Limited edition t-shirt + Tour of bakery

Every Investor!

Every Investor will recieve a personalized Promo for 10% off online orders, good for one year, to share with friends and family!

 

Jenny Lee Good Luck New Year Pretzel (that pan is 9"x13")

 

All perks levels include shipping.

*One pack of 4 will be shipped every 4 weeks. Each pack will be hand picked, based on what is in season.

 


The Project

5 Generation Bakers is looking to expand their capabilities and products to maximize capacity in their new facility.  They currently have a purchase order for a Pullman-style bread and need to purchase pans to keep up with demand. This loan will allow them to bake enough bread to fulfill the year long contract.

 

 

Additionally, the money will allow 5 Generation Bakers to produce new artisan-style breads including whole grain, ancient grain with cranberries, sunflower, english toasting, and multi-grain among others.  

 

This campaign will fund R&D of a sandwich bread to break into mainstream markets.  Jenny Lee Swirl Bread has always been in the niche market of high quality breakfast foods and with capital for translating their existing strengths and experience into an everyday bread, it will help 5 Generation Bakers grow their product list.

 

The convenience store market has always eluded 5 Generation Bakers because of the price of Jenny Lee Swirl Bread loaves.  This campaign will fund the purchase of a flow wrapper, allowing the bread to be packaged as two slices with a packet of jam.  This new iteration of the already famous Jenny Lee Swirl Bread will allow 5 Generation Bakers to enter the convenience store market and will diversify their revenue stream.

 

 

French Toast has always been the preferred way for consumers to enjoy Jenny Lee Swirl Bread.  5 Generation Bakers has had a project in the works for some time to package a half-loaf of Jenny Lee Swirl Bread with a bottle of maple syrup and French Toast spices, making a “French Toast Kit.”  With the funds raised from this campaign, it will allow for the R&D of that program, along with the purchase of packaging and equipment to make the kits.

 

Finally, if the campaign is funded in full it will allow 5 Generation Bakers to put in place a preventative maintenance contract for all equipment and provide working capital to pursue additional revenue opportunities.

 

 

Tier 1

$27,100 Total

160 Pullman Bread Pans with lids - $18,350

(To be used to make the Schoolhouse bread perfectly square and allow the line to run continuously.)

Artisan Loaf Pans - $3,750

(To be used for additional lines of artisan bread)

Two Slicer Frames - $ 5,000

(The Schoolhouse Bread as well as other clients have requested for sliced bread at diffrent thicknesses than what 5 Generation Bakers currently can do.)

Tier 2

$8,000 Total

Sandwich Bread R&D - $8,000

(Schools have asked for child nutrition friendly breads to be produced that meet Whole Grain standards of a full serving per slice. This will enable the ability to test and verify recipies that may include Whole Wheat, Whole Grain and Whole Grain Cinnamon Swirl!)

Tier 3

$30,000 Total

C - Store Breakfast R&D - $5,000

(This would allow 5 Generation Bakers to package their bread in a grab-and-go form factor to be sold at the cash register of stores.)

Flow Wrapper - $25,000

(This piece allows the ability to wrap 1 or 2 slices of Jenny Lee Cinnnamon Swirl Bread along with a butter or jelly pack.)

Tier 4

$15,000 Total

French Toast Kit R&D - $5,000

(This project would test a 'make at home' kit for French Toast with preassembled ingredients and components that you would need for a gourmet French Toast breakfast.)

Clamco Shrink Wrap Machine - $10,000

(A versatile packaging machine that allows for trays or multiple components of items to be packaged and sealed together.)

Tier 5

$26,900 Total

1 Year of Preventative Maintence Contracts for Equipment - $19,500

(This will maintain both new and old equipment in good, safe, working order)

Working Capital - $7,400

(This will start managing all new projects while they are still in the R&D phase.)

$107,000 Total Total cost for Tier 1, Tier 2, Tier 3, Tier 4 and Tier 5 combined. 

 


Bonus Recipe

 

Jenny Lee Cranberry Chipotle Chicken Sliders

 

Chicken

2 large chicken breasts, boiled and shreded

 

 Apple Coleslaw

16oz pkg angelhair coleslaw
1 Granny Smith apple, cut into sticks
1/4 cup mayonnaise
2 Tbsp cider vinegar
1 Tbsp lemon juice
1 Tbsp poppy seeds
1 1/2 tsp sugar
1/2 Tbsp celery seeds
1/2 tsp salt

 

Cranberry Chipotle BBQ Sauce

1/2 cup whole, canned, cranberry sauce
1/4 cup ketchup
2 Tbsp molasses
1 Tbsp cider vinegar
1/2 tsp salt
1/2 tsp ground chipotle peppers
1/4 tsp onion powder
1/4 tsp chili powder
1/4 tsp dried tyme

 

Buns

12 slices Jenny Lee Cranberry Swirl Bread
12 slices your choice of sharp cheese

 


Deal Summary

Issuer

5 Generation Bakers

Security Type

Secured Loan

Loan Purpose

Purchase of equipment, R&D, and working capital

Offering Amount

$27,100 - $107,000

Interest Rate

9.50%

Payments

Monthly, Disbursed to Investors Quarterly

Maturity

60 months

Personal Guaranty

Yes, Scott A. Baker (owner)

Security Interest

Yes, Lien on purchase of equipment

 


About The Team

 

Scott Baker, owner of 5 Generation Bakers, started under his Father, Bernie Baker, as the Marketing Director for Jenny Lee Bakery.  After the fire forced Bernie to close his doors, Scott decided he couldn’t let his family’s business extinguish. He founded 5 Generation Bakers and started baking Jenny Lee Swirl Bread.

 

Cody Baxter, Marketing Director, started with the bakery in 2016 and has transformed the messaging and strengthened the brand.  His efforts attracted the attention of Google which produced a short documentary on the bakery’s history and promising future.

 

Denice Beccard, Quality Assurance Officer, has led the bakery to new heights in food safety and quality.  Attaining SQF Level 2 certification is her most recent achievement and she won the 2017 Food Safety and Quality Award from Food Safety and Quality Magazine.

 

Bernie Baker, Director of Bakery Operations, brought his experience to Scott’s company and has been crucial to its success.  The same energy and attitude that gave Scott the inspiration for founding 5 Generation Bakers is experienced by all the employees of 5 Generation Bakers on a daily basis.

 


The Location

Check out our bakery in McKees Rocks and shop at our community convenience store.  Find our bread in the bakery departments of Giant Eagle and Shop ‘n Save in Pittsburgh and other grocery chains nationwide.

 

 


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. Once the campaign successfully reaches its target, the funds will be distributed to 5 Generation Bakers.

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

Investment Amount

One-Time Fee

Potential Quarterly Repayments*

Potential Total Repayment*

$100

$2.85

$6.30

$126.01

$500

$14.25

$31.50

$630.05

$1,000

$21.76

$63.00

$1,260.11

$5,000

$21.76

$315.02

$6,300.55

*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 fully amortizing loan: principal and interest are paid down starting with the first payment. Please note, returns are not guaranteed and investors could lose some or all of their investment.

Your ongoing responsibilities from investing are very limited. Each year over the life of the loan you will receive a 1099-INT, this is a simple tax document similar to what you receive for most savings accounts.

When 5 Generation Bakers 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 investors' behalf.

 


How Honeycomb is Compensated

Honeycomb charges 5 Generation Bakers a 6.0% loan origination fee if this campaign is successfully funded. Our origination fee is reduced and our posting fee is waived for 5 Generation Bakers because they are an Early Adopter.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $21.76 per investor.

Like what you see?  Check out our other campaigns here!