← Back to browse

Witchcraft

by Jeffrey ZorofskyLaunched 2003via Nathan Latka Podcast
Growthword of mouth
Pricingother
The Spark

In 2003, Jeffrey Zorofsky and two chef partners identified a gap in the market: why couldn't fine dining quality—seasonal ingredients, transparent sourcing, creative technique—be served in a casual, accessible format? For years, they had been cooking authentically at high-end restaurants, shopping at farmers markets, working with local producers. The idea wasn't born from marketing strategy but from a genuine philosophy about food. "It wasn't about making things too fancy," Jeffrey explains. "It's let the ingredients speak for themselves and the rest will come." They decided to apply this ethos to sandwiches—a format that could be both simple and elevated.

Building the First Version

When Witchcraft opened its first location in 2003, the three fine dining chefs had never operated a high-volume restaurant before. They were venturing into completely unfamiliar territory. The menu wasn't a grab-and-go afterthought: they created 17 individual sandwich items, each rooted in the same philosophy of seasonal produce and locally sourced meat. The craftsmanship was intentional, but the execution would prove to be their biggest challenge.

Finding the First Customers

The market responded with overwhelming enthusiasm. "We had lines out the door," Jeffrey recalls. The response exceeded their expectations so dramatically that they faced a paradox: their success created a production bottleneck. Fine dining chefs used to plating individual dishes suddenly had to figure out how to serve hundreds of customers in a lunch window. Most customers expected fast food speed (2-3 minutes); Witchcraft needed time to do things right. Despite these operational growing pains, the first year generated over $1.5 million in revenue—a "high class problem to have."

What Worked (and What Didn't)

Customers proved willing to pay premium prices for premium ingredients and quality. Where competitors charged $5 for lunch, Witchcraft customers happily spent $10 or more for demonstrably better food. What worked: the authentic positioning, the ingredient story, the atmosphere. What didn't work smoothly: rapid scaling. But they persisted. Over six years, they opened stores at a breakneck pace—four new locations per year for three consecutive years—reaching 15 active locations (with 17 total opened; 2 had to close). By their peak, the business was generating close to $20 million in annual revenue across all locations.

Jeffrey emphasizes that not every store hit $1.5 million in top-line revenue; some underperformed on volume but generated higher profit margins due to lower rent, more efficient labor models, and stronger customer loyalty. At the store level, healthy units threw off approximately 25-30% EBITDA, which fueled sustainable growth. The focus on unit economics rather than just top-line revenue became critical to understanding true business health.

Where They Are Now

After 12 years running Witchcraft, Jeffrey recognized the business needed different leadership skills to scale beyond 15 units. He stepped back into an advisory role and pivoted toward his next mission: inspiring the next generation of food entrepreneurs. He became a judge on Bravo's Best New Restaurant and expanded his advisory work coaching small restaurant and food companies. His journey from fine dining chef to restaurant operator to media personality demonstrates the principle he now lives by: mastering your energy is more important than grinding through exhaustion, and knowing when to hand off the business to someone better suited for the next phase.

Similar Companies

Zoom

$12.0M/mo

Zoom is a freemium SaaS video conferencing platform founded by Eric Yuan in July 2011 after he left Cisco to build a next-generation collaboration solution. The company has grown to 850,000+ paying customers across individual, SMB, and enterprise segments, generating over $12M in monthly recurring revenue with approximately 100% year-over-year growth. Rather than focusing on customer stickiness or aggressive growth targets, Zoom emphasizes customer happiness and organic word-of-mouth acquisition, which has proven highly effective in driving viral adoption.

Active Campaign

$4.2M/mo

Active Campaign started in 2003 as an on-premise email marketing solution built by Jason Vanderboom to fund his fine arts degree. After 10 years and 8 employees generating a couple million in revenue, he transitioned to a SaaS model starting at $9/month. The company now has over 60,000 customers generating over $50 million annually and employs 330 people, growing primarily through organic adoption, partnerships, and focus on the SMB market despite pressure to move upmarket.

NutriSense

$3.3M/mo

NutriSense is a direct-to-consumer metabolic health platform that pairs continuous glucose monitoring devices with proprietary software analytics and dietitian coaching. Launched in September 2019 with pre-sales in keto and Oura Ring Facebook groups, the company grew from under $1M MRR a year ago to $3.3M MRR today (3x growth), with 15,000-16,000 active paying customers and 170 employees. The business has raised $32M in funding across multiple rounds since a $250K seed in early 2020.

Batch Products

$2.5M/mo

Batch Products is a bootstrapped SaaS company founded in 2018 by three co-founders (Evo Dragunov and two partners) that provides five separate data and lead generation platforms for real estate professionals and other industries. Starting with Facebook group outreach and affiliate marketing, they grew to 18,000 customers generating $2.5M in monthly revenue ($30M ARR projected for 2021) with 57% profit margins, all while maintaining 100% ownership and adding 100 employees in six months during 2020.

Hive Blockchain

$2.5M/mo

Hive Blockchain is a digital currency mining company founded by Harry Pochgranti that validates cryptocurrency transactions on blockchain networks, primarily Ethereum. The company went public on the TSX Venture Exchange in September 2017, raising $17 million on day one followed by additional equity raises totaling approximately $200 million Canadian by end of 2017. As of Q1 2018, Hive operates mining facilities in Iceland and Sweden with a $30 million annualized run rate revenue.

Related Guides