Half Moon Empanadas founders Juan and Pilar Guzman Zavala
By Nancy Dahlberg / ndahlberg@miamiherald.com
Juan Zavala and Pilar Guzman Zavala knew relatively little about the food industry when the couple went all in with their savings, their proceeds from a home sale and a lot of borrowed money.
Their concept: Half Moon Empanadas. Inspired by Argentina’s empanada culture and Latin American flavors, the food service company launched its first location in August of 2008, in Miami Beach. As its name suggests, Half Moon specializes in making and selling empanadas that are made from scratch, by hand and with the best ingredients, Pilar said. “We are empanada makers who are obsessed with product quality and superior service.”
Juan, born in Argentina, left his family-owned publishing company, and Pilar, who grew up in Mexico, left her full-time position at the Knight Foundation to pursue their dream. “Initially, we failed miserably, or should we say momentarily,” said" said Pilar, talking about their original 2,000-square-foot location in the heart of South Beach that was a financial mistake.
For a while it didn’t look like their business would make it. But the tough times forced the couple to get creative.
The couple worked several festivals like the South Beach Art Deco Festival and the Coconut Grove Art Festival, and realized they sold more in two days than what they could sell in a week at their SoBe location. A kiosk at University of Miami also did very well, producing 10-times the results of a former, more traditional vendor . Light-bulb moment: Much smaller, convenient, high-traffic, grab-and-go locations are key. “We learned from trial and error and listened to what the market told us,” Juan said. That led them to get out of their expensive SoBe lease and pursue all the locations they still have today at the University of Miami, Florida International University and Miami International Airport.
The airport location was a huge win. “We competed against six other local and national concepts. It took us "four years to open this location, from the moment we submitted the bid to the moment we opened the doors,” Pilar said. “We are among the few small businesses in the entire airport.”
The next huge hurdle was financing. Bank after bank after bank rejected them, even with contracts in hand. Then Pilar emailed their mentor and friend, Juan Martinez, CFO at the Knight Foundation, who referred them to TotalBank Chairman Jorge Rossell, who granted a personal meeting. “He believed in our potential, he believed in us,” said Pilar, who considers him a mentor and meets with him quarterly.
Since opening its first location in late 2008, Half Moon has built a new commissary while expanding aggressively into nontraditional and high-traffic venues and locations, including its commissary retail location and small café at 860 NE 79th St. in Miami, where the team is experimenting with specialty flavors and “build your own empanadas.” It also sells at three University of Miami kiosks, Miami International Airport (Gate D29), Florida International University and Sawgrass Mills mall.
In the past year, Half Moon Empanadas (halfmoonempanadas.com) has nearly tripled its revenue, has grown to 40 employees, and currently sells more than 40,000 empanadas a month. The 190-square-foot airport location, its top seller by far, is one of MIA’s five top-selling top five selling "food concessions per square foot, Juan said.
In time, Half Moon’s founders plan to expand nationally and globally, perhaps via a franchise model. Much like the international chain Auntie Anne’s did for pretzels, Half Moon Empanadas aims to lead the empanadas category well into the future, having survived a bumpy start, Pilar said.
“Quite frankly, we dusted ourselves off, we tightened our belts, and we survived, never abandoning our bigger dream of one day creating a new food category.”