Since the beginning of the pandemic, food costs have increased significantly. And even though food inflation has eased, Maddie Gartman, creator of Garty Goodies, a South St. Paul, Minn.-based cookie business, said costs are still a big challenge.
“I had to increase my prices per cookie for several reasons,” Hartman said. “One is because the cost of living is more expensive now and the ingredients are more expensive.”
With the holiday season in full swing, Marketplace host Christine Schwab caught up with Gartmann to see how business is doing. The following is an edited transcript of their conversation.
Christine Schwab: So, last time we talked, I came over and watched you make big batches of cookies in your little KitchenAid mixer in your house and build a TikTok studio in your basement. Do you still work out of your home? how is everything going
Maddy Hartman: Yes, I still work outside the house, I still make big batches of cookies in my little KitchenAid mixer. In fact, I think I’ve since moved on to a bigger mixer. This summer my little downstairs studio was up and running.
Schwab: And how has business been since then? What have been the biggest challenges in the last few years since we spoke?
Hartmann: I think when it comes to my cottage food business, one of the bigger challenges has been the supply of things like eggs and butter. And it was just surprising because we’ve never seen a shortage like this before. Earlier this spring the price of eggs was insane, you know. And it was a huge adjustment for bakers. And sales have declined, I would say, over the last year. The number of people ordering has slowed down a lot.
Schwab: Between ingredient shortages and price increases, what does this mean for your business?
Hartmann: So I had to increase my prices per cookie for several reasons. One is because the cost of living is more expensive now and the ingredients are more expensive. Also, I’ve been doing this longer so my skills have improved. So of course there is a smaller group of people who buy my cookies. So, I can still make the same amount of money, but I don’t have the same number of buyers, that’s for sure.
Schwab: Are buyers mostly for special occasions? Who is your customer and what do they buy?
Hartmann: Yes, when I spoke to you two years ago, DIY kits were so huge. And it just makes sense because so many people were at home looking for things to do, activities they could do with their kids. And they are still definitely in high demand. But now that I’ve been able to do custom orders again, as events happen, those customers are coming back. I get all these custom orders again for the really specialized events.
Schwab: So you have cookie kits, custom orders, you teach decorating classes online and in person. You also have close to a million followers on TikTok. What is the most important part of your business? What really pays the bills here?
Hartmann: That’s a great question. What really pays the bills are the decorating classes, especially the in-person ones. And luckily, that’s what I enjoy doing the most. And I found that they are still incredibly popular. So the popularity of cookie classes since I started teaching them in 2019 has remained constant, which is great.
Schwab: As we approach the sweetest season of the year, I have to ask, do you eat a lot of cookies? Do you ever get tired of eating, making or smelling that sweet cookie smell?
Hartmann: I’m not a big biscuit eater. can you believe that I prefer a packet of chips or something salty or spicy. Like I’m going to reach for those little pickle rolls, the Midwestern sushi. I’d rather have a handful of them than sweets. I will rarely grab sweets. Probably because I’m surrounded by it all the time.
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