A group affiliated with Concordia University Wisconsin has purchased Red Elephant Chocolate, which had a presence in Milwaukee's Third Ward for the past decade.
Red Elephant Chocolate owner Richard Koenings sold the assets of the business to Concordia Red Elephant Chocolates, an entity formed by the Concordia entrepreneurship nonprofit CU Ventures and investors including Concordia's assistant dean of professional development Kenneth Harris Jr.
The university will operate the chocolate shop with some involvement from students, said Concordia business school dean and CU Ventures president Daniel Sem. Concordia Red Elephant Chocolates will operate out of the university's culinary lab and won't have a physical storefront.
"I think that it’s a great business for the ability to be able to teach others entrepreneurship," said Harris, who previously was a lieutenant for the Milwaukee Police Department. "We look forward to growing the company."
Harris said he wants to be a role model to show that different types of entrepreneurship — not just technology — are attainable for minorities. He and Sem declined to share the terms of the deal.
Concordia Red Elephant Chocolates is seeking $140,000 from the related angel investing group Concordia Angel Network to help fund the purchase of the business and to provide a runway for initial operations, Sem said. The revamped business will operate as an e-commerce company and sell through existing wholesale partners like the Sendik's Food Market in Brookfield, Sem said.
The business won't initially make major changes but will eventually look to expand into new markets and potentially, new products, Sem said.
Concordia Red Elephant Chocolates will have at least two full-time employees in addition to student help via internships and class projects, Sem said. Profits would go back into Concordia Red Elephant Chocolates and could be used to hire students or be returned to investors as dividends, he said.
Koenings opened Red Elephant Chocolate in 2012 at 333 N. Broadway and had two, five-year leases. In 2019, Koenings partnered with his nephew Jake Dehne to form Nicole’s Third Ward Social in the same location. At that time, Red Elephant began focusing on events, wholesale and e-commerce while selling its most popular items at Nicole’s.
The Jennaro family of Milwaukee's Jennaro Brothers Produce owns the building and didn't renew the lease, Koenings said.
The Red Elephant Chocolate storefront and Nicole's Third Ward Social, which was named for Dehne's wife, closed at the end of April after the lease expired, Dehne said. He's seeking a new location for Nicole's Third Ward Social, a dessert bar, and had plans that fell through to reopen it in Brookfield, he said.
Koenings sold Red Elephant Chocolate so he could move on to other endeavors, he said. Koenings has taught managerial accounting and marketing courses at Concordia and will remain involved to help with the transition. Prior to Red Elephant Chocolate, he was an owner of the candy company Buddy Squirrel LLC.
Dehne, who also owns the downtown party bar RWB Milwaukee, said he's currently more focused on his newest concepts — State Street Pizza Pub opening downtown in June and Lucky Clover MKE planned for the space next to RWB.
