(Editor’s note: This is the 51st installment in a monthly series speaking with minority business owners and leaders. Each will be asked their views on minority-business conditions in the state and for ways to improve those businesses’ chances for success. See previous features here.)
Edmund Addai has enjoyed cooking since he was 11, whether it was preparing meals for his siblings or learning new recipes from family members who lived in the South.
But he never envisioned opening his own restaurant – at least not until 2020 when Addai, who was working in the insurance industry, found himself in the kitchen more and more during the lockdowns of the COVID-19 pandemic.
Then he saw an opportunity when he learned of a “ghost kitchen” called Bath Food Co. in the Smith Hill section of Providence, a commercial kitchen that allows various food preparers to make meals for delivery or takeout only, without extra expenses or hassles such as operating a dining room.
That’s where Addai’s Stack House and its authentic Southern cuisine menu were born.
He says the ghost kitchen seemed like a good way to test the waters and learn about operating a food business, but the model relies heavily on orders placed through third-party platforms that charge fees between 30% to $40% of each order, and it takes time for payments to process and the food entrepreneurs to see the money.
Because of that, Addai’s upstart business – registered as The Stackhouse LLC – barely broke even in its first year.
He was confident he could make it work, but he needed to venture out on his own. By the middle of 2022, he relocated to a shopping center adjacent to the University of Rhode Island’s main campus in South Kingstown. URI is his alma mater.
There, Addai says, he has more kitchen space to experiment with new recipes and fulfill one of his missions with Stack House: bring more authentic Southern cuisine to New England.
The star of Stack House’s menu is waffles, a specialty of Addai’s that he says can work with all kinds of dishes.
Indeed, Addai enjoys the opportunity for creativity that comes with cooking.
“I like to look at all the components of a dish and think about how to elevate it and bring the whole thing to another level,” Addai said.
For instance, Stack House’s beignets are tossed in both cinnamon and maple-flavored powdered sugar as opposed to the traditional dusting of powdered sugar. Also, Addai plans to have seasonal waffles on the menu each month featuring a new flavor.
“We’re just getting started,” Addai said.
But the business is also focused on helping those within disadvantaged communities build careers. This is accomplished with partnerships with organizations such as Foster Forward, a nonprofit that helps those affected by foster care.
“As a minority, you start behind the starting line,” Addai said, noting some struggle to find resources needed to help them start a business or career. “The challenge is to level the playing field or play catch-up.”
Addai says he recruited an employee through Foster Forward who he trained to become a manager at Stack House. While the employee no longer works there because he lives too far away, Addai plans to hire him back once he opens another Stack House in Providence.
Stack House is on track to open its second location in January at The Bubbler LLC, an arcade and soda bar on Charles Street. And he’s got bigger plans, saying he hopes to open more locations within Rhode Island and New England.
1. Do you believe racism is keeping minorities from starting businesses in the Ocean State or succeeding when they do? I don’t think racism is keeping businesses from being successful or starting in the Ocean State. I believe racial inequity and disparity are the factors that deter minority businesses from growing and reaching their full potential. Most minority businesses start behind the starting line, whether it be experience, capital or network. The challenge minority businesses face is catching up or leveling the playing field.
2. How dependent is your business on the support of other minority groups? Is that a sustainable business model? Our business serves as a representation of a minority group, but it is not solely dependent on one minority group. We create a quality product/service that appeals to a wide demographic and that’s what continues to drive business and growth. I believe that we are dependent on the quality of our products and services and our ability to consistently deliver that to our customers. To me, that is a sustainable business model.
3. What one thing could Rhode Island do to boost the odds for minority-owned business success? I benefited from many different business accelerator programs that our state and entrepreneurial community has to offer, such as the Goldman Sachs 10,000 Small Businesses program, Social Enterprise Greenhouse, etc. The knowledge, resources and networks I have gained from these programs continue to make a difference in my business and our success. I believe more dedicated accelerator and growth programs being offered to minority businesses at any level would make a huge difference for our state.
4. Have you had to turn somewhere other than a bank for a loan? Do you believe the state’s lending institutions generally treat minorities fairly? Anytime I needed capital to grow my business, I wasn’t able to obtain it from a traditional bank, which was a very frustrating process, especially in times when business was going well. Often when I speak with other minority business owners in our state, their experiences tend to be the same. Fortunately, organizations such as Nectar Community Investments, Social Enterprise Greenhouse, Providence Revolving Fund, Enhanced Capital and [the Rhode Island Black Business Association] were able to assist me in our capital needs. And with the support and advocacy of the Rhode Island Small Business Development Center, we have been able to accomplish our many different growth goals.
5. If another minority entrepreneur asked you where they could turn to for support for their business, where would you direct them? I would tell them to start with the R.I. Small Business Development Center. I would also direct other minority entrepreneurs to R.I. Commerce Corp. The most important advice I could give in regard to finding support from the many business organizations in our state is participation and engagement. The resources are available and the people are willing to help.
