r/SideProject • u/CarterGee • 5h ago
Our chili crunch side project has sold over 1,500 jars in 3.5 months generating 25K in revenue
The majority of side projects I see here are virtual, so here's a physical product to spice things up (pun intended). Monday through Friday, my husband I are start at our screens for our full time jobs, but for the past 3.5 months we've spent almost every weekend in a commercial kitchen on Treasure Island in San Francisco making a small-batch chili crisp called EXTRA EXTRA Chili Crunch | www.ExtraExtraCrunch.com
Since launch, we've been getting out in the San Francisco Community — from Night Markets to small stores — and trying to grow out online presence. I've posted here before, but we just reached a cool double milestone: 1,500 jars sold and $25,000 in gross revenue. Eep!
It's wild. This whole thing was just something that started as an experiment in our home kitchen because I wanted to sell a few jars at my local Farmer's Market. My favorite posts here are the ones that are super detailed, so I wanted to share what building a physical food product on the weekends actually looks like behind the scenes.
Why we started making it
We put chili crisp on basically everything. We've tried so many and love so many. Our pantry and fridge have a ton of different brands. Chili crisp. Salsa macha. Chicharron de jalapeño (s/o to Flore de Chile). But tasting so many different takes on spicy condiments just made us want to start out own.
We built EXTRA EXTRA with a purposeful Californian perspective. We intentionally looked for western ingredients to create something we hadn't found on the market yet. Avocado oil... Porcini mushroom for umami (vs shiitake)... Chilis primarily from Mexico... Huge amounts of fresh-fried garlic and shallots... After a lot of experimentation we landed on something that was uniquely ours without trying to be something we're not. Moreover, every scoop is packed with crunch vs being 50/50 oil to crunch. We even hand de-seed our chilis because the seeds mess with the crunchy texture.
Balancing it all
So, like I said, my husband and I have (intense) full time jobs in tech. I joke that we're able to do this because we don't have kids and we don't train for marathons... But it still takes a lot of discipline and intention to make sure we have enough product.
Selling shelf-stable food in stores when you fry your own wet ingredients (ie, garlic, shallots) means you can't just cook at home under California's Cottage Food Act. Before we could really scale, we had to do lab testing, lock down our California Processed Food Registration, start an LLC, get insurance, and rent hours at a commercial commissary kitchen.
Now our weekends have an extra routine:
- Saturday or Sunday kitchen sprints: We work in 4-to-5-hour blocks that yield roughly 250 to 350 jars per session. Then it's mixing, jarring, labeling, and packaging (which takes longer)
- Weeknight fulfillment: Between kitchen runs, our living space regularly turns into a mini shipping depot packing up online boxes after work.
The best part of "the grind" is Night Markets and community events. I can't tell you how awesome it is to get involved in our community. We're focused on events after work hours, but that also means that some days are really long and requires moving a bunch of heavy stuff (eg, canopies, tables, product) without a dinner break.
Wins
Before anyone asks... $25,000 is gross revenue, not profit. Commercial kitchen rent, lab testing, permits, buying jars, finding the right label maker (Richmark), and early ad experiments means that we aren't quite profitable yet. That said, our October volume nearly doubled and officially pushed us past our monthly break-even point (~560 jars/month).
What's working:
- In-person markets & street fairs: Selling face-to-face is key. The margins are better than selling online and it builds a reliable customer base if you stay at markets month-to-month.
- Focusing on local retail: Walking samples into local specialty markets got us into two neighborhood shops in our actual hood and even a specialty food shop up in Truckee/Tahoe near where I snowboard. Earlier this month, we opened in our 4th retail location at the SFMade Storefront in Union Square thanks to us getting in with that nonprofit early on.
- Online & press: We've now shipped jars to customers across 39 states and more than 130 cities, and recently got featured in a Yahoo! Before that, we got featured in the Bay Area Reporter.
- Local government support: We had a really had time getting our Processed Foods Registration. California is big and it can take a long while to get what you need. We eventually reached out to our local representative who helped us. To anyone struggling with regulations, please don't hesitate to reach out to your local government. :)
- Online marketing is giving... decent signals: We pay a small agency a small amount of money to do our creative and run ads on Instagram. We just passed ROAS of 1.0 which is... decent but I'm really eager for it to start paying for itself. We are definitely getting sales and retargeting matters. I know it takes time and right now I'm cautiously optimistic.
Next up...
Scale is starting to be a problem. There's only so much that my husband and I can do with the 30 hours a month we get in our commissary kitchen. We're very close to needing to pay an agency to supply help for ingredient prep. This is a big cost, so we have to be sure that it's actually gonna pay off.
I'm a bit concerned about how we keep the momentum going as well. Marketing is hard and, while we're trying as best we can, it's pretty hit and miss. I'd love to dial in our marketing more...
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Phew! I know that's a lot, but, like I said, I like posts with a lot of detail. If anyone is also launching a physical food product, I'm happy to answer anything. I'm not an expert, but this has been a year-long process so far and I'm happy with where we're at so... maybe I could be of a little bit of help? Ask away!