Midwest Sad’s Quest For Industry Change

S’mores tarts from Midwest Sad. Photo courtesy of Sam Sandrin.

A series of bold-lettered flyers leads like a trail of breadcrumbs to Midwest Sad. The counter-service bakery, located down a winding flight of stairs in the basement of the 770 Building, is slightly off the beaten path.

For Sam Sandrin, though, it’s a home away from home.

As owner of Midwest Sad, Sandrin spends more than 12 hours each day in the commercial kitchen space, churning out trays of rich brownies, hand-dipped rock candies and wafer-studded portions of banana pudding.

All the while, she’s flanked by a small team of employees and a growing collection of tchotchkes that adorn the service window. The space has the feel of a quintessential midwestern home, down to the smell of fresh chocolate chip cookies wafting through the front window.

Since launching the brick-and-mortar business in May, Sandrin has proven that her products are not just nostalgic fun, but also chef-tested and approved. In addition to running her standalone bakery, Sandrin provides desserts for local establishments including Amilinda, Hot Dish Pantry, Villa Terrace Decorative Arts Museum and — until its recent closure — 1033.

But it takes more than delicious food to run a successful business — a reality that numerous restaurateurs, including Sandrin, are coming to terms with in the wake of the COVID-19 pandemic.

“Everyone is struggling,” she said. “Every restaurant is struggling…we’re going on the smallest margins — even smaller if you’re paying your staff adequately. And if you’re actually doing things by the book, it’s damn near impossible to make money.”

As much as she dislikes acknowledging it, “a lot of it is luck,” Sandrin said. And though business is good at Midwest Sad, there’s still much more she wants to accomplish.

That includes establishing a profit-sharing model, continuing to pay staff at least $18 per hour, providing access to benefits such as health insurance and establishing a community kitchen, with the ultimate goal of catalyzing change on a broader scale across the restaurant industry.

In the absence of investors and other funding channels, Sandrin will have to create her own luck. To do so, she has partnered with Honeycomb Credit, an online platform designed to connect small business owners with investors.

The site, which is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, is currently partnered with 75 small businesses, ranging from a Pittsburgh-based footwear brand to a wine shop in Texas.

Marek Landscaping, a Milwaukee-based ecological restoration firm responsible for Three Bridges Park and a number of other local projects, has run two investment campaigns through Honeycomb. On its first round, the business generated $142,766. Its second campaign yielded $21,250.

Sandrin is hoping to raise $25,000, the minimum amount required to successfully complete the program, which take place over a 30-day period. As of Wednesday afternoon, nearly nine days into the campaign, Midwest Sad had acquired 9 investors for a total of $8,801.

Those who invest in the business will receive their money in full — plus interest — after the conclusion of the campaign. If Sandrin doesn’t surpass the minimum requirement, each investment will be promptly refunded, she said.

Outside of her own business, Sandrin said she views the platform as a potential solution for struggling restaurants everywhere, especially those who just need a small “jumpstart.”

The model is also effective in bridging the disconnect between small businesses and customers, creating, in a way, a sense of responsibility to support establishments beyond visiting for the occasional meal.

“This isn’t like a ‘woe is me’ thing,” Sandrin said. “It’s like, hey, I want to do these things. If you like the idea, invest.”

Sandrin said she knows a larger shift will require patience, but figures that now is the time to act.

“People are in this weird, ‘ignorance is bliss’ kind of haze, where they think that restaurants are doing great and everything is better.”

In reality, she said, things are only getting more difficult. A 50-pound bag of flour, for example, has tripled in price through Sandrin’s vendor within the past several years. But despite rising food costs, customers expect pricing to remain consistent.

That’s not sustainable, Sandrin said, noting that Milwaukeeans will eventually have to adjust to paying more for services — particularly when it comes to restaurants.

For now, though, she’s hoping to continue attracting investors to help her take the first small steps to create lasting change in the industry.

“There’s been so much talk about being better and doing better,” she said. “It’s easy to talk about it, but it’s another thing to do it. It’s a hell of a difference.”

For more information about Sandrin’s investment campaign, visit her profile on the Honeycomb Credit website.