Boulder Businesses
Interview with a Boulder Popcorn Maven
By Jenny Shank, 1-10-07
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I first met the husband-and-wife popcorn team Rob Israel and Renée Rosen last spring when we were all in the same childbirth preparation class at Boulder Community Hospital. The Israels, I learned, are the entrepreneurs behind Doc Popcorn. They opened the first Doc Popcorn store in Flat Irons Crossing in Broomfield three years ago. They've since expanded, and are now selling Doc Popcorn at Northfield Stapleton in Denver, the Video Station in Boulder, the Broomfield Events Center, CU stadium during football games, and regional Whole Foods stores. I recently spoke to Renée, who handles publicity and marketing for Doc Popcorn, about how she and Rob broke into the popcorn business.
NW: It sounds like Rob decided to move to Boulder from New York City and get into the popcorn business simultaneously. Was moving to Boulder purely a business decision?
RR: It was indeed the business that brought Rob to Colorado primarily. (The fact that his two sisters migrated from the East over 20 years ago, and a calling for a change in lifestyle after 15 years in the Big Apple also helped.) The concept for the company was born when he came to Boulder to visit his sister. He and his dad visited the farmer's market, where he had his first taste of kettle corn. He and his father loved it. He literally thought to himself, "Why isn't this amazing tasting concoction more readily available"? He did some research and found it really was a mom-and-pop business. As a serial entrepreneur, he decided he wanted to take the concept to the next level, to create a process that would enable kettle corn to be cooked indoors, and make it a healthier yet indulgent snack alternative in high-traffic areas, like malls and stadiums.
NW: How is doing business in Colorado different than it was in New York?
RR: More and more, Boulder is becoming known as a hotbed for start-ups, especially in the food arena. Some successful companies born here include Boulder Chips, Izzy, Wild Oats, Quiznos, and Noodles and Company. Although the business is fairly competitive in the West, we believe great concepts will succeed in any market. But our start-up costs would have been higher in New York. For example, rent in what we'll call an "A" mall would have been much higher, say in the Queens Mall. New York is the most expensive place in the world. The other piece of it is that we moved into an already-established kiosk at Flat Irons Crossing around Christmastime [in December, 2003], so we had the opportunity to test the product and see if it had legs without having to build out a space.
NW: Do the health-conscious aspects of your business hold a special appeal for Coloradoans?
RR: Although Boulder is a great place to create a health-conscious brand, the entire nation is seeing a trend in "better-for-you" snacking. About two-thirds of adults in the United States are overweight, and as the nation becomes more educated on the health issues associated with obesity, there is an increased effort to create natural, healthier options.
NW: Did Rob have prior experience working with food?
RR: Rob's experience from a business standpoint was in retail, but in children's clothing. His company, Knitwaves, was one of the world's largest manufacturers of girl's sweaters. When he sold the business in the late '90s, he wondered what could he do that would leverage his retail and sales expertise, but that would create smiles and fun and stay with his personal interest in health and natural foods.
NW: How did you come up with the recipes and flavors?
RR: Rob conducted a lot of research concerning flavor appeal across the U.S. He started testing recipes in a smaller version of an industrial popcorn machine in his office and at home, then he had to adjust the recipes for larger quantities. Over a year of testing led us to six original flavors. Over time, we have expanded flavors based on customer demand. Rob's incredible sense of smell and taste enables him to create flavors that are really on. Current flavors include both savory and sweet flavors: Klassic Kettle, Sinfully Cinnamon, Buttered Brownie, Carmel Kettle, Cheesy Cheddar, Sour Cream and Onion, Hoppin' Jalapeno, Better Butter, Triple Cheddar, and Salt and Pepper. We are always working on new flavors based on customer requests and suggestions.
NW: Are there any flavors that hold a special appeal for this region?
RR: Like any food business, there are flavors that appeal to different palates. But across all regions, Klassic Kettle, Cheesy Cheddar and Better Butter remain the company's best sellers.
NW: What's your favorite flavor?
RR: I'm the worst person to ask that because I change my mind every day. I sometimes like a kettle-butter combo. And like with ice cream, people will come into the store and say, "I'll have a scoop of this and a scoop of that." People often mix cinnamon and butter or jalapeno and cheese, and just like at an ice cream store, they'll say they want the chocolate on top, butter on bottom, or all mixed up. My favorite right now is Buttered Brownie.
NW: Is Doc Popcorn an organic product, or does it just include some organic ingredients? And what are the special challenges of making healthier, organic food?
RR: Doc Popcorn uses natural and some organic ingredients. As far as challenges of making healthier, organic food, there are limitations to what Doc Popcorn can create and stay within the boundary of natural. For instance, because we cook at over 400 degrees, natural occurring colors do not withstand that type of heat. So when you see other companies using all colors of the rainbow, there is a very good chance that these are artificial colors.
NW: Doc Popcorn has been in existence for three years now. What have been the most valuable lessons you've learned over that time?
RR: Our business has grown 30% a year over the last three years. Because we considered our product as an impulse-purchase concept at first, we underestimated the growth and opportunity with repeat customers. When Rob set up the store, he saw Doc Popcorn as a point-of-purchase product, probably not something you'd find in a food court. You'd walk by the store, you'd smell it and you'd buy it. But it has become a destination place. We found we had repeat customers, and we added a five-punch loyaty card to reward the repeat customer.
NW: What are your expansion plans for Doc Popcorn?
RR: We currently have three locations in Colorado. Our goal is to end 2007 with 10 locations. As we see it, there are four major opportunities for our expansion. Doc Popcorn is a relatively inexpensive store to build out and has great profit opportunities for entrepreneurs interested in running a Doc Popcorn store. We therefore see a great opportunity to expand in a franchise/licensing manner. Another goal is to roll out Doc Popcorn in other stadiums and theatres this year [besides the Broomfield Events Center]. Our Web business continues to grow, and we have just created a home-popping system, giving our customers an opportunity to create all of our tasty and natural Doc Popcorn flavors at home. We will also continue to selectively wholesale our product to high-end retailers and markets like Whole Foods.
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