Home Sweet Bakehouse Brings Fresh Flavors to Frazee 

What started as a simple passion for macarons has grown into one of Frazee’s sweetest success stories. Home Sweet Bakehouse, owned by Karey Smagacz, is quickly becoming a local favorite, known for its delicate pastries, creative flavors, and welcoming atmosphere. But the journey from baking at home to running a bustling storefront took determination, long hours, and a lot of heart. 

Following a New Path 

Six years ago, Karey wasn’t planning to become a business owner. She grew up in Frazee, worked in New York Mills for several years, and was raising her young family when she discovered her love for baking. 

She started small, teaching herself to make macarons and experimenting in her kitchen late at night. Before long, she expanded into cookies, cakes, and donuts. Encouraged by friends and family, she began selling at the local farmers market, where she quickly built a loyal following. 

At first, Karey imagined sticking with farmers markets and online sales, but everything changed when she found the perfect location in downtown Frazee. The space was a blank slate, giving her the freedom to design the layout exactly the way she wanted. 

After nearly a year of planning and preparation, Home Sweet Bakehouse officially opened its doors in August of 2025. 

Building a Name One Treat at a Time 

From day one, customers flocked to the bakery for Karey’s specialty: macarons. But another surprise star quickly emerged—her caramel rolls. 

“The first day we made them, we sold out right away,” said Karey. “So, I doubled the batch the next day, and we sold out again. By the third day, I doubled it again, and they were gone just as fast.” 

Today, caramel rolls, macarons, and old-fashioned cake donuts are among the bakery’s most popular items. While the menu continues to grow, Karey loves experimenting with new flavors and creating unique treats that keep customers coming back. 

Support That Makes Dreams Possible 

Starting a small business comes with challenges, especially when transitioning from baking at home to running a commercial kitchen. Karey credits her dedicated team, who helped her navigate new equipment and processes, as well as the Frazee community, which has supported the bakery from the very beginning. 

“Our customer base keeps growing, and we’re always adding new capabilities,” said Karey. “The support has been amazing.” 

When it came time to purchase equipment, a West Central Initiative loan helped make the bakery possible, giving Karey the tools she needed to bring her vision to life. 

“West Central Initiative was a key part of helping me get the bakery off the ground,” said Karey. “They believed in my vision and gave me the support I needed to make it a reality.” 

Looking Ahead 

The past year has been full of milestones for Karey and her husband, Chad, who also works long hours at the bakery. Together, they’ve poured their energy into creating a business that reflects their creativity and commitment to the community. 

Looking forward, Karey plans to add yeast donuts and croissants to the menu and hopes to open a location in Detroit Lakes. The Frazee location would remain the production hub, with the new spot helping to bring Home Sweet Bakehouse treats to even more customers. 

“I love being able to create, experiment, and bring people joy through what we make,” said Karey. “We’re just getting started.”