Bloomington "Shark Tank" winners hope to take breakfast business to the next level
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Grant Veitenheimer (center) prepares breakfasts in the food truck business he co-founded, Scramblin' Egg, in the parking lot of St. Luke's Lutheran Church in Bloomington. Photo: Kyle Stokes/Axios
Last winter, Grant Veitenheimer and Nick Peterson were shivering in the food truck they'd opened, Scramblin' Egg, with no employees and only a trickle of customers.
Now, they're the winners of the Bloomington's inaugural, city-funded "Shark Tank"-style small business competition.
Why it matters: Veitenheimer and Peterson told Axios the Hatch Bloomington prize will "jumpstart" their breakfast food business.
- Instead of grinding out a few more years in a mobile kitchen they have already outgrown, the $100,000 prize will fund Scramblin' Egg's move to a brick-and-mortar space by next spring.
What they're saying: "This money will give us the chance to really move quickly," Veitenheimer said.
- He's mindful of the statistics: One-quarter of hospitality businesses in the U.S. — including restaurants — fail within their first two years, according to federal data.
The big picture: Bloomington officials partnered with the Minneapolis Regional Chamber to launch the competition to address a basic challenge: Starting a business is really hard, especially for first-time entrepreneurs.
Newcomers are less likely to have access to startup funding — and banks often view them as a bigger risk, the Minnesota Chamber Foundation writes.
- "The biggest hurdle for a lot of these entrepreneurs is just the sheer amount of capital needed to open a brick-and-mortar location, get operations running to drive revenue, pay off any loans or investors," said Sean Lundy, a manager in the city's Department of Community Development.
By the numbers: Minnesota's startup survival rate ranks above many other states' and is currently at a two-decade high.
- Still, more than 40% of new firms here fail within five years, according to federal statistics.
Flashback: Veitenheimer and Peterson — both now 28 and former restaurant kitchen staffers — started Scramblin' Egg in the spring of 2023.
Their plan was to modernize the experience of eating in rural diners they both loved, citing Fergus Falls' Viking Café.
- They created a Chipotle-esque menu of fully customizable bowls, burritos and sandwiches — only with breakfast ingredients.
- They spent almost $40,000 in savings to buy a used mobile kitchen and a new truck to haul it to their rotation of locations around Bloomington.
Finances got tight last winter as sales slowed, but in February, a glowing review from Instagram foodie Tony Cu helped turn the tide.
- "It's honestly been 'just go, go, go' ever since then," Veitenheimer said.
Then in the spring, they entered the Hatch Bloomington competition, beating out 63 other applicants after four rounds of expert judging and two rounds of online voting.
What we're watching: Veitenheimer and Peterson have already put in an offer on a restaurant space in east Bloomington.
- The $100,000 prize will pay for new kitchen equipment, ordering kiosks and other upgrades. The winnings will save the founders from needing a bank loan.
- They aim to double their nine employees by next year.
"Our dreams are coming true," Veitenheimer said.
The intrigue: Hatch is also part of Bloomington's response to the pandemic's effects on downtown office districts, Lundy said.
- More suburbanites are working remotely and looking for new, nearby food and entertainment options, he said.
The fine print: Hatch competition rules specify that the winner must establish a brick-and-mortar location within the city limits.
- Half of the $100,000 prize comes from city funds. The other half comes from the Minneapolis Regional Chamber, which will actually dole out the funds to Scramblin' Egg.
What's next: Though the city council has only approved funding for the first year, Lundy said officials, including Mayor Tim Busse, are already contemplating another Hatch competition.