Historic S.D. Bakery Is Sweet Success Story

When the Royal Pie Bakery turns 70 this year, owner Alex Kuhnel won’t be far behind.

As long as he can remember, Kuhnel has worked at the bakery. Together they have survived changes that have forced dozens of other local bakeries out of business.

Today, the Royal Pie Bakery is the last wholesale pie bakery in downtown San Diego, and one of the landmark buildings in downtown’s Gaslamp Quarter.

Once there were dozens of specialty bakeries downtown, offering either cakes or pastries or pies. But then came the era of Big--large bakeries that baked everything on-site, huge supermarkets with their own bakeries, and finally, the booming frozen, pre-packaged dessert market.

Small bakeries folded. But the Royal Pie survived. And, Kuhnel is still doing what he always did best--baking pies.

Every day, bakers in the majestic red brick building on Fourth Avenue produce 1,000 pies in two dozen flavors, everything from mincemeat to coconut cream to the all-time favorite, apple.

But Kuhnel hasn’t stayed in business on just pies. His bakery also offers doughnuts, pastries and cakes. The 1,000 pies and 2,500 dozen doughnuts are sent daily to local restaurants and hotels, food service companies, the Navy and caterers.

That’s miffed a few tourists.

They walk by his shop, sniff the banana cream pies and bang on the doors. But no sale. To get a pie or pastry, and surplus ones at that, you have to go to the company’s retail outlet, the Royal Bakery Thrift Store on E Street, for surplus pastries and pies.

But that may change soon. According to Gaslamp District ordinances, Kuhnel must open a retail outlet on the premises to keep his wholesale business.

“It will be hard for me because it’s a different way of doing business,” Kuhnel said. “I’ll have to figure out a way to make a profit out of selling one doughnut rather than 100.”

Kuhnel is in no hurry to add the retail business. A shy man who smokes cigars and doesn’t do anything fancy, Kuhnel talks slowly and respects the past. Time moves slowly at Royal Pie. Behind Kuhnel’s desk in his tiny office hangs a row of photographs taken not long after his father, Alois, bought the bakery in 1920. In the old photographs the bakery, with its concrete floors, long, flour-dusted tables and tall racks of pies looks much the same as it does today.

The building has stood there since 1898. Before that, there was another bakery, built more than 100 years ago.

A few things have changed.

About 25 years ago, the company needed freezer space. In a move he still regrets, Kuhnel ripped out the hearth ovens that came with the original bakery.

“They were much better than the new ones because they maintained the heat better,” Kuhnel said.

And today, the doughnuts and cakes are made from pre-packaged mixes. The pies, however, are still made mostly from scratch, using fresh machine-rolled dough.

Kuhnel’s life has always been Royal Pie. One of his earliest memories is sleeping on the flour sacks as a 5-year-old. From there he moved to washing pots, sweeping and running errands. Everyday after school he worked in the bakery, and when he served in World War II, it was as a baker. When Kuhnel returned to San Diego in 1946, he persuaded his father to branch out. Afraid of losing his customers to bakeries that could offer a full range of baked goods, Kuhnel began offering doughnuts, cakes and pastries, as well as the famous pies.

When his father died a few years later, he and his brothers took over. Then in 1974, financial troubles in the form of the energy crisis and a steep hike in sugar prices, hit the bakery. Kuhnel took over the business from his brothers and sunk all he owned into the enterprise. Now Royal Pie is back on its feet and, as Kuhnel puts it, “putting bread on the table.”

“I’ve never tried to expand real fast or be big. That’s not my idea of success. We just offer the basics,” he said.

So Royal Pie remains a family business. Kuhnel’s brother, George, works part time. His daughter, Lorene Stairs, is cake manager. His adopted son, Ray Pollock, is production manager. And his grandsons, David Pollock and Raymond Stairs, work at the bakery. His niece, Susie Hutson, works in the front office.

Besides being a family business, some things at the Royal Pie will never change, Kuhnel says.

Royal Pie will always bake pies. Thanksgiving will always be the busiest season. And Kuhnel, as always, will be content to keep things as easy as pie.