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May 27, 2019 · 1h 3m · how-i-built-this

Stacy's Pita Chips: Stacy Madison

Stacy Madison · 36m spoken Guy Raz · 18m spoken Prerak Juthani · 1m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of How I Built This, host Guy Raz interviews Stacy Madison on how she and co-founder Mark Andrus turned surplus bread from a Boston sandwich cart into Stacy's Pita Chips, scaling the business through ingenious manufacturing and resilience until its acquisition by PepsiCo.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Guy holds 32.6% of the talking time here. How this is scored →

Guy as informed peer 1.4 Guest teaching 1.4 Guest disagreement 0.6 Guy pushing back 0.4
05100:0015:0030:0045:001:00:000:00–4:39 · Guy as informed peer 0/10 Announcing the How I Built This Summit Guy Raz delivers a solo announcement for the How I Built This Summit and sets up the premise of Stacy's Pita Chips with no guest interaction.4:39–14:26 · Guy as informed peer 1/10 From Social Work to Condo Cuisine in Hawaii Stacy narrates her early career transition from social work to Hawaii and running a short-lived condo dinner delivery business. Guy asks conversational, supportive questions.14:31–22:03 · Guy as informed peer 2/10 Launching the Boston Sandwich Cart and Baking Pita Chips Stacy details operating their Boston pushcart, Stacy's Delights, and baking leftover pita bread to keep queueing customers happy. She gently corrects Guy regarding their initial flavors.22:18–37:50 · Guy as informed peer 2/10 Pivoting to Chips, Overcoming Skepticism, and Industrializing Slicing Stacy describes scaling production, securing early SBA bank loans, and inventing an industrial bread-slicing method after an expert claimed the concept could not scale.37:51–46:10 · Guy as informed peer 2/10 Managing Divorce, Scaling Retail, and Expanding Operations Guy explores how Stacy and Mark managed to split fifty-fifty in a divorce while remaining cooperative business partners, followed by retail expansion into Trader Joe's.46:14–57:32 · Guy as informed peer 2/10 The PepsiCo Acquisition, Factory Fire Crisis, and Life After the Sale Stacy recounts the PepsiCo acquisition, surviving a massive factory fire before closing, and her health battles. She strongly rejects the premise that luck was the primary driver of her success.57:44–1:02:57 · Guy as informed peer 1/10 How You Built That: The React Board Game Prerak Juthani shares the creation of React, an organic chemistry board game built while preparing for medical school.0:00–4:39 · Guest teaching 0/10 Announcing the How I Built This Summit Guy Raz delivers a solo announcement for the How I Built This Summit and sets up the premise of Stacy's Pita Chips with no guest interaction.4:39–14:26 · Guest teaching 1/10 From Social Work to Condo Cuisine in Hawaii Stacy narrates her early career transition from social work to Hawaii and running a short-lived condo dinner delivery business. Guy asks conversational, supportive questions.14:31–22:03 · Guest teaching 2/10 Launching the Boston Sandwich Cart and Baking Pita Chips Stacy details operating their Boston pushcart, Stacy's Delights, and baking leftover pita bread to keep queueing customers happy. She gently corrects Guy regarding their initial flavors.22:18–37:50 · Guest teaching 3/10 Pivoting to Chips, Overcoming Skepticism, and Industrializing Slicing Stacy describes scaling production, securing early SBA bank loans, and inventing an industrial bread-slicing method after an expert claimed the concept could not scale.37:51–46:10 · Guest teaching 1/10 Managing Divorce, Scaling Retail, and Expanding Operations Guy explores how Stacy and Mark managed to split fifty-fifty in a divorce while remaining cooperative business partners, followed by retail expansion into Trader Joe's.46:14–57:32 · Guest teaching 2/10 The PepsiCo Acquisition, Factory Fire Crisis, and Life After the Sale Stacy recounts the PepsiCo acquisition, surviving a massive factory fire before closing, and her health battles. She strongly rejects the premise that luck was the primary driver of her success.57:44–1:02:57 · Guest teaching 1/10 How You Built That: The React Board Game Prerak Juthani shares the creation of React, an organic chemistry board game built while preparing for medical school.0:00–4:39 · Guest disagreement 0/10 Announcing the How I Built This Summit Guy Raz delivers a solo announcement for the How I Built This Summit and sets up the premise of Stacy's Pita Chips with no guest interaction.4:39–14:26 · Guest disagreement 0/10 From Social Work to Condo Cuisine in Hawaii Stacy narrates her early career transition from social work to Hawaii and running a short-lived condo dinner delivery business. Guy asks conversational, supportive questions.14:31–22:03 · Guest disagreement 0/10 Launching the Boston Sandwich Cart and Baking Pita Chips Stacy details operating their Boston pushcart, Stacy's Delights, and baking leftover pita bread to keep queueing customers happy. She gently corrects Guy regarding their initial flavors.22:18–37:50 · Guest disagreement 1/10 Pivoting to Chips, Overcoming Skepticism, and Industrializing Slicing Stacy describes scaling production, securing early SBA bank loans, and inventing an industrial bread-slicing method after an expert claimed the concept could not scale.37:51–46:10 · Guest disagreement 0/10 Managing Divorce, Scaling Retail, and Expanding Operations Guy explores how Stacy and Mark managed to split fifty-fifty in a divorce while remaining cooperative business partners, followed by retail expansion into Trader Joe's.46:14–57:32 · Guest disagreement 3/10 The PepsiCo Acquisition, Factory Fire Crisis, and Life After the Sale Stacy recounts the PepsiCo acquisition, surviving a massive factory fire before closing, and her health battles. She strongly rejects the premise that luck was the primary driver of her success.57:44–1:02:57 · Guest disagreement 0/10 How You Built That: The React Board Game Prerak Juthani shares the creation of React, an organic chemistry board game built while preparing for medical school.0:00–4:39 · Guy pushing back 0/10 Announcing the How I Built This Summit Guy Raz delivers a solo announcement for the How I Built This Summit and sets up the premise of Stacy's Pita Chips with no guest interaction.4:39–14:26 · Guy pushing back 0/10 From Social Work to Condo Cuisine in Hawaii Stacy narrates her early career transition from social work to Hawaii and running a short-lived condo dinner delivery business. Guy asks conversational, supportive questions.14:31–22:03 · Guy pushing back 0/10 Launching the Boston Sandwich Cart and Baking Pita Chips Stacy details operating their Boston pushcart, Stacy's Delights, and baking leftover pita bread to keep queueing customers happy. She gently corrects Guy regarding their initial flavors.22:18–37:50 · Guy pushing back 1/10 Pivoting to Chips, Overcoming Skepticism, and Industrializing Slicing Stacy describes scaling production, securing early SBA bank loans, and inventing an industrial bread-slicing method after an expert claimed the concept could not scale.37:51–46:10 · Guy pushing back 1/10 Managing Divorce, Scaling Retail, and Expanding Operations Guy explores how Stacy and Mark managed to split fifty-fifty in a divorce while remaining cooperative business partners, followed by retail expansion into Trader Joe's.46:14–57:32 · Guy pushing back 1/10 The PepsiCo Acquisition, Factory Fire Crisis, and Life After the Sale Stacy recounts the PepsiCo acquisition, surviving a massive factory fire before closing, and her health battles. She strongly rejects the premise that luck was the primary driver of her success.57:44–1:02:57 · Guy pushing back 0/10 How You Built That: The React Board Game Prerak Juthani shares the creation of React, an organic chemistry board game built while preparing for medical school.

speaking balance: gold is Guy, purple is the guest (3 minute bins)

0:00 · Guy 87.6% · guest 12.4%0:00 · Guy 87.6% · guest 12.4%3:00 · Guy 68.7% · guest 31.3%3:00 · Guy 68.7% · guest 31.3%6:00 · Guy 14% · guest 86%6:00 · Guy 14% · guest 86%9:00 · Guy 5.2% · guest 94.8%9:00 · Guy 5.2% · guest 94.8%12:00 · Guy 28.8% · guest 71.2%12:00 · Guy 28.8% · guest 71.2%15:00 · Guy 22.4% · guest 77.6%15:00 · Guy 22.4% · guest 77.6%18:00 · Guy 24.4% · guest 75.6%18:00 · Guy 24.4% · guest 75.6%21:00 · Guy 46% · guest 54%21:00 · Guy 46% · guest 54%24:00 · Guy 22.4% · guest 77.6%24:00 · Guy 22.4% · guest 77.6%27:00 · Guy 21.7% · guest 78.3%27:00 · Guy 21.7% · guest 78.3%30:00 · Guy 25.8% · guest 74.2%30:00 · Guy 25.8% · guest 74.2%33:00 · Guy 21.2% · guest 78.8%33:00 · Guy 21.2% · guest 78.8%36:00 · Guy 23% · guest 77%36:00 · Guy 23% · guest 77%39:00 · Guy 40.7% · guest 59.3%39:00 · Guy 40.7% · guest 59.3%42:00 · Guy 27% · guest 73%42:00 · Guy 27% · guest 73%45:00 · Guy 20.2% · guest 79.8%45:00 · Guy 20.2% · guest 79.8%48:00 · Guy 21.6% · guest 78.4%48:00 · Guy 21.6% · guest 78.4%51:00 · Guy 30.8% · guest 69.2%51:00 · Guy 30.8% · guest 69.2%54:00 · Guy 18.8% · guest 81.2%54:00 · Guy 18.8% · guest 81.2%57:00 · Guy 52.8% · guest 47.2%57:00 · Guy 52.8% · guest 47.2%1:00:00 · Guy 66.5% · guest 33.5%1:00:00 · Guy 66.5% · guest 33.5%1:03:00 · Guy 0% · guest 0%1:03:00 · Guy 0% · guest 0%
Sharpest disagreement ▶ 55:45 Stacy rejects the luck narrative

Stacy expresses genuine irritation at people who attribute her entrepreneurial success to luck, firmly asserting that relentless problem-solving and skill were the actual catalysts.

 Hardest push from Guy ▶ 41:45 Guy challenges the feasibility of a clean business divorce

Guy presses on the rarity of maintaining a fifty-fifty co-founder partnership through a divorce, questioning how they avoided the typical fallout.

 Biggest teaching moment ▶ 34:26 Overcoming industry skepticism on pita manufacturing

Stacy explains why veteran snack executives considered commercial pita chips unviable, detailing the bespoke machinery adaptations needed to prove them wrong.

 Guy holds their own ▶ 28:02 Guy demonstrates financial mechanics of SBA startup financing

Guy succinctly frames the working capital requirements and collateral hurdles Stacy faced when securing her initial SBA funding.
the scores for every segment, with the reasoning behind each
ChapterTopicGuy as informed peerGuest teachingGuest disagreementGuy pushing backWhy
Announcing the How I Built This Summit 0000 Guy Raz delivers a solo announcement for the How I Built This Summit and sets up the premise of Stacy's Pita Chips with no guest interaction.
From Social Work to Condo Cuisine in Hawaii 1100 Stacy narrates her early career transition from social work to Hawaii and running a short-lived condo dinner delivery business. Guy asks conversational, supportive questions.
Launching the Boston Sandwich Cart and Baking Pita Chips 2200 Stacy details operating their Boston pushcart, Stacy's Delights, and baking leftover pita bread to keep queueing customers happy. She gently corrects Guy regarding their initial flavors.
Pivoting to Chips, Overcoming Skepticism, and Industrializing Slicing 2311 Stacy describes scaling production, securing early SBA bank loans, and inventing an industrial bread-slicing method after an expert claimed the concept could not scale.
Managing Divorce, Scaling Retail, and Expanding Operations 2101 Guy explores how Stacy and Mark managed to split fifty-fifty in a divorce while remaining cooperative business partners, followed by retail expansion into Trader Joe's.
The PepsiCo Acquisition, Factory Fire Crisis, and Life After the Sale 2231 Stacy recounts the PepsiCo acquisition, surviving a massive factory fire before closing, and her health battles. She strongly rejects the premise that luck was the primary driver of her success.
How You Built That: The React Board Game 1100 Prerak Juthani shares the creation of React, an organic chemistry board game built while preparing for medical school.

Statements from this episode (10)

Assertion Not checkable as stated
Madison: Mark had $100k student debt and she had no savings when starting out
“Going into this, I mean, you gotta also keep in mind the reality of the fact that he's got a 100,000 dollars in student loans, I don't have a penny to my name.”
Stacy Madison May 27, 2019 ▶ 14:17
Assertion Supported
Madison: Stacy's Pita Chips launched with Parmesan and cinnamon sugar, not Simply Naked
“Everybody thinks Simply Naked was our first flavor. It wasn't. It was the Parmesan and the cinnamon sugar.”
Stacy Madison May 27, 2019 ▶ 20:27
Disclosure
Stacy Madison: Female names on snack brands sell better than male names
“We chose it because we thought that a female name on a snack food brand would sell more than a male name.”
Stacy Madison May 27, 2019 ▶ 25:47
Assertion Supported
Stacy's secured $60,000 SBA bank loan with 20% family funding
“So we had to put down 20% of the 60,000, and that's where our family kicked in.”
Stacy Madison May 27, 2019 ▶ 28:09
Assertion Partly supported
Stacy's secured $350k bank loan after initial $500k rejection
“They said no to 500, and over a couple of months, we were able to scale it back, and they did say yes to 350.”
Stacy Madison May 27, 2019 ▶ 29:43
Assertion Supported
Stacy's hacked a Campbell's Soup carrot cutter to slice its pita chips
“What we ended up buying was a machine that used to cut carrots for Campbell's soup. So, you know how they cut those tiny little squares? Well, what he did is he took those blades and spaced them further apart”
Stacy Madison May 27, 2019 ▶ 37:06
Assertion Not checkable as stated
Trader Joe's paying early allowed Stacy's to avoid taking outside equity
“Trader Joe's was an amazing company to do business with. They paid On time or early. And because of that, we were able to not take on equity.”
Stacy Madison May 27, 2019 ▶ 44:45
Assertion Partly supported
Madison: Stacy's bought and converted a 200k+ sq ft Sealy mattress factory
“We had moved to the Sealy mattress factory, where we bought the building, and it was two or 300,000 square feet, something like that. It was basically four acres inside. And we converted the Sealy mattress factory into a giant pita chip factory.”
Stacy Madison May 27, 2019 ▶ 45:50
Assertion Not publicly verifiable
Madison: Stacy's Pita Chips fire caused $9M in damage, burned 25% of plant
“There was nine million dollars in damages, and 25% of the factory was burnt down.”
Stacy Madison May 27, 2019 ▶ 47:57
Disclosure
Madison: PepsiCo acquisition contract required only 20 days of work annually
“I was contracted to stay, but I really only had to work 20 days a year, but I didn't know what else to do.”
Stacy Madison May 27, 2019 ▶ 50:55
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