Podcast Summary: Making It with Jon Davids – Episode 200: Chocolate Mogul with Jake Carls of Midday Squares

Release Date: July 8, 2025

In Episode 200 of "Making It with Jon Davids," host Jon Davids engages in an in-depth conversation with Jake Carls, co-founder of Midday Squares—a rapidly growing chocolate brand known for its strong social media presence and innovative approach to the snacking industry. This episode delves into Midday Squares' journey from a small-scale operation to a multimillion-dollar enterprise, exploring their strategies, challenges, and vision for the future.

1. Introduction and Company Snapshot

John Davids (00:00 - 01:00):
Jon Davids introduces the episode, highlighting his conversation with Jake Carls conducted in December 2024. He emphasizes Midday Squares' impressive growth from producing 50 bars a day in a condominium to manufacturing over 90,000 bars daily in their Montreal facility. Davids sets the stage for a candid discussion about the company's successes and struggles.

Jake Carls (01:08 - 02:15):
Jake provides a comprehensive overview of Midday Squares' journey since its inception in August 2018. He shares remarkable milestones, including selling over 47 million bars and expanding into over 9,000 stores across North America. Carls outlines the company's ambitious goal: "We call it the road to 100 million. So the next, you know, two and a half years we're going to spend building the business up to about a hundred million of revenue and looking at what's next after that." [01:15]

2. Strategic Growth and Revenue Projections

John Davids (02:07 - 02:57):
Davids probes into the company's revenue trajectory, asking Jake to elucidate their path toward $130+ million.

Jake Carls (02:15 - 02:57):
Carls reveals that Midday Squares is aiming for consistent 50% year-over-year growth, ensuring sustainable manufacturing expansion without overextending. He reflects on the past six years dedicated to building a solid operational foundation, preparing the company to focus on growth areas such as sales, marketing, and innovation in 2025.

3. Organic Growth vs. Strategic Milestones

John Davids (02:57 - 03:31):
Davids expresses surprise at Midday Squares' rapid consumer adoption and seamless entry into major retailers like Starbucks, questioning the nature of their growth—whether it was gradual or marked by significant milestones.

Jake Carls (03:31 - 04:56):
Carls explains that their growth was strategic rather than opportunistic. They adopted a systematic approach similar to Facebook's college-to-college expansion, focusing on regional launches and supporting them before moving to new markets. A pivotal moment was partnering with major retailers like Air1 and Sprouts, which accelerated their nationwide presence beyond their initial strategic plans. He states, "there's no choice but to support, but to build. And now we're running on this hill and there's no going back." [04:56]

4. The "Build Out Loud" Strategy

John Davids (04:56 - 07:08):
Davids inquires about whether Midday Squares' rapid retail expansion was primarily inbound interest or a result of proactive outreach.

Jake Carls (05:06 - 07:08):
Carls attributes their success to two key strategies: achieving strong product-market fit and embracing the "Build Out Loud" approach. He explains that by transparently sharing their business journey—including successes, failures, and personal moments—Midday Squares fostered a loyal community and attracted retailers organically. "We share successes, milestones, failures, literally therapy, breakdowns," he notes, emphasizing how this transparency built trust and rapport with both consumers and retail partners. [06:00]

Quote:
"Build out loud... share the good, the bad, the ugly of how we build this business... gave them ... a bias of friendship or a bias of I'm a fan." [06:00]

5. The Power of Personal Branding and Community Building

Jake Carls (07:33 - 09:00):
Carls discusses the future of branding, advocating for authenticity and storytelling over traditional marketing. He believes that brands should evoke emotions and build meaningful communities, likening successful personal brands to a modern-day resume. "When you build a personal brand, it stays with you... you're evoking some sort of emotion and that will always pay off for the rest of your life." [07:33]

John Davids (09:00 - 09:25):
Davids seeks clarification on whether Midday Squares relies solely on inbound interest or also employs active outreach to retail buyers.

Jake Carls (09:25 - 11:00):
Carls explains that while the "Build Out Loud" strategy generates substantial inbound interest, they complement it with outbound efforts through brokers and internal sales teams. This dual approach allows them to skip initial rapport-building stages, facilitating more efficient and effective negotiations. He emphasizes the importance of having a loud brand presence to support both inbound and outbound sales activities. [09:25]

6. Marketing Approach: Content Creation and Paid Advertising

John Davids (12:56 - 13:30):
Davids highlights the importance of storytelling and asks Jake about the specifics of Midday Squares' marketing strategies, questioning whether they rely solely on organic content or also invest in paid media.

Jake Carls (13:30 - 16:22):
Carls outlines their marketing approach, which prioritizes storytelling through high-quality content creation. While most marketing efforts have been organic, they are beginning to invest more in paid advertising, including influencer partnerships and meta ads, to deepen their community engagement. Currently, they have a dedicated content creator, James, who spearheads content development. Moving forward, Midday Squares plans to expand their marketing team to include both traditional and strategic marketing roles to further amplify their brand. [13:30]

Quote:
"It's more how do we bring you into our community and into the, you know, the unapologetic ness of how we're building this business, that one day you become this fan and then you see it at the grocery store and you're like, I want to buy the product." [14:51]

7. Overcoming Manufacturing Challenges

John Davids (17:09 - 18:11):
Davids transitions the conversation to the operational challenges Midday Squares faced, particularly in scaling manufacturing.

Jake Carls (17:09 - 18:11):
Carls candidly shares that Midday Squares' toughest hurdle was scaling their manufacturing processes. Unlike many in the food and beverage industry who outsource production, Midday Squares encountered significant issues with third-party manufacturers failing to replicate their product's unique textures and high cocoa butter content. This led them to invest heavily in building their own manufacturing facility, resulting in substantial financial strain and near-bankruptcy situations. He emphasizes the lessons learned in resilience and operational control, which now contribute to higher margins and rapid innovation. [17:09]

Quote:
"The hardest part about Midday Squares has been the scaling of the manufacturing... we've built custom machines... faced near bankruptcy mistakes multiple times." [17:09]

8. Financial Resilience and Margin Improvement

John Davids (18:11 - 20:27):
Davids presses further on the financial aspects, seeking insight into how manufacturing challenges affected profits and margins.

Jake Carls (20:27 - 21:51):
Carls discusses the current financial landscape, noting that while high cocoa prices are pressuring margins, they anticipate significant margin improvements by the end of 2025 and into 2026 due to optimized manufacturing processes and economies of scale. He highlights that controlling their manufacturing has not only stabilized operations but also positioned Midday Squares to innovate swiftly and maintain competitive pricing. [20:27]

Quote:
"Once we hit that next year and as we're scaling, we're going to see really great margins for the food space that is higher than our competitors in our category." [20:39]

9. Resilience Through Adversity: The COVID-19 Impact

John Davids (36:00 - 40:43):
Davids shifts focus to the company's resilience during crises, specifically the impact of COVID-19.

Jake Carls (36:59 - 40:43):
Carls recounts how Midday Squares navigated the severe downturn during the COVID-19 pandemic, where they lost 70-75% of their sales and faced imminent bankruptcy with only three weeks of cash remaining. Ingeniously, they partnered with hospitals, supplying them with bars for staff, which not only saved the business but also strengthened community ties. This experience reinforced their resilience and ability to make bold decisions under pressure. Carls emphasizes that enduring such hardships builds a "resilience muscle," preparing the company to tackle future challenges with increased fortitude. [36:59]

Quote:
"The one who stays in it the longest that can withstand the most amount of pain and pressure usually wins the biggest... They stayed in the game for 20, 30 years, suffering the pain, the hardships, and they got that outcome." [40:43]

10. Future Growth and Product Innovation

John Davids (30:34 - 34:20):
Davids explores Midday Squares' plans for product diversification and innovation, questioning whether Jake allocates time for product development versus brand promotion.

Jake Carls (30:34 - 34:20):
Carls describes their vision for expanding beyond the original Midday Squares bars into a broader "functional indulgence" platform. This includes developing new products that combine indulgence with health benefits, such as high protein or fiber, and introducing refrigerated snacks to ensure freshness without preservatives. He hints at upcoming product launches tailored for children and new flavor profiles, aiming to position Midday Squares as a comprehensive snacking solution that resonates with health-conscious consumers. Carls also admits that while he personally hasn't tried the bars due to a peanut allergy, he relies on his sister and R&D team to drive product innovation. [30:34]

Quote:
"We're focused on making people excited when they see it and be like, I feel energized. I feel fired up. I want to support them." [31:55]

11. Fundraising and Financial Strategy

John Davids (35:37 - 37:19):
Davids inquires about Midday Squares' fundraising approach and their stance on acquisition offers.

Jake Carls (35:37 - 37:19):
Carls advocates for the "always be campaigning" mindset, emphasizing the importance of building investor relationships even when not actively seeking funds. He explains that maintaining these connections ensures readiness for unforeseen financial needs and fosters strong, long-term partnerships. Regarding acquisitions, Midday Squares remains independent, with future decisions hinging on achieving $75-100 million in revenue and evaluating the best path forward based on company and personal goals. [35:37]

Quote:
"The best time to talk to investors is when you don't need money. Because when you need money, they don't want that to be the first time they've heard from you." [36:10]

12. Industry Landscape and Company Uniqueness

John Davids (37:58 - 38:34):
Davids questions how common Midday Squares' approach is within the competitive food and beverage industry.

Jake Carls (38:34 - 39:29):
Carls asserts that Midday Squares stands out in a notoriously challenging and saturated market dominated by a few large players. He emphasizes the rarity of achieving substantial revenue growth through authentic branding and direct consumer engagement without relying heavily on traditional paid marketing. Carls remarks, "We believe it's almost impossible. Almost. That means there's a slight possibility. And we believe that we have that slight possibility." [38:34]

13. Potential Risks and Future Challenges

John Davids (43:10 - 44:12):
Davids probes into what could potentially derail Midday Squares' success.

Jake Carls (43:10 - 44:12):
Carls identifies internal conflicts, particularly those arising from founder disagreements, as a primary risk that could jeopardize the business. He underscores the importance of maintaining strong communication and alignment among founders to prevent such conflicts. Additionally, he highlights the ongoing challenges of scaling manufacturing as another critical area that must be managed effectively. [43:23]

Quote:
"The mistake would have been, would be sorry if we didn't do therapy as partners... founder conflict. That would have destroyed the business." [43:23]

14. Closing Thoughts and Vision for the Future

Jake Carls (44:12 - 47:34):
In concluding remarks, Carls reflects on Midday Squares' journey, emphasizing their relentless pursuit of growth and impact. He candidly shares personal sacrifices, including mental health struggles, faced by the founding team, and reiterates the company's commitment to sustained innovation and resilience. Carls envisions Midday Squares evolving into a major player akin to Hershey's, driven by unwavering self-belief and a dedicated team. He also touches on the importance of personal development, therapy, and authentic leadership in building a lasting and meaningful brand. [44:12]

Quote:
"If we could figure out the way to not burn the candle to the end, which my sister did and I did last year... it makes us a better leader." [43:51]

Notable Quotes:

• "Build out loud... share the good, the bad, the ugly of how we build this business... gave them ... a bias of friendship or a bias of I'm a fan." – Jake Carls [06:00]

• "When you build a personal brand, it stays with you... you're evoking some sort of emotion and that will always pay off for the rest of your life." – Jake Carls [07:33]

• "Once we hit that next year and as we're scaling, we're going to see really great margins for the food space that is higher than our competitors in our category." – Jake Carls [20:39]

• "The one who stays in it the longest that can withstand the most amount of pain and pressure usually wins the biggest... They stayed in the game for 20, 30 years, suffering the pain, the hardships, and they got that outcome." – Jake Carls [40:43]

• "We're focused on making people excited when they see it and be like, I feel energized. I feel fired up. I want to support them." – Jake Carls [31:55]

• "The best time to talk to investors is when you don't need money. Because when you need money, they don't want that to be the first time they've heard from you." – Jake Carls [36:10]

• "The mistake would have been, would be sorry if we didn't do therapy as partners... founder conflict. That would have destroyed the business." – Jake Carls [43:23]

Conclusion:

This episode of "Making It with Jon Davids" offers a captivating look into the entrepreneurial spirit and strategic acumen of Jake Carls and Midday Squares. From overcoming manufacturing hurdles to leveraging authentic storytelling for brand growth, Midday Squares exemplifies resilience and innovative thinking in the competitive food and beverage industry. Their journey underscores the importance of building a strong operational foundation, fostering genuine community connections, and maintaining unwavering dedication to long-term goals. Entrepreneurs and business enthusiasts can draw valuable lessons from Midday Squares' approach to scaling a modern snacking empire.