Natalie Shmulik is The Hatchery’s CEO, and go-to resource for launching a successful food and beverage business. Along with an M.L.A. in Gastronomy from Boston University, she has a wide range of experience working with supermarkets, culinary publications, consumer packaged goods companies, and food service establishments.
After successfully operating her own restaurant, Natalie was hired as a specialty consultant for one of Ontario’s largest supermarket chains where she enhanced consumer experiences through educational initiatives. Discovering her passion for innovation, Natalie was brought on as a brand strategist for the first cold brew tea company and later moved to Chicago to run The Hatchery Chicago.
With over eight years of food incubation experience, Natalie has gained a unique perspective on the industry and what it takes to launch and grow a successful business. Natalie is a regular contributor to Food Business News, was recently featured in the Chicago Tribune’s 10 Business People to Watch in 2020 and received the Specialty Food Association’s award for leadership in vision.
She continues to play a valuable role in branding and marketing for food businesses around the country, with her specialty in trend forecasting.
Connect with Natalie on LinkedIn.
This transcript is machine transcribed by Sonix
TRANSCRIPT
Intro: [00:00:04] Broadcasting live from the Business RadioX studio in Chicago, Illinois, it’s time for Chicago Business Radio brought to you by Firm Space, your private sanctuary for productivity and growth. To learn more, go to FirmSpace.com. Now here’s your host.
Max Kantor: [00:00:21] Hey everybody, and welcome to Chicago Business Radio. I’m your host, Max Cantor, and I’m so glad you’re here. We have a good one today, but before we get started, let’s give a quick shout out to our sponsor firm space. Without firm space. We couldn’t be sharing these important stories, so thank you so much to them for sponsoring our show and today’s show. We have a guest who was recently featured in the Chicago Tribune’s Ten People to Watch in 2020 and received the Specialty Food Association’s Award for Leadership and Vision. She’s the CEO of the Hatchery Chicago. Please welcome Natalie Shmulik. Welcome to the show, Natalie.
Natalie Shmulik: [00:00:57] Thank you so much. Thanks for having me.
Max Kantor: [00:00:59] Of course, I’m glad you’re here. Let’s dove right in. What is the hatchery Chicago and how are you guys serving, folks?
Natalie Shmulik: [00:01:06] Great question. So we are a nonprofit food and beverage incubator. We were established out of a collaboration between two nonprofits. One is Industrial Council of Near West Chicago, and the other is allies for community business. Both are nonprofit organizations I see and see focuses on manufacturing. They’re one of the oldest and largest business incubators in the country, and allies for community businesses is nonprofit micro microlenders. So they’re able to provide essential capital to entrepreneurs who often can’t get access to those funds to launch and grow their businesses. We opened our brand new facility just a few years ago. We have a sixty seven thousand square foot facility located in East Garfield Park on the west side of Chicago, which was a very intentional location for us. We wanted to be part of a community that we felt could both benefit from our resources, but also work alongside us to tackle important challenges within the industry, including things like access to nutritious foods, access to resources and production space, and creating more diversity, equity and inclusion in the industry as a whole. So we are able to provide additional support to West Side entrepreneurs with thirty four hours of free shared kitchen use time and we have a large shared kitchen as well as 50 for private kitchen so entrepreneurs can grow their businesses in a flexible, adaptable space alongside all of the wraparound support they need.
Max Kantor: [00:02:35] So you mentioned that you guys are a nonprofit. How are you funded?
Natalie Shmulik: [00:02:40] Great question. We are funded primarily through three sources. One, we received support from the city in land acquisition, so we were able to access the land to build the hatchery on, and the city has been a big supporter of the hatchery from day one. We also have great corporate sponsors and foundation partners. We wouldn’t be able to exist without these incredible organizations that have believed in our mission from the very beginning. These include companies like Kellogg, ConAgra, Griffith Foods, Ingredion, PepsiCo Foundation Builders initiatives, so many amazing companies that have just jumped up to support us. And then the third way we’re able to continue to provide the support we do is through some of the revenue we generate with rental income, as well as some of the services that we provide with programing and membership.
Max Kantor: [00:03:33] So how can someone participate, most most importantly, an entrepreneur? How does it work? What’s the best type of person who should get involved with you guys and how do they make that happen?
Natalie Shmulik: [00:03:44] We focus on early stage brands, so anyone who has an idea or has just launched a food and beverage business or is in that early growth stage, they’re the ideal candidates to come to us to get the support they need. We run a starting a food business class every month, so anyone who’s just thinking about whether or not this is the right industry for them, we try to provide that information and we take a very realistic approach. So it’s certainly a very exciting industry, but we also know it’s a very challenging one. So we want to make sure that we give everybody the information they need to make a very wise decision on whether or not to move forward. So that’s usually the best place to start is if you’re just thinking about it or you’re in the inception phase, a tender starting a food business class. Again, we run these monthly. We’re the only ones who run this class in the city right now, so we are doing it all virtually, which should make it very easily accessible. From there, we have a sprout program. So if you are in the process of launching or you have launched your business, we have a six month program to just accelerate your path to market and then if you are looking for production space. So if you need commercial grade production space again, we have a lot of flexibility, whether it be access to an hourly shared kitchen space. We have no minimum our requirements. We have daily private kitchens. And then of course, we have your own private kitchen, which you can rent anywhere from one to three years.
Max Kantor: [00:05:08] So you mentioned classes. Do you also have classes and workshops for non entrepreneurs, people who are looking for other things? And also, do you guys do any type of consulting?
Natalie Shmulik: [00:05:19] We do. We do all of the above. So we actually have our networking events. So every month we cover various industry topics that are trend forward, very enticing, relevant topics that we like to discuss with the industry. So we invite everyone, whether you’re a food enthusiast, you’re a service provider, you’re an industry expert or an entrepreneur. We want everybody to be part of the conversation. Our last one this month, which was last Thursday, was actually on reimagining target market exercises. So trying to think differently about how to appeal to the new consumer. Given all these new consumer habits and ways of eating that have developed during and and certainly will continue post-pandemic, and of course, we have our annual fundraiser coming up, which we invite everybody to. The theme is good mood foods and gutsy trends, and it will be talking about how food plays a very important role in how we feel, and especially given that we’re in a time where people feel very isolated, depressed, lots of anxiety and stress. Our gut microbiome plays a big role in helping to change our mood and also improve our health. So we have an incredible roster of speakers. We have Julie Smolensk from Lifeway. We have GT Day from GT Living Foods and of course, famously kombucha. And we have Dr. Erika Engel, who’s the CEO of Excel Foods. She’s really a specialist in the space, and she’ll be doing a bit of a TED talk and then we’ll actually have a pitch session with five finalists from our Dream Commercial Kitchen Pitch contest who will share their innovative ideas, and the audience will get a chance to see the pitches live. They even if there’s an audience vote. So of course, we want to have more than just entrepreneurs as part of our community. We have so many incredible individuals who support entrepreneurs and support innovation
Max Kantor: [00:07:19] For sure, and it sounds like an amazing event. You guys are combining two really important things you know, mental health awareness and also eating good food, and you’re combining it into one great event. So it sounds amazing. Incredible. Do you guys have the opportunity for like ready made meals or buying food or getting? Food from from the hatchery.
Natalie Shmulik: [00:07:43] Yeah, so we on our website have information on the vendors that produce out of our facility, so there’s great ways to support your local entrepreneurs by ordering meals from them. We do have entrepreneurs that use our kitchens as ghost or cloud or dark kitchen concepts. I know there’s a lot of terms out there. But if anyone is interested in ordering, whether it be through one of your third party delivery platforms or for yourself to come and pick up, there are those options. We have so many incredible catering businesses and food service businesses that have meals that are ready to go, so you can always support them that way. And of course, we have so many baked goods and meal kit brands, cocktail mixes, so you can find all of them on our website and you can learn more about the entrepreneurs producing out of the hatchery. And then, of course, we have a program called Hatch Made Meals, where we actually have one of our foundation partners who supported this program, where we’re able to pay catering companies at the hatchery to produce five hundred meals a week. And those meals are are donated to 12 different organizations on the west side who help individuals facing food insecurities.
Max Kantor: [00:08:51] Do you guys ever work with food trucks?
Natalie Shmulik: [00:08:54] We do. We have a few food trucks housed at the hatchery, actually, so we’ve got quite a few of them and we have the space both outside in terms of being able to load up. And then we have the commissary space space where you can prep all of your production for the trucks so that it’s ready to go.
Max Kantor: [00:09:12] Now, COVID 19 obviously was very hard on the food and restaurant drink industries. What were some challenges you guys came across during the pandemic and how did you work to overcome them? Or even how were you still working to overcome them?
Natalie Shmulik: [00:09:27] I would say the biggest challenge was pivoting of business models. The meal delivery model in particular, was not something we had anticipated. Our building was ultimately designed for more so consumer packaged goods brands or large catering business. We didn’t really have the flow of traffic built into the facility to allow for ease of handing over meals, so we ended up having to do a bit of a redesign and pivot ourselves in many ways. So we created a new pathway and space where we could have all of these third party delivery drivers come to the side of the building. And then we had to pick up and drop off location to make it a little bit easier. That’s something we’re always working on improving, and that’s definitely something that won’t go away. So we want to continue to see what role we play and how we can support these brands. And I think something that the industry as a whole is working on supply chain issues are a big challenge right now. So trying to get entrepreneurs to partner together when it comes to sourcing so they can hopefully reduce their costs, it makes it makes a lot of sense if somebody’s already delivering sugar or base commodity items to the hatchery and there’s another entrepreneur ordering the same thing, they can order in larger quantities and find ways to reduce their costs. So bulk purchasing is is a great strategy. And then looking at additional ways to support the labor market, we are relaunching our Impact Culinary Training program, where we are going to be training youth on the south and west side. It’s a subsidized program in partnership with chef Rick Bayless, where we will be training these students who will hopefully be able to fill some of the gaps we’re seeing in the food service space. But we know there’s also challenges when it comes to supporting labor. So higher wages, more benefits and support. That’s something that we’re constantly working on with our members as well as the industry altogether.
Max Kantor: [00:11:23] How do you encourage collaboration and networking, both among members and then among members and the community in the Chicagoland area?
Natalie Shmulik: [00:11:32] Yeah. For us, we always want to take an organic approach. We try to encourage service providers to realize this is a great way to build connections rather than just seeing networking opportunities as a chance to sell a service. So we do spend a lot of time vetting who attends our networking events, who’s part of our branch network program and supporting our entrepreneurs in any, any way we can. We’re very entrepreneur centric, so we always wanted to be a safe space and we always like for everyone to come at the angle of how do we work together to just make things better for everybody? And the way we do that is we like to ask questions. We like to push boundaries a little bit, even with the topics that we cover. We never want to sugarcoat things and make things seem differently than the way they are. We want to ask the real questions. We want to make sure that we’re really addressing what’s going on in the industry. So we always have our work cut out for us too, and making sure that we have great representation for diverse entrepreneurs and industry experts, and that’s something we’re constantly trying to work on. And we also want to make sure that this is a great option. Immunity for entrepreneurs to network with others in the industry, so we do provide holistic coaching, so really not just talking about the technical support, you need to establish a successful business, but how do you, as an entrepreneur, establish your speaking skills and your networking skills? How do you take care of yourself as an entrepreneur? We know that a lot of times you can burn out, and that’s never good for the business either. How do you build a strong team culture? So these are all things that we incorporate in our programing.
Max Kantor: [00:13:09] Now what do you need more of from members or sponsors, industry partners? What do you think the hatchery needs more of?
Natalie Shmulik: [00:13:17] We always want to bring great minds together. Anybody who’s interested in making change in the industry and particularly supporting entrepreneurs in the food and beverage space. We want to hear from you. Of course, if there’s anyone who wants to be a sponsor, a funder, a supporter. We are more than welcome to that. Those types of contributions allow us to keep growing our programing and provide even more support to the entrepreneurs, as well as reducing costs for rental space at the hatchery and providing even more equipment and additional items needed to grow the business. So we always welcome any kind of insights and we love growing our community.
Max Kantor: [00:13:57] What would you say is the biggest success story that’s come out of the hatchery?
Natalie Shmulik: [00:14:02] Oh, my goodness. Well, we are still quite young ourselves, and we’ve had so many incredible entrepreneurs who’ve reached great success. Hopefully, we played a good role in that, but we’ve had wonderful members in the past when they were starting out like farmer’s fridge and tow. Emily, from Little Box. There are so many great businesses that we’ve just they’ve been a joy to work with and getting to watch them grow is amazing. But I think to us the best success is really seeing community members on the West side get these opportunities to whether it’s opening up their own restaurant or cafe or seeing their business grow when they otherwise might have not had that opportunity. So those to us are great successes and we can’t wait to see more of them grow.
Max Kantor: [00:14:49] And Natalie, I have to ask you what is the most rewarding part about what you do?
Natalie Shmulik: [00:14:55] Hmm. I think getting to hear from the entrepreneurs and not so much hearing them talking about their business because we always hear about their being so grateful to have resources, to have time saved. But I think the biggest feedback we always hear is how grateful they are that we are there to listen. We’re there to support them. And even in the hardest times, they know they have someone to talk to who understands them and will be patient. Our team is a team of entrepreneurs and we always want to be there and understand that sometimes supporting entrepreneurs isn’t just giving them numbers or a table to fill in. Sometimes it’s just being there to listen and showing that they have a supportive community and getting to hear that feedback is extremely rewarding, for sure.
Max Kantor: [00:15:46] And as we wrap the interview, I do want to mention one more time you mentioned you guys have a virtual event coming up. Do you want to talk about that one more time?
Natalie Shmulik: [00:15:53] We do. Yes, thank you. So on December 2nd at four p.m., we are hosting our annual fundraiser, which will be virtual again this year. But it will be very interactive, very exciting and packed with exciting conversations. So again, we have a fireside chat with Julie Smalley and Ski and Dave, a TEDx talk from Dr. Erica Engel talking about gut health and some things we can expect to see in the future and innovative ways of thinking. And then we will follow that and conclude with five finalists from our Dream Commercial Kitchen contest who will pitch their ideas. They have five minutes each. We have a great panel of judges and then we have an audience vote. It’s just going to be a great way for us all to connect before the end of the year and celebrate some great successes. So we invite everyone to join and they can get tickets on our website at the hatchery. Org.
Max Kantor: [00:16:48] And speaking of your website, because that’s what I was about to ask if people want to learn more about the hatchery. You just mentioned your website. Do you guys also have social media?
Natalie Shmulik: [00:16:57] We do. So you can find us on Facebook, Instagram, LinkedIn, we are on on Twitter. So we’re on most channels you can find us. Typically, the hatchery high is our handle, so please connect with us there or on our website. And if there is anything we can do to help, or if you wanted to share some insights with us, we welcome you to reach out to us through our website or you can email us at info at the hatchery. Org.
Max Kantor: [00:17:27] Awesome. Well, thank you so much for being a guest on today’s show, Natalie.
Natalie Shmulik: [00:17:31] Thank you for having me and thank
Max Kantor: [00:17:33] You again for the work you are doing for the Chicago community.
Natalie Shmulik: [00:17:37] Oh, thank you. We’re we’re so. Honored to be a part of it.
Max Kantor: [00:17:40] And that’s another wrap on another great episode of Chicago Business Radio. I’m your host, Max Cantor, and we’ll see you next time.
Intro: [00:17:50] This episode is Chicago Business Radio has been brought to you by firm SpaceX, your private sanctuary for productivity and growth. To learn more, go to Firme Space.com.
