Friends of Branded!
Happy Saturday and I hope you had a great week!
As we’re sprinting into the final days of this election, both Republicans and Democrats are doing everything possible to connect with and draw voters to their side.
What does the hospitality industry and these political parties have in common? They’re both aggressively courting Gen Z!
Gen Z, generally born between 1997 and 2012, represents a most powerful and growing percentage of the consumer market. How big? Gen Z makes up about 40% of global consumers and the purchasing power of this generation is only growing stronger. Gen Z is estimated to account for around 10% of total spending with an estimated direct spending power of $360 billion globally (I love big numbers).
It’s important to note that Gen Z’s influence over the economy goes well beyond its direct spending, as this generation is specifically recognized as an influencer over older generations such as Millennials and Gex X. Economists estimate that Gen Z’s impact of markets extends to over $1 trillion in indirect purchasing influence (You’ve gotta love how the numbers are getting bigger, right?!?).
With these types of dollars at stake, it should be no surprise that brands and companies are paying close attention to Gen Z’s preferences and buying behaviors b/c their influence is only growing and the potential long-term loyalty they can capture with these younger consumers are incredibly attractive and valuable.
I’ve focused and written about Gen Z before, so at this point, I know veterans of the H^2 are wondering, okay, so what’s up (doc) and why the focus on Gen Z this week?
Great question and as always, I’m so happy you asked. 😊
First, a bold and maybe defining statement about Gen Z - they desire and have a love for things that align with their values of authenticity, inclusivity, sustainability, and creativity. Gen Z’s preferences reflect a blend of social consciousness and individualism that’s reshaping modern culture and the consumer landscape.
And now we’re ready for the big reveal!
Do you want an example of something Gen Z loves?
Gen Z is OBSESSED with sauces. That’s right, sauces!
This obsession with sauces comes down to a mix of creativity, customization, and the social aspect of food.
Sauces? That’s my big reveal?!? Stay with me friends, stay with me.
First, I’m Branded’s Finance Guy and according to Data Bridge Market Research analyses, the global sauces market size was valued at $55.2 billion in 2023 and is projected to reach $84.7 billion by 2031, with a growth rate of 5.5% during the forecast period of 2024 to 2031 (I told you I love big numbers).
The strength of the global sauce market is being fueled by evolving consumer tastes and an increase demand for international flavors. And this is where a growing industry and Gen Z have created a perfect storm.
Unlike previous generations, Gen Z grew up with a strong sense of individuality, so they often prefer food experiences that allow for personal expression. Sauces represent a perfect vehicle for self-expression and the customizing of meal. Not unlike the current excitement around dirty sodas, mixing and combining sauces into new and exciting flavors has become a trend. You don’t believe me? Well, Branded’s friends at PepsiCo does, so put that in a glass with the blue can and add some milk!
Gen Z is culturally curious, and they want to experience global flavors. Sauces represent a great way to get introduced to different cuisines b/c it allows the consumer to explore flavors from various cultures without needing to necessarily prepare an entirely new dish.
Finally, I would add that while we’re all busy, Gen Z is particularly eating a meaningful percentage of its meals on the move. Sauces can personalize a dish or add some flavor without the need to cook and can make meals on the go more interesting.
And now, some BREAKING NEWS!
All of this leads to a Branded first, and as I’ve written before, you never forget your first.
This week Branded not only added a new company to our portfolio, but it’s the first consumer package goods (“CPG”) company we’ve brought into our portfolio.
Last week I used the Top of the Fold to introduce Starfish, a food traceability company that is empowering transparency, safety, and trust in supply chains worldwide. I also specifically shared how Branded recognizes how much of our investment activities have focused on restaurant technology (“ResTech”) and that Starfish created a path for us to work more intentionally and directly with foodservice manufacturers. Did you miss last week's H^2? I happen to have a link to it conveniently located right here: Who You Gonna Call?
This week I’m using the Top of the Fold to share the onboarding of Mr Bing, an East Asian Street sauces and bold flavors company! Not dissimilar to the diversity that Starfish contributed to Branded’s breadth and depth in the foodservice and hospitality industry, Mr. Bing is already in over 8,000 retail stores.
Mr Bing’s path to becoming part of the Branded family of companies is similar to a number of other companies Branded has invested into where we were a customer of this unique brand before we got involved as an investor.
In the case of Mr Bing, I need to give credit our hospitality co-working space, B Works, and our restaurants downstairs from the office for making all this happen.
Key members of the Mr Bing team started working out of our offices in New York and that led to our being introduced to their line of sauces. We next had several of our restaurants act as test kitchens for Mr Bing, (self-interested and possibly borderline shameless plug coming) America’s most loved East-Asian Street sauces and we saw firsthand how our guests embraced the company’s bold, but relatable flavors.
As a platform that admittedly dances to the beat of its own drum, the Branded team loves how single-minded Mr Bing is, as they do one thing, they make great sauces.
There’s no question that the restaurant industry is going through a tough period, and that is reflected in the increasing failure rate across the industry. However, we’re also seeing record sales and I’ve written about the reasons why some groups are failing while others are thriving.
I’ve tried to hammer home that despite our industry being about people, food & beverage, that technology can be an important supporting actor, and I truly believe can be the difference between a success story and the alternative one.
I’m not necessary fully prepared to equate technology to sauces, but I’m also not afraid to try! 😊
Guest engagement, loyalty and personalized digital marketing are among the tech-tools that are proving to be a meaningful contributing factor to the restaurant companies are soaring. Tech that helps leverage social media and specifically the industry’s most important social media platform, Instagram, is in demand. Restaurant operators are designing menus (food and drink) that create Instagram-able moments and helps turn guests into micro-influencers.
Do you know who is wicked smart about social media? You guessed it, Gen Z!
Social media is also playing a role in recipes and is the driving force behind celebrity chefs, and cooking shows. This has put a spotlight on sauces and made it part of the popular conversation. I’ll give a plug to our partners at NBTV Channels and its show The Pantry exclusively shown on the Spirits Network.
What's in Tom Colicchio's pantry, I hope after this edition of the H^2 it's some Mr Bing Chili Crisp, Sriracha, and BBQ Sauce! 😊
Branded prides itself on being an operator-centric investment platform, meaning, we focus on the needs of operators and their strong commitment to focus on what they need as opposed to what they want. Does a restaurant necessarily want a new piece of technology or a new sauce? The answer is “no” but that wasn’t the right question to ask.
Does the restaurant need to get more butts in seats? Does the restaurant need to run more efficient operations? If technology can help a restauranteur accomplish these things, then that’s a technology company that Branded believes will succeed.
Similarly, if guests are demanding diverse flavors and expressing the desire for more adventurous culinary experiences such as Asian, Mediterranean and Latin America, then adding a portfolio of sauces will prove to be far less of a disruption to the operation than changing the menu.
Branded believes that we will perform well if we help operators do well! Whether the help and support come in the form of a B2B SaaS company, a piece of IoT hardware or a CPG company that’s found a way to put excitement in a jar and give consumers a way to elevate a meal, we aspire to help operators perform and engage better with their guests.
As you can tell, I’m excited about our first CPG portfolio company and we appreciate that Mr Bing’s leadership team have welcomed Branded to their company.
To all our restaurant operator friends, if you’d like to explore how you might be benefit from spicing things up with our newest portfolio, Mr Bing, please give us a call.
Bing it on! Have a BIG Day!
It takes a village.
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This week’s first Shoutout reminds of what The Dude said about his area rug: “that rug really tied the room together.”
This shoutout goes to our friends at IFMA who will be hosting its Presidents Conference out in Scottsdale, AZ starting tomorrow.
Branded continues to be a big supporter and participator of industry events and over the past few years, we’ve found IFMA’s annual event to be among the very best for our platform and many of our portfolio companies.
This year specifically, we were afforded the opportunity to work with IFMA to contribute to their Tech Showcase which will feature a group of 15 of the most up-and-coming technology and innovation companies. We know firsthand that these events aren’t easy for emerging companies to attend, and we value, respect and appreciate how IFMA created this showcase to bring some of the very best of the emerging companies to this year’s conference.
So, where’s the rug that is pulling this “room” together? I’m happy you asked.
Branded is proud that in addition to our portfolio companies Cut+Dry – The Foodservice Industry’s Best E-commerce Platform; and Foodservice Market Intelligence - Brizo FoodMetrics, participating in this year’s conference, that our two newest portfolio companies, Starfish and Mr. Bing will also be attending.
Specifically, Starfish will be part of the Presidents Conference Tech Showcase, and we can’t wait for the attendees to meet this “layer zero” food traceability company.
For those less familiar with IFMA’s Presidents Conference, for over 70 years, IFMA has brought together leaders from across the food-away-from-home ecosystem to tackle the macro and micro issues at hand. As our industry continues to evolve, so does IFMA and today, the President Conference includes more segments of the industry as the benefits of having diverse perspectives and voices at the table to address the issues our industry is facing is of critical importance.
This shoutout goes to our friends at IFMA and all the folks attending the event starting this Sunday. There is no shortage of industry events and the competition among these event organizers is as fierce as any chicken, burger or pizza war you can imagine.
Branded believes IFMA’s Presidents Conference is a most important one and we’re excited to not only be part of this year’s event, but to play a role in the Tech Showcase.
Since the first Shoutout this week channeled The Big Lebowski, the 1998 crime comedy film, I figured I'd make the second Shoutout pull from another piece of 90s art / entertainment, the legendary Jimmy Buffett, and his song Quietly Making Noise from the 1993 album, Fruit Cakes.
Branded's friends and partners at Fishbowl, the OG of Guest Relationship Management (“GRM”) platforms, is doing exactly that, quietly making noise!
This week Fishbowl announcement two powerful new integrations for its Guest Relationship Management platform with Branded’s portfolio company GoTab and Aloha POS. Both integrations unlock new data-driven opportunities by connecting real-time, rich POS insights directly to Fishbowl’s GRM
GoTab Integration:
✅ Check: Business Date, Gross Sales, Tax, Location, Processor Fees, Guest Count, Tip
✅ Item: Item Name, Price, Quantity
✅ Payment: Guest's Name, Last 4 Digits of Credit Card, Card Type
✅ Customer: Email, Phone, Customer Name
Aloha POS Integration:
✅ Check: Business Date, Gross Sales, Tax, Location, Processor Fees, Guest Count, Table Number, Discounts, Comps
✅ Item: Item Name, Price, Quantity
✅ Payment: Guest's Name, Last 4 Digits of Credit Card, Card Type
✅ Loyalty: Direct integration for in-store loyalty programs with seamless rewards redemption
With these integrations, restaurant operators can use Fishbowl’s Smart Segmentation to create personalized guest experiences based on preferences AND behaviors – from tailored offers to real-time insights for strategic growth.
If you're using Aloha POS or GoTab, and want to learn about what opportunities these integrations can bring to your restaurants, here’s a link to help you get you started: contact Fishbowl
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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.
This was another exciting week at Branded as we were again in a position to announce our newest portfolio company, Mr. Bing Chili Crisp – Mr Bing Foods.
Last week we shared the onboarding of Starfish Technologies, to our Branded Bunch!
Who knows what the next few weeks will bring!
As we enter the final two months of the year, it will be a big sprint to finish and we're thrilled to be supporting a diverse group of hospitality companies, including, but not limited to Big Chicken; LDV Hospitality; Craveworthy Brands; Mr Bing; Starfish; and Fishbowl.
Working with companies such as these is why I love what I do!
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Featured Episode: From Hard Rock to First Watch, Chris Tomasso’s Playbook for Building Brand Loyalty and Driving Growth
Join Michael Schatzberg, “The Restaurant Guy,” and Jimmy Frischling, “The Finance Guy,” In our latest Hospitality Hangout episode, with Chris Tomasso. Chris shares his remarkable journey through marketing leadership at Hard Rock Café and Cracker Barrel, culminating in his role at First Watch, one of the fastest-growing full-service restaurants in the U.S. Key takeaways include how his experience as a former Chief Marketing Officer shapes his leadership style, the strategic adoption of technology at First Watch without sacrificing the personal touch, and the impactful "We Hear You" initiative that fosters direct communication between leadership and employees.
Additionally, Chris discusses the significance of employee engagement and operational excellence across First Watch’s 500 locations, as well as their unique operational hours that support a healthy work-life balance. He also reflects on his iconic Y2K marketing campaign that took Times Square by storm and shares insights from open brainstorming sessions aimed at enhancing creative problem-solving within the leadership team.
Tune into the episode and subscribe to our channel here: Hospitality Hangout With Chris Tomasso
Re-Run of the Week: Beyond the Candy Bar: Transforming Iconic Treats into Foodservice Goldmines
In this throwback episode of the Hospitality Hangout podcast, Michael Schatzberg, "The Restaurant Guy," and Jimmy Frischling, "The Finance Guy," welcome Herb Ring, the National Foodservice Director of The Hershey Company. Herb shares his journey from working in his family's restaurants to leading foodservice sales and marketing at Hershey, providing insights into the nostalgic ingredients that major foodservice clients, like Dairy Queen, are using to enhance their menus. From Twizzlers as milkshake straws to leveraging data and innovative approaches in driving growth, Herb's expertise offers a fascinating look into the intersection of candy and culinary creativity.
Listeners will gain valuable takeaways, including how technology and innovation are reshaping decision-making in foodservice and the growing trend of incorporating Hershey's products into limited-time offerings and nostalgic desserts. With reflections on the podcast's evolution and a fun segment of "Branded Quickfire," this episode is packed with insights that remain relevant today. Don’t miss out on this engaging conversation that highlights the unique synergy between foodservice and iconic brands—tune in now!
Tune into the episode and subscribe to our channel here: Hospitality Hangout With Herb Ring
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TECHNOLOGY
The Life Equation: How Time, Money, and Health Shape Our Choices Across Generations
By: Seth Temko, Solutions Services Partner at Branded Hospitality Ventures
Understanding how time, money, and health priorities shift as we age can unlock key insights for businesses looking to align their offerings with evolving customer needs.
MARKETING
Your Restaurant Marketing Questions Answered - Oct 2024
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
Do you ever get stuck in your marketing wondering what to do next or even if what you are doing is the right thing?
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Share your article with us for a chance to be featured in The Hospitality Headline!
We’re excited to spotlight diverse voices and spark meaningful discussions within our community. Submit your piece and let’s make your voice a headline!
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 solutions platform at the intersection of foodservice, technology, innovation and capital. As experienced hospitality owners and operators, Branded brings value to its partners through investment, strategic counsel, and its deep industry expertise and connections.
Learn more about Branded here: Branded At-A-Glance