Host

Welcome to another episode of celebrating small family businesses.

Host

I'm John.

Host

This is Connie.

Host

And today we are celebrating Philip and Beth, owners of spots gelato in Kentucky.

Host

So we're outside of Florida.

Host

Hi, Phillip.

Host

Hi, Beth.

Host

How are you today?

Philip

Hey, there.

Beth

I'm great.

Philip

Doing good.

Beth

Thanks for having us.

Host

It's a pleasure.

Host

So how did you guys get to be in the gelato business?

Beth

Well, it was a roundabout way.

Beth

Neither one of us ever dreamed that we would be in the food business.

Beth

You know, we didn't.

Beth

That was not our background at all.

Host

What was your background?

Beth

Well, both of us worked in corporate.

Beth

I was in the legal field, and.

Philip

I worked in the medical field, worked on medical equipment for 30 years.

Philip

So we were.

Philip

I was kind of set in my ways, and we had no idea.

Philip

It just kind of worked out, really.

Philip

It just happened.

Beth

Well, we had a hobby farm here in Kentucky, and neither of us had ever farmed before, but we.

Beth

It was a farm that had a great old house that was falling in, and we bought the house at auction, and it came with a farm.

Beth

So we quickly learned how to do some farming things, and we did lots of different things with the farm.

Beth

At one point, we were doing a, we call it a community supported agriculture, or CSA, where we were feeding.

Beth

People would buy shares in the garden for the whole year.

Beth

They'd pay the fee upfront, and then we would deliver a box to them of items that were grown on the farm each week.

Beth

And so at the time, we were doing a CSA, and we were.

Beth

We raised the majority of the things, but we couldn't raise everything that would go in these boxes each week.

Beth

So we worked with other farmers in the area to add things to these boxes.

Beth

So we already had this network of farmers that were raising lots of great things, you know, that we didn't raise.

Beth

And about the same time, we were traveling during the winter, and we would go to this ice cream shop after dinner every night, and it was a walk from our hotel, and it was great.

Beth

And I said to the guy that owned it, so why, you know, half jokingly, why is this so great?

Beth

Is it because we're on vacation?

Beth

He said, well, it's not ice cream, it's gelato.

Beth

And that's the first that I had heard of gelato.

Beth

And his explanation was that it was made daily from local ingredients.

Beth

And I thought, well, we have local ingredients at home and access to these great farmers, and I'm just going to go home and try and make this, which is what I did.

Beth

I tried to make it in my home kitchen.

Beth

People kept saying, you should sell it.

Beth

And Philip thought it.

Beth

It sounded like a good idea to build a food truck out of a vintage trailer.

Beth

And so he built a trailer.

Beth

We learned to make gelato more commercially in larger batches, and we ran this food truck on the weekends, and it was such a hit, more than we ever thought it would be.

Beth

So then the next year, we added a second truck and built a commercial kitchen on the farm.

Beth

And so we've kind of turned into raising hay on the farm and making gelato.

Beth

There's not much other farming that goes on anymore.

Beth

So.

Beth

So that is our roundabout story, how we ended up doing this.

Beth

Yeah.

Host

So when you built.

Host

Did that first food truck, were you both still working corporate?

Beth

Yes, and we were for quite some time.

Philip

Our plan was to continue working and doing this on the weekends just for just extra money.

Philip

And we enjoyed it.

Philip

We worked together and I enjoyed it, and it was busy.

Philip

But I think once we decided to do a second clock, we knew that we were going to have to do something else.

Beth

So the craziest thing of this whole story is that we bought a commercial gelato machine.

Beth

And the way the food guidelines were at that time, we had to make the gelato on that first food truck.

Beth

And so we would go to events and we would be making gelato, and we'd be selling it out the window.

Beth

And it was selling so fast that we couldn't keep up with.

Beth

It was crazy.

Philip

Didn't have time to make it because you were so busy scooping it.

Beth

Yeah.

Philip

So we.

Philip

We learned really quick, you know, you learn from your mistakes, and we learned that there's easier ways to do that.

Host

Yeah.

Beth

So then we built a commercial kitchen just for gelato on the farm.

Beth

And that was one of our best decisions.

Beth

It's allowed us to grow.

Philip

It really has.

Host

Sure.

Host

But it's a big commitment in that, you know, when you just one truck and you're kind of trying it out to build a commercial kitchen seems like a leap.

Beth

Well, yeah, just at the beginning.

Philip

It's expensive.

Beth

The original machine that we used at the time was $10,000.

Philip

So it's.

Beth

And, you know, we hadn't sold gelato.

Beth

We hadn't sold the first cup of gelato to anyone.

Beth

And we bought this machine, and he built the truck, and, you know, it was kind of a wing and a prayer sort of thing.

Beth

And it was worked out.

Philip

And we learned a lot.

Philip

We learned a lot real, real quick.

Beth

So.

Philip

And plus, we were.

Philip

We enjoyed the construction part of the kitchen.

Philip

We did pretty much everything.

Philip

So, you know, I enjoyed that.

Beth

Yeah.

Beth

Yeah.

Host

What would be one of the biggest things you learned when you first started and got that machine?

Host

That first machine?

Philip

Well, you know, the way the laws are on producing in Kentucky, you had to, I guess your milk and your cream had to be commercially what's.

Beth

So you couldn't just buy a gallon of milk and a gallon of cream and put them together because then you are running a dairy operation.

Beth

But what you could do is you could buy premixed milk and cream in the ratios that you wanted to use it, and then you're running a ice cream business.

Beth

So, yeah, so that is how we had to do it.

Beth

And now still the milkman delivers every week, and it's a specialized blend of milk and cream and sugar.

Beth

And, you know, that that's what we use.

Host

Wow.

Host

So it's an ingredient.

Host

The way the ingredients are sourced and combined is all regulated for the product.

Philip

The end product, if you have to sell it commercially.

Philip

Yes.

Philip

It's in Kentucky especially.

Philip

Other states are different, I think.

Beth

And I think, too, that was one of many things that we learned because, like I said, we hadn't been in the food business, you know?

Beth

So each day we had a new education about something.

Beth

And still to this day, we're still learning, you know, as we eventually moved out of just having food trucks and into brick and mortar stores, then that's a whole other group of regulations, you know, and things that you have to learn and all of your inspections and all of your construction and I, that sort of thing.

Beth

So, yeah, it keeps you on your toes.

Philip

You're with different counties, so they're a little, maybe follow the law a little different.

Philip

So certain places are more strict on your plumbing or other things that you're doing in your stores.

Philip

So it varies.

Philip

And you do earn and you just know it's not gonna be.

Philip

We know we don't know everything.

Connie

So how long ago did all this start?

Beth

We started about eleven years ago and just did food trucks and mobile events until 2019.

Beth

And in 2019, that's when we opened our first stores.

Beth

And we really, we liked having the winters off.

Beth

You know, that was part of the reason that this seasonal kind of business worked great for us.

Beth

We could still travel and do what we wanted to do in the winters and work really hard in the spring and summer.

Beth

So we kind of were resistant to the idea of opening brick and mortar stores because we didn't want to be tied down in the winter.

Beth

But the first location kind of fell in our lap.

Beth

It was in a small little town that we liked close, and we loved the building and the price was right, and we liked the people that owned the building who wanted us to come.

Beth

And so we said yes, and that was the first one.

Beth

But at the same time, another one fell in our lap.

Beth

And that's how we came to open two.

Philip

Two within a few weeks of each other.

Beth

At about the same time, I heard.

Host

You say stores, and I was poised to ask that question.

Host

Cause that seems like.

Host

Hmm, kind of fast.

Philip

It wasn't planned that way, but it worked out well.

Beth

And I think that that's true.

Beth

With a lot of things that have happened with us, we have seen, we've had opportunities present themselves that maybe were not really what we originally thought we would do, but we've been open to ideas as they've come along and made it work.

Philip

You know, just kind of rolled with it.

Philip

So you've got to be flexible, for sure.

Host

You get a.

Connie

So, how was it?

Connie

Okay, so you both had your own careers, and you.

Connie

So you didn't work together, and now, all of a sudden, you're together.

Philip

We've been there.

Beth

Yeah.

Beth

So we recently celebrated our 25th wedding anniversary.

Connie

Congrats.

Beth

That alone is, you know, there's some secrets to pulling that off, but when you add.

Beth

When you add that we work together, you know, it makes it even more unusual, I think.

Beth

But I think the secret to our success working together is we both do different things.

Philip

We each have a stream, and we're usually in the same place or the same area, but we're not working together.

Philip

I'm in a different area.

Philip

I'm in the kitchen or another warehouse or something, and so we don't really see.

Philip

We see each other for dinner sometimes, and that's.

Philip

That's just like we would normally.

Philip

So.

Beth

And I think, too, I know that he knows his areas much better than I do.

Beth

You know, he pretty much manages the kitchen.

Beth

He manages all of the deliveries, all of the warehousing, ordering, all of that.

Beth

He's managing that aspect of the business where I do more hiring of the staff, more training of the staff staff, more managing of the staff office functions, and marketing for the business.

Beth

And so I know that he knows his areas a whole lot better than I do, so I.

Philip

You know, it really works out.

Beth

He.

Beth

He kind of takes the lead in those things, and I think he also trusts me on the parts that.

Beth

That I do.

Beth

You know, if there's something that we really feel strongly about that the other is doing, then we have a discussion about it.

Beth

But most of the time.

Beth

That doesn't happen very often.

Philip

No, it does.

Beth

You know, I figure we've done something right with this combination to have made it work this long.

Philip

We're still learning, so.

Beth

Yeah.

Philip

And every day is different.

Beth

Yeah.

Beth

We all the.

Connie

We call it the surprise of the day.

Beth

Oh, my gosh.

Beth

Yes.

Philip

That's a good thing to call it.

Beth

Yeah.

Beth

So we get out of the bed in the morning and we have a plan, you know.

Connie

Oh, yeah.

Host

This is what we're going to do today.

Beth

And it never ends up that way.

Philip

You know, how did I end up here, right, exactly.

Philip

But that's the way it is.

Host

Happens.

Connie

That's entrepreneurship, right.

Connie

That's entrepreneurship 101.

Beth

Yes.

Host

Be flexible.

Host

Yeah.

Host

Flexible, adaptable, resourceful, and resilient.

Host

That's my motto so far.

Host

Far.

Host

F a r r.

Host

Yes.

Beth

Yeah, that works for sure.

Host

Okay, so you mentioned staffing.

Host

Is that something that you brought from your corporate experience, hiring and managing?

Beth

No.

Beth

Well, a little bit.

Beth

I did hire and manage in my corporate job a little bit, but most of our staff are high school and college age kids, and so that presents a whole nother set of challenges.

Beth

Our staff are great, and we are hiring, for the most part, the best of the best.

Beth

I think probably the management of our staff.

Beth

We learned more from our ungrown children.

Philip

You said, you know, we had kids and we don't have pizza and, yeah, kind of knew what to expect.

Philip

And, you know, sometimes they try to treat us like, I guess they would talk to their parents.

Philip

And we know, we already know that.

Beth

We know those tricks sometimes.

Philip

You know, honestly, that's probably the hardest part of the job, is, I think, the labor, managing the labor, it's just.

Philip

It's difficult.

Philip

Everything else is almost easy compared to that.

Beth

And, you know, just having gelato shops, the ice cream business, most of your staff is going to be high school teenage kids.

Beth

And even the great ones that stay with us, they eventually age out because they're going to college or they're going on to their regular careers.

Beth

So you've got a very short window of keeping those same kids, you know, and so it's a balance of the ones that you hire this year or the ones that you're hoping that you can keep a couple years, and the ones that are aging out this year, you know, they're going to be a good influence on the ones, the new ones that are coming in.

Beth

It's.

Beth

It's difficult because you don't want all young ones, you know, and you don't want all ones that are leaving to go to college in August either.

Beth

You know, you've got to have a blend of both so that you can make it through your season with a somewhat experienced staffing base.

Host

Yeah.

Beth

And in the summer, we may have up to 70.

Beth

So there's a lot.

Philip

Yeah, it's part time.

Philip

They're all part.

Beth

They're all part time.

Beth

And like I said, most of them are involved in lots of.

Beth

Lots of extracurricular activities.

Beth

They're athletes.

Beth

They're, you know, so even during the year, they.

Beth

Someone may be involved in a sport real heavily during, you know, during the spring.

Beth

So they're not working much in the spring, but then they may work a whole lot more in the summer and in the fall when they don't have things going on.

Beth

So it's a juggling act to make sure you have the right mix and the right number of folks in your stores, you know.

Connie

Wow, what a scheduling nightmare.

Host

Yeah.

Host

Have you found a particular, like, piece of software or tool that really helps make that easier, or did you just have to figure it out?

Beth

Well, we have a secret weapon for our scheduling.

Host

Can we talk about it?

Host

How secret?

Beth

We have a woman that works with us who owns her own business.

Beth

She is a virtual assistant.

Beth

She actually lives in Kansas, and she's been with us for six years, since right before we started opening stores.

Beth

And she handles 100% of the scheduling for our staff members.

Beth

And she does it from Kansas, does it completely remotely.

Beth

And she, as you can imagine, she and I are in touch multiple times a day.

Philip

And she was a teacher, so she knows deal with these kids.

Beth

Yeah.

Beth

She was a middle school teacher who, she stopped teaching school because she started her own family.

Beth

And she.

Beth

So she has a bunch of kids, and this keeps her able to manage her household and spend time with her kids.

Beth

And we're one of her clients.

Beth

We are not her only one, but we keep her hopping for sure.

Philip

It's been great.

Beth

Yeah.

Philip

We couldn't do it without it.

Beth

But we also, we are very upfront with our staff in that we expect them to be mature enough to be in charge of their own schedules.

Beth

You know, they enter their availability, the times that they're available to work and the times that they are not available to work.

Beth

And based on that is how we do the schedule.

Philip

So it works really good as long as the kids fill out their forms correctly.

Beth

And if something comes up and they're not able to work, we also make it clear to them if they can't work, for whatever reason, they are responsible for finding coverage for that shift.

Beth

And we may have to remind them over and over and over again, but we make them do it, and then pretty soon they.

Beth

They realize this would have been so much easier had I just done my availability correctly, you know?

Beth

And it's part of just teaching them how to work with us.

Beth

But we're teaching a lot of them how to have a job because we may be the first one.

Beth

First time they've ever had a job.

Philip

Most of them.

Philip

It's their first job.

Host

Okay.

Host

Yeah.

Host

So that's what I was sensing is that you're doing a lot of development of life skills.

Beth

Right.

Beth

It's great.

Beth

She are scheduling.

Beth

She's a magician for sure.

Host

Sounds like it.

Connie

And you keep her very happy.

Beth

Yes.

Philip

It works for her.

Philip

It really does.

Beth

Yeah.

Connie

Right.

Beth

Exactly.

Connie

Fabulous.

Host

What's something that, you know now that you wish you'd known when you started?

Beth

Oh, gosh.

Beth

How hard it would be and how much time it actually takes.

Beth

And what I mean, I guess, is you think that part of, the.

Beth

Part of the joy of having your own business is be able to set your own schedule.

Beth

Right.

Beth

Which we can, but that doesn't mean that you're ever 100% off duty, you.

Philip

Know, I mean, we try not to do much while our stores are open, but sometimes, like, we go to a movie or just out to dinner or still have to work and still take care of problems and things like that.

Philip

So you're kind of on the call pretty much all the time.

Beth

And we still have that same model where we're closed in the winter because the sales are not as great in the winter.

Beth

So we close about Halloween, and then we reopen around St.

Beth

Patrick's Day.

Beth

So that's.

Beth

But I haven't had a day off since March 1.

Philip

Yeah.

Philip

I mean, we work full time with all of our time, you know, in just a few months.

Beth

Yeah.

Philip

Which is fun.

Philip

It's not for everybody because it's.

Philip

There is some long days.

Host

Yeah, it's.

Host

It's longer.

Host

It's longer than a, like, I'm thinking of some of the, you know, the beach resorts in the, up in the northeast that would only be maybe open for three months out of a year, you know?

Beth

Right.

Host

Yeah, they're.

Host

They're at it hard for those three months, and then they probably got it fill in other times.

Host

I don't know.

Host

But sounds like, you guys, your season is long enough that it's more than enough, and yet.

Host

Yeah.

Host

It's a full.

Host

You're ready for a rest when it's done.

Host

Halloween comes.

Beth

We are.

Beth

And we do during the four months that we're off, we do take.

Philip

We work a little.

Beth

Yeah, we take maybe two of those months completely off, but then the other two, we're starting our plan.

Beth

All of the planning for the upcoming season happens in our winter months when we're off.

Beth

You know, any things we want to change, any marketing things we're doing, because once your season starts, you don't have time to change the way you're doing things.

Beth

You know, you just got to hang on until you get through, you know, get through to the end of the season.

Host

I know that gelato is similar.

Host

You've mentioned milk and sugar and, you know, cream.

Host

So it's similar to ice cream in a way, but there's a difference, too.

Host

What is the major difference?

Beth

That's probably the most popular question that we are asked, and the main thing is gelato is an italian style of ice cream, and the ratio of milk and cream is different in gelato than in american ice cream.

Beth

So it has less fats, it has more milk and less cream.

Beth

Where american ice cream has more cream and less milk, it also has less air, just the way that you make it.

Beth

It has less air mixed into it, so it tastes more dense and thick, kind of like homemade ice cream in the east, making the backyard in the churn, you know, so it tastes different.

Beth

It allows the flavors that you're using to, because you don't have as much fat.

Beth

It's not coating your tongue.

Beth

You really taste those flavors.

Beth

In Gelada.

Philip

It's a little more intense, I guess, because it's more concentrated, not as hard as ice cream.

Host

And that may be why we remember, just like you had that experience on vacation, going to the gelato store and saying, wow, this is really good.

Host

And it was special.

Host

The same.

Host

Because I, you know, I tend to like, I'm a fan of coffee ice cream, and most of the coffee ice cream that I find is just tastes watered down.

Host

And I want that.

Host

I want an intense flavor.

Host

I look for that.

Host

So that might be, I believe that the lovely lady Deborah that introduced us told me that you guys have several stores, and they're in smaller towns where you might be the only store of that kind in the.

Host

In the town.

Host

Is that true?

Beth

Yes.

Beth

So we have five stores in Kentucky.

Beth

Three are close to Lexington, which is the second largest city in Kentucky, and then two are on the outskirts of Louisville, and that's the largest city in Kentucky.

Beth

But we are actually in small, more rural areas, type communities, and we are on Main street in the historic part of these downtowns.

Beth

In these, these small towns.

Beth

As a matter of fact the first store that we opened, we're in a town of about 9000 people.

Beth

You know, it's a very small town.

Beth

They have a dairy queen there.

Beth

But when we opened there was no other mom and pop kind of ice cream shop in town.

Beth

And so in that one we are in a very historic building down by the courthouse and you know, very picturesque little towns and that's been a great model for us even though when we first started a lot of people didn't know what gelato was, you know, so.

Philip

It'S not as common now.

Philip

People seem to understand it.

Beth

Yeah, right.

Beth

So, but that's been a great, a great idea that we had where these.

Philip

Work for us, a lot of repeat customers.

Host

Have you been able to capture that to some degree that taking an evening walk, the walkability that you find in Europe and, you know, where people are just after dinner, you know, let's take a walk and we'll go get some gelato.

Philip

Square stores are pretty small so a lot of people get it and you know, walk around, they need it.

Philip

So one store has a walk up window so they can walk up to the window and get it and walk.

Beth

Around, sit outside, sit on the steps of the building next door, you know, sit on the benches out front, that kind of thing.

Beth

We also have.

Host

It's great marketing.

Host

Well yeah, when people walk around with that, where'd you get that?

Beth

That's true.

Beth

And also our stores are located close to restaurants so our busiest time is after dinner.

Beth

You know, from 730 to nine is our busiest time.

Beth

And so people go to dinner and then they walk down the street and they come get gelato as their dessert.

Beth

Works out great.

Philip

It's important to have a restaurant close to us.

Philip

There's no doubt that's a big driver.

Host

That also makes a lot of sense.

Host

I don't know that I thought of that.

Host

It's a feeder.

Host

Yeah, absolutely.

Host

Because you want, you know, you might not like what they have on the menu at the restaurant and oftentimes those are rather healthily priced and it's usually something that they didn't make in house.

Connie

So what your experience of working together, what did you learn about each other through this process?

Philip

Well, we worked together a long time, I guess before I'm like, oh, wolf.

Connie

Well, well, working together is different.

Beth

It is.

Beth

I think maybe it kind of gives you a greater appreciation for your spouse.

Beth

Things that he's managed to figure out and managed to pull off that I probably couldn't pull off and things that are so different than your day to day job, your regular career was.

Philip

Right.

Beth

You know, I think that's probably the most interesting thing.

Philip

Well, plus, I think we've learned if we have a question or have to make a decision, I feel like we know each other enough.

Philip

It's not like I've got a caller every.

Philip

For every single thing.

Philip

And she's the same way.

Philip

We.

Philip

I think we both make pretty good decisions without being taught that rarely would we have a problem with what we decide.

Beth

Yeah.

Philip

So I think we've learned that, and we didn't have that at first.

Philip

You know, you got to have some independence, I guess, when you're both working of the same area.

Philip

So that's something we know.

Beth

Yeah.

Host

Increased.

Host

Increased trust as well as the appreciation for each other's strengths.

Beth

Right.

Host

That come complementary nature of the strengths.

Host

That's really cool.

Beth

Very cool.

Host

So what's something that, that would.

Host

I know I'm asking hard questions here.

Host

What's something that you would offer as advice to other families that are thinking about starting a business together?

Philip

You're probably going to work a lot more hours than you think, probably more than your regular job that you're doing.

Philip

It's very rewarding, I'll say that.

Philip

And I think you're willing to work a lot harder when it's your business.

Philip

And it is not as difficult, I don't think, to work long hours when it's yours.

Beth

I think that's a good point.

Beth

But I also think that financially, I think maybe you need to realize that you're not going to make a fortune right at the beginning, no matter what you're doing.

Beth

So you need to be financially able to carry yourself until the point that.

Beth

That whatever business you're starting is able to support you, you know, and I would say maybe that's longer than what you would imagine at first.

Philip

You know, everything's more expensive, and you just gotta know that you're not gonna.

Beth

Make a fortune in your first week, you know, no matter.

Beth

And so you've got to be somewhat prepared for that, I think.

Host

Yeah.

Host

So starting as a side hustle is a big advantage if you can do it.

Philip

That worked for us and that it was perfect for our situation.

Beth

Yeah.

Beth

And to not overextend yourself.

Beth

Don't spend more money than you can afford to loose starting off, you know, because it may not go as well as you think.

Philip

There's a lot of problems with businesses.

Philip

I've been sometimes don't have as much money coming in that a lot going and all.

Host

Yeah.

Host

They're so sure of what they're doing that can't possibly go wrong.

Host

What could go wrong?

Host

That they go all in.

Beth

And.

Connie

Shiny object syndrome.

Host

Yeah.

Host

Did Covid, was it a big setback for your business model, or was it easy to adapt?

Philip

It was.

Philip

It was one of the top things I might leave other.

Beth

Yeah.

Beth

Yeah.

Beth

Because we started opening stores in 2019.

Host

I remember you said that.

Beth

Yeah.

Beth

And we actually opened a third store in the fall of 2019 in Lexington, which is a larger city.

Beth

And we did it right downtown in the event area close to Ruparena and the opera house, where they had lots of events and lots of concerts.

Beth

And it was a very event driven store, and it was quite successful.

Beth

And then Covid hit, and those venues did, they didn't have events for, you know, just like any, anyplace else.

Beth

The events stopped.

Beth

And so we knew that we were going to have to make a decision pretty quickly about that store, you know, because it wasn't, it wasn't a typical neighborhood kind of store where people were.

Beth

It was not the destination.

Beth

It was coming down for events.

Beth

And I.

Beth

So we were fortunate enough that we were able to close that store, get out of that lease.

Beth

But it was a tough decision for us, you know, but we had two.

Philip

Stores then, so we basically, I worked one and she worked one, and we worked from open to close until.

Beth

Until we could bring six days a week, until we could wait until we could bring our staff back.

Beth

Yeah.

Beth

So closing that store in Lexington, it was definitely the right decision, you know, because that, that could have killed us financially.

Beth

It really could have.

Beth

But at that time, we already had another location in the works and had planned to open in the summer of 2020 in another town.

Beth

And we had to make the decision, do we go on and open it in the summer of 2020?

Beth

Because we were not able to bring our staff back until the end of May in 2020.

Beth

We had planned to open this new third store at the end of June in 2020, and we had to decide, do we go on and do this or do we cancel these plans?

Beth

What makes sense?

Philip

The landlord was good, too.

Philip

He understood.

Philip

He wanted us to come there.

Philip

So he said, when you're interested, we'll do it.

Philip

So he wasn't.

Philip

Nobody was looking for any places to open anyway.

Host

Yeah.

Host

I was wondering.

Host

I didn't think there'd be a giant rush of people looking to start a new business.

Beth

He didn't have other crazy people beating down his door to open an ice cream shop in the middle of COVID So, and so we did a lot of civil searching, and we decided that it was worth the risk.

Beth

And we opened that store in June of 2020, and.

Philip

And it's a good location.

Beth

It's a great location, and it still is a great store for us, you know, so it was the right decision.

Beth

So, Covid.

Beth

Yes, it transformed what we were doing, you know, but it was a prime example of having to decide kind of on the spur of the moment what is smart for your individual business.

Beth

And that was the best decision for us to close the event driven store in Lexington, but to go ahead with this small town model that works.

Host

Yeah, I wonder if it was because you had that, the one that really had.

Host

It's a different business model if that made that decision a little clearer, because a lot of people kind of fall in love with their baby that they're building, and that store was, in a way, it was an outlier from the rest of your business model.

Host

So did that make it easier to make that decision?

Philip

It was easier because it was drastic.

Philip

Their customers, there was nobody.

Philip

So we knew really quick that it was going to be a while.

Philip

Cause it was still uncertain with COVID what was going to happen, you know, and we knew it was going to be a while before this started, before it was going to be.

Philip

And really, to this day, I don't regret it one bit.

Beth

No.

Beth

And I think if we were there today, I don't know that events have even come back as much as they were, which.

Philip

How long that's been so, so.

Host

Right.

Beth

It would have been an awfully long haul trying to hang in there.

Beth

So it was definitely the right decision.

Philip

And I think not guessing, knowing for sure what you want to do is important because it's easy to hope and it never works out.

Philip

Go ahead and make that decision and move on.

Host

I learned that in the financial trading industry, hope is not a strategy, and it equally applicable to small business.

Beth

It's not.

Beth

It's not.

Beth

Wouldn't it be great, though, if it were?

Beth

Things would be easier.

Connie

Would be.

Host

Exactly.

Host

Exactly.

Host

You got to look at the data, and you got to be somehow collecting the data to be able to look at the data.

Host

I think that's another place that small businesses, they get so involved in just producing and getting through the day that they forget to work your staffing and your hours.

Philip

You're open.

Philip

You've got to look at all of your numbers.

Philip

If you don't, you don't know.

Philip

You're just guessing.

Beth

And we, even to this day, we're looking at our numbers every week and we compare it to this week last year and this week two years ago.

Beth

How are we doing?

Beth

How are the sales?

Beth

Are we getting our staffing right?

Beth

Are we open the right hours?

Beth

And what items are we selling?

Beth

Do we need to be marketing a certain item more than what we're marketing it?

Beth

So we're looking at that every week.

Beth

We don't always get right, but, you.

Host

Know, but you're comparing week of this year till same week of last year.

Host

That's impressive, that's refined.

Beth

And the reason that we do that is because ice cream sales, it's a, you know, it's a discretionary, it's an extra thing.

Beth

Nobody, nobody has to come see us.

Beth

It's not like we're a grocery store.

Beth

And so there are cycles during the year that if there's a holiday during a week, our sales are down.

Beth

If kids are going back to school, our sales are down because that discretionary income is being spent for school supplies.

Beth

So that's why we compare it to week, because that's where we see the differences.

Beth

You know, this is back to school this week, this year, back to school last year.

Beth

How are we comparing?

Beth

Are we doing just as well as we did last year or did we do a little better?

Philip

It really helps.

Philip

We have learned a lot on that.

Philip

We're usually right.

Beth

Yeah.

Host

Yeah.

Host

I would think your judgment would get, as you learn, as you practice that more, that you'll get tighter and tighter on what you can reliably predict.

Host

Predict is a funny word, but project maybe is a better word.

Beth

Well, and that's a big part of the challenge that we have because we've got to make sure we have enough product.

Beth

And so you're looking at your sales from this week last year to figure out how much product you're going to need, if your sales are that this year.

Beth

And then if you also add in the, the food trucks, which we still, we have eight mobile units also on top of the five brick and mortar locations.

Beth

So every week we have events, and so we're looking at those events.

Beth

How much money are you going to make at each one of those events?

Beth

And how many pans of gelato does that equate to and how much does the kitchen have to produce to supply the events and the store sales that you're going to have for this week?

Beth

So that's why those numbers become even more important, because if you run out, then you can't make any money.

Host

You can't sell what you don't have.

Host

Right.

Beth

And if you make too much, then you know that cuts into the amount of money that you're making, too.

Beth

You know, if it's things that you can't carry over to the next week and continue to sell next week.

Beth

So a lot of detail.

Host

There is so much.

Host

Yeah.

Host

We didn't even talk about your training program.

Host

I know you probably got a pretty refined training program, but any, like, high points there?

Host

Like, is there something that you found because you're working with high school kids so they're used to going to school.

Host

I'm just kind of spitballing here.

Host

They're already used to being in a learning environment and kind of taking stuff in really fast.

Host

How did you create your training program relative to that?

Beth

Our training program has gone through several different metamorphosis because I learn in a different way even than Phillip learns or that you would learn and definitely a different way than a teenager learns sometimes.

Beth

And even from staff member, just staff member.

Beth

They're learning in different ways.

Beth

So our training really is three parts.

Beth

We do instructional videos on how to make every single menu item and how to do every task that they're going to be expected to know how to do.

Beth

We send them a link to this playlist.

Beth

They watch all of those videos on the playlist, and then we schedule a time where we do an in person training, and we in person make every one of those items and do every one of those tasks.

Beth

And they get immediate feedback on, that's great.

Beth

You know, let's move on to the next thing or try it this way.

Beth

This would make it easier.

Beth

And then the third part of the process is we call them supervised shifts, and they actually work an opening shift and a closing shift with an experienced staff member kind of as a wingman.

Beth

That experienced staff member is not supposed to be hopping in and doing the things unless the trainee really needs their help, you know?

Beth

So the trainee is kind of getting their footing, and they're learning.

Beth

So they're learning independently, they're learning with their in person trainer, and then they're learning with an experienced staff member.

Beth

And so doing it three different ways, usually you're gonna hit something there that resonates with them, you know, something, and they're not gonna remember it all, you know?

Beth

So you're still offering feedback each time you visit with them in the stores.

Philip

And just like anybody, some pick it up, no problem, some struggle.

Philip

And I think once they can't get her, they almost.

Philip

They just.

Philip

They give up.

Host

Yeah.

Host

So weed themselves out.

Beth

So you have to praise them on the things that they do well at.

Beth

It's not most have a certain area that they struggle with, you know, and so you got to find the thing that they're good at and praise that.

Host

Yes.

Host

Recognition is such a big thing, and it doesn't take a lot, you know.

Host

In other words, it doesn't, doesn't have to be a big win or a big show, but just recognition matters so much.

Host

So well done on that.

Host

That's awesome.

Host

How about your kids?

Host

So you said, you mentioned you had grown kids.

Host

Have they shown interest in being involved in the business or in the now or in the future?

Philip

A couple of them have worked with us, but I don't think they're really interested.

Beth

They kind of have their own careers and are doing their own thing, and.

Philip

They'Ll help from time to time.

Beth

Yeah, if we're in a bond, they'll help, and we enjoy having them when they're with us.

Beth

But I think my mother owned a small business, and as much as I would have loved to have had her small business, I think that she kind of thought that was her, her dream.

Beth

She didn't want to saddle me with her thing unless I was really into it.

Beth

And I think we kind of think that about our kids, you know, and.

Philip

If they were interested, I wouldn't fine, but they do their own thing, so.

Beth

And, you know, they don't have the same kind of passion.

Beth

It would not go.

Beth

Yeah, well, because it's hard work.

Beth

You got to love what you're doing.

Philip

You got to be dedicated.

Connie

Yeah.

Host

Yeah.

Host

So they get the opportunity to try it out, see if it's a fit, and if they let fall in love with it, they fall in love with it.

Host

If they don't, then no.

Host

No harm, no foul.

Host

That's beautiful parenting right there.

Connie

Well, on that note, I think it's.

Host

A great place to wind up.

Host

Thank you so much.

Host

So we're going to make sure we put in the show notes.

Host

I want to find out from you offline where your stores are, what towns they're in, so we can make sure we put that in the show notes.

Host

And how people can find you is spotsgelato.com dot.

Host

I know that.

Beth

Yes.

Host

That'd be great.

Beth

We appreciate it.

Host

Thank you so much for spending this time with us.

Host

This has been wonderful.

Connie

Well, thank you for fascinating.

Beth

We are certainly not experts.

Beth

You know, we learn something new every day.

Philip

Yes, we're still learning.

Connie

And that's a sign of an expert.

Connie

They're still willing to learn every day.

Host

It's the guy who thinks he knows it all that you got to watch out for he's lost his curiosity.

Connie

Right.

Beth

Right.

Host

All righty.

Host

Well, thank you again so much, and we look forward to following the story of spots gelato.

Beth

Thank you.

Philip

Thanks for having us.