Energy Watch Chronicles: How A Small Business Owner Sweetened His Customers’ Experience By Brightening Up His Shop
Whether you’re a San Francisco Bay Area native, or have only visited the city a handful of times, you may have explored the famed “North Beach/Little Italy” neighborhood and crossed paths with the candy shop Z. Cioccolato (cioccolato is the italian word for “chocolate”). The storefront is hard to miss with its bright, playful, showcase window and a personality to match. The intoxicating smell of freshly popped caramel corn fills the sidewalk, compelling passersby to come inside and take a look around.
Upon entering, you find yourself overwhelmed by bountiful barrels piled high with vibrant saltwater taffy, nostalgic vintage candies, charming childhood toys, and so much more. But there’s one holy grail that makes this candy shop so different than any other– here at Z. Cioccolato, it’s all about the fudge. Each customer that walks through the door is encouraged to try one of 60 unique, regularly rotated flavors.
Each detail of the sensational Z. Cioccolato experience is carefully preserved by the current and sole owner, Mike Zwiefelhofer, who has been on a mission to enhance the retail space by creating an unforgettable customer experience.
Mike comes from a long lineage of business owners.
For Mike, the ability to run a business runs in his blood. Mike’s great grandparents owned a small department store chain in Northern California for over 100 years and he has since followed in their footsteps: he began his first job as a box boy at the age of 14, worked his way up to a frozen yogurt shop owner, and worked in furniture sales before he arrived at the opportunity to purchase Z.Cioccolato.
“There were two major things that attracted me to this shop: One is the location, it’s an amazing location… But the main thing that attracted me to this business is the fudge…Without the fudge, we are just a normal candy shop, but with the fudge, we have something award winning, unique, and different. That is our signature.”
When Mike bought the store from the now-retired owners four years ago, he was excited to put his culmination of experience to the test:
“I did not know much about chocolate, but I did know about desserts from my frozen yogurt shop and I definitely know a lot about retail. So, the chocolate portion I was able to learn over the last 4 years…All of my experience is put to use here at the shop.”
As sole owner of Z.Cioccolato, Mike wears all the different hats in the shop. He has a sales staff to work the front and a chocolatier to work the kitchen, but every job in-between is his daily responsibility. When asked to describe a day in the life of a small business owner, Mike thought about how to answer for a brief moment and articulated:
“It’s a hard question. There are too many things I do…”
Life as the sole owner of a small business comes with its challenges; it can be exhausting and overwhelming at times. As a testament to Mike’s perseverance, in his first two years of learning the ins-and-outs of Z.Cioccolato, he maintained his second job as a furniture salesman to pay his personal bills and remain financially stable. That era was full of long hour days, back-to-back. Despite the odds, four years later, Mike focuses on building a future for his business.
As a small business owner, Mike has to carefully manage his business expenses.
During our conversation, Mike talked about the harsh reality that small businesses typically don’t make that much money. The high cost of running the shop makes it difficult to raise profits. Mike is constantly searching for areas where he can save money, but those opportunities are sparse when it takes a minimum amount of resources to simply run the shop.
One day as Mike was operating Z.Cioccolato, he received a call from Mission Asset Fund (MAF) introducing the Energy Watch Loan Program. The Energy Watch Loan Program provides small businesses zero-interest, credit building loans up to $2,500 to finance energy efficiency upgrades. Business owners have the opportunity to save energy and money on their utility bill, while at the same time reducing their impact on the environment. The Energy Watch Loan Program is a collaborative initiative between MAF and the San Francisco Department of the Environment.
In a space where sales calls are frequent and in high volume, Mike was protective at first glance and filed away the information as being “too good to be true.” One year later, however, he was reintroduced to the program:
“I happened to meet the contractor who did the lights. He lives nearby and stopped into the store and he brought up the program. Now this is the second time I had heard of it, and I was able to ask him a lot of questions. He gave me an estimate of how much he thought I would save on my PG&E bill, and that’s what really made me say: ‘Well, it’s a no brainer.’
Mike utilized the Energy Watch Program to brighten up his shop (with a few added benefits).
Mike proceeded to get two different lighting upgrades over the following year, totalling around $3,000. Rebates and incentives from the Energy Watch Program enabled him to lower the cost to around $1,680 with a monthly loan payment of about $100 to be completely paid off in the next year. Right off the bat, the gains were noticeable: monthly savings on his PG&E bill added up to about $100, matching the monthly payments and totalling a value of $1,200 a year.
For a small business owner, a $3,000 out of pocket cost may be a high hurdle. As Mike pointed out, saving energy and “being green” is a privilege to some extent. If a business is not especially profitable, an energy efficiency project with upfront costs may become less of a priority. The Energy Watch Program removes this hurdle with affordable, flexible loan products. According to Mike:
“It allows you to do a project that otherwise wouldn’t get done…As a business owner, there are very few times where there’s something with no risk and no downside. It’s interest free money, it helps your business, it saves on your monthly PG&E bill.”
Mike’s energy efficiency upgrade had a bigger impact than just monthly savings.
Mike described that prior to the upgrades, the majority of his lights were burnt out, broken, and slightly different colors which gave the store a “run down” and inconsistent look. A business with this kind of lighting may appear on its way to closing down. Mike described the lighting upgrade as analogous to his ever-flowing candy bins:
“It’s the same thing with my candy bins, I don’t like them to get empty looking because it makes you look like you’re going out of business…”
Since the upgrades, every corner of the store is illuminated and appears the same, consistent, color. Although it’s a fine detail, the customer is positively impacted by it.
Mike is satisfied with his energy improvements and ties the project’s motive back to his commitment to creating a comfortable environment for his customers.
Throughout our conversation, Mike circles back to his loyalty to his customers and dedication to providing them with a unique product for their enjoyment. The shop’s signature seven layered Peanut Butter Pie fudge exemplifies this uniqueness. From what Mike and his staff can tell, Z. Cioccolato is the only candy shop in the world that makes a seven layered fudge.
Mike believes that part of Z. Cioccolato’s future is making the in-store retail experience something so unique and unforgettable that customers prefer to shop in-person rather than online. Over the past year, the lighting upgrades have helped to preserve and further cultivate the look and feel of Z. Cioccolato’s customer-centered, indoor atmosphere.
Mike has a deep passion for his work at Z. Cioccolato and will continue to advocate for the enhancement of all retail experiences to save small businesses the burden of competing with corporate giants. And as his customers, we have the sweet privilege of experiencing all the indulgence they have to offer. If you haven’t already, plan your next trip to make a candy shop stop at Z. Cioccolato on:
474 Columbus Ave
San Francisco, CA 94133.
