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Some Challenges (Fiscal and Otherwise) of Running a Small Cottage Food Business

Top: Locally Grown Showcase 2022 (our first market ever!) Bottom: Locally Grown Showcase 2023 (a whole bunch of – 30? 40? – markets later) Photo credits: Diana Trotter, James Lucash, respectively

After a year of markets – some thoughts. Brain dump commencing:

If you’re a fan of fresh baked goods, you know that they can be expensive. But did you know that baked goods from small businesses which use high quality (and organic) ingredients can be even more expensive? Of course you know this! But do you know why? Welp, grab a sourdough croissant made with grass-fed butter, have a seat and read on – Number 4 will shock you!

1. Organic ingredients are more expensive than conventional ingredients. This is because organic farmers have to follow stricter regulations and they often have to pay higher prices for land and labor. These costs are passed on to the customer in the form of higher prices. (In this case, the baker is the customer, and unfortunately – we have to pass the higher price we pay, to OUR customers)

2. Small food businesses have to produce smaller batches of baked goods than larger businesses. This is because we don’t have the same “economies of scale”. As a result, we have to charge more per unit to make a profit (and let’s face it, if we don’t make a profit, we will go out of business, and fast).

Here’s a – not so brief – explanation of “economies of scale”:

Economies of scale is a situation in which a company’s average costs of production fall as it increases the scale of its output. This can happen for a number of reasons, such as:

  • Specialization: As a company gets bigger, it can specialize its workers and machines in specific tasks. This can lead to increased efficiency and lower costs.
  • Equipment and technology: Larger companies can afford to purchase more advanced equipment and technology, which can also lead to increased efficiency and lower costs.
  • Economies of scope: Larger companies can often produce a wider range of products at a lower cost than smaller companies. This is because they can spread the fixed costs of production over a larger number of products.

Economies of scale can be a major advantage for large companies. It can allow them to produce goods and services at a lower cost than smaller companies, which can give them a competitive advantage. However, economies of scale are not always possible. In some cases, the costs of increasing production may outweigh the benefits. Additionally, economies of scale can be limited by factors such as the availability of resources and the level of competition.

3. In addition to equipment and cost of goods (ingredients, packaging, labels, boxes), small cottage food businesses have to pay for insurance, licensing fees, vendor fees (these markets aren’t free to us!), tent, weights for booth setups, website fees and credit card transaction fees.

Visual representation of me trying to figure out how I will bake focaccia, pop tarts, sourdough loaves, shortbread, sticky buns, cinnamon rolls, assemble s’mores bars, print labels and order takeout because we can’t cook or eat in the kitchen when baking for the business. Spoiler alert – mission accomplished.

4. Efficient use of our time can also be a struggle. Some of us are one or two person operations who wear many hats and have to juggle between making/marketing/packaging/selling/customer relations/IT support (you get the picture). And some of us (yes, me) have a full time job as well! (Narrator: This is probably not a shock as was promised earlier, but the internet seems to like shock and outrage. If you can’t beat ‘em, join ‘em)

5. We have less access to resources, such as wholesale discounts and bulk purchasing.  Not to mention constraints such as storage space. 

Using height to my advantage with stacked racks in my small kitchen.

6. We have to balance making sure we bring enough food to cover the expenses for all of the above while assuming the risk of making too much and not selling all of it, thereby wasting valuable resources like food and time.

Gambled and lost – event postponed but still wanted to make sure we had something – just in case. The baking, the post, the graphics for the post, updating the website to take orders after the post all done by yours truly!

Despite these challenges, many small food businesses choose to use high quality and/or organic ingredients,  because we believe it is the right thing to do for our customers and the environment. We also believe that using higher quality ingredients results in a better-tasting product.  Personally, I love to feed people – there’s nothing like the feeling of watching someone enjoy food you painstakingly prepared.  I also choose to use compostable packaging as much as possible – without sacrificing freshness, which is a challenge in and of itself (special labels, making sure the entire package is HOME COMPOSTABLE rather than just  industrial, because who actually follows through with that? Kudos if you do!)

So, if you’re looking for bargain baked goods, you’re probably better off going to a large grocery store. But if you’re willing to pay a little more, you can support a small business and enjoy the taste of fresh, high quality ingredients made with love, and human hands :-).

Our main goal with this post is to educate and explain why our prices are higher than grocery stores or other bakery products. We also want to encourage you to talk to us if you have thoughts or questions about what we do (I mean, within reason – we will never go with artificial color, flavor, or anything that goes against our food philosophy). We listen to every comment – positive or negative – we are always trying to evolve how/why/what we do, to be better, for you, for us, and for the community. Thanks for listening! We appreciate you!

My favorite novelty item that let us stick to our food philosophy, invoke the love of pop culture, and show admiration for the mustachioed man Ted Lasso. In addition to the high quality ingredients, the price paid for these pink boxes was pretty high! #worthit for the reaction from our customers who also love Ted. You get it.

I don’t normally stray from my strictly black & white branding. This was an exception to the rule!

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TCS Foods and You, and Me – a conversation

This post has been a work in progress for several weeks – so settle in and lets have a chat!

First things first, what is a TCS food?

TCS stands for “Time/Temperature Controlled for Safety”.  TCS foods are susceptible to rapid growth of pathogenic bacteria if not handled properly. These foods include meat, poultry, fish, eggs, dairy products, cooked vegetables, cooked rice, and raw & cut fruits, vegetables and leafy greens. TCS foods must be kept at specific temperatures to prevent the growth of bacteria. If these foods are not kept at the correct temperature, they can support the growth of pathogenic bacteria and make people sick.

But wait, there’s cream cheese (dairy) in cream cheese frosting. Are home bakers allowed to sell TCS foods? Doesn’t dairy need refrigeration?

Glad you asked! Here’s an important data point or two:

The pH of TCS foods is a measure of its acidity or alkalinity. Low acid foods (generally > 4.6 pH) are more susceptible to bacteria growth. More acidic foods (generally <4.6 pH) are less susceptible. Science!

The water activity (aw) of TCS foods is a measure of how much water is available in the food. Just like pH, the higher the water activity (generally > .88), the more susceptible to bacteria growth. More science! (Shout out to the science teacher in the family 😊 )

Additionally, we need to take into consideration pH and aw interaction, heat treatment, and packaging.

OK, so let’s get back to the cream cheese frosting. It tastes really good, but how do you know your frosting is safe?

EVEN MORE SCIENCE! I have had all products which could be considered potential “TCS foods” tested at a lab to ensure they are within the safe and acceptable parameters for pH and water activity. It is not cheap, nor is it easy, but it is IMPORTANT! If the testing isn’t done, the home baker (or inspector) doesn’t know where the food stands on the scale of SAFE > DANGER scale.

I follow my tested and approved recipes for the foods that could be considered “TCS” every time I make them.

Link to 2022 FDA Food Code for my fellow geeks.

Below is a table with the important numbers from the FDA Food code:

Are all licensed home bakers required to have their products tested?

In order to legally (I cannot emphasize the word LEGALLY enough) sell homemade baked goods, the Pennsylvania Department of Agriculture requires home based businesses to be inspected. We are then (hopefully!) approved as a “Limited Food Establishment”.

Home based bakers are expected to comply with the PA Department of Agriculture requirements which includes knowing which products we are allowed to sell, and which products are TCS (or could potentially be considered TCS, like cream cheese frostings or buttercream frostings) and have them tested prior to taking them to market if we choose to use them. One rule of thumb is – if a food requires refrigeration, it is not allowed under the “Limited Food Establishment” rules. If the baker is unsure, the PA Department of Agriculture has local inspectors available to answer these questions.

Does every licensed home baker do this? And how can I tell if they do?

First step is to ask if they are registered with the PA Department of Agriculture. If they are registered, they have been through an inspection process. This means an inspector has been to their house, inspected the kitchen and labeling, and have approved the products intended for sale*. Our registration number is on our banner!

(*Note: This does not mean the lab testing has been done, or that the inspector knows everything they make.)

While I won’t assume one way or another what anyone else does, I can tell you it’s OK to ask. If you feel uncomfortable with FOOD you plan to EAT at all, you have every right to be informed. It might be uncomfortable to ask, but here at White Squirrel Kitchen, we are never too busy to answer with a simple “yes – I have had this tested and it is safe and approved by the PA Department of Agriculture” or “No, it doesn’t apply to this item because x, y, z”.

Please don’t automatically think the baker is too busy to answer questions about the quality and safety of your food. Food safety is our top priority and we’re happy to tell you about food sourcing and preparation so you have full confidence. 

Another alternative would be to file a complaint with the Department of Agriculture. The PA Department of Agriculture should maintain a list of what foods a vendor has tested and approved to offer at markets. A vendor should absolutely know what they have been approved to sell to the public.

There seems more to being a vendor, has this happened to you? 

Let me share a recent example of how the PA Department of Agriculture inspectors  interact with the home bakers “behind the scenes”

I received an email from my inspector at the PA Department of Agriculture saying they received a complaint about my use of cream cheese frosting. At first, my mind went down a stressful thought process of “Who reported me? What did I do? Why would someone report me?  Why didn’t they just ASK ME?” 

As it turns out, there was a transition between my former (retired) inspector and my new inspector, and the frosting test results were not found in my file. (Had the results been recorded in my file during the transition, I don’t think there would have been an email sent to me about the complaint!!) . Everything was quickly resolved with one email back to the inspector with all my previously approved lab results.

So just be aware, you have the right to file complaints, you absolutely do – and if you see something unsafe or unsanitary occurring in the wild (this goes for restaurants and any food service establishment) you SHOULD file a complaint.** However, we humbly suggest you ask first, then use your judgment from there. You might be surprised what you can find out from a good conversation.

**Note: Please make sure you are reporting to the correct jurisdiction, local County Health Departments may cover certain areas as well.

We look forward to seeing you at the next market!! 

Out in the wild – 2022 Holiday Market at The Lofts at Sweetwater

One quick note: if you’re a vendor/home baker and reporting your competition because YOU were caught not following the rules shame on you 😊 BUT – if you are a home baker and would like some guidance on getting through the process – I’m happy to answer any questions. Send an email to gina@whitesquirrel.kitchen

Please note: the information above does not cover every possible scenario, this can be a very nuanced situation and this post refers to one specific scenario (mine).

If you’ve made it this far – thank you! You shall be rewarded with 15% off your next Cinnamon Roll 5 pack order – use code “CinRoll15

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Homemade yogurt? No Whey! Yes Whey!

Welcome to the first edition of “Inside the kitchen with Gina” – I just came up with that, I might change it, I don’t know….AnyWHEY….Did you know we use our very own yogurt for several of our baked goods? Now you know! And I’m about to tell you how you can make yogurt at home.

You’re going to need these supplies if you don’t already have them:

Disclosure –  As an Amazon Associate I earn from qualifying purchases. This page contains affiliate links. If you choose to purchase after clicking a link, I may receive a commission at no extra cost to you.

Instant Pot with Yogurt Function – this is the most foolproof way, and you can use the instant pot for SO MANY THINGS! I have two, and I’m not sorry. If you don’t already have one, what have you been waiting for?

Strainer – You can totally use cheesecloth instead, but even though this strainer is a uni-tasker, it’s worth it because it’s easy to clean. And it can go right in the fridge all lidded up.

Silicone Spoon or Spatula – I love these: GIR spoon and GIR Spoonula I have multiple sizes in multiple colors

Instant Read Thermometer – temperature is SUPER important here. You don’t want to kill the good bacteria with heat.

Jars – you can either keep your finished yogurt in a large bowl in the fridge, or portion it out into jars.

Yogurt – you’ll need plain yogurt to start. Skyr, Chobani, etc…. Just plain yogurt with live active cultures to get started. After your 1st successful batch of yogurt, put some in the freezer for the next batch

Optional but helpful: Funnel (wide mouth for mason jars) & ladle to store individual serving sizes in the fridge

recipe

1 half gallon of milk

2 Tbsp plain yogurt with live active cultures or packaged yogurt cultures

directions

Add milk to instant pot insert, close lid

Press “yogurt” function on instant pot and press “adjust” until you see “boil”. (Your model may vary)

  • The Instant Pot will beep, it will start the boiling process, and beep & display “yogt” when done.
  • Remove the lid and let the milk cool down to at least 115 degrees.
  • Speed the cooling process up by carefully removing the insert and either putting it in an ice water bath or on a rack to increase air flow.

Once the milk is cooled to 115 (or below), plop 2 Tbsp plain yogurt in the pot (no stirring required!).

(If you use your own “frozen” yogurt, let thaw at room temp while the milk is cooling)

Set the instant pot to “yogurt”, then press ‘adjust’ until you see the time, and set the time to 22 hours. The longer you let it incubate, the less lactose will be in the yogurt. Sometimes the yogurt can be ready in 8 hours, but the actual time depends on the yogurt.

Once you’re satisfied with the taste and texture of your yogurt, turn off the instant pot, remove the insert, and use the ladle and funnel to portion-out the yogurt into the mason jars or glass bowl.

Alternatively, the yogurt can be poured into the strainer (linked above) to make thicker, Greek-style yogurt. You’ll also have plenty of whey left after that process to add to pancakes, waffles, and a whole host of other recipes (Those recipes are coming soon)!

Top your yogurt with fruits, granola (maybe try some White Squirrel Kitchen granola, purchase HERE), pure maple syrup… pick your favorite but it’s also delicious plain!

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Flavor Profile Spotlight – HMB

Hold my {beer} nuts

This is our OG flavor profile. The nutty spice mix that started it all.

Like the description says, it’s sweet (sugar-y, cardamom-y), spicy (cayenne, cinnamon, cumin), salty (salt and attitude) and a bunch of nuts. Like us, like everyone.

If you came here just to find out what the nuts taste like, there you have it. If you’re curious and want to know “what is up with these names of flavors” and have a few minutes then read on….

You have made it this far with us, we trust you have a pretty good sense of humor. Welcome!

‘Hold my {beer} nuts’ was one of the first treats “Jolene”1 made that stood out – the one we thought “people (besides just us) might really like and want more of this…at least if they are out and about and drinking and don’t want to cook or carry snacks around with them and …yada yada yada” here we are.

Why ‘hold my {beer} nuts’ tho?

Let’s break it down: More often than not, if you tell one of us that we can’t/shouldn’t do something, chances are the response will be “hold my beer”, also known as “challenge accepted” (what could go wrong?)

And – you may have figured out by now that we love a good double entendre <—–according to dictionary.com that’s French for a word or phrase open to two interpretations, one of which is usually risqué or indecent.

That basically sums up 2020 doesn’t it? It turned out to be a fantastic opportunity to spend time with family that we chose to (or were forced to) quarantine with, reconnect with ourselves, reconnect with nature. It was also a horrific dumpster fire2 for many people. As it turned out, 2021 said “hold my beer” and proceeded to ride that flaming dumpster down a flooded stream of fec……..ooof, nevermind, we won’t go there…we’re sure you are picking up what we’re putting down.

Do you know what else we want you to pick up? Our nuts. (see what we did there?)

It’s kind of like a “choose your own adventure” thing….it can mean whatever you want it to. We won’t judge. For us, right now, “Hold my Beer” means we’re about to show 2022 who’s boss; we will face whatever challenges it throws at us head on.

Betcha didn’t see that overcoming adversity feel good stuff coming did you? Don’t worry, it’s temporary – wait until you read about some of our other flavors.

In conclusion, the past few years have been a rollercoaster for everyone, but that doesn’t always have to be a bad thing. For example, in a recent taste-test3, ‘Hold my (beer) Nuts’ was described as a “rollercoaster of flavor in my mouth”. So join us on this flavorful adventure and keep an eye out for the little white squirrel in your neighborhood – it’s just a squirrel, trying to get a nut.

Footnotes:

1 – You’ll find out about “Jolene”…..patience young padawan.

2 – Future post on another flavor profile coming soon, extra points if you guess which one. Its based on ‘fire’, not ‘dumpster’… that’s still in the back yard and a whole other story.

3- “Taste-test” was taken by a family member, a test they passed with flying colors.

Disclaimer:
These product descriptions are kinda/sorta fictional, but also based on our own life experiences. Any resemblance to a personality, personality disorder or of someone you know, living or dead (or somewhere in between), is coincidental and maybe bad mind reading.
It’s not about you.
No, really…

The thing about Panettone

They call it the “Mt. Everest of bread”, you might be wondering why.  What’s the big deal?  Why is it so difficult to make?  Why is it so expensive?  And, what is it anyway?

At a market, I will describe panettone simply as an Italian sweet bread, but I don’t think that does it justice. 

This Italian Christmas bread/cake/soufflé-ish hybrid is a sight to behold, towering high with a soft crust and a delicate, airy crumb. But oh, the drama behind its creation!

One does not simply decide to make panettone on a Tuesday. It demands days of devotion, a splash of courage, and maybe a sprinkle of madness.

Read on for some holiday inspired entertainment about conquering Mt Panettone!

The Panettone Saga (Cliff notes version – is that still a thing?):

  • In The Beginning: It all starts with a “livieto madre” (aka pasta madre, aka a stiff sourdough starter).  Maintained for days ahead of time, to ensure the proper balance of yeasts and bacteria and avoid a sour flavor in the finished panettone (from the ridiculously long fermentation times). Could you use dry yeast as a shortcut? I mean, I guess you could – but then it’s not really a traditional panettone. And did you even make panettone if you didn’t suffer?
  • The Ingredients: So.  Many.  Egg yolks.  And Butter.  An obnoxious amount of butter.  Along with the flour, sugar and other inclusions,

The Dough Drama: The dough itself is a diva. It’s finicky, demanding constant attention. One wrong move, and your panettone could collapse like a soufflé.  No really.  And it’s not just one dough.  It’s TWO.

The Double Rise: Not only do you need to mix one dough (primo impasto, if you want to learn Italian), there is also a second dough (secondo impasto).  It goes something like: mix dough one, let rise for 15 hours;  put it back in the mixer;  add more egg yolks and butter;  Question your life choices; mix for 30 minutes and hope it all works out.  The second rise is a critical moment. The dough needs to expand dramatically, but not explode.

  • The Bake-Off: Finally, the moment of truth: the bake. The oven becomes a stage, and panettone is the star. Will it rise to the occasion? Or will it sink into oblivion? You will not know the answer until:
  • The Cool-Down: You think it’s done when it comes out of the oven?  Nope.  You have to skewer it and HANG IT UPSIDE DOWN for what seems like an eternity.  Tip-toe past the racks with the hanging panettone you just spent 3-4 days prepping, mixing and babying – or else.

But Why All the Fuss?

Despite the drama, panettone is worth every minute of the struggle. Its sweet crumb, studded with dried fruit, nuts, or chocolate, is the perfect holiday treat. And let’s be honest, who doesn’t love to be a Holiday Hero and show up to a party with a panettone!


Tips for Panettone Enjoyment:

  • Toast or warm it lightly: Brings out the flavors and adds a delightful crunch.
  • Pair it with something bubbly: Prosecco, sparkling wine, or even a good quality sparkling cider.
  • Share it with loved ones: Panettone is meant to be enjoyed with friends and family.

So, this holiday season, embrace the drama, savor the sweetness, and enjoy the magic of panettone!

Happy Holidays!

Rehydrating our Sourdough Starter

A few days before you want to use your starter for baking, revive your dehydrated starter.

DAY 1 – In a small bowl or jar, mix 5 grams of dehydrated sourdough starter with 15 grams of 80 °F water. Allow the starter and water to sit for about 2 hours, or until the dried starter dissolves. Stir in 15 grams of flour. Cover (do not tighten jar lid)  and keep at 75 – 78 °F overnight, or for 12 – 14 hours.

DAY 2 – Without discarding any of what is in the jar, stir in 10 g of flour and 10 g of water. Keep at 75 – 78 °F for 24 hours (if it’s colder it will take longer to activate the starter)

DAY 3– There may be  signs of activity at this point such as small bubbles and a slightly sour aroma. Without discarding any of what is in the jar, stir in 10 g of flour and 10 g of water.  keep at 75 – 78 °F

DAY 4 – There should be clear signs of activity at this point. The starter will have risen since the last feeding and you will see bubbles.  Discard all but 15 g of the starter, to the 15g starter – add 30 g of water and 30 g of flour.

DAY 5 – IN THE AM  – Discard all but 15 g of the starter. To the 15 g of starter, add 30 g of water and 30 g of flour.IN THE PM – Check your starter around the 7-hour mark. If it has close to tripled in size, then repeat the same feeding as you did in the AM. If it has not yet peaked, let it go another hour or two before checking again.

DAY 6– The starter should be fully active at this point.

 Feel free to e-mail gina@whitesquirrel.kitchen with any questions.  Enjoy!