Running a Baklava Business in San Francisco: An Entrepreneur's Struggle
The story of a baklava shop in the shadow of the AI boom.
1The Birth of BaklavaStory
Tolgay Karabulut immigrated from Turkey to the US in 2005 and tried various ventures. In 2022, he decided to pursue his passion by introducing baklava to San Francisco. With a $300,000 initial investment, he founded BaklavaStory. Despite predictions that locals would find it too sweet, he adjusted the recipe and found success.
2Daily Routine and Production
Karabulut wakes up at 5:40 AM six days a week. In his 100 sq ft kitchen, he prepares phyllo dough with just one staff member. Using premium pistachios imported from Turkey, the first batch goes into the oven by 8:30 AM. New trays are baked every 20 minutes to ensure freshness throughout the day.
3Challenging Financial Conditions
Karabulut earns about $40,000 annually. He shares a rent-controlled apartment in Nob Hill, paying $1,300 monthly. The AI boom has caused rents to skyrocket, making business difficult. High salaries in AI companies are creating economic disparity for traditional businesses.
4Labor Costs
With a seven-person team, everything is handmade. Labor costs in California are exceptionally high. Karabulut cooks homemade meals daily for his staff. Bulk purchases from Costco help keep food costs low - frozen pizzas feed the whole team for just $20.
5Customer Satisfaction
Customer reactions make all the struggles worthwhile for Karabulut. He teaches his unique 'upside-down' baklava eating technique. Regular customers bring friends, and their positive feedback motivates him to continue despite the challenges.
6San Francisco's Changing Face
The AI boom has transformed the city's demographics and economy. Tech workers' high salaries have disrupted the real estate market. Traditional businesses face increasing difficulties. Rising rents threaten small enterprises across the city.
7Entrepreneurial Spirit
Karabulut has always been an entrepreneur - from importing toys from China to leasing office spaces during Silicon Valley's growth in the 2010s. But his true passion was food, leading him to start his baklava business despite the challenges.
8Future Dreams
Currently unable to afford his own apartment, Karabulut prioritizes business growth. He dreams of expanding to a larger kitchen to increase production. Long-term, he wants his own place. Customer satisfaction keeps him motivated to persevere through hardships.
Original article: Business Insider — San Francisco'da Baklava İşletmek: Bir Girişimcinin Mücadelesi