We caught up with the brilliant and insightful Ted Skaff a few weeks ago and have shared our conversation below.

Ted, thanks for taking the time to share your stories with us today We’d love to have you retell us the story behind how you came up with the idea for your business, I think our audience would really enjoy hearing the backstory.

My wife, Kathy Skaff, was born in Houston, TX and grew up eating the delicious baked Kolaches. Kathy’s late father, Dr. Abraham Frech, always dreamed of opening up a Kolache Factory. Abraham died before Skaff’s first son was born, but 6 years later, she knew the time was right to realize the family dream.

Kathy and I have always dreamed about opening up our own business. We embrace the thought of of being an entrepreneur, and living the American Dream. Impressed by the corporate support and quality products offered by Kolache Factory, along with its proven model for success, Ted and Kathy Skaff introduced the first Kolache Factory to California, in October 2013.

Great, appreciate you sharing that with us. Before we ask you to share more of your insights, can you take a moment to introduce yourself and how you got to where you are today to our readers.

Over the past decade, plus, breakfast sales have continued to climb and remain the major growth driver in food service. The freshly baked kolaches are a modern variation of the pastry roll that originated in Eastern Europe centuries ago. They are self-contained and truly neat to eat and conveniently consumed anywhere – from the car to the office to the baseball field. Using a variety of the finest ingredients, such as meats, cheeses and fruits, all of the kolaches are baked fresh daily in the bakery-café. Kolaches are both delicious and affordable. In addition to serving various types of kolaches, customers can also enjoy gourmet coffees and a variety of traditional pastries such as cinnamon rolls, croissants, strudels and other delicious treats.

The main things that sets Kolache Factory apart from other breakfast goods in the quick service food market, is that all Kolaches are hand made and baked fresh hourly. From the dough to the contents, everything is made from scratch. In addition, there are unique and a healthier choice to other options in the quick service food market. We have experienced that ten-out-of-ten people who try Kolaches, really like them.

We strive on quality, cleanliness, and great service. When we hit on all those points, with the addition, of baking fresh, healthier choice, and uniqueness, this really sets us apart of the rest.

How did you put together the initial capital you needed to start your business?

Funding our Kolache Factory Business was not easy. We quickly learned that the overall investment, in 2013, to open up this franchise, was roughly $600,000.00. We knew we needed funding, and SBA was the primary choice. What we did not know is that for our initial store, SBA would require approximately half deposit down, before they would loan us the other half. Basic math indicated that we needed well over $250,000.00 cash before we could even qualify for the loan. Thanks to the help of our parents and Kathy’s brother, we will able to secure the capital needed.

Paying off the initial loan to SBA was challenging while we ramped up our business the first couple years. By year three, things were looking promising.

Alright – let’s talk about marketing or sales – do you have any fun stories about a risk you’ve taken or something else exciting on the sales and marketing side?

When we began our Kolache Factory Franchise in California, in 2013, there was no brand awareness. We knew we had an uphill climb, but we also knew it was a high-risk, high-reward. We were also very confident that if we get people to try kolaches they will love them. Our initial marketing strategy was to be very aggressive while taking on additional risks. We executed direct mail campaigns, made flyers & signs, and used the best offers, which had a call-to-action, and sense of urgency with an expiration date. Our initial and main offer was, FREE Kolache!!! NO PURCHASE NECESSARY! We just wanted people to walk in the door and try it. We were also fairly certain that if they did, they would purchase something else, and come back again. We were right!!! We also hand delivered dozens of kolaches to local businesses. This allowed the local businesses to try them, and love them. And these local businesses are some of our best and most loyal customers.

Contact Info:

• Website: https://kolachefactory.com
• Instagram: tustinkolachefactory, huntingtonbeachkolachefactory
• Facebook: Kolache Factory
• Yelp: Kolache Factory

Image Credits

Family Picture (Ted, Kathy, Sebastian, Seth, and Sophia
Counter Picture – Servicing Customers
Team Picture – Isabel, Kathy and Maria
Sophia’s Picture – Grabbing a Kolache before the softball tournament
Seth’s Picture – Helping with a Catering order
Huntington Beach Store
Sebastian’s Pictures – Grabbing breakfast before the basketball tournament