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E N Q U I R E R   B U S I N E S S   C O V E R A G E
Big Sky trims staff, closes stores
Founder turns over operations to president

Friday, April 17, 1998

BY LISA BIANK FASIG
The Cincinnati Enquirer

After an eight-year rising, the founder of Big Sky Bread Co. has handed operational reigns of the business to its president, who has cut staff and moved the corporate offices to prepare for future growth.

Keith Kinsey, who joined as president of the Cincinnati-based bakery chain two years ago, said Thursday that the company had recently undergone what he called a "rightsizing" that entailed releasing 18 of 28 operations workers and moving headquarters to Fairfax from Blue Ash.

He said the cuts trim the company to a size more suitable for its operations -- 17 company-owned and 21 franchised stores.

"Each time you grow a company, you come to different stages in the organization and you think, "OK, what do we need to get to the next level?' " he said.

"We were too far ahead of the curve," he said.

Indeed, Big Sky had lofty expansion plans. Founder Roger Elkus in 1996 said he wanted to triple the chain's size in three years, to 40 company-owned and 40 franchised stores. In 1998 alone, he had planned to open 24 company-owned and 28 franchised stores. Instead, Big Sky in the past couple of weeks has closed two out-of-town stores, one each in Cleveland and Columbus. It still operates two stores in each of those markets, as well as two stores in Indianapolis. Mr. Kinsey said the bakery company will hold off any more openings for a few months, while it refines operations and develops new products at Cincinnati store.

As for moving corporate offices, he said it is "part of the way I do business."

"We're down closer to where everything happens," he said, referring to its warehousing facility in Fairfax.

Mr. Kinsey said his role of operating the company had been planned, and he characterized the recent transition as the end of his "apprenticeship." He has a background in finance and operations and has worked for McDonald's and PepsiCo.

Roger and Barry Elkus continue to own the company with Hal Tieger and several investors, including Blue Chip Venture Co. and Walnut Venture Fund. One of the investors called the moves positive and said more money is being funneled into the company.

Roger Elkus did not return a phone call.

Mr. Elkus opened his first Big Sky bakery -- then called Stonemill -- in 1990, on Madison Avenue in Oakley.



Business Headlines for Friday, April 17, 1998

Big Sky trims staff, closes stores
Day-trading firm Block shuts down
Paycor chief to receive community service award
Profit up for First Financial
INDUSTRY NOTES: MANUFACTURING
TRISTATE SUMMARY


 
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