Editor’s note: This article is part of an ongoing franchise series, which highlights brands that are new to or aggressively expanding via franchising. Is your restaurant starting to franchise? Email us at [email protected].
When Zach Schmahl, founder of cookie shop Schmackary’s, moved to New York City in 2008, he had dreams to make it big as an actor. Instead, he’s made it big as a baker, opening his first store in 2012 in New York City’s Theater District. The Lincoln, Nebraska, native turned his hobby of baking cookies into a business that now makes $2 million in topline sales.
“I’ve always been such a cookie monster, but felt like no bakeries were really giving them the attention that I felt like they deserved,” he said. Schmahl wanted to create a cookie shop with fun flavors.
Schmackary’s big debut in Hell’s Kitchen garnered rave reviews. The cookie shop had lines out the door and down the block on its first day. The concept’s popularity grew through word of mouth, and Schmahl made over $1 million during his first year in operation.
The company’s cookie menu varies by the week, as well as the season. Flavors include unusual ingredient combinations like the Schmack & Cheese — a cookie baked with macaroni and cheese inside — Key Lime, Mint Mojito and Strawberries & Cream. The company also has an ice cream program, which includes hard packed ice cream used to make ice cream sandwiches and milkshakes. It began serving soft serve in 2021 and offers a “Cookies IN Cream,” a cookie sundae inside a take-home mason jar mug, Schmahl said.
Schmackary’s store interiors emphasize the concept’s playful offerings with chalk menu boards, a cookie monster doll that dangles from the ceiling and cookies displayed behind the counter.
When business dipped during the COVID-19 crisis, the company launched a shipping service, which expanded its reach across the country. During the pandemic, Schmahl was worried he’d lose Schmackary’s — he had to close his second store that opened just before COVID-19 restrictions hit — but his business started to recover as restrictions eased.
In March 2022, he received an email from Fransmart Founder and CEO Dan Rowe, encouraging Schmahl to franchise his business. Rowe, who had been trying to connect with Schmahl since 2016, said a lot of the high-growth cookie companies are just white boxes, but Schmackary’s showcased a strong brand personality that differentiated it from competitors. Rowe and Schmahl partnered and created a plan to sustain the company for the next half-century and beyond. .
Fransmart and Schmahl worked on a brand bible that new operators can use to learn everything they need to know about the business, like specific systems, processes and why they are important to the company.
Operators will make brownies, bars and krispy treats from scratch every day alongside a few pastries, Schmahl said. Frosting will also be made fresh daily to ensure a smooth topping, he said. Cookies are baked fresh using frozen cookie dough sent from the company’s production facility. Schmackary’s uses a scooper for the dough and then freezes to ensure consistency in its cookies. Eventually, Schmahl expects to partner with a co-packer as operations grow. Its ice cream program is optional for franchisees, but could help boost sales during the summer months.
Prior to opening, future franchisees will learn Schmackary’s recipes and baking techniques onsite. The company will be able to teach everyone from franchisees and managers to bakers and front-of-house employees on job tasks using videos and pictures. Schmahl expects training time to range from two to three weeks, but added that they will take as much time as needed to get a franchisee up to speed. The company also plans to have representatives onsite to help franchisees open their stores and train their employees.
“I have an amazing team that is ready to see this next adventure happen,” Schmahl said. “We are ready for this next chapter.”
Development plans: Initially, Schmahl would like to open Schmackary’s first couple of franchised units in the Northeast, preferably driving distance from New York City, allowing Schmahl and his team to provide additional support. Once the company sets a firm foundation with franchising, Schmackary’s could grow to 100 stores. Schmahl said the company will open stores at a pace that makes the most sense. Schmackary’s shops won’t require a lot of real estate — its sole location is only 725 square feet and serves 3,000 cookies a day. Real estate will likely be flexible since the only equipment needed are freezers, refrigerators and an oven to bake the cookies.
Ideal franchisees: Ideal operators will have a passion for the brand and care about their customers. Operators don’t need to have experience, but ideally would have a love for cookies and desserts, Schmahl said.
“We want to sell to good operators, people who are going to care about their employees and want to grow a company that has long-lasting potential,” Schmahl said.
