Petit Chat Bakery, an 8-year-old business located near the Whitworth University campus, has expanded to include a wholesale operation through Petit Chat Corp., and has begun selling its bread products to area restaurants and retailers.
Spokane native Jason Kostelecky purchased the retail bakery two years ago, and he says he soon set about creating a wholesale side of the business, which he now co-owns with his wife, Whitney Ward Kostelecky.
Petit Chat is a French phrase meaning “little cat,” which the bakery’s original owner, Harlem Morgan, once used to refer to her daughter.
“Harlem’s original recipes were in the French style, and we’ve kept those as well as the name,” says Kostelecky. “We still keep in touch, because we wouldn’t be where we are today if she hadn’t had the idea for this business.”
The bakery’s retail location is a 4,200-square-foot space at 9910 N. Waikiki Road, just north of where Wall Street splits into Waikiki Road and Whitworth Drive. The shop features fresh baked breads, treats including Danish pastries, scones, muffins, cookies and bars. It also offers a lunch menu with hot and cold sandwiches, salads and quiche.
Petit Chat’s new wholesale operation is located in 3,500 square feet of space at 3703 E. Central.
“We opened the wholesale portion nine months ago, with a focus on fresh-baked breads, although we would eventually like to add some cookie varieties,” says Kostelecky.
The business currently has 22 employees, most of whom work at the retail location, but Kostelecky says he would like to grow the business to be a more prominent employer.
“A lot of employers will refer to their employees as an asset, but I think of them more like family,” he says. “I hope to eventually add a profit-sharing system so the work they do here is also contributing more directly to their needs.”
According to Kostelecky, the wholesale portion of the business can produce between 150 and 250 cases of product a week, with the number of rolls or loaves per case varying depending on product type.
He says Petit Chat gets most of its bread- making ingredients from three main suppliers—SBS Foods Inc., URM Stores Inc., and Food Services of America. In addition to supplying Petit Chat’s ingredients, URM and FSA also both stock Petit Chat’s bread products for distribution.
URM has six cash-and-carry store locations, five of those being in Washington and one in Idaho. URM’s Spokane store is located at 902 E. Springfield. FSA, as a food service distributor, provides food and non-food products to restaurants, cafeterias, industrial caterers, hospitals and nursing homes. FSA is headquartered in Scottsdale AZ, and its Spokane branch is located at 3520 E. Francis Avenue.
“URM and FSA are two of our main distributors, and one of our long-term goals is to expand to stocking additional locations within their networks,” he says.
So far, Petit Chat’s distribution area includes parts of Washington, Idaho, and Montana.
“Right now, our focus is local, as that really drives most of our business, but I’d like to continue moving our products further into the region and eventually distribute nationwide,” Kostelecky says.
He says Petit Chat’s core retail products include three types of burger buns, two hoagie rolls, three types of sliced bread (Tuscan, whole wheat, and sourdough), baguettes, and slider buns.
He says the company’s most popular products are its brioche and its French dip rolls.
Some of the customers Petit Chat provides breads for include Northern Quest Resort & Casino, Coeur d’Alene Casino Resort Hotel, and about 50 restaurants, as well as grocery chain outlets such as Super 1 Foods and Trading Co. store locations.
Kostelecky says the company’s prices are similar to that of other competitors within the market, such as Stone Ground Bakery Inc. and Wheat Montana Farms Inc.
“People are starting to realize that quality bread is an important product, and we do have a lot of competition,” he says. “Our challenge will be to continue to compete by producing a quality product and supplying enough of it to keep our distributors happy.”
Kostelecky also declines to disclose the business’s revenues, but he did say its volume tends to increase each time the bakery launches a new product.
“The first nine months or so, revenues were consistently increasing by 80 to 120 percent,” he says. “Now, we’re still increasing, but it’s tapered off a bit.”
Kostelecky says all breads made at Petit Chat are baked in the French style, using five ingredients, and no added preservatives.
“We’re the first preservative-free bread producer in our region for the food service industry that we know of,” he says. “There are some local producers, but they’re not involved in distribution.”
Kostelecky is an advocate of preservative-free diets, having been diagnosed with gluten sensitivities several years ago. He believes that the buildup of nonnatural, chemical preservatives such as calcium propionate lead to many gluten-related allergies.
“Most of the retail breads we compete with have over 32 ingredients, many of which are preservatives to add to their shelf life,” he says. “Our products only have a five-day shelf life, which means they have difficulty competing against those others, but overall, I would say ours is the better quality product.”
While he admits that most studies on whether preservatives lead to gluten sensitivities are inconclusive, Kostelecky says he is able to eat all of Petit Chat’s bread products without issues, and serves them to his family at home.
“My favorites are the Tuscan bread, and our cinnamon chip,” he says.
Kostelecky grad-uated from Eastern Washington University in 2002, with a bachelor’s degree in general management and marketing. He has been involved in real estate, and once owned a gas station, as well as Gibliano Brothers Dueling Piano Bar & Music House downtown.
Kostelecky says he has some background in cooking.
“I love the science behind it,” he says. “There is an art to bread making, it’s not just physically making the bread but also careful calculations of time and temperature.”
Trish Grudzinski, who serves as Petit Chat’s wholesale bakery manager, agrees.
“There are so many factors to consider because you’re dealing with yeast, which is a living organism,” she says. “We watch for things like smell and texture, and try to keep each product consistent.”
Grudzinski says the bakery hand rolls everything, with the exception of its baguettes, because they need a special pan mold to get their shape.
Kostelecky says that consistency is an important part of Petit Chat’s marketing strategy.
“Being preservative-free is a less important factor for restaurants, because what they are looking for is quality, flavor, and presentation,” he says. “Does the bread have good flavor, does it hold its shape and consistency when ingredients are added?”
He says retail customers are the ones who care more about qualities like the French style bake and no added preservatives. Therefore, the bakery tries to keep the needs of both consumer populations in mind when creating its breads.
Kostelecky says the company tests its products extensively, allowing both restaurant chefs as well as sales distributors to taste, cook with, and then provide feedback on them.
“I have friends and colleagues as well as people who work for our distributors who I approach with new products,” he says. “They all specialize in different industries, so we’re able to see how well the product works and make improvements to better match it to the area in which it will compete.”