Lean in Action: A Client Story
When Patty Pan Cooperative reached out for support, they were at a crossroads. As a worker-owned, diversified food business, they had a rich history and strong values. Their signature grilled vegetable quesadillas and tortillas, made in-house from locally sourced flour, were beloved by their customers across farmers markets and local wholesale outlets. But despite strong demand, profitability was flagging.
Patty Pan’s leaders knew something had to change. They were still reeling from the financial disruptions of 2020 and the gradual depletion of COVID-era assistance. Their cost of goods sold was hovering at 50% of revenue. Raising prices or compromising on ingredient quality were off the table. What was left, other than shutting down? Direct production labor costs, which averaged 28% of revenue.
This is where Growing Wild came in. Our work helps businesses improve profitability while upholding values and quality. For Patty Pan, the goal was clear: execute better, in order to reduce unnecessary labor costs and ultimately return more profit to the worker-owners. The path to get there? Lean problem-solving, driven by root cause analysis and a kata (practice) of iterative experimentation and reflection.
We started with a foundational principle: involve the people closest to the work. The tortilla crew became active participants in identifying pain points and brainstorming solutions. Together, we began tracking key metrics, including production time per batch and scrap. This data gave us insights into inefficiencies and allowed us to focus our efforts where they would have the most impact.
One of the first discoveries was the need to fix equipment malfunctions. Observation and testing helped the team pinpoint an issue with a particular machine, and demand a (warrantee-covered) vendor fix. This removed a significant source of frustration for the team and caused an immediate spike in “good” tortillas off the line.
Next, we turned our attention to workflow. By mapping out and timing processes, we were able to identify bottlenecks and create a smooth flow in tortilla production. The practice of experimenting, reflecting, and trying again gave the team both the confidence and a method for testing competing ideas, and persevering in the face of obstacles. This allowed for much quicker experimentation and improvement in the next process we tackled, tamale production.
Over the course of 2024, these collective efforts bore fruit. Direct production labor costs fell to 23% of revenue—a significant achievement that brought the business back to profitability. As Patty Pan’s team put it, “We’ve learned to fish.”
Success in one area provides the momentum to tackle the next. Patty Pan is now applying lessons learned from tortillas and tamales to other product lines. Their commitment to iterative improvement ensures that they’ll continue to thrive. This is the kind of enduring skill food & beverage businesses need to survive as other aspects of the P&L get squeezed. We’ve seen far too many restaurants and producers close their doors, and we know there’s a better way.
This collaboration is a testament to what’s possible when you pair a clear mission and delicious product with the right business methodology. At its core, continuous improvement is about nourishing both the business and the people within it. We helped Patty Pan build a resilient, sustainable future. I’m honored to be part of that journey, and look forward to connecting to see how we can support yours.