Detroit Food Entrepreneurs Trade ‘Thorns’ for ‘Roses’ at La Terraza

Detroit’s small-business scene is tough, with high risks and big rewards. The city’s food scene is attracting more attention and creativity, but the numbers remain challenging even for the best chefs. According to the U.S. Bureau of Labor Statistics, about 20% of new businesses close in their first year, and nearly half are gone by year five. In the food and beverage industry, where profits are slim and the work is intense, those odds can feel even tougher.

That didn’t stop La Terraza from being filled last week with more than just the smell of fresh salsa and carnitas. The room was lively with the shared ambition of Detroit’s food leaders. TechTown Detroit held its first of four alumni events for the food and beverage industry, bringing people together to move from classroom lessons to the real, sometimes exhausting world of running a local business.

Marcus Reliford, TechTown’s Director of Business Support and Engagement, looked out at a group of chefs, roasters, farmers, and distillers. He set the tone with the alumni by emphasizing self-reliance and building connections within the group.

“We really wanted to put more emphasis on the people who are alumni,” Reliford said.

“We didn’t want you guys to feel like we have not invested in you or reinvested. Today this is really about continuing to build a sense of community.”

The main event was an open, hands-on activity called “Rose, Bud, and Thorn.” Everyone was asked to sum up their work life in three ways and post them on a board: their Rose (a recent win or strength), their Bud (an exciting project or opportunity), and their Thorn (their biggest challenge).

The results showed that Detroit’s food leaders have a lot in common, even though their businesses range from bottled teas to coffee shops. Many were proud to have reached operational stability, finally building teams that can run without the owner always being there. But the challenges, or “Thorns,” were shared by everyone.

Entrepreneurs talked about the “Start-up Fog,” a phrase for the confusion around city rules, zoning, and health codes. For small business owners, missing a building code can mean opening late or falling into debt while waiting for approval. Beyond paperwork, the biggest struggle was burnout. After the pandemic, labor shortages and the hard work of running a kitchen are now the main threats to staying open.

For many at the event, it was a needed reminder that in food, relationships matter more than venture capital. Marlin Hughes, owner of the Detroit Pepper Company and a longtime part of the local food scene, talked about the importance of keeping real human connections as the world becomes more digital and automated. Hughes, who left a 25-year corporate job to start his own business, shared what’s now a rose for him that was once a thorn.

“My reality showed people their potential reality,” Hughes said, reflecting on the friction he faced when he left the traditional workforce. “How dare I walk away from a job that had financial security but no self-worth? I call it buying my freedom.”

His words struck a chord with the crowd who work every day in the people-focused world of hospitality. Hughes said that when an owner is truly present for their community, not just in person but also in spirit, that energy goes into the food. He believes that relying too much on delivery apps and automation takes away the heart of the business.

“When you’re dealing with food, it’s all about relationships,” he added.

Still, “buying freedom” doesn’t mean ignoring the future. The range of “Buds” at La Terraza showed that Detroit’s food scene is ready for big changes. Business owners were interested in “capital stacking,” or using different types of funding, and bringing AI into their daily work.

Ruben Gordon from the Better Detroit Brownie Company showed how growing a business can help the whole neighborhood. He bakes his brownies with high school students, middle schoolers, and autistic teens, proving that a business can support youth and help the community heal.

“We are making a greater Detroit that all your children deserve,” Gordon said, showing how these businesses are tied to the city’s future.

As the night ended, TechTown’s organizers made a promise to the group. The “Thorns” on the board, problems with health codes, managing staff, and burnout, would be used to shape future training and resources. TechTown is scheduled to offer free professional headshots to alumni later this year.

By sharing their challenges, these business owners are making way for growth together. In a city known for hard work and teamwork, they show that the key to success isn’t just what’s in the pantry, but the people working beside you.

Upcoming Sessions:

June 8 / 8 de junio: Retail & E-commerce 

August 10 / 10 de agosto: Supply Chain (Back-to-School Readiness) 

Nov 9 / 9 de nov: B2B & Service Professionals 

For information on how to register, visit: https://events.techtowndetroit.org/events