This letter is in depth. It's best to view it on a computer or laptop.

 

This is the letter discussed with a decision-maker on behalf of the owners of Westgate Plaza.

It was one last attempt to get them to recognize their disastrous mishandling of how they have left The Cake Gallery holding the bag.

And a very empty bag at that.

At the end of the letter, you'll find their responses. 

 

Hello Mark,, as I stated on the phone, I believe it would be helpful to review the concerns of customers and clients, and the history of our predicament, prior to us furthering our conversation.

It also occurred to me, after we got off the phone, I had made a false assumption that you knew more about our situation than you did. This document will bring you up to speed and offer a solution.

Once again, to be clear, I’m not interested in a confrontation, or some type of gotcha, but rather to engage in a discussion for a viable solution that benefits each party.

If, upon reviewing the information, you don’t find it beneficial for your company, Westlake Hardware, or don’t see a potential negative impact the way I see it as a marketing strategist, at the very least, it was presented to you for consideration.

A question you have for me might be, why did you do the research? What was the purpose for doing it?

Here’s the answer. I knew we didn’t have the funds to relocate, based on our non-profit philosophy. That made me realize I needed to come up with a way to raise them.

Being a marketer, I knew I had to test the marketplace for an answer. Since people were already coming into the bakery with assertions and rumors about Westlake having us removed in their favor, I decided to test our customers to find out if it was a “hot button” for them.

A survey was created and presented to customers who came in to pick up or place an order.

Below, you’ll find an explanation of the history I’ve contended with throughout this ordeal since November 2022, the questions, the answers, and opinions I arrived at.

The feedback gave me the data to create a strategy for raising the funds.

To summarize, what you are about to read, resulted in me creating a webpage that would let our customers and clients know we were being involuntarily removed from Westgate Plaza and now needed funding to relocate, or else we might need to permanently close. And letting them know how they can assist us.

At this time, the webpage has not been published. The reason is, I want all videos to be accurate and factual. I would like to report your responses to the questions that people constantly ask me. Plus, I would like you to address the things people have said to me outside of the surveys.  

PART ONE

• First, is the obstacle of relocation: Would our customers follow us?

To address questions, I recently conducted a survey with customers until I had 40 responses.

I began the survey by providing the history of losing our lease. Here is the wording:

The Cake Gallery must relocate, due to a decision by Dakota Reit, owner of Westgate Plaza, to replace The Cake Gallery with Westlake Hardware.

To make an informed decision about the four upcoming questions, we must add crucial perspective and history.

The information you are about to read, are my personal experiences and opinions. I have left out any references to people’s names. I stand by the information as an accurate accounting. As such, I would be willing to take a lie detector test to prove its validity.

“The discussion began in November of 2022. At that time, a customer told me that Westlake Hardware would be replacing us very soon. Needless to say, I was shocked.

When I asked where that information came from, the person said they worked at Westlake at 84^th and Center and that’s what they were told.

I immediately contacted an agent for Dakota Reit to see if that was true. The reason I was asking was because, our 5-year lease was up at the end of April 2023.

I had plans to remodel the front of the store, but wasn’t going to invest the money, if they were not going to renew another 15-year lease.

As a side issue, if you have been wondering why the front of our store has continued to deteriorate, that is the reason. We didn’t want to invest in remodeling only to find out that we were being involuntarily removed. [I am personally sorry to you and all our customers for the way it looks. It is not intentional.]

Then, at the beginning of each month since November of 2022, I asked if a decision had been made. Each month the answer was no. The representative for Dakota Reit stated that negotiations between them and Westlake were still ongoing, so they would be able to offer an extension of one year. (May 1^st 2023 – April 30^th 2024) That should provide enough time for a decision to be made.

In fairness to Dakota Reit, we could have relocated, but we didn’t. Here’s why.

I was told not to worry, because it’s likely we would be moved to the old Kohll’s pharmacy space right there in Westgate Plaza, possibly construct a new building for us in the parking lot, or move us to one of their other shopping plazas. (To validate my point about moving to the old Kohll’s pharmacy, I requested and received a blueprint for the former Kohll’s pharmacy, for which I drew a draft for the new layout of the bakery That way, I would be ready to begin building out the bakery, if we needed to move. I even made a post about this on Facebook, in August of 2023.)

And most importantly, I was told, they did not want to lose The Cake Gallery as a tenant. That provided us with a great deal of confidence.

Then, in November 2023, I was finally told that they would not be renewing our lease. The decision had been made, Westlake would be replacing us.

When I enquired about relocating to the Kohll’s location, I was told, unfortunately, Westlake will be taking that space over as well. But they are trying to find space where they could move you.

Once again, that didn’t work out, because they did not have a space large enough to accommodate us. The bays they did have open were only half the size of what we needed.

At that point, they said there was nothing else they could do.  

To say I was flabbergasted would be an understatement. I asked again, what happened to constructing a new building for us, moving us, or wanting to keep us as a tenant?

 

After the history was presented, I stated, “Now that you know the history, I’m going to present you with the first question:  

Understanding The Cake Gallery is being involuntarily forced to relocate, we would like to know whether relocating to 120^th and Center Road, approximately 3 miles due west, would impact your decision to continue purchasing cakes and other bakery products from us.”

92% responded by saying, YES we will follow you.

8% responded by saying, NO they probably would not follow us.

The responses were anticipated due to the demographics of our customers. We have the data to discern that approximately 90% of our current customers are from west Omaha.

Further, we estimate our customer base would expand by 8%, due to relocating closer to our residential base. Therefore, we do not believe a relocation would diminish our residential customer base.

• Second, we stated and asked the following:

“Please understand, Dakota Reit, as the owners of Westgate Plaza, have the legal right to choose not to renew our lease and replace us with anyone they choose, including Westlake Hardware.”

Further, it is probably incumbent upon Dakota Reit to produce the highest return on investment for their investors. It’s our belief they feel Westlake Hardware is a better choice to achieve their objective.

Knowing why they are not renewing our lease after 57 years, does it affect your perception of Dakota Reit and/or Westlake Hardware in a positive or negative manner?”

                86% said it affects their view in a negative manner.

    14% said it doesn’t really matter.

      0% said it would be positive.

Then, I went on to ask; if you answered it affects you in a negative manner, please check the boxes that would change your opinion.

Out of 40 responses, here are the results.

    38 checked the box that said, they would reverse their opinion if:

• Westlake changed their mind to move into Westgate Plaza.

    34 checked the box that said, they would reverse their opinion if:

• Dakota Reit and/or Westlake paid for the relocation.

    34 checked the box that said, they would reverse their decision if:

• They move us to one of their properties.

 4 checked the box that said, they would not reverse their opinion under any    

     circumstance.

 

While the respondents understood there is no legal obligation, you can surmise people feel there is a moral obligation.  

• Third, what would your opinion of Dakota Reit and Westlake Hardware be if they do not offer any type of assistance?

0%   Extremely Favorable

0%   Favorable

16% Doesn’t Matter

12% Unfavorable

62% Extremely Unfavorable

To me, the responses were predicable.

As I explained over the phone, our customers are emitting an emotional response to a situation where they see a big company pushing out a small family business. Whether you disagree doesn’t matter. It’s reality. This is especially true with Millennials who prefer small locally owned businesses over big out of town companies. They view big companies as bullies.

• Fourth, What do you think about the decision of Cake Gallery management to delay relocating until they were informed Westlake Hardware would be conclusively replacing them, which resulted signing a 12-month lease, instead of a new 5-year lease?

43%  Poor decision. They should not have trusted what they were told.

 

26%  Hard to condemn their actions, but they shouldn’t have taken the risk.

 

31%  Not their fault. They did not have the conclusive information to relocate, according to the historical reference. They believed they would stay in the plaza.

 

As you can see, 69% of customers believe we made a poor decision.

 

Yes, I made the mistake of using “trust” as my guiding principle. But allow me to ask you a question: after 57 years of being pleased and treated well in Westgate Plaza, why would I now be skeptical?

 

Let’s move onto part two.

PART TWO

Below are random remarks, commentary, and assertions I’ve received over the past year. I would say they are indicative of the overall sentiment.   

“A senior executive  at Westlake said he doesn't feel comfortable removing a neighborhood business that's been there for 50 years. It's 90% unlikely they'll make you leave."

"It's a sad day when a company outside of Nebraska comes to Omaha and forces you to move without offering to help, especially after being here for so long. That's not how you honor and preserve an Omaha landmark."

"My family has used The Cake Gallery for 30 years. It's infuriating to see those responsible for throwing you out, as well as showing such disregard for us as customers." Don’t they know, there is no other place like yours? Or don’t they care?"

"What is happening to you is wrong. Who displaces a popular and well-liked business in a community like Omaha without handling it properly?"  I sincerely hope other real estate investment firms aren't doing this."

"I’ve heard that the guys who own Westgate Plaza have a plan to take care of you, by moving you. What are they going to do?"

"Ed, what happened? Back in August, on Facebook you said if Westlake was coming to Westgate Plaza, they would move you to the old "Kohll's" pharmacy space next to Mangelsen’s. What changed? Did they just string you along and then back out?"

“How can Westlake Hardware feel it’s acceptable to kick you out? Don’t they champion themselves as a neighborhood hardware store? That don’t sound neighborly to me.”

 

When I view those remarks, I don’t know what to believe.

The bottom line is, it does not matter what I believe. These are conversations people are having with each other. The people who said those things believe them and are sharing them.

From the feedback, here are obvious conclusions people have made:

• You are being seen as a billion-dollar company that is pushing out a family-owned small business that has been there for 57 years. And even though there is no legal challenge to forcing The Cake Gallery to leave, customers and clients don’t see it that way. They don’t think it’s right, ethical, or moral.

• There are people who believe I should use my contacts and friends in high places within the Omaha community to use as leverage. I want you to know I won’t, because I don’t think it’s the right thing to do. It should be up to the customers.

• Customers feel I was lied to about being to stay in Westgate Plaza.

• Customers feel I was lied to about receiving assistance to move.

• Customers are astonished Westlake Hardware agreed to removing us and replacing us with them, since they are seen as a neighborhood hardware store.

• Customers are angry that we might need to permanently close, because of our situation. Or worse that you didn’t care, as long as we were removed for your benefit.

When I take those viewpoints into account, I can’t help but think how social media could be a powerful weapon to use against us.

As I stated, I fear, without addressing these concerns, there will be a backlash that could get out of control.

Even though you stated on the phone, you don’t really see a problem and are willing to deal with it, I want to reiterate and advise you to reconsider.

For example aside from the emotional bond The Cake Gallery has with its customers, comes the question of rebuilding the bakery. Since you’re in the real estate development business, you of course know, we can’t rebuild and reopen a 7000 square foot food business by May 30, 2024.

Even though we were initially told in mid-November, most likely, we’ll still need to close down for a 3-month period in addition to the 3 months we have left on the lease.

That alone is not going to go over well. While many of our customers will be disappointed, it will be much worse with brides.

We have around one hundred contracts for wedding cakes that will need to be fulfilled. As soon as a bride calls one of the media and says, The Cake Gallery is going to rip off brides to the tune of thousands of dollars, it could turn into a media circus. At that point, it won’t matter what we say.

In addition, I don’t think I need to explain how unforgiving commercial clients can be, especially big companies like First Data, ConAgra, or Oriental Trading. They simply want their stuff. No excuses.

To address these concerns, my plan is to create a series of videos addressing the issue of our relocation to allay their fears.

That’s where you come in.  

The following questions are ones people are repeatedly asking me. They will be the ones I address in the video(s).

As you’ll notice, they are direct and challenging. To me they illustrate a sense of ownership, as if they are prideful rigid NFL fans of The Cake Gallery. Therefore they come across as trying to protect The Cake Gallery.

1. What was the reason your lease is not being renewed?

2. If Westlake takes over your bakery, are you’re still moving to the old Kholl’s pharmacy space? Why or why not?

3. What plan do they have to help you move? What did they say, they were going to do?

4. I heard a senior partner at Westlake does not agree with a decision to take over your space, because they felt it wasn’t right to remove a neighborhood business that’s been there for 50 years. What did you hear? Is it true?

5. Do you think the owner of the plaza cares what happens to you? Is profit is their sole priority? Is it "it's just business" for them?

6. Can you stop them from making you leave?

7. What will you do? Are you closing or moving somewhere else?      

 

SOLUTION

Mark, I given a lot of thought to what you said on the Monday phone call. You said, you were surprised people would be angry about The Cake Gallery needing to move.

Further, you stated that businesses move all the time. Why would it be a big deal?

Here’s my analysis.

The prolonged existence of rumors about Westlake relocating to Westgate Plaza and replacing The Cake Gallery has provided ample time for resentment to develop among people.

Remember, I was first made aware in November of 2022 by an instore customer. I know he worked at Westlake Hardware, or at least that’s what he told me.

That’s a lot of time for the rumor to grow and fester in people’s minds. I think what we’re experiencing is the reaction to a rumor that’s playing out, and people don’t like it. Which also explains why it’s a big deal.

Further, it appears those same people could have concluded The Cake Gallery is being forced out. They don’t see being forced out the same as a voluntary move. If it was voluntary, I can’t see how we would be having this problem.

Look, I don’t claim to have the perfect solution, but maybe one that could squelch the negativity.  

My plan is to raise funds by asking our customers, both residential and corporate clients to purchase “Gift” and what we’re calling “Raising Dough” cards. They could be seen as buying prepaid bakery cards.

The purchase of those cards might be able to fund our relocation.

Then in about a year, after we’re back on our feet, individuals and businesses who supported our cause, could begin redeeming them.

At this time, I’ve shared this concept with a dozen individuals. The feedback has been promising.

However, those same people are asking me if your firm and Westlake Hardware are also supporting the relocation, since your firm and Westlake will benefit the most.

Frankly, I don’t know what to say, except you’ll need to ask them.

When I first said that, that’s when a light bulb came on.

It’s my opinion that if your firm along with Westlake Hardware would agree to support the relocation, we should be able to dispense with negative blowback.  

For example, it would give us (or me) the opportunity to say:

“We’re happy to announce the rumors of The Cake Gallery being involuntarily forced out of Westgate Plaza can be dispensed with.

Between the current owners of the plaza, Westlake Hardware, and The Cake Gallery, we’ve come to an agreement that mutually benefits everyone, and most importantly…you.

This is truly a win-win for everyone. To emphasis this, the plaza owners will help build out a new  Westlake Hardware store. Westlake will be able to provide their amazing hardware product lines and outstanding personalized service, along with an absolutely stunning outdoor space for all your gardening needs.

As for The Cake Gallery, we’ll be able to build a newer, modern bakery that can continue operating for the next several generations for families, just like yours.  

In addition, even though Dakota Reit and Westlake Hardware didn’t need to provide financial assistance in our relocation, they did.

They did because they are excellent examples of being awesome corporate citizens who care about their neighbors. For that reason, we should all applaud and support them.

Now, we invite you to join Dakota Reit and Westlake in helping us relocate The Cake Gallery to carry on the traditions of your family for generations to come.

Do you see how that approach solves false rumors that have spread throughout the community as well as what we found through the surveys and comments we’ve received.

In addition, it is uplifting and presents everyone in a positive light for moving forward.

Overall, I see this as the best strategy to mitigate risk.

If you still disagree, please answer the 7 questions from page 7, and any other comments you would like to address, so I am able to state your responses accurately.

Mark, thanks for taking the time to consider an alternative solution compared to the standard corporate ideology.

P.S.

If you’re going to do any underground plumbing work after we leave, be aware the main lines that flow from the plaza into Hascall street have a major problem of backflow every winter thaw. It causes water and sewer to back up and flood our space. You might want to bring it to someone’s attention.

 

The end result of the conversation was that the representative for the owners of Westgate Plaza declined to comment on the contents of the letter (except for one item).

Bear in mind...none of the facts were disputed.

No questions were answered...to defend their actions.

No questions were answered... you, as customers, were asking.

They were not concerned about...what you thought of them.

The one exception that was addressed for which I was given an answer...all forms of assistance from them were being outright rejected.

If this doesn't show you their indifference towards The Cake Gallery's fate, as well as its impact on you and our community, I'm afraid we've lost the battle.

While it's too late to stop Westlake Hardware from taking over, we can continue our mission by rebuilding in a new location.

Please help. And please share on all your social media. 

 

Click here to download this letter as a PDF.