A Little Rock native, Paula Dempsey worked 10 years in investment banking at Merrill Lynch, First National Bank and First Commercial Bank. She was Janet Jones’ first real estate agent, earning a place in the Million Dollar Club. Later she helped her husband, Demp Dempsey, run Dempsey Film Group, leading the business side and assisting with commercial shoots.
As owner of Dempsey Bakery, she co-creates all recipes and conducts the marketing and social media efforts.
Dempsey Bakery in downtown Little Rock is a national award-winning gluten-free bakery.
Why did you start Dempsey Bakery?
Dempsey Bakery was started out of a personal need and observation that Little Rock needed a fresh allergy-friendly bakery. Gluten-free products were scarce eight years ago, and most of them tasted terrible, had many preservatives and included ingredients that many people were sensitive to. My family has many allergies and autoimmune diseases, so it was close to my heart. Sometimes when you see a need you just plow in headfirst even if it is a big risk. All children deserve to live like everyone else and have pretty cakes on their birthdays and pizzas and cupcakes. Little did I know that so many adults had sensitivities as well. Still, there are only around 100 gluten-free bakeries across the country.
Your bakery specializes in gluten-free, wheat-free, soy-free and nut-free baked goods. What percentage of your customers have a medical condition that calls for a special diet free of these ingredients vs. those who just choose to eat a diet free of these ingredients?
Probably at least 60% have health issues related to diet. We have many customers who choose to eat a specific diet preference, and they come to the bakery because we have the foods they like.
What are your best-selling items?
Our best-selling products are breads and cakes. Bread is the hardest product to make gluten free. We have perfected the recipe, and our breads are also egg- and dairy-free. The texture is just like artisan breads from other local bakeries. Our loaves are big and fluffy, qualities lacking in gluten-free breads sold in chain stores.
Of course, our birthday cakes are a big seller because there is nowhere else in the state where you can get the kind of beautifully decorated, delicious gluten-free cake that we bake.
What does the future hold for retail walk-in businesses like yours?
I am very worried about the walk-in brick-and-mortar stores. But the one good thing about local bakeries in general is that you can’t purchase similar fresh baked goods online. People want to walk in and eat. That will never change. But the cost of ingredients has skyrocketed in general, and most restaurants make their money on alcohol, which we don’t serve. The profit margin for our products is very low due to the specialty ingredients. Dempsey Bakery has thrived by diversifying to provide specialty products to other restaurants and food-service facilities.
What was your biggest professional or career mistake and what did you learn from it?
My biggest mistake is trying to be all things to all people. I have learned that it is not always the best business decision. It is very difficult to know what is going to be a hit and worth selling. We try to focus on products that my family likes and needs — they have so many food issues that it just about covers everyone. I like to say I am Mary Poppins, and the more people I can get under my umbrella the better!
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