Despite the pressure of increasing sales
demand, the Spicas took their time researching their latest change in processing technology. They attended the International Baking Industry Exposition, held at Las Vegas during September 1997, knowing they needed more capacity.
"That's when we got serious," Fred Spica said.
They had already decided to install a second Adamatic roll makeup system. Adamatic's regional sales manager, Hans Lindeman, suggested they look at new European baking technology offered by Peerless/Gouet and introduced them to John Parr, who manages the venture.
"It took us almost two years to make our choice," Rob Spica said. "This was a big decision for us, not only because of the capital investment but also because this would be Gouet's first installation in the United States."
oa"We did a detailed due diligence on this project," Fred Spica said.
The Bun Basket team made three trips to Europe to see other bakeries using this technology and to visit the equipment factory n France.
What were the changes required to bring the European technology to the American bakery? This line was custom built to The Bun Basket's plant requirements and output needs. The factory changed burners and adapted heating systems to meet U.S. regulations.
"Other than that, it was a matter of converting centimeters to inches," Rob Spica joked.
Now what about that huge pit dug in the shop floor?
The vertical design of the new proofer and oven takes advantage of thermodynamic principles, but it made the system taller than The Bun Basket's ceiling. Going up, however, was twice the cost of going down. So instead of raising the roof, the brothers decided to lower the floor, digging a 6-ft deep pit to house the line.
With the rest of the busy plant sectioned off with plastic sheeting, production continued during construction.
"We worked on the new line over weekends," Rob Spica said. "We couldn't afford to miss a day of production."
TECHNOLOGY CHANGE. Before the new line, The Bun Basket made its long-run food service items the same way it did all its other products. The roll makeup system fed dough pieces onto pans, which operators transferred manually onto rolling racks. They wheeled the racks into the proof box, then into the rack ovens.
That business mushroomed, prompting the bakery to launch a restaurant route business. Routes were soon transformed into more cost-efficient arrangements with area food service distributors.
Today 90% of the bakery's output moves through food service distributors. Deli and bakery retailing at four companyowned locations accounts for about 5%.
"Don't get me wrong, our retail sales continue to grow, but they're overshadowed by food service," Fred Spica said.
Dynamic market conditions add to the excitement. "It's a market that we see growing immensely," Rob Spica said.
The choice to ship through food service distributors is part of The Bun Basket's strategy and a huge cost advantage.
"We only see the cost of direct store delivery (DSD) skyrocketing," Fred Spica said. "The cost of labor and trucking is rising. The baker's traditional way of getting bread to restaurants by DSD will soon be pass6, and restaurants will look to frozen food service distribution for their bread needs.
"We freeze all our bread no more than an hour and 20 minutes after the oven," he continued. "This traps the moisture in the product and delivers the quality of freshness when thawed. We do frequent cuttings with fresh and frozen bread for chefs and R&D managers to show that our quality is indistinguishable."
Most products baked at The Bun Basket find their way to customers in the upper Midwest, but a couple independent chains are taking the bakery national. "We started with two food service items in 1985: 8-in. and 10-in. sub buns," Fred Spica said. "Today there are more than 150 items, and 95% of those were developed together with our customers."
The brothers divide their labor. Fred Spica manages sales and marketing, while Rob Spica oversees operations. "We have a tremendous amount of respect for each other's abilities," Fred Spica said, "and we try to stay out of each other's way!"
