Springfield Business Journal_2019-07-29

20 · SBJ.NET JULY 29-AUG. 4, 2019 2019 ECONOMIC IMPACT AWARDS 1-5 YEARS IN BUSINESS by Kathryn Hardison · khardison@sbj.net General Manager Zackary Oxley likes to think of Hotel Vandivort as “the living room of Springfield.” “We want people to come in, use the Wi- Fi, relax, have a cup of coffee – but more than anything – feel comfortable in the space and in the area,” he says. The boutique hotel, at 305 E. Walnut St., is a hub for Queen City activity, with local artists and musicians highlighted weekly, featured local products and the lobby- turned-community living room. Oxley says the hotel’s presence also has helped revive downtown Springfield by in- spiring other business owners to beautify the area, which in turn impacts the com- munity. “All of that drives people to downtown, and it gives people in Springfield another reason to want to stay and live here,” he says. “Having a nice greater Springfield area with a nice, safe downtown setting that’s vibrant and economically fluid is very im- portant.” Declining to disclose 2018 revenue, Ox- ley says Hotel Vandivort recorded a year- over-year revenue increase of 12%. “Our owners care more about the com- munity than their own bottom line,” Oxley says of the McQueary family, which has owned and operated Springfield businesses for over a century. “They felt that because their family has been so successful in the area, that it’s important for them to give back, and I think they found a way to do that effectively and sustainably.” The McQueary family hasn’t always been in the hotel game. In 2008, McKesson Corp. acquired McQueary Bros. Drug Co., a pharmacy prod- uct distributor locally owned by the family for 84 years, for $194 million, according to past Springfield Business Journal reporting. The family also has invested millions into the boutique hotel. Hotel Vandivort was a $13 million undertaking, and Phase II is es- timated to cost around $9.75 million. The hotel has participated in the First Friday Art Walk and showcased local art- ists’ work every Wednesday since opening in 2015. Local musicians began performing dur- ing Saturday and Sunday brunch three months ago. Hotel Vandivort pays all of its performers, and it doesn’t charge a com- mission for any art sold at the hotel. “We believe that if we provide opportu- nities for local artists to financially sustain their careers, Springfield will benefit by retaining more Ozark-born talent,” Oxley says. The hotel also supports local businesses by including products in each room from Missouri Spirits, Askinosie Chocolate, Circle B Ranch and Savory Addictions Gourmet Nuts. The Order, a restaurant on the first floor, uses milk and cheese from Terrell Creek Farm and Edgewood Cream- ery, breads from Artisan’s Oven, coffee from Coffee Ethic and meat from JB Kobe Farms. Oxley expects the economic impact to continue with Hotel Vandivort, Phase II, which should be complete by early fall. Between 15 and 25 employees will work at the five-story, 40,000-square-foot boutique hotel with 48 rooms. Hotel Vandivort cur- rently employs around 100 people. In its philantropic efforts, each member of the management staff is asked to choose a charity or organization to support. In 2018, the hotel donated over $40,000 to such nonprofits as Harmony House, The Kitchen Inc. and The Glo Center. Thinking Local Hotel Vandivort LLC Founded: 2015 Address: 305 E. Walnut St. Web: HotelVandivort.com Products/services: Hotel Employees: 100 2018 Revenue: WND JESSICA ROSA John and Karen McQueary, at left, co-own Hotel Vandivort, which is managed by Zackary Oxley. TOP HONORS by Sony Hocklander · Contributing Writer Tim Clegg, founder and CEO of Hurts Donut Co., says he’s grateful for previ- ous failures. Because if not for those, “I wouldn’t appreciate what we have. It’s good to win one.” Winning in this case means rocking the doughnut industry with creative toppings, clever promotions and a playful shop name that spun the punch line of an old joke into a $20 million franchise juggernaut. For a business startup that left Tim and his wife Kas Clegg with around $7 in the bank, Hurts Donut has not only been a lo- cal success with two stores employing 45 and generating $2 million, it’s also brought sweet joy to other communities as it nears its sixth anniver- sary. By the end of 2018, there were 18 franchise locations across the Midwest, in Colorado, Texas and Arizona. Two more franchises opened in 2019 with four more scheduled in cities including Memphis, Tennessee, and New Orleans. It’s not unusual for lines to form hours before grand openings. From inception to the end of 2018, the business has created more than 800 jobs nationwide, which calculates to nearly $4.7 million in taxable wages. The success is humbling, Clegg says, but he knew within months the team had a winning concept. Today, with two com- pany stores and 20 franchises to date, they work harder than ever: “We rarely take time for our- selves,” Clegg says. “We know the im- portance of being supportive of our franchise owners who have taken this journey with us.” One thing he’s proud to know: Hurts Do- nut brings recognition and tourism dollars to his community. Thanks to scary clown and quirky cupid deliveries, plus their trendy Tide Pod-decorated treats, Hurts Donut has been mentioned by national talk show hosts, including Anderson Cooper of CNN and James Corden of “The Late Late Show,” as well as on the Buzzfeed and Del- ish websites. The company is frequently listed with Bass Pro Shops and Andy’s Fro- zen Custard under “things to do” in Spring- field. In addition to doughnuts, the company has added an espresso program, a delivery app and introduced Glitter Coffee – all of which are expanding to franchises to increase rev- enue, boosting sales tax contributions. The company gives back in “an irrational way” – as expressed in its mission state- ment – as a matter of business practice. Its primary partnership is with the National Multiple Sclerosis Society because Clegg was diagnosed with multiple sclerosis the same year Hurts Donut opened. In addition, the business supported multiple local char- ities in 2018 including The Kitchen Inc., Lost & Found Grief Center, Isabel’s House, Big Brothers Big Sisters of the Ozarks Inc. and Ozarks Food Harvest Inc. “This business was built on the back of a diagnosis,” says Clegg, who lost his mili- tary job and was unemployed before open- ing Hurts Donut Co. He’s never looked at the diagnosis as a negative, he says: “It’s been an inspiration to us, to our business. It changed the course of our life.” Sweet Expansion Hurts Donut Co. Founded: November 2013 Address: 509 W. Olive St., Ste. 101 Web: WannaHurts.com Products/services: Doughnut shop Employees: 45 locally; 500 (including franchisee stores) 2018 Revenue: $2 million locally; $20.1 million (including all store sales and franchise income) Tim Clegg leads a franchise system with nearly two dozen stores. This business was built on the back of a diagnosis.” —Tim Clegg Hurts Donut Co.