A catering agreement to commemorate Black Heritage Month turned sour for a Black-owned bakery in San Jose, resulting in significant financial losses earlier this month.
The Giving Pies, located in San Jose’s Willow Glen neighborhood, found itself in a challenging situation after what seemed like a promising $16,000 deal with Tesla turned into a costly setback.
The ordeal began on Valentine’s Day when Voahangy Rasetarinera, the owner of The Giving Pies, received a lucrative call from a Tesla representative. The request was for thousands of mini-pies to be catered for a Black History Month event. Both parties swiftly agreed on the terms, with an invoice exchanged for 4,000 pies scheduled for delivery within a tight timeframe.
In preparation for the order, Rasetarinera and her staff worked diligently, investing extra hours and purchasing necessary ingredients and packaging supplies. Despite declining other catering opportunities to focus on the Tesla order, the bakery encountered a devastating setback just two days after securing the deal: a brief text message from Tesla canceling the entire order.
For Rasetarinera, the sudden cancellation felt dismissive and disregarding of the efforts and resources invested. She expressed disappointment, stating, “It felt like we didn’t matter. It felt like, ‘OK, it’s no big deal, it’s just a business transaction that didn’t pan out.’ But it’s not like that. I had to tell my staff change your plans.”
While The Giving Pies has successfully handled similar large-scale orders in the past for prominent clients like Google, Apple, and Adobe, the unexpected cancellation left the bakery reeling. Compounded by the absence of payment from Tesla, the business faced significant financial losses with no means to recoup expenses, despite having a cancellation policy in place.
Efforts to seek clarification from Tesla regarding the circumstances surrounding the canceled catering deal and potential compensation for the bakery’s losses were met with silence. Although a Tesla spokesperson acknowledged communication with Rasetarinera, specific questions regarding the incident remained unanswered.
The incident serves as a stark reminder of the challenges faced by small businesses, particularly those owned by minority entrepreneurs, in navigating business transactions with larger corporations. Despite the setback, Rasetarinera remains determined to overcome the financial setback and continue serving her community with her delicious pies.