00:00Sticking to the higher end goods or at least the ability to sell at a higher price point, just talking
00:06us through talk us through kind of the strategy as it relates to Magnolia Bakery and expansion and how you're
00:11kind of trying to square that circle, if you will, with a kind of choppy economic backdrop as it relates
00:17to inflation.
00:19Yeah, I think for us, it's it's been crystal clear on the long term strategy for our brand and our
00:24business.
00:25And that really is driving traffic.
00:27And I think when you start to, you know, take price here and there and then that becomes the expectation
00:34for growth year over year, it's a slippery slope.
00:38So for us, as we expand, we're being very mindful of pricing competitive wise in the marketplace.
00:43And we want to make Magnolia an attainable luxury for people.
00:47And that's really what it should be.
00:48I mean, it's a celebratory cupcake or banana pudding or cake.
00:53And and we don't want to price ourselves out of the market.
00:55And we want to make sure that we do everything we can to drive trial into this great brand as
01:01we expand across the country.
01:03And just interested in your perspective as it relates to national expansion.
01:08Are there markets when you're doing your research that are more akin or more interested in spending for a premium
01:14dessert,
01:14as opposed to certain areas that are maybe feeling the pinch of inflation or kind of general spending?
01:19I'm just thinking immediately about what's around us here in New York relative to different parts of the country.
01:25Yeah, it's, you know, maybe in six months or a year, I could give you more intel on that as
01:30we expand to these areas.
01:32But typically for us, we're looking to expand in really premium areas and class A cities across the country.
01:38And so so when we look at that as our first tranche of expansionary activity, I think for us,
01:45we sort of have a consumer that, you know, to date has been a little bit immune to the ups
01:51and downs of the monthly economy.
01:53And while we hope that holds, hope is not a strategy.
01:57So we're ensuring that we control costs on our side so that we can maintain pricing.
02:01But I do expect for us and we are a celebratory item.
02:05So I expect for us that we'll be able to maintain some semblance of healthy traffic as we expand in
02:12these marketplaces.
02:14And, you know, you mentioned you're a celebratory item.
02:17I mean, I think of cupcakes, for example.
02:19And there's certain types of occasions that, you know, you get cupcakes that you get baked and other type of
02:25dessert items for.
02:26And I wonder, you know, and this is something that I ask to occasionally to our flower and our floral
02:32CEOs that come on.
02:34How do you break out of that seasonal sort of cycle and maybe convince the consumer that this is something
02:40you could do every day or every week?
02:42It doesn't just have to be for birthdays.
02:44Well, I'll tell you personally, I've been doing it every day and it's you need to have some balance.
02:52But but we Magnolia is so dynamic in the products that we offer.
02:56I mean, you have banana pudding.
02:58You have seasonal flavors.
03:00You have cakes, cupcakes.
03:02You have breakfast items.
03:04We have a great beverage program with coffee, a matcha.
03:06And so I think for us, we're not a one trick pony.
03:11And when you expand the menu across a variety of different products and day parts and use cases, that's how
03:18you get out of a solely celebratory situation.
03:22And Magnolia has done a phenomenal job over the course of its 30 year history of doing that.
03:26And this is our 30th birthday this year, by the way.
03:29So happy birthday to us at Magnolia.
03:31We have some fun things planned.
03:33Happy birthday.
03:34Sounds like a great reason for cupcakes.
03:35But I think, right.
03:37I do want to ask.
03:38I mean, when it comes to trend chasing, usually in the context of Bloomer, we're talking about the markets.
03:44But you think about all these different flavors that burst onto the scene.
03:48Dubai chocolate, for example, that was a big one over the past couple of years.
03:53I mean, how do you think about that at Magnolia, trying to stay current and threading that sort of needle?
04:00It's a fine line.
04:01We are not fad driven.
04:04In fact, I can point to the longevity in the business and the history we have.
04:0830 years.
04:09You don't make or break a business over the course of 30 years by leaning into fads.
04:15You actually have to bust through and become something that is ever present in the marketplace and with the consumer.
04:20And so I think that we've done a very, very nice job of that over the course of the years.
04:26And so you're not going to see Dubai chocolate in our stores.
04:29But what you will see is more of a classic American bakery forward focus with different things like blueberry crisp,
04:37apple pie, banana pudding.
04:38It's a little bit more nostalgic.
04:40And I think for that, it allows us to play in a more traditional space with flavor profile.
04:45I'm not saying that we will reject up and coming flavor trends, but it's not the first thing that we're
04:51going to do is go jump on the latest trend and fad.
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