After five years of perfecting its business model and building a presence in Greater Des Moines, Crème Cupcake + Dessert is moving to a national level.

 

Crème owner Christina Moffatt has partnered with former Jimmy John’s CEO Gregg Majewski to nationally franchise the Crème concept. Next, Crème Franchise Inc. is seeking up to $1.5 million in capital from accredited investors to build a second company-owned Crème location in a nearby market.

 

“It was always a long-term goal of mine to grow the business and expand further than Des Moines,” Moffatt said. “I just knew it would take the right person to make it happen.”

 

It took five years for the right people to come along. 

 

What started as a hobby for Moffatt turned into a business in July 2010. Crème started as a wholesale and custom bakery, and after a handful of location changes, the business ultimately settled into its current space on 28th Street off Ingersoll Avenue in August 2012. 

 

“The dessert concept came into play here,” Moffatt said of the move. “It’s a bakery by day and craft cocktails and plated desserts by night. It was a new and unique concept.”

 

Fast-forward three years. Enter Tom Straw, an investment banker by trade and co-founder of restaurant technology company Qmyfood. Straw, who splits his time between Chicago and Des Moines, connected with Moffatt in January and discussed her hopes to franchise Crème. As a result of that conversation, Straw connected Moffatt to Majewski, a former client and now his business partner and fellow co-founder of Qmyfood.

 

Majewski, who worked at Jimmy John’s corporate headquarters as an unpaid intern, worked his way up the company ladder, eventually becoming the largest franchise unit holder there, Straw said. While at Jimmy John’s, Majewski opened more than 150 restaurants — 80 of them in one year. Majewski left Jimmy John’s in 2005, but he still owns eight locations in the Chicago area. He is the founder of other restaurant concepts including Patty Burger in Cincinnati and Jerseys Pizza & Grill in Hoffman Estates, Ill.

 

“Tom called him because (Gregg’s) always scouting for small and unique restaurant concepts ready to franchise,” Moffatt said. “He came to Des Moines, saw Crème, and said, ‘Let’s do this.’ ”

 

What makes Crème both unique and sellable is the dessert and lounge concept, which is what the company will focus on nationally. It is an idea that should appeal to both existing and new franchisees because it is a successful model that lies in an untapped market, Moffatt said. Majewski’s job will be to put Crème in front of potential franchisees. 

 

“He will go out to his current franchisees and say, “We have a new concept – are you interested?’ ” Moffatt said. “He sees that Crème will be a book they can simply open and see profit.”

Ultimately, the appeal in franchising, Smart said, is that Crème will act as franchisor. 

 

“(Crème) will never have to sign leases,” he said. “The company itself will not be opening one restaurant after another. With this model, entrepreneurs are leasing a fully developed concept.”

 

At this point, the company will move forward as Crème Franchise Inc. The first step in Crème’s expansion is to bring investors into the fold. The $1.5 million in capital Crème needs will be used to build a second location. Moffatt and her team currently have their eyes on Omaha or Iowa City. The second store will be company-owned and, in addition to the Des Moines flagship store, will serve as a training location for future franchise owners. 

 

This fall, Crème plans to start selling units to established franchise operators and restaurant groups in second-tier markets with a goal of growing from the Midwest out. Early target markets include Minneapolis, Kansas City, Madison and the Chicago suburbs.

 

Moffatt said the company does have some commitments from potential investors.

 

“As soon as the money is raised, we will finish building out the second location and start selling units (to franchisees),” Moffatt said. “Gregg will go out to his contacts, tell them about the Crème concept, and hopefully away we go.”

 

Moffatt will serve as the company’s CEO, Majewski as chief financial officer and Straw as chief operations officer. Straw said the plan is to work in that structure for the next 10 to 12 months. He and Majewski will primarily handle the buildout of the second location and sale of units. Once franchising is underway, both Straw and Majewski will eventually step down, although both plan to continue involvement with the company as members of its board of directors. 

 

For now, Moffatt’s focus will remain in Des Moines. Her role as regional director at the Iowa Small Business Development Center in Ames is currently unaffected by Crème’s plans. 

 

“Once we raise the money, we will decide where I need to be and where I go from here,” she said. “But for now, my current day-to-day operation will remain the same.”

 

Aside from expanding Crème, Moffatt said she feels this is an exceptional chance to show that a female-owned business started in Iowa – which ranks last in the nation in the overall economic impact of female-owned businesses – can make it to a national level. 

 

“Crème is a reflection of (Iowa and) Des Moines,” Moffatt said. “I want to show it can be done out of Iowa, that women can build corporations out of Des Moines. I’m holding a lot of responsibility to carry this and make sure it’s successful, but I know it’s going to happen.”