Dana Bloom: Founder & CEO of Proper Food

Episode 477

Dana Bloom, Co-founder and Co-CEO of Proper Food, shares the story of how the brand started and the challenges they faced in the early stages. She emphasizes the importance of believing in yourself and gaining the trust of others, as well as finding the right location for the first store. Dana discusses the evolution of the menu and the company's commitment to providing value and maintaining quality. She also talks about the impact of the pandemic on the business and the need for innovation and adaptation and the importance of not giving up and finding a way to overcome challenges. This episode is terrific and you don’t want to miss it! On this episode of #TheKaraGoldinShow.

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Transcript

Kara Goldin 0:00
I am unwilling to give up that I will start over from scratch as many times as it takes to get where I want to be, I want to be just want to make sure you will get knocked down. But just make sure you don’t get knocked down knocked out. So your only choice should be go focus on what you can control control control. Hi, everyone and welcome to the Kara Goldin show. Join me each week for inspiring conversations with some of the world’s greatest leaders. We’ll talk with founders, entrepreneurs, CEOs, and really some of the most interesting people of our time. Can’t wait to get started. Let’s go. Let’s go. Hi, everyone, it’s Kara Goldin from the Kara Goldin show. And I am so excited to have my next guest here. She’s a local celebrity local, to me, at least in San Francisco, with an incredible brand that she co-founded and co-runs as CO-CEO. It’s called Proper Foods. And if you’ve ever been going through SFO in the JetBlue, and southwest terminal, I think there’s a few other airlines in that terminal, but you’ll definitely see Proper Foods and they will save you before getting on any flight. But in addition to that, they have now 17 locations I hope hope that number is right. And the brand is now bicoastal, they’ve expanded to New York City, as well as San Francisco. And I’m super excited to hear from Dana all about the story and some of the challenges and starting and brand, how this all came about. And also, just overall, what’s going on in the industry. So thank you so much, Dana, for coming on and and talking to us. I’m

Dana Bloom 1:57
thrilled to be here. As you know, I’m a I’m a big fan of yours. so honored to be here.

Kara Goldin 2:02
Yeah, exactly. So they’ve been a big supporter of having hint water and their locations as well. So it’s been really, really nice to see them grow. And us grow with them. So it’s been really nice. So you and your husband Howard started, started in 2014. Can you give us the backstory? How did this all get started?

Dana Bloom 2:26
Yeah, you know, I think my husband Howard and I were both working corporate jobs in downtown San Francisco. And, you know, as working parents time was our scarcest resource. So we always, you know, at work would want to go out for like a quick lunch and found ourselves either waiting in line a half hour to get a good salad, or just grabbing something that wasn’t really good food. And we just didn’t want to have to sacrifice quality for convenience. We’d always been passionate about food. Howard’s dad was growing his own vegetables and cooking, local, organic and seasonal before those were buzzwords that anyone used. So we created what we wished existed. And we got lucky. Early on, we found our Executive Chef, one Eunos. And one, you know, had come from this Michelin star fine dining background, but was really passionate about wanting to make high quality food more accessible. And so we all got together and basically created what we wished existed. And it turned out a lot of other people wish that existed to so grew really fast, all from word of mouth, and we never really did any marketing. We just exceeded people’s expectations for both the food and the service, it was so much more than they ever expected out of a grab and go experience. And that’s that’s how we grew.

Kara Goldin 3:50
So you’re in corporate jobs, you did not have experience in opening a grab and go or a restaurant. So how did you like, it’s, you make it sound so easy. People have ideas all the time, right? It wasn’t so easy. I’m sure what was kind of the first step that you maybe you’re sitting here. I don’t know, maybe you’re lying in bed and you say your say to Howard, let’s get this thing started. I mean, where did this really start? I mean, what was sort of the obviously you’ve got a great idea. I ideas are a dime a dozen, at least around my house. It’s like the execution and actually getting going. I like how did you meet your other co founders? One all of those things? Yeah,

Dana Bloom 4:41
it’s funny. A VC way back in the.com days said to us ideas are free execution costs money. And that’s always stuck with me because it very much is true. It’s easy to have a good idea. It’s a lot harder to make it happen and I think we just had an amazing partnership. So from the start, you know Howard and I are are very different in very complementary ways. I am, you know, a former strategy consultant and, you know, very, you know, analytical and let’s go read a million books and talk to a million people who’ve done this before to try and figure out, and Howard is just very entrepreneurial by nature, he started his first business, a lawn mowing business when he was in high school. And he’s just like, let’s just start doing. And so between the two of us, it ends up being a really nice balance. So, you know, while I was, you know, kind of researching, he was just going ahead and starting to call, you know, the brokers that had spaces for rent, and, you know, just starting to, you know, we put a business plan together, basically, we put an ad, he talked in one of us talk to someone who told us about a site where you could put ads for, you know, shafts and so we put an ad up. And luckily, Chef Juan saw that ad, and he came over to our kitchen and brought food, you know, he interviewed first, but then his food interview was he came to our kitchen. And he was honestly the only one who really got it, because he came with things he’d already mostly made at home and was just rewarming in our kitchen in grabbing go type containers. And some of the dishes he brought are still on our menu today, like are seared ahi, lemon pepper tuna was something that he brought to his original interview and showed us like, oh, he can really elevate this beyond what anyone would normally expect and grab and go food.

Kara Goldin 6:33
That’s, that’s amazing. And so I always say to those first employees or or, you know, a co founder and your case that, you know, you hadn’t done this before. So I mean, the fact that they’re, they’re taking a chance on you, too. I mean, it’s like it’s a pretty, it’s daunting to me to think back on how many people early on, you know, joined hint. Yeah, like, I had never started a beverage company before. And here, I was a tech executive, and they’re coming on board. I’m like, crazy. I mean, why are you coming? Right? And yes, and it’s, you know, maybe a little impostor syndrome setzen in there to it to some extent, but what sort of gave you the courage? And, and I guess, like, Why do you think they believed so much? in you? Yeah.

Dana Bloom 7:28
Yeah, well, I think, you know, Chef Wah, and he was really young and early in his career, too. And people had taken a chance on him. And he came from, you know, a tough background, he came, you know, to this country, not knowing any English, you know, in middle school, basically, and figured it all out and fell in love with cooking, because he was with his grandma while she had a cooking job. And, you know, got to see it that way. And so I think he was somebody who, you know, was early in his career had kind of come up quickly, because he was really good at what he did. And he had big vision and aspirations, and our food philosophy really aligned in terms of wanting to do food that was all about getting the best ingredients from the best local purveyors. And not putting a bunch of unnecessary things into it. But keeping it really fresh from scratch, using techniques that would normally only be found in fine dining, and then having everything that everything sold fresh each day, and whatever doesn’t sell we donate to charity at the end of the day. So being able to make food more accessible, not just to our customers who can get high quality food really fast, but also to this whole group of people who normally don’t have a lot of option of what they eat. And so I think that vision was very aligned with you know, what, what our chef saw what one saw that he wanted to be able to create as well.

Kara Goldin 8:55
Yeah, definitely. I mean, you’re so lucky that you guys connected. So your first store was where?

Dana Bloom 9:02
So yeah, that’s another story of, you know, how do you get people to take a chance on you. So, you know, Howard was calling all these brokers based on science he saw in Windows on empty storefronts downtown and no one would give him the time of day because we had no history as restauranteurs. And so the space that we finally got, was originally part of the parking garage of the office building. And they decided that they wanted to separate off part of the parking garage to make it into retail, and ideally, a food amenity for the office building. But it was only, you know, 500 square feet. It didn’t have any venting for cooking. You know, it was a tough space for someone to be able to make work. And so we were really the only ones that said we can come in and put fresh food there. And so they took a chance on us and that stores that first admission and still one of our best stores and still a really great relationship with that landlord and it ended up Doing $2 million out of that location annually. So just it was a huge success for everyone.

Kara Goldin 10:07
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Dana Bloom 12:32
Yeah, it was funny me. So how did you know when you were successful? I’m like, are we successful? You know, I have such big visions for what this should become, and really wanting to redefine the way people eat on the go. I feel like we should be a household name. We should be everywhere where people need food in a quick way that like, we’re only like, you know, one mile into 5000 miles. So but in terms of Yeah, how we get the confidence. I think it’s little by little and honestly, it’s so much is just seeing customers love what you do. And when you see people that become these huge fans and just love your brand and are in talking about it. And when you start to go out and say oh, they asked you what you do you say proper food and they say oh my god, I love proper food. Like that’s really the fuel that has kept us going through ups and downs. Yeah,

Kara Goldin 13:25
definitely. I think customer feedback is so so key. I still I have a box filled with early notes. So I print out emails from people too, but people who just were really enamored because I thought like it’s one thing to think something it’s another thing to take that extra step to actually write an email or and that’s a powerful thing. And how many people do they actually tell about proper foods too and how much they’d like it. What is your number one item SKU

Dana Bloom 13:58
um, you know, it changes a little bit because the menu changes seasonally. So you know we do we want to make sure a lot of our customers come every day and we want to make sure there’s a lot of variety they never get bored of it. And so it changes but some of our favorites that have been favorites forever. I’ve been our Salmon Teriyaki hot plate, which is you know, fresh roasted Salmon Teriyaki with brown rice and broccoli really nice plate. Our Chinese chicken salad and salad dressing our chef makes from scratch, and it’s just incredible. People are always asking if they can if we can bottle it for them. And our seared ahi lemon pepper tuna, the one that he made, you know right at the interview that is it’s got this special lemon pepper spice that we have made for us from a local Spice Company. It comes with the rice that we make it’s saffron infused rice. We start by making vegetable broth from scratch, and that goes for like 24 hours. And then that’s used to make the rice and then there’s this bluegill lentils, but everything is just made from scratch so thoughtfully with only the best ingredients. It’s so,

Kara Goldin 15:08
so yummy. So how, and when do you decide, I guess to add a new item, four times

Dana Bloom 15:16
a year, we refresh the menu, which is pretty frequent. And we do have a pretty big portion of the menu. And that’s really to both keep things local and seasonal. And to keep things exciting. And we really, from the beginning, you know, before proper food. After I was a strategy consultant, I worked in jewelry at Stellan dot, which is a mission based company for female entrepreneurs. And I worked a lot with the jewelry team. And I really learned a lot there about how to work with creatives, because it was very different than what I’d experienced working at Bain and Company all with, you know, business people, and giving them the latitude to be creative. And so, you know, Chef just got back actually from an inspiration trip, which we sent him on. And he went, this one was in Europe, but he comes back from those trips where the inspiration and he creates the dishes, we get a lot of customer feedback. And we talk a lot to our frontline employees, because they know best what people are saying and what they’re asking for. And we take all of that into consideration. But then we really give chef one the latitude to use his own creativity. And so he will be thoughtful about do we have enough gluten free or vegan or vegetarian things on the menu. But then he is really taking inspiration from his experiences to create. So

Kara Goldin 16:45
we’re living in a post pandemic world where, at least in San Francisco, people are not back to the offices as as much as you know, maybe some businesses, like yourself would hope. But I think people are also trying to eat healthier and take care of themselves. And, and, and maybe spending more time outside when they when they can as well. What do you think, are some of the biggest trends or changes since the post pandemic and how people are eating or, you know, how people are purchasing from you, you all

Dana Bloom 17:26
I think people you know, it’s a continuing trend that people are more focused than ever, um, where their food food comes from what’s in their food, and is it sourced sustainably so you know, we make a big point of always making sure to source everything sustainably, making it from scratch, I think those are people are more thoughtful about their health than ever before. I think also people are really looking for value. And you know, as times are harder in the economy, and you know, kind of the all the uncertainty that we’ve had recently, people want to make sure that they’re spending money, that they’re getting good value for it. And that’s something we’re really proud of to and our model is, you know, a lot of our meals, if you put it on fine china, you could serve it in a really fine dining restaurant for two or three times what we’re able to serve it for an AR model. That’s

Kara Goldin 18:19
awesome. So I think that’s, that’s super, super true. So I think it’s, it’s, you know, the quality of your product is great. And it’s not, it’s not the cheapest, but it’s also you know, you know that the quality is there, and it’s not, you know, insanely expensive, which I feel like there are many grab and go places, especially around large cities that are and yeah, you know, I just don’t think you can charge people as much for food costs

Dana Bloom 18:49
just went crazy after the pandemic, and packaging costs, honestly, too, you know, all of the costs of do and labor costs, you know, all of the costs of doing business have gone up so much. And, you know, we had, you know, a conversation as a team pretty early on and seeing our cost go crazy and said, you know, how are we going to handle this and the one thing that we all felt very clear on from the start was we will not skimp we will not trade down the quality of our ingredients. And we will you know, we will make sure that we always give people the proper food quality, we call it proper because it’s proper in every way. And so, you know, like everyone we’ve had to raise prices over the few years, but feel really proud that we have not skimp to ever on the quality of our product and making sure it’s sustainably sourced.

Kara Goldin 19:38
I love that. So Proper Foods. How did you come up with the name?

Dana Bloom 19:44
Yeah, you know, I think Howard and I had been brainstorming back and forth and we lived in London for a few years and you know, some of our inspiration for proper was, you know, there was a lot more grab and go that was freshly made that day in Europe than there was Hear. So there’s a little bit of a British nod to it. But we also just thought we’d love this idea that what we created would be proper. And every day it would be made from scratch fresh each day, natural ingredients, sustainably sourced, really thoughtful about foodways thoughtful on our impact on the world around us. You know, a big value of ours is with care, being really thoughtful and caring for everyone we interact with, whether that’s our team, our customers, our community. And so we just felt like proper food, you know, just encapsulated all of that.

Kara Goldin 20:32
So the first iteration of any product or retail location is is different than what it is today, for most companies, and I, I’m sure that rings true for proper foods. But when I say that, and you think about proper foods, what comes to mind for you as a big, maybe it’s not a mistake, but a big shift, right? We’ve heard from so many people in different industries, like they thought that their consumer was one thing, and then another, they had to change packaging or, or something like that.

Dana Bloom 21:14
Yeah, I mean, it’s phenomenally actually similar in what it was the beginning, I think their biggest change has been in, you know, at the beginning, especially because chiffon and come from like Michelin star restaurants, he was like creating things on the fly all the time. So we would have like chef’s specials that would come and we would just try them for a day or two. And it was a great way to get to know our customer and what they liked and what they didn’t know. And he could change things very easily on the fly. I think as we’ve gotten bigger, you know, we now need nutrition information on everything. And so he can’t just put it out this morning, because the nutrition information wouldn’t be there yet. And we now have you know, labeling that’s much more clear about everything that’s in it. So we’ve had to evolve a little bit from like really operating like a fine dining restaurant to being fine dining, inspired, but also blending in, like how do you make sure people have that information, especially because our food is generally really healthy food, people are looking for nutrition information and things like that. And so wanting to be able to have that, and just with a bigger team, you need more process, right. And so, with 17 locations, you know, thinking about how you’re going to program in the new item to the POS system and how it impacts you know, a number of things down the line, have you raised

Kara Goldin 22:30
money for, for funding the company, only

Dana Bloom 22:35
from angel investors, friends and family, although no family, which I think was a good idea. But um, you know, we were actually doing our first institutional fundraise in 2019. And we we were entering New York doing our first institutional fundraise, really gearing up for this next phase of growth. And, you know, it was a hard year, I’d heard about the roller coaster of fundraising, but I kind of thought, Oh, I’d worked in private equity earlier in my career is like, I got this, and found that, you know, it was such a roller coaster was so stressful. And we were finally just at the finish line in March 2020, the first week of March, we were negotiating a term sheet for investment, and then COVID happened. And, you know, obviously, they needed to refocus on their existing portfolio companies, that kind of all fell out. And so ended up you know, not not taking that round of institutional funding. Which, you know, I think ended up being a blessing in disguise. We were able to make decisions very, very rapidly when COVID happened, because we didn’t have an institutional partner that we needed to consult with, we could just make the decisions and go, you know, I don’t know how it would have looked another way, but it worked out. And we survived. And we’ve since you know, we have a strategic investor from one strategic partner, who is in food service, and we work with a number of their corporate clients. But other than that, it’s all angel investors. That’s

Kara Goldin 24:10
amazing. So starting any company and launching physical retail, retail is always, you know, super challenging, right? What has been the biggest challenge for you? Over time, as has it been? I’ve talked to so many people who have named fundraising, you know, we were just talking about that. But also, I know that actually hiring people is is super challenging and becoming even more challenging, and especially depending on the city that you’re living in, what would you say, is probably one of the bigger challenges that you’ve had to overcome?

Dana Bloom 24:49
Yeah, I mean, I would say fundraising is super stressful. So that was definitely stressful. In general, I’d say you know, that the people is always the hard part. I We save if our business was all robots, it would be a lot easier and simpler, but but probably also a lot less fun and creative. But you know, the biggest challenge for sure, for us was the pandemic, because our business was built around serving people at work and serving them breakfast and lunch at their workplace. And so all of our locations were by big office buildings by design, and when the lockdown and in New York and San Francisco, the two most impacted cities in the US. And so when the lockdown happened, our revenue fell 96%. Overnight, literally, in one night, it just fell, the floor fell out. And this was, you know, we’d spent a year doing institutional fundraising. So it’s not like we had a big, you know, pile of cash waiting there, because we were just about to do this deal. And so it was just incredibly stressful and figuring out, okay, what do we do, and we just came from this philosophy of saying, we’re going to focus on survival, whatever we have to do to survive, if we can survive, then we’re going to have a lot of optionality on the other side. And so we made very swift decisions. And we got really scrappy we, you know, the first day actually, we had tons of food because they call this lockdown. And, you know, everybody went home or didn’t come into work that day. And we had all of this food, and we’re like, what are we going to do for with it? And a, we called around, we found this veterans home that they said, You’re the answer to our prayers, we were just praying, how are we going to feed everybody here, and now that we have to close down our cafeteria, so that was like a bright spot that kept me going and fuel me was I went, I packed my Volvo up with all of the food for the stores and went over there and delivered it. And the woman was literally crying. And then I was crying. And it was incredible. And then we went from there and said, Okay, where else can we deliver food from in my Volvo. So, you know, kind of started home delivery, started grocery delivery, turned half of our kitchen into a pick and pack facility basically, to be able to deliver groceries along with our prepared meals and hand sanitizer, and like whatever else we had, that we could do that was useful, and then grew kind of that business into something that could sustain at least keeping our most important people. We partnered with the government to deliver food to low income seniors, which was also incredibly rewarding. And I loved it, my son, who was nine or 10, at the time would come at the beginning sometimes and help deliver, which was a really great experience for him too. And, you know, really worked closely with our landlords, our landlords, you know, we decided, okay, we’re just going to be really straight and honest with them, we’re going to show them the financials, we want them to understand. And then let’s figure out how to partner together in a way that will be in both of our best interests. And, you know, that actually really strengthened we have closer relationships with our landlords now than we ever had before. That’s

Kara Goldin 28:05
awesome. One of the stores that we had on the grab a New York’s store food store, talked about how during the pandemic there, the biggest thing that changed for them was actually being able to do online ordering. Right, that before they, they were just like, oh, people will come in if we don’t have online ordering. Is that similar for you all to that you had to improve some of the technology that you just really hadn’t?

Dana Bloom 28:38
We had, thankfully, just maybe six months before started doing like online ordering and digital delivery and all of that stuff. And but it was a very small part of our business. So that transformed, you know, we, our stores were closed for a number of months. And so that became of the business. So that was a huge shift.

Kara Goldin 28:58
Yeah, it’s such an interesting business. So you opened in New York City, how did you make that decision? And why New York?

Dana Bloom 29:06
Yeah, I mean, it is a little bit crazy. But we, you know, wanted to go to a second market, our consumer is time starved and food savvy. And we thought there’s no greater density of time starved and food savvy people than in New York City. We, you know, we thought about, oh, well, we could go maybe Seattle, or somewhere on the West Coast first. But as we thought about it, we thought, well, you know, even if we go to Seattle, we still have to get on a plane to be there. You know, it’s still all the challenges of being remote. And it doesn’t have all the upside of a New York City, maybe you end up with, you know, five to 10 stores in Seattle, but you could end up with 50 to 100 stores in the New York area, especially in the tri state area. And so and we both have ties to New York and Howard’s dad and my mom are both from New York and we used to go on food tours there in New York with Howard’s dad and So yeah, we it was, you know, a little bit emotional and a little bit business. And honestly, I think that’s probably the right way to make those decisions. Because we had spent a lot of time in New York. And, you know, one of the best benefits of having your own business, I think is you shouldn’t be able to do things you’re excited about doing. And so that’s how we chosen and our chef was excited to go to New York to and he, you know, we ended up getting him an apartment in New York, and he splits his time between New York and San Francisco. And so it was, you know, a great opportunity for him as well.

Kara Goldin 30:34
I love that. So last question. I’d love for you to share any success tip or nugget of inspiration. Maybe somebody’s listening, thinking, Gosh, I’m listening to Dana right now. And she, you know, she was an experienced business person, but not in this industry. And maybe I should go do something. You know, what, I’m sure you have a ton of people who have, you know, tried to get five minutes of your time, like, this was an opportunity, what would you say to people who are thinking, I’ve got an idea. Now I, I want to go and execute on it.

Dana Bloom 31:12
Yeah, I think the biggest learning for me having done this is that there’s, there’s really only two ways to fail as an entrepreneur. One is you give up and the other is you run out of cash, and basically anything else you can recover from. So I think a lot of people don’t realize that if your business is profitable, you can still run out of cash. And you really have to learn very quickly how to understand cash flow, and really think through capital and get ahead of that and watch that. Because beyond that, I think any mistake is solvable if you don’t give up. And really the biggest difference between the successful founders and the ones that aren’t successful is the successful founders still had that point of failure, they just didn’t stop there and kept going and figured it out. Which you can do if you have cash. If you run out of cash, that’s kind of the end. So, you know, that’s my typical, you know, what my biggest piece of advice and I think, you know, part of that is, you’ve got to be really, really passionate about what you’re doing, because it is so hard at times and can be so defeating. And the thing that’s gonna keep you from giving up is if you feel just super passionate and excited about the underlying mission of what you’re doing,

Kara Goldin 32:30
that is so so true. And I think it’s, it’s really, it really speaks to everything that you faced, right? You’re you never know when you’re gonna, I mean, the pandemic certainly hit us and many other people by surprise, and you just had to kind of through what ever you thought was going to happen, any strategy out the door to some extent and say, Okay, this is the shift. And as these things happen, and the best entrepreneurs, weather the storms, are able to, you know, change directions, all of those things. But I think your point about not giving up is really the key thing and finding a way what can you do at this point is just so critical. So I love

Dana Bloom 33:21
Yeah, our business should have failed. You know, we were a business serving office workers in San Francisco in New York, like we should have just that the pandemic should have been the end of our story. We just weren’t willing for it to be the end of the story. So we found a way.

Kara Goldin 33:34
I love that. Well, Dana, so excited for you and all of the growth and everyone needs to come and visit you. Definitely read more about your story too. I’ll have all the info in the show notes. And but Proper Foods is super yummy. And please have a hint water when you grab whatever from Proper Food. So you guys have done such a nice job. But good luck with everything. And thanks again for sharing all of your story and your wisdom with us.

Dana Bloom 34:04
Thanks so much Kara.

Kara Goldin 34:06
Thanks again for listening to the Kara Goldin show. If you would, please give us a review and feel free to share this podcast with others who would benefit and of course, feel free to subscribe so you don’t miss a single episode of our podcast. Just a reminder that I can be found on all platforms at Kara Goldin. And if you want to hear more about my journey, I hope you will have a listen or pick up a copy of my book on daunted which I share my journey, including founding and building hint. We are here every Monday, Wednesday and Friday. And thanks everyone for listening. Have a great rest of the week. And 2023 And goodbye for now. Before we sign off, I want to talk to you about fear. People like to talk about fearless leaders, but it’s Do you think big goals isn’t about fearlessness? Successful leaders recognize their fears and decide to deal with them head on in order to move forward. This is where my new book undaunted comes in. This book is designed for anyone who wants to succeed in the face of fear, overcome doubts and live a little undaunted. Order your copy today at undaunted, the book.com and learn how to look your doubts and doubters in the eye and achieve your dreams. For a limited time, you’ll also receive a free case of hint water. Do you have a question for me or want to nominate an innovator to spotlight send me a tweet at Kara Goldin and let me know. And if you liked what you heard, please leave me a review on Apple podcasts. You can also follow along with me on Facebook, Instagram, Twitter and LinkedIn at Kara Goldin. Thanks for listening

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