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"I took all my grandpa and grandma's recipes," says Rosales.These aren't Bomb Pops. "In 2010, we were out of money."After the shop closed, customers kept calling her looking for paletas and she decided to go into manufacturing at a commercial kitchen. One specialty: paletas, or Mexican ice pops."In 2008, the economy tanked," says Rosales, noting sales dipped from $1,000 a day to $100 a day. After working for KRON 4 in San Francisco, Rosales went into retail with her sister in 2007, and opened a storefront called Pepito's Ice Cream in San Francisco.
"They were either too busy or couldn't take on another customer. At the same time, she moved away from ice cream to focus exclusively on paletas."I did reach out to three other places," Rosales adds. She says it wasn't profitable and she had to turn away orders due to a lack of capacity.She filled the order "and learned from that experience," so Pepito's started working with California Popsicle, a manufacturer in South San Francisco, in 2016. "It's such a labor-intensive business," Rosales notes.
"I've gone through so many boxes."That dovetails directly into same-day delivery from Napa to Monterey. "It's taken me six years to figure it out," she says. The Pepito's Signature Box eliminates this expense with dry ice and layers of cardboard and wax paper, and keeps up to 300 paletas frozen for up to eight hours. "I was paying $1,500 a month just to keep the freezer going," she says.
"If I were to do that, I'd want to do it franchise-style," she says.Rosales says she sees an opportunity to get back into retailers like Whole Foods with same-day delivery of Pepito's Signature Boxes. "Now we're at those events."Because of the focus on local fruit, she doesn't envision shipping popsicles much beyond the Bay Area. How can we get in without a tech degree?" says Rosales.
"I don't want to be a millionaire and see my employees struggle." She adds, "They're going to treat the business like their own. (Pepito's currently has nine, and other 12 employees at California Popsicle are also partners.) "Five more would be awesome," she says."This is the way it should be," says Rosales of the co-op model. "More capital than we have to scale up to where I want."As Pepito's is a profit-sharing co-op, she's also looking for more partners. We just got all of the caterers on board."Needs: "Capital," says Rosales. "This year, I think it's definitely going to pick up because of all of the marketing.
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