Background: “For us, making chocolate is a labor of love, we work by hand, in small batches and are artisans in Italian confections,” said Stefanelli’s Candies owner Frank R. DeDionisio. This 77 year old candy making and retail company is under the ownership of DeDionisio who has been there for 15 years with 25 full-time and 3 part-time employees to date.
Stefanelli’s innovative candy-making recipes have been maintained for 100 years to bring tradition, excellence and decadent chocolate experiences to the Erie community. One very well-known chocolate indulgence is Stefanelli’s “Sponge Candy.” The popularity of this candy has branched into the local retail chain Country Fair stores where DeDionisio noted that he’s gone from providing this candy from 20 Country Fair stores to 74 stores throughout the region starting September 2006. Sponge candy reflects the Italian candy making tradition. “Their irregular shape is for us, a proud statement of their origin, each batch being hand poured,” said DeDionisio.
After DeDionisio purchased Stefanelli’s in 1993 (W 8th Street) he transformed the company into its current 4 locations throughout Erie county with plans of adding a fifth candy store in Meadville, PA (Crawford County) in 2006/07.
Assistance Required: DeDionisio required business assistance and financial information to gain a better understanding of the chocolatier side of business. He had no background in candy making, so he was in need of long time employees at Stefanelli’s to assist him with their background knowledge. He was also in need of some updated photos for his web site and other marketing pieces.
Assistance Provided: Gannon SBDC Business Consultant John Snyder worked diligently with DeDionisio on his business plan and financials. Snyder also gave him sound business advice when DeDionisio was thinking about purchasing Stefanelli’s. Gannon SBDC Marketing Consultant Jane Horetsky was able to take photos for his award nomination that she also prepared for the local business awards.
Impact/Results: Business Consultant Snyder was able to assist DeDionisio with a high impact business plan that has given him the tools to expand his stores throughout Erie County.
Stefanelli’s has consistently been very profitable over the years. Net profit margins have averaged 15.4% since 2002 which greatly exceeds the industry average of 0.4%. The company has a very strong equity position with debt/worth ratios of 0.4:1 which compares extremely well to the industry average of 36.3:1. Accordingly, cash flow has always been positive. Record sales and profits have created a very financially sound company that produces financial ratios that exceed even the industry’s highest standards.
DeDionisio received an award for his business from the nomination that Marketing Consultant Horetsky created that also included photos of his store. The photos included his product along with store front with signage. The chocolatier also received great PR from the awards event where he and his staff of 28 were videotaped in a winners’ segment. |
