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Saturday, February 04, 2012
Regional Focus: March 2009
San Francisco Treats
Bay Area icons set up shop in the valley
Story by Howard Lachtman
Two of San Francisco’s most notable brands, dating back to the gold rush, rumbled into the valley like an earthquake last summer. First came Ghirardelli Chocolate Co. in June, then bread company Boudin SF followed in August.
This may appear as a commercial coincidence, but some see it as a sign of things to come as more Bay Area manufacturers and suppliers turn their eyes to the Central Valley’s potential. It’s an investment in the region that signals confidence in today’s economy. Indeed, some find San Francisco-style bread or chocolate (or both) ideal palliatives in hard times with flavors that soothe and memories that connect inland consumers to the Golden Gate.
Last summer, Ghirardelli opened a packing and distribution center in Lathrop as well as an adjacent retail outlet, which is visible to travelers on Interstate 5.
“It’s geographically close to the Bay Area and a transportation hub, and it has visibility from I-5 and is easily accessed, so it was an ideal location for a retail operation and a great opportunity to open an outlet store,” says Jason Zdanowicz, business development manger for the company’s retail division.
Because the store is adjacent to the center, it eliminates transportation costs and gives the center a retail outlet for excess items or discontinued inventory, passing savings to the consumer. In turn, company officials say, customers have generated the all-important word-of-mouth about the store’s chocolate treats, sweet gifts and ice cream fountain, complete with San Francisco-style sundae. “I think of it as a chocolate oasis with a sundae lake,” says customer Marty Kaufman.
Two months after Ghirardelli opened in Lathrop, Boudin’s opened an eatery in Stockton. Gwin Ferguson, vice president of real estate and facilities for Boudin’s, says the company realized that many San Joaquin residents have been loyal customers through the years.
“We knew our bread would be recognizable,” Ferguson says. “Boudin’s was part of the San Francisco adventure for them. Now they don’t have to leave home. We brought Boudin’s to them.”
The Stockton site chosen for the bakery had “all the components” for retail success, Ferguson says: a ready market for the product, a strong retail venue among the upscale tenants of the Stonecreek Village shopping center and a thriving commercial corridor along greater Pacific Avenue.
“We’re cognizant of the challenging economy, but we’re still very optimistic about the rebound of Stockton and California,” Ferguson says, noting that initial sales were in excess of company expectations. “Customers from day one have let us know that we’re a restaurant they want to go to — a comfort zone with a bakery that adds a nice, warm touch.”
When Boudin’s opened, some locals had been waiting in line all night. The first 100 customers were already in place by midnight, determined to tough it out and earn their rewards — a free loaf of sourdough every day for a year.
The lucky 100 — or 99, with one giveaway already awarded to the Greater Stockton Emergency Food Bank — set a company record for promptness. As they filed into the bakery, customers were greeted by bakers producing the fresh loaves and rounds that are as synonymous with San Francisco as cable cars and cracked crab.
“We mix, shape, score and bake bread throughout the day, every day,” says Gayle DeBrosse, executive vice president of business development. “That infuses the restaurant with a great aroma and allows people to see the connection between the bakery and the restaurant.”
The history takes a little more explaining. It began when bakers Isidore and Louise Boudin arrived in San Francisco in 1849 and crossed their French baking techniques with the “sour” dough used by gold rushers. Result: a dark, golden crust, a chewy interior with distinctive tangy taste and an ever-increasing morning lineup at the bakery door.
“I’ve been a fan of Boudin’s since the 1970s when I was growing up in the Chicago area,” says Lodi bank executive Jennifer Held. Held says her family would visit San Francisco and complete the tourist tour, from riding cable cars and crossing the Golden Gate Bridge to devouring sourdough baked.
“All of our relatives looked forward to it, too, because we shipped bread to them instead of sending postcards,” Held says. “That is how they knew we were in San Francisco. Of course, we brought bread home as it made great French toast. It also served a practical purpose, helping us transition from vacation back into reality.”
Zdanowicz of Ghirardelli says his company increased the customer-friendly atmosphere of its Lathrop outlet with decorative touches including large wall murals of San Francisco’s Ghirardelli Square and Golden Gate Bridge, along with a replica of the chocolate factory’s landmark clock tower.
“The idea was to capture the essence of Ghirardelli Square and add a little touch of the city in a functional outlet store, which is not your typical store,” Zdanowicz says.
Ken Albala, a University of the Pacific professor and food historian, sees the openings of the two Bay Area icons as “raising the bar” and playing to the area’s rising interest in food novelties and options. That has also translated, he notes, into a thriving “restaurant row” of independently owned and operated businesses that have enlivened the dining scene along the Miracle Mile district of Stockton’s Pacific Avenue.
“Everyone here has gone to San Francisco and seen Boudin’s bread there,” Albala says about brand recognition. “This is a decent place to put [a] mid-level, casual dining spot and a happening place with the immediate proximity of an upscale shopping center and two nearby colleges.”
The arrival of Boudin SF and Ghirardelli has brought history full circle. Boudin’s bread quickly became a fixture of San Francisco’s gold rush boomtown while Ghirardelli chocolate debuted “up river.” Founder Domingo Ghirardelli opened his first retail enterprise in Stockton, enjoyed success in the bustling port town and relocated to San Francisco in 1852. Given the heavy volume of river traffic between San Francisco and Stockton in those days, his chocolate — as well as Boudin’s sourdough — were products that did their share of traveling between the port cities, earning a reputation among the miners, farmers, merchants, restaurateurs and gourmets of early California.
The business saga that began with pioneers of the gold rush continues today as the two companies seek to take advantage of Central Valley growth and commercial expansion. To their fans, these products are the gold standard of recession-proof commodities, with an appeal as timely as it is historic. “In a recession,” Zdanowicz says, “people want to have something to lift their spirits.”
Company executives are cheered by the initial consumer response as well as long-term prospects for profitability. “We’re thrilled to become a proud member of the local business community,” says Yvo Smit, vice president of Ghirardelli’s restaurant and retail division. For Smit, the formula for success at the Lathrop outlet lies in blending the taste of chocolate with the touch of a legendary city. That combination provides what he calls “the exceptional shopping experience that our guests are looking for.”
