“It is true of the nation, as of the individual, that the greatest doer must also be a great dreamer.”
—Theodore Roosevelt

The Lys transformed a small doughnut store that they bought in 1984 into a wholesale bakery with national and international distribution.

In a production facility spanning an entire block in an industrial part of Hayward, California, the five Ly brothers mix sugar and flour into the tantalizing desserts that have built their multimillion-dollar-a-year business. But things weren’t always so sweet for the Ly brothers.

Thirty years ago, 20 members of the Ly family barely escaped Communist Vietnam, relocating to a refugee camp in Malaysia before coming to the United States in 1979. Arriving with little money and no English skills, several members of the family lived together in a one-bedroom apartment in San Francisco and worked odd jobs as seamstresses and janitors. Middle brother Andrew took classes in English as a Second Language before attending City College of San Francisco and San Francisco State University, earning two degrees at night while working a day job. Eventually, the family saved $40,000 to buy their first business in 1984—a small doughnut and coffee shop called the Sugar Bowl Bakery.

At first, the Lys focused on expanding their retail operations, opening six Sugar Bowl Bakeries, all staffed with family members. In the early 1990s, hotels in the Bay Area started to outsource their pastry production in an effort to cut costs. The Lys saw an opportunity and got a Small Business Administration loan to buy a 50,000-square-foot production plant. “We hoped to appeal to the hotels and show them that we could cater to their needs,” Andrew says. Their first big customer was the Parc 55 Hotel, and soon the Hilton, Marriott, and Holiday Inn came on board.

Then came a major contract with Costco, followed by contracts with other name-brand national chains, all of which sell Petite Palmiers, Madeleines, and Petite Brownie Bites made by Sugar Bowl Bakery. “We knew that great marketing would open doors and that great quality would keep them open, so we made sure that we were known among our customers and were extremely careful with the quality of our products,” says Andrew. Gradually, the Lys closed most of their retail locations, keeping only two open. They focused on their wholesale division, expanding product selections to include frozen goods such as turnovers and croissants and a slew of fresh items, ranging from corn bread to tortes.

Though Andrew is the president and CEO, the company is ruled by a “brothers’ council,” with Tom, Binh, Sam, and Paul having a say in major decisions. The next generation of Lys is now joining the team, including Michael, vice president and general manager; Laura, public relations and marketing coordinator; and Kevin, executive pastry chef, who helps develop new products.

To share your Dreamers and Doers story, e-mail Greg Galdabini at ggaldabi@uschamber.com or call 202-463-5563

MEMBER FACTS

Company: Sugar Bowl Bakery
Owners:  Tom, Binh, Andrew, Sam, and Paul Ly
E-Mail Address: info@sugarbowlbakery.com
Address: 1963 Sabre Street, Hayward, CA 94545
Phone: 510-782-2118
Web Site: www.sugarbowlbakery.com
Chamber Member Since: 1997
Founded: 1984
Number of Employees: 300