In 2011, Jackie Cuscuna and Brian Smith launched Ample Hills Creamery in Brooklyn, NY. Their journey began with a simple ice cream pushcart, but the duo quickly turned it into a popular local shop.
Despite their early success, they faced significant challenges ahead.
Rapid Expansion
By 2020, Ample Hills had expanded to 13 stores across the nation, shipped ice cream online, and reached a net worth of $40 million.
Their unique flavors and celebrity endorsements from Oprah Winfrey and Steven Spielberg helped boost their popularity.
Financial Trouble
Despite the outward success, Ample Hills faced financial difficulties due to overspending on a large ice cream factory and elaborate packaging.
By March 2020, the financial strain was too much, leading to bankruptcy.
The Bankruptcy Fallout
The bankruptcy was a major blow to Cuscuna and Smith, who also had to file for personal bankruptcy six months later.
The couple was left financially devastated, facing an uncertain future.
A Glimmer of Hope
Schmitt Industries, a machine parts manufacturer venturing into food, acquired Ample Hills for $1 million.
This sale provided some debt relief, but the couple’s losses remained significant. Despite the setback, they were determined to make a comeback.
Starting Anew with The Social
In 2021, Cuscuna and Smith opened a new ice cream shop in Brooklyn called The Social.
This venture marked their fresh start and demonstrated their resilience and commitment to the ice cream business.
Reclaiming Ample Hills
In a remarkable turn of events, they repurchased Ample Hills for $150,000 in June 2021 with new partners.
This acquisition allowed them to revive their beloved brand and apply lessons learned from their past experiences.
Lessons Learned
Reflecting on their journey, Cuscuna and Smith adopted a more cautious approach with their new venture. They emphasized financial discipline, industry expertise, and finding the right investors who shared their vision and values.
“In terms of growth, I mean, we’re going to approach it very slowly,” Smith told CNBC. “The focus is really getting those systems down [and those] operations tight so that we can focus on the brand building again.”
Financial Discipline and Strategic Decision-Making
Cuscuna underwent business coaching and forged valuable connections.
The couple prioritized profitability and industry expertise by appointing seasoned professionals to critical positions, ensuring a more sustainable business model.
Industry Struggles: Applebee’s Closures
Ample Hills isn’t alone in facing financial challenges. Applebee’s recently announced multiple closures in recent years due to changing consumer preferences and rising operational costs, reflecting broader struggles in the food industry.
These closures highlight the shifting landscape and the need for adaptability in business.
Industry Struggles: Red Lobster Bankruptcy
Red Lobster has also filed for bankruptcy, highlighting the difficulties many established food brands are encountering.
Economic pressures and changing dining habits contributed to their struggles. These high-profile cases underscore the volatility of the food industry and the importance of resilience.
A New Beginning
Today, Cuscuna and Smith own a modest stake in Ample Hills as they chart a course toward sustainable growth.
While not ideal, bankruptcy doesn’t necessarily spell the end for a business. As seen with Ample Hills, it can actually be an opportunity for rebirth and learning from past mistakes.
