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When launching a business, traditional advice says you should either have prior entrepreneurial experience or formal education in the field you want to pursue.
California couple Lydia Holmes and John Clarke had neither when they opened LJ's Lil' Cafe in Orange County Home Depot on September 4, 2021, just two months before the birth of their first child, who arrived two months early. Oh, and COVID-19 was still making waves.
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But what the 36- and 33-year-old lacked in credentials, they made up for with their love of good food, a savvy business sense and a can-do attitude.
"One thing that we bonded on was how much we enjoyed trying new places and finding these hole-in-the-wall places or super extravagant places that just had really good food," Lydia Holmes told CNBC's Make It (1).
When a meal stood out, the pair would try to recreate it themselves, adding their own twist to each.
The two met in 2012 while working at the Seasons 52 restaurant in Costa Mesa, California. Though neither had formal culinary training, this shared experience cooking and experimenting together led them to wonder, "Maybe we could do this one day as a business."
When an opportunity opened up at a nearby Home Depot parking lot, the pair leapt at the chance to pursue their dream. Last year, that gamble brought $2.3 million in sales.
Like many successful food entrepreneurs, Holmes and Clarke started scrappy. And while launching a walk-up restaurant in a parking lot may seem counterintuitive, it gave them exactly the built-in foot traffic they wanted.
"Everyone has seen the Costco food court. So we were like, 'We have to get in here,'" Holmes said.
A nearby college teeming with students looking for a quick, affordable bite didn't hurt either. The shed already had a kitchen and had previously operated as a cafe. It wasn't big, but it had everything the couple needed to get started.
"You have low overhead, low rent compared to an actual brick and mortar," Holmes said. "And you're right in front of a Home Depot."
Holmes and Clarke bought the shed for $95,000, financing it through an interest-free family loan. The couple also pays a $1,325 monthly lease for the land where the shed sits.
When it came to hiring employees, they turned to family first. The first people Holmes and Clarke hired were her two younger brothers.
"We went into this with no experience. We didn't know about marketing. We didn't even have any social media accounts or an email account," she said.
In 2022, the couple finally got their big break.
A freelance food writer, Sean Vukan, tried their OG breakfast burrito and asked to write about LJ's Lil' Cafe. That June article (2) was a glowing review of the burrito and the spot, giving the business just the boost it needed.
"LJ's leads the way with a kind of understated decadence, using bacon and a Portuguese sausage sourced from Fullerton's Masterlink Sausage and Meats for the OG," Vukan wrote.
Within 24 hours of publication, there was a lineup of customers even before the restaurant opened.
"I got a phone call that day from my brother frantically asking me to come in, and they needed help," Holmes recalled. "We were not expecting it."
At one point, customers were waiting hours and staff had to call them as their order came up to let them know it was ready for pickup.
"I think immediately we hit our first thousand-dollar sales day," Clarke said. "I don't think we've done less than a thousand-dollar sales day after that."
The pair initially charged $8.75 per burrito, but has since raised prices to $15.99, in part due to the rising cost of ingredients such as eggs and meat. Today, the menu also includes spicy and vegetarian burrito options.
By October 2023, Holmes and Clarke felt ready to open a brick-and-mortar location, and they secured a second location in Orange, California, buying a storefront for $148,000 and opening in July.
The bank loan was secured with help from Holmes' grandparents. The expansion quickly paid off. Within half its first year, this new location earned more in sales than the original shack.
Last year, that second location had $1.3 million in gross sales while the original location brought in $1 million. The company's net profits came to roughly $431,000 in 2025, allowing them to pay off loans and reinvest in the business.
"I remember I was driving to work about six months after we opened our Orange location and I don't know what happened, but it just hit me," Holmes said. "I was like, 'This is it. We're good. We've made it.'"
The pair has since found their own niches within the business. Holmes handles more of the HR, payroll and social media while Clarke deals with vendors, bills and equipment. They are now in the process of opening a third location in Cypress to help alleviate the demand at the Home Depot shack.
If you're considering a similar path, your biggest business expenses will likely be labor, food and packaging.
With 29 employees across two locations, the cafe's average monthly operating expenses total about $198,509. Here's the breakdown.
While equipment occasionally needs replacing, the pair say they've avoided any major unexpected expenses.
Other takeaways from Holmes and Clarke's example:
Start small. LJ's Lil' Cafe opened in an existing shack in a busy location, with high foot traffic. The U.S. Small Business Administration (SBA) (3) says that even before you earn your first dollar, you'll need to pay bills — especially if you are launching a business with overhead, like Holmes and Clarke. The average business owner can expect to spend about $40,000 in their first year (4). This will vary depending on the specifics such as size, location and other factors. You can expect to pay equipment, inventory, utilities, licenses, insurance, marketing and payroll.
Finance smart. A 2023 report by the Ewing Marion Kauffman Foundation found that 69% of business owners relied on personal or family savings to cover startup costs (5). Don't borrow more than you can reasonably afford to lose.
Be willing to adapt. Holmes and Clarke streamlined their menu to focus on what customers loved most. Sometimes less really is more.
Scale when you have a successful proof of concept. As your business grows, you can expand gradually.
For aspiring entrepreneurs thinking about taking the leap, Holmes had simple advice.
"If we could do it, anyone can do it," Holmes said.
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CNBC (1); Eater LA (2); U.S. Small Business Administration (3); SoFi (4); Ewing Marion Kauffman Foundation (5)
This article originally appeared on Moneywise.com under the title: California duo opened a burrito spot in a Home Depot parking lot — the business now brings in $2.3 million
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.