Joseph Schmidt, a European-trained baker, and his partner, a European-trained confectioner, opened their first store in an offbeat San Francisco neighborhood in 1983, selling baked goods and chocolates. Within two months the chocolate creations had taken off and they were soon busier than they had ever imagined they could be. Baked goods were soon dropped from production and Joseph focused on chocolate.

Although trained as a baker and not as a maitre chocolatier, Joseph soon realized that his special talent was in sculpting and developing new techniques in chocolate – one of the most famous being his signature egg-shaped truffle, which has become the company's trademark. In an overly traditional field, Joseph Schmidt creates unique truffles, pralines and other chocolate delicacies with a bold, clean, crisp look and superb taste.