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Ohio

Cleveland Bakery Collective

About Documents
22%
$4,300 Funded
$20,000 Target
25 days Time Left
7 Investors
$20,000 Min. Raise
$85,000 Max. Raise
60 mo. Term Length
10.5% Interest Rate
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Overview

Cleveland Bakery Collective will be a retail outlet for Pierogi Pantry, a small craft food company serving up delicious scratch-made comfort food at farmers markets, local events, and wholesale to local restaurants.

After our running a successful Honeycomb campaign for Pierogi Pantry, we have the amazing opportunity to open our own retail location. Instead of just selling our own Pierogi Pantry products, we have decided to create Cleveland Bakery Collective as a new company so that we can share this opportunity with many other local business owners who may otherwise not have the resources to sell out of a brick and mortar retail location or produce out of a licensed commercial kitchen. This will also provide a steady revenue stream for us.

Producers will have the ability to rent production space in our commercial kitchen for $15-20/hr, and for those just wanting to sell our products there, we will take a 20% commission.

Commission sales and kitchen rental will help us offset the overhead costs of operating Cleveland Bakery Collective while also giving other small business owners the opportunity to sell their products in a retail setting––as well as an affordable option to produce their products in a commercial kitchen.

We are raising $85,000, paid at a 10.50% interest rate with a six-month interest-only period and a 54-month fully-amortizing period.

 

Our pierogies made from scratch of course!

 

The Project

Below is our specific use of funds, in order of priority:

Hood: $20,000
Second Hood: $5,000
Contractor: $8,000
Construction: $20,000
Refrigerator: $15,000
Kitchen equipment: $8,900
Working capital/fees: $6,100

The funds requested are necessary start-up capital to open Cleveland Bakery Collective. This will give us the opportunity to not only open a retail establishment for Pierogi Pantry but also to provide a retail location and commercial kitchen facilities to many other small local business owners.

 

We have acquired the perfect space and we're building it out!

Business

Past, Present, and Future

Pierogi Pantry first began as a home business and a side hustle for Jay Odongray, who was unable to work a traditional job due to a health condition. In 2017, the Odongrays joined Central Kitchen Cleveland (then CCLK), going through their incubator program and using the shared commercial kitchen space to be able to officially launch the business and begin selling their products at local farmers markets, events, and wholesale to local restaurants.

Pierogi Pantry has continued to grow throughout the last three years and is now entering its own brick and mortar retail establishment, while also expanding into a new company called Cleveland Bakery Collective, which will also sell the products of many other local small food brands. By creating Cleveland Bakery Collective, we are excited to create a space where many small business owners can come together to create not just a bakery, but a destination for local flavors. We will give bakers and other local craft food producers a retail outlet where they can send their customers on a steady basis. We will also offer affordable production space for producers who can’t otherwise afford other commercial kitchens or the overhead of starting their own.

We hope to become the go to destination for quality local bakery and food brands on the west side of Cleveland. Within the next 3 years we intend to hire between 2 - 4 employees to help run the storefront of Cleveland Bakery Collective and also to assist in production for Pierogi Pantry.

 

We are proud products of the Cleveland Central Kitchen incubator program.

 

Fast Facts

In March of 2020, in response to the COVID-19 pandemic, state-wide shutdown, and resulting loss of revenue streams, we started a successful weekly free delivery service to Cuyahoga and Lorain counties. This delivery service provided enough revenue to help the business thrive through the pandemic and consequent shutdowns.

We began offering add-on products from 15 other small local companies to their delivery customers, helping to provide revenue for these companies and quality local food products to their customers, direct to their homes in a safe, no-contact delivery.

By providing a safe, free delivery option as food supply lines were being interrupted and markets were shut down, we were able to raise our profile, finding a much wider audience than before.

When the local farmers' markets re-opened in June, we saw significant growth in revenue. Though we were only selling at three markets in 2020 compared with 7-9 markets in 2019, our revenue from the markets stayed basically the same.

 

The Clevelander pierogi!

 

About the Owners

Nikki Odongray is the owner of Pierogi Pantry LLC and Cleveland Bakery Collective LLC. In addition to running the business and financials, she also helps out with the day-to-day operation of the business and product creation.

Jay Odongray acts as General Manager of Pierogi Pantry, creating new recipes and overseeing all production and sales for the company. She has 10 years experience in the restaurant and food industry.

 

Owners Jay (L) and Nikki Odongray.

Deal Summary

Deal Summary

 Issuer

 Cleveland Bakery Collective LLC

 Doing Business As

 Cleveland Bakery Collective LLC

 Security Type

 Secured Loan

 Loan Purpose

  Open location; equipment

 Offering Amount

  $20,000 - $85,000

 Interest Rate

 10.50%

 Payments

 Monthly, disbursed to investors quarterly 

 Maturity

 6 months interest only + 54 months fully amortizing

 Personal Guaranty  

 Nikki Odongray

 Security Interest

 Blanket lien on assets of the company

 Offered Portal 

 Honeycomb Portal LLC

 Offering Type

 Reg CF

 

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 Cleveland Bakery Collective 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  $2.85  $2.62  $6.99  $131.16
 $500  $14.25  $13.12  $34.97  $655.79
 $1,000  $28.50  $26.25  $69.95  $1,311.57
 $5,000  $37.25  $131.25  $349.47  $6,557.87

*Individual payments may vary slightly based on rounding.

Cleveland Bakery Collective 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. 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 an amortization period. There are no prepayment penalties and Cleveland Bakery Collective 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.

 

How Honeycomb is Compensated

Honeycomb charges Cleveland Bakery Collective LLC a $250 posting fee and a 7.0%-8.0% loan origination fee based on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

Like what you see?  Check out our other campaigns here

 

Endorsements for Pierogi Pantry & Cleveland Bakery Collective

 

Testimonials for Pierogi Pantry & Cleveland Bakery Collective

 

 

 

 

 

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Offering Documents

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