If you’ve never tried ice cream flavors like “Space Cookies & Cream Hazy IPA” or “Strawberry Honey Balsamic with Black Pepper” on a balmy summer afternoon, you may be missing out. Salt & Straw began its journey in 2011 with a single pushcart in Portland and has since expanded across the country, gaining fame for its imaginative ice cream flavors.
From its humble Oregon beginnings, the popularity of their unique icy treats and its love in the community has enabled founder Kim Malek to open Salt and Straw locations all over – most recently spreading into Miami, Florida as its first venture on the East Coast.
Keep reading to hear about how Kim has achieved success in her ice cream company, including weaving the Salt & Straw brand into the fabric of Miami by collaborating with local businesses and drawing on regional flavors.
Despite its national presence, Salt & Straw retains the heart of a small business with Kim’s vision of creating spaces that foster togetherness at their core. From starting with a single cart to owning multiple locations, including a spot in Disneyland, Kim’s journey with Salt & Straw exemplifies the sweet taste of dreaming big.
Financing an Ice Cream Dream
Salt & Straw’s journey to nationwide success began with the help of Guidant Financial. Kim used Rollovers for Business Startups (ROBS) to leverage 401(k) funds to kickstart her budding ice cream business in 2011.
Kim had previously worked at Starbucks, so she was no stranger to the food and beverage industry. At Starbucks, one of her responsibilities was growth of the stores, and that’s where she learned her love of what she calls a “third place” – neither home nor work, but a location where you can relax and enjoy yourself with others in your community. For Kim, that meant an ice cream shop where neighbors could gather.
In fact, community was at the heart of why Kim started Salt & Straw. She bought an ice cream cart, sold her home, and borrowed from her 401(k) to get started.
If you’re not sure 401(k) financing, or ROBS, works, it involves creating a C Corporation (C Corp) and setting up a 401 (k) plan for the new C Corp. You then select a custodian to manage investments in the plan. Next, you roll your existing 401(k) – or other pre-tax retirement assets – into the newly created 401(k) plan. And that’s it – in a nutshell.
Entrepreneurs looking to leverage ROBS typically collaborate with providers such as Guidant Financial to guarantee their program is established correctly and meets IRS regulations. Guidant offers comprehensive assistance throughout the process, helping you set up your plan effectively so you can enjoy the benefits of debt-free, cash-rich financing, similar to how Kim launched Salt & Straw. Now, let’s explore some of the factors behind Salt & Straw’s success.
Looking to learn more about 401(k) business financing, also known as Rollovers for Business Startups (ROBS)? Get started here.
Fostering Community and Service
Once the financing was in place, Kim kicked off her entrepreneurial journey on the West Coast. As her shops gained popularity, she felt a pull towards the East Coast, eager to replicate her success. Throughout this expansion, maintaining the essence of community focus and collaboration remained a priority for her.
For example, in Miami, Kim worked hard to integrate Salt & Straw with Miami’s culture and community. She made sure that she partnered with other local small businesses. And the focus on customer service and providing top-notch customer interactions was also top of mind. In fact, Kim encourages her employees to spend time talking with customers and providing that community experience.
The ice cream innovator also notes its deep connections in neighborhoods and merchant associations, as well as its local school and community fundraisers.
Encouraging Exceptional Employees
Salt & Straw is known for treating its employees well. This means that if employees are struggling, Kim will look into why that’s happening – instead of making rash decisions and blaming the employees. If that means making a change to the store and how it’s operating, that’s what it takes.
Salt & Straw also pays living wages and “creates a career path” for its employees. Diversity is important to the ice cream company, and it invests in diversity in leadership through organizations like Emerging Leaders.
Staying Nimble
Another of Kim’s secrets to success is easy for her: adapting and embracing change. As an entrepreneur, she is always dealing with change – and she prefers it that way, as do many entrepreneurs.
In fact, change is something that entrepreneurs will need to deal with. According to Forbes, “In the business world, change is not just important – it’s essential. Markets, technologies and customer needs are constantly evolving. If you want to stay competitive and relevant, you need to be willing to adapt and evolve as well.”
Honoring Hospitality
Salt & Straw notes that one of its key inspirations is to “provide unforgettable hospitality.” Just like how Kim creates a community feel in all of the stores, she also makes sure the hospitality is top-notch and the interaction is meaningful.
The Sweet Taste of Success
As you can see, Salt & Straw’s success is not accidental – the company works hard to treat its employees with respect, honor its hospitality, and foster a community feeling wherever it goes.
If you’re interested in starting a small business in the ice cream & frozen yogurt industry – or any other industry – these lessons will help you on your journey to serving up delicious treats and community connections.
Ready to try ROBS for your dream business? Pre-qualify today and get one step closer to debt-free, cash-rich financing.
“When Falling Sky Brewing presented itself as a great opportunity for me, I needed the capital. Traditional lenders weren’t going to do it. I took a chance on myself that I could grow my business and my 401(k)… And I thought, ‘You know what? I could do this without overhanging debt.‘”
— Stephen Such, Falling Sky Brewing
Read the stories of REAL small business owners who work with Guidant.
