Friends of Branded!
Happy Saturday and I hope you had a great week!
A new Silicon Valley buzzword has received a great of attention and debate over the last two weeks (and even the debate itself is being debated).
The buzzword is “Founder Mode” and specifically its style of management being different than “Manager Mode.”
For those that have not been part of this debate (or have not cared to engage), Founder Mode can be simply defined as a CEO (or leader) that runs the business with a hands-on approach at all levels. Manager Mode, by comparison, involves delegating to a trusted team that is responsible for day-to-day execution.
I often think of my role as founder, managing partner, chief bottle-washer, copy editor, custodial services execution officer and assistant night manager.
The beat is always changing and I'm fortunate to be learning new steps & choreography all the time. I'm going to call this "Dance Mode," but more on that later (since I just dragged the title and image of this week's H^2 into the body of the Top of the Fold).
Again, the above is the simplest definition of Founder Mode and Manager Mode, and I’ve attached the (short) essay by Paul Graham, the Co-Founder of start-up incubator Y Combinator here: Founder Mode.
Mr. Graham’s essay recounts a speech by Brian Chesky, Airbnb’s CEO, who spoke at a YC event about how taking the advice from folks with conventional wisdom proved to be disastrous for Airbnb and that he instead took inspiration from Steve Jobs, Apple’s Co-Founder and CEO, who took a much different hands-on approach.
I’ve written before how the word “entrepreneur” is overwhelming liked and embraced. I’d argue most people like to think of themselves as entrepreneurial or having an entrepreneurial spirit, but the fact is, it takes a certain type of person to start a company (not a better or worse person, just a certain type of person). I do not propose that entrepreneurs should be glorified or vilified. Success comes in many sizes, shapes, and forms (and as I wrote just last week, the only time "success" comes before “work” is in the dictionary). 😊
Team Branded was out in Dallas, TX this week for the FSTEC conference and it was another strong show by our friends at Informa Connect. Branded had the privilege, for the 4th year in a row, to be the creator of Innovation Alley and thanks to our corporate partners at Adyen; Comcast Smart Solutions; Open Kitchen by Powerhouse Dynamics; we were able to bring 21 emerging foodservice technology companies to be a most meaningful part of this conference.
One of my biggest takeaways from this year’s FSTEC was about AI and tech solutions that would address labor. Specifically, technology that would either replace the role a human would otherwise be responsible for or the task that was time consuming for the human.
I’ve long argued (and will continue to do so) that the digital transformation that is underway in the foodservice & hospitality industry is not part of any “great replacement” theory, but rather a redeployment of human capital that is far better for the industry, will create a far better experience for our guests and I dare say, will create a far more valuable & meaningful job (and career) for the employees.
How did I make the leap from Founder Mode to the foodservice industry’s digital transformation NOT being the great replacement of humans?
Great question. Let's continue!
My focus this week on technology and its value to human capital in our industry is in part thanks to the time I spent with my new friend Brian Klinger, from Comcast Business.
Brian and I recorded a podcast together (yes, Schatz was there too, but he was playing with his new sound board), we participated in an Innovation Forum together (okay, Schatz was the moderator, so I need to show him respect) and we had dinner together at our Culinary Connections event (and Brian sat next to me at my table, aka, not at Schatzy's table).
Brian talked about the need to repurpose human capital so that our industry can be more intentional about delivering successful guest experiences and creating those hospitable moments that our guests crave. Leveraging technology and the many efficiency tools that are available can free-up human capital to connect more directly with our guests and can do so in a way that’s accretive to all the stakeholders.
Specifically, he talked about some of the solutions coming out of Comcast’s LIFT Labs and how several of them are such timesavers, that it gets, for example, the general managers out from behind their desks and back onto the floor working directly with their teams and guests.
There’s no question that as companies grow in size (revenues, unit count, employees, etc), the challenge to maintain that hands-on approach or style becomes increasingly difficult. The debate about Founders Mode vs Manager Mode is something I’ll leave to others to have, b/c I believe one’s management style is extremely personal. When asked about my own management style, I’d sum it up as a combination of my imitating every good manager I ever had and my doing the opposite of every bad manager I ever had. This isn’t rocket-science.
Good ideas can come in so many sizes, shapes, and forms, but the connections you make, the interactions you have, the personal moments, that’s what people remember and when it comes to foodservice & hospitality, that’s what the guests expects and deeply desires.
In the hospitality industry, the way you’re greeted, seated, and served are all interactions and the digital transformation represents an opportunity to modernize ourselves with data, analytics, and tools to continue to surprise and delight guests in a more efficient manner.
How much times does your team spend on inventory management (tracking stock levels and ordering supplies), scheduling (managing shifts and addressing conflicts), hiring & onboarding staff (recruiting, interviewing, training), guest feedback (collecting and responding); menu management (recipes, pricing, seasonal adjustments); payroll & accounting; and marketing & social media (updating social media accounts, responding to reviews, running promotions).
The above is just a shortlist of the work and tasks that restaurant operators are required to address, all are time consuming, and all can now be addressed by available tech & innovation that will reduce the amount of human capital time required to complete the work.
Did you notice one task that I didn’t include in my list of examples above? Reservations!
It wasn’t so long ago (okay, about 20+ years ago) that reservations were all taken by phone and many (I dare say most restaurants) didn’t even take reservations (unless they were high-end joints). With the emergence of reservation platforms and seating management tools, the entire process is essentially digitized. That of course doesn’t make everyone happy, and I’ve heard plenty of complaints about the inability to get restaurant people on the phone, but change is hard, even after over 20 years of online reservations. 😊
Labor is getting more expensive and that’s a headwind our industry is addressing. Our guests expect service (hospitable service) and that requires some element of human interaction and connection. Getting our teams and staff to connect with our guests is of critical importance and technology & innovation is a most meaningful part of the solution to do it efficiently.
The more I read about Founder Mode, the more I learned about what a small audience many commentators think this even applies to.
I’m not ready to accept that or at least I’m not ready to accept it in the hospitality industry.
As I dug into the idea of Founder Mode, I feel confident in saying that it has a high correlation or even reliance on being hands-on. I also learned about “skip-level” thinking, the idea that you don’t only have to interact with your direct reports and instead can interact at any level of the company.
To me, all of this sounds like a style of management where people care, and I dare say they care an awful lot. It also sounds like people who have a passion and enthusiasm for their work, so much so, they want to know what’s going on. These are people that want to have a steep learning curve and enjoy working with people who are also enthusiastic about learning, about experiences and sharing.
I like these people!
Maybe, as a founder, I’m biased or not seeing the full picture. Respect.
I’ve always loved the coach that was tough, and I dare say, even emotional. My sense was he / she cared. Same as the teacher, administrator, manager, and boss.
What about the friend or family member that doesn’t tell you what you want to hear but tells you what you need to hear. Or doesn’t accept being ghosted or let you disappear. I think that’s a pretty good friend and family member.
Founder Mode vs Manager Mode. As Darius Rucker wrote & sang, “I don’t know, and I don’t care.” What I care about, is people who care and what I love about the hospitality industry, is there’s an army of us, who do just that!
Now, revisiting the title and image of this week's edition of the H^2, as I said I would, they are from the show Bluey, which I consider to be a gift from Australia to the world and this generation’s best kids’ program. Dance Mode is a single episode and it’s not even 8 minutes long.
Whether you subscribe to Founder Mode, Manager Mode, or some other mode is of course your choice. I’ll take Dance Mode, and you can watch the episode here if you like: Bluey + Dance Mode episode
It takes a village.
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Branded’s embracement and investment into Shaquille O’Neal’s restaurant company, Big Chicken, was highly correlated with the company’s embracement of a modern and best-in-class technology stack.
Today’s shoutout highlights and celebrates how this company continues to recognize the importance of technology and the efficiencies it creates for its team & staff and how it's creating a better experience for its guests.
Recently, I wrote about how Big Chicken, and its kiosk partner, Bite was surprising and delighting its guests with 'kiosk content' (From hidden menus to silly gifs, fast food kiosks are getting a fun rebrand).
Today, I want to include a post about Big Chicken’s All-Star tech-team: starting lineup of all-star tech partners
This has nothing to do with Branded’s portfolio and has everything to do with how a quick-service and emerging restaurant company can leverage technology to create one of the fastest growing brands in a most competitive and challenging environment.
And as long as I’m boasting about my partners at Big Chicken, I may as well include a story about their opening in Fort Worth, in North Texas!
Have a BIG day!
Mark Fadden
Branded invites readers of the H^2 that are interested in learning more about our portfolio companies, and investment strategies to become part of our Access Hospitality Network.
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New Release:
Join Michael Schatzberg, “The Restaurant Guy,” and Jimmy Frischling, “The Finance Guy,” sit down with Chip Wade, CEO of Union Square Hospitality Group. Chip shares his incredible journey from working at Dunkin' Donuts to leading one of the most respected names in hospitality. They discuss the expansion of Daily Provisions, set to open new locations in New York City, and dive deep into the challenges of tipping culture. Chip opens up about his experience with the "hospitality included" model, the impact on staff, and the complexities of wage disparities in the industry. Tune in for a behind-the-scenes look at how Union Square Hospitality is shaping the future of dining and hospitality.
Tune into the episode and subscribe to our channel here: Hospitality Hangout Episode With Chip Wade
Re-Run of the Week:
Throwback to an exciting episode of Hospitality Hangout as Michael Schatzberg and Jimmy Frischling are joined by Scott Finlow, CMO of PepsiCo. Scott shares his remarkable journey from starting as a dishwasher to leading innovative marketing strategies for one of the world’s largest brands. With over 21 years at PepsiCo, Scott offers a unique perspective on how the company continues to thrive by connecting with consumers through culturally relevant products and partnerships like Pepsi Pineapple and Mountain Dew Baja Blast. He also highlights PepsiCo’s focus on innovation, sustainability, and the importance of local restaurants through initiatives like “Local Eats.”
Tune into the episode and subscribe to our channel here: Hospitality Hangout With Scott Finlow
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Powering Cleaning Performance
Driving Customer Satisfaction and Efficient Operations in the Restaurant Industry
MARKETING
BIGGEST TAKEAWAYS: FSTEC Conference 2024
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
FSTEC is a great event as it gives a crystal ball like view about what's changing, what's coming and what we as operators need to focus on. Plus, there's always great solutions on display and great networking.
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That’s it for today!
See you next week, same bat-time, same bat-channel.
It takes a village!
Jimmy Frischling
Branded Hospitality Ventures
jimmy@brandedstrategic.com
235 Park Ave South, 4th Fl | New York, NY 10003
Branded Hospitality Ventures ("Branded") is an investment and advisory platform at the intersection of foodservice, technology, innovation and capital. As experienced hospitality owners and operators, Branded brings value to its portfolio companies through investment, strategic counsel, and its deep industry expertise and connections.
Learn more about Branded here: Branded At-A-Glance