As father to a daughter with nut allergies, Craig Watson understood the difficulty of finding a treat he safely knew his daughter could eat. So, when the bakery he worked at as CFO for five years decided to downsize and close its East Harlem storefront, he understood just what type of business needed to go in that space.
“Knowing there were no nut-free, peanut-free bakeries in New York City, I saw there was this void, and also a great chance of being successful,” Watson recalled.
Soon after opening Baked Cravings in 2017, Watson launched an Amazon storefront, where he continues to sell bags of cookies and cake in a cup—easily transportable cakes in cartons. From day one, his strategy has always been to be omnichannel. Amazon, he said, has extended the reach of his products to customers across the nation, transforming Baked Cravings from a local to a national brand.
In addition to selling direct-to-consumer, Baked Cravings uses its Amazon storefront to reach businesses such as schools and corporations that want the peace of mind of providing nut-free treats at their events and conferences. Regular Baked Cravings customers include New York’s Yankee Stadium and Madison Square Garden, both of which buy cookie platters to stock up suites frequented by nut-allergic VIPs. Recently, Baked Cravings has also become a staple in airport concession stands.
Amazon has created more repeat customers for Baked Cravings through Subscribe and Save. As a result, Baked Cravings has seen a 15% sales growth year-over-year.
Watson credited Amazon with forging some of his most valuable business connections. Not only was Amazon responsible for Baked Cravings’ largest order to date, $100,000 worth of cake in a cup, but many B2B buyers have reached out directly to Watson after discovering his products on Amazon Business.
“It’s been great. We’re getting into smaller supermarkets based around the U.S., and we’ve had corporations reach out and order on the B2B side as well after finding us through Amazon Business,” said Watson.
Watson said he’s also built important connections and business advice through Amazon’s Black Business Accelerator (BBA), a program that provides black-owned businesses with education, financial support and mentorship. To date, Amazon has committed $150 million to empowering black-owned businesses through the BBA. Watson credited the program with broadening his reach with customers, some of whom discovered him as a result of the “Black-Owned Business” badge on his brand page.
His BBA representative also identified an opportunity for him to sell Baked Cravings’ cookie bags using Fulfillment by Amazon, a program that packages and ships items on behalf of brands, and which Watson said resulted in higher customer retention due to the timely delivery of his products to customers. Amazon has also created more repeat customers for Baked Cravings through Subscribe and Save, which enables Amazon customers to have orders automatically fulfilled. As a result, Baked Cravings has seen a 15% sales growth year-over-year.
“Being on Amazon has been very valuable brand-wise, because everyone’s on Amazon looking for items,” said Watson. “It’s given us great recognition and put more eyes on us.”
Though Baked Cravings is gaining traction across the country, in many ways, its story is uniquely New York. The bakery is active in community programs, like New York City’s Summer Youth Employment Program, which connects teens to local businesses to develop their professional skills. Watson has provided employment to several people through the program, often hiring participants to assist customers, pack orders, or build Baked Cravings’ social media content.
“The teens that work with us learn how to use a computer, how to work in a bakery, they learn customer service and email and social media. Plus, they have a chance to see what it takes to run a business,” he said.
In addition to community outreach, one of the biggest rewards of running Baked Cravings, said Watson, is seeing the joy it brings his customers, particularly kids whose allergies might have prevented them from enjoying classic baked treats in the past.
“We’ll have 15-year-olds walk in with their parents, and they’ve never had a cupcake,” he recalled. “It’s amazing to see them take their first bite, and the joy on their faces as they eat a dessert that they know is from a truly nut-free location. Seeing the impact our products have on people makes us happy to be here.”