Delighted by hummus was a small company that produced artisanal hummus and other dips. The company was founded in 2010 by friends Sarah Johnson and Mike Williams, who shared a love of hummus and saw an opportunity to start their own gourmet hummus business.
Based in Austin, Texas, Delighted by Hummus quickly developed a cult following at local farmer’s markets and food festivals. Using high quality, organic ingredients like chickpeas, tahini, and olive oil, Sarah and Mike focused on creating hummus with unique flavors like roasted red pepper, kalamata olive, and sweet potato.
In just a few years, Delighted by Hummus expanded distribution to several retail outlets in Austin. Their products were soon picked up by Whole Foods Market, Central Market, and other health food stores. Mike and Sarah brought on a few more employees to help meet growing demand.
For a small business, things seemed to be going well for Delighted by Hummus. But in 2015, production suddenly slowed and then halted altogether. The company stopped selling their hummus, canceled their retail accounts, and went out of business that year. What exactly happened to Delighted by Hummus?
Growing Too Quickly
One of the factors that contributed to Delighted by Hummus’s demise was that the company simply expanded too fast. While growing distribution and sales rapidly may seem positive on the surface, it can be detrimental for a young company that doesn’t have the resources or systems in place to scale up properly.
In Delighted by Hummus’s case, demand for their products exceeded what Sarah, Mike, and their small team could realistically produce and deliver. They went from selling at a few local markets to having their hummus in multiple retail locations in just a few years.
Meeting large wholesale orders from major grocers like Whole Foods and servicing so many accounts spread their resources too thin. In an interview after the company folded, co-founder Sarah Johnson admitted they said yes to too many customers too soon. They struggled to fulfill orders on time and keep up quality control.
This lesson reinforces that small food businesses need to be careful about scaling up production and distribution capacity gradually. Taking on too many big accounts early on can jeopardize the entire business if you don’t have the staffing, systems, and finances to support that level of output. Delighted by Hummus experienced the pitfalls of rapid growth.
Formula Changes
Another factor in Delighted by Hummus’s closure was that the company reportedly changed some of its original hummus recipes and formulas. When they first started out, Mike and Sarah’s unique hummus flavors were a big part of their appeal.
Using organic chickpeas and high quality olive oil as base ingredients, Delighted by Hummus was able to charge a premium price point compared to conventional grocery store hummus. However, when they expanded distribution to major retailers, the company reformulated some of their recipes to bring down costs.
Ingredients were changed to include less expensive oils and non-organic chickpeas. Some consumers and retailers noticed the difference, and complained the hummus didn’t taste as fresh or flavorful. This backlash damaged the brand’s reputation, which was built on small batch artisanal hummus.
Some of the product consistency and quality control issues stemmed from changing the original formulas as the company scaled up. In trying to cut costs and meet large retailer requirements, Delighted by Hummus veered away from the very recipes that made them successful early on.
Capital and Cash Flow Problems
Managing finances and cash flow is one of the most challenging aspects of running a food production business. Delighted by Hummus ran into money problems trying to fund their rapid growth.
Buying enough ingredients and materials to produce large wholesale orders required significant upfront capital. However, the company had limited operating capital and cash reserves. The co-founders admits they made mistakes tracking inventory, forecasting production costs, and budgeting for expansion.
Delighted by Hummus took on big new accounts that tied up their working capital waiting for invoices to be paid. They overextended their credit trying to keep up with orders. When retailers pushed for lower prices, their already slim profit margins took a hit.
Being undercapitalized and overestimating projected cash flow was the final nail in the coffin. Delighted by Hummus hit a cash flow crisis and couldn’t afford to keep buying supplies and ingredients to meet demand. They didn’t have enough financing or access to loans as a small business.
Sarah and Mike regretfully acknowledged they expanded distribution too far, too fast without adequate capital to sustain that growth. Coupled with the recipe changes and production struggles, the lack of working capital to support growth ultimately put them out of business.
Increased Competition
The artisanal hummus segment was considerably less crowded when Delighted by Hummus first launched. From 2010 to 2015, competition in the category increased substantially. More specialty and private label hummus brands popped up, even in conventional grocery stores.
Mainstream brands like Sabra began introducing unique flavored and organic hummus options. Large retailers could get custom packaged hummus made at lower prices than Delighted by Hummus could produce themselves.
With more choices on shelves, Delighted had a harder time differentiating themselves. Their product was no longer so unique, especially after they moved away from their original quality ingredients and flavor profiles. Facing stiffer competition, declining customer loyalty, and ongoing financial troubles, the company didn’t have the resources to adapt.
The End of Delighted by Hummus
After ceasing operations in 2015, co-founders Sarah and Mike had to sell equipment and clean out their production facility. A few employees who had joined the company lost their jobs. It was a difficult and emotional outcome for the owners after years of hard work trying to grow Delighted by Hummus.
In the aftermath, Mike and Sarah took accountability for strategic mistakes made trying to expand too big, too fast. While demand for their hummus outpaced their capabilities, they regretted compromising on quality and finances. Their story represents the challenges that specialty food startups often encounter on the path to growth and scaling up.
Despite its untimely end, Delighted by Hummus did spur greater consumer interest in artisanal hummus and unique flavors. Their early success at farmers markets directly influenced other small batch hummus companies that have since emerged. The co-founders went on to work in the food industry again, taking the lessons learned to heart about smart steady business growth.
While short-lived, Delighted by Hummus left its mark on the emergence of artisanal hummus. Their inability to properly manage rapid expansion cut a promising business venture short. Still, the company played a role in pioneering the creative hummus flavors we now see from small batch and mainstream brands alike.
Lessons Learned
Though Delighted by Hummus met an unfortunate fate, the company’s journey still provides helpful learnings for other small food businesses:
- Don’t expand distribution too fast – make sure your staff, systems, and finances can support slower sustainable growth
- Be careful changing proven formulas and ingredients – consistency and quality are key to maintaining brand reputation
- Secure adequate capital and understand cash flow needs before rapid scaling
- Monitor competitive landscape and differentiate your product as competition increases
- Manage inventory meticulously and forecast realistic production costs/volumes
By avoiding some of the pitfalls that tripped up Delighted by Hummus, emerging food entrepreneurs can set their businesses up for steadier long-term success. Keep the brand mission focused, and resist compromising quality by growing too quickly. With careful planning and reasonable expansion goals, small batch food makers can thrive.
Delighted by Hummus serves as a case study of risks for artisanal food brands scaling up too fast. Their experience shows the need for strategic deliberant growth rooted in the original business mission. By progressing slowly and staying true to culinary craftsmanship, food startups can potentially achieve a happier ending than Delighted by Hummus.
The Future of Artisanal Hummus
Despite what transpired with Delighted by Hummus, the outlook remains strong for small batch hummus companies today. Data shows rising consumer demand for premium hummus made with quality, ethical ingredients.
According to a report by Grand View Research, the global hummus market is projected to grow at a CAGR of 11.8% from 2022 to 2030. Natural and organic hummus products are driving this growth as customers seek healthier, sustainable options.
The report notes that small-scale manufacturers are well positioned to tap into this demand with their artisanal offerings and focus on nutrition. With greater consumer education about hummus’s origins and culinary applications, boutique brands have room to thrive.
Today’s artisanal hummus makers can learn from Delighted by Hummus and avoid common missteps. Taking a measured approach to scaling up production and distribution is key. With careful planning and execution, the future looks bright for small batch hummus companies.
The legacy of Delighted by Hummus also includes greater consumer appreciation of global food traditions. As people understand hummus’s roots as a Mediterranean staple, they gain more interest in international cuisines. This benefits food entrepreneurs exploring their own cultural dishes.
In a 2015 interview, Delighted by Hummus’s co-founder Sarah Johnson expressed hope that their business showed the potential of premium hummus to both consumers and retailers. Though the company ended, it pioneered a segment of the category that has only grown since.
Conclusion
Delighted by Hummus’s rapid rise and fall offers a cautionary tale, but also reflects the mounting popularity of artisanal hummus. By sticking to original recipes and scaling up slowly, today’s hummus startups can thrive where Delighted faltered.
This story shows the importance of strategic deliberate growth, quality ingredients, and adequate financing for food businesses. With careful planning and execution, the small batch hummus category has a promising future. Delighted by Hummus played a role in pioneering unique flavor profiles which more consumers now seek out.
Though short-lived, Delighted impacted the trajectory of artisanal hummus through farmer’s markets and onto retail shelves. Their influence remains today in emerging brands creating premium hummus focused on taste and nutrition. By learning from the company’s experiences, the passionate craft of artisanal hummus makers can continue delighting customers for years to come.