Friends of Branded!
Happy Saturday and I hope you had a great week.
I started working on the Top of the Fold late on Thursday night and was planning (as I almost always do), to complete it on Friday morning.
A LinkedIn post caught my attention as I was working on my piece, and it was from one of the hospitality industry’s favorite sons, Mr. Wil Brawley (affectionately known on LinkedIn by his handle, “Wil B.”)
Wil B.’s post made me smile and I shared a quick comment on his page, but as I rode the subway to the office, his post stayed with me and a new topic emerged for this week.
For whatever its worth, I can tell you that my original idea for this week had the potential to be the most interesting Top of the Fold ever shared in the history of the H^2 with this community (that’s an easy and (hopefully) humorous thing for me to write b/c that piece will remain behind the curtain for now).
First, I want to share Wil B.’s post, b/c otherwise I feel I’m writing in code (and my writing is long and convoluted enough, so I want to make sure you have the basis for this week’s Top of the Fold).
Here’s Wil B.’s LinkedIn post: Wil B.'s Friday 12-6 Linked post
Second, a few disclaimers (b/c Schatzy says I’m 10% attorney), Branded is not an investor in Wil B.’s company, Schedulefly, our restaurants aren’t customers of his company, and unless Wil B. corrects me, I’ve never met the gentleman. We’re LinkedIn friends, I enjoy the content he posts, the positive energy he puts out, and his love and desire to protect the industry that I love – the hospitality industry and specifically restaurants.
Stay with me friends, we’re going to dive in, but a few comments on Wil B.’s post. He’s an honest and balanced broker. While he called out a person sending cold e-mails to Schedulefly’s customers (and all is fair in love and war), but he clearly writes that there are two buckets when it comes to providers in the restaurant employee scheduling software space.
Specifically taken from the post:
· One bucket contains all our competitors. VC-backed or owned by private equity, aggressive sales and marketing, shiny new tech, tons of integrations, big trade show spends, etc. Same playbook.
· The other bucket contains Schedulefly. Simple software, legendary customer service, low price point. We don't have a playbook. We figure it out as we go, always focusing on making sure our software is simple and reliable, our service is phenomenal, and our product is affordable (no price increase since we started in 2007).
Wil B. makes it clear that neither bucket is the right one for ALL restaurants and that there’s room in the industry for lots of players and Wil B. of course, takes pride in the bucket Schedulfly lives in.
His comments resonated with me, and they’re remotely limited to the employee scheduling software. There’s an abundance of restaurant technology software in the market as well as heavy (& healthy debate) about best-in-class vs best-in-suite strategies and players.
His comments also made me think of a Jon Bon Jovi‘s concert at Madison Square Garden (the world’s most famous arena, according to my Bostonian friend JB 😊) that my wife took me to as a surprise well over a decade ago. During a break between songs, JBJ talked to the audience about his love of doing what he does for well over 3 decades (now over 4 decades) and his appreciation for the audience at MSG (which of course made the audience roar with delight and enthusiasm). But he also talked about the beauty of music and how there’s room for all artists, and he used from Justin Timberlake to Justin Beber as an example. I remember him saying, he’s a lover of music, of other artists, and of performing in front of audiences. like the one in New York City. The MSG crowd roared some more.
As I’ve written, the restaurant industry is among the most fragmented in the world. In America, over 70% of the restaurants are independents or small & medium sized businesses (“SMB”).
Branded’s friends at Toast POS support over a 100,000 or about 10% of the restaurants in the US. The company is on a financial tear with a market now over $20 billion, and again, they’ve got only about 10% of the market. We’re a fragmented industry and there’s room at our table (restaurant pun intended) for lots of value-added players.
Wil B.s post may have been a little directed at a company that’s going after his customers and to be clear, his target in the post is a company Branded has also not invested in, that we don’t work with, and that I’ve never met. Nothing negative here and I’m not trying to throw any shade at the enthusiastic salesperson that’s doing his job and trying to win business. As I was told decades ago, you want to be in sales, get ready to hear the word “no,” a lot (and I mean a lot)!
To me, the post was an awesome reminder that the restaurant industry is not a technology business. We’re people business, a food & beverage business, often an experiential business and of course a tech-enabled & supported business.
When Schatz and I launched the investment side of Branded Hospitality, we talked about our commitment to being operator-centric b/c we felt that too many technologists had stopped focusing on what operators really needed and instead were projecting what they believed operators wanted (without understanding the workflow, the challenges, and the priorities of the operators).
Technology, innovation, and guest / consumer data are critical for the success of our industry, but they're never going to be one-size-fits-all (or even one-size-fits-most). That’s right, I just challenged the G#ds and specifically the “never say never” idiom, but I’m confident that at least when it comes to restaurants, the fragmentation, diversity, and composition of the industry will keep me safe in my assessment.
Quick digression (this is for you Mr. Barton), the phrase “never say never” is often attributed to Charles Dickens, but the expression predates him and is likely the product of common proverbial wisdom rather than specific coinage. Dickens certainly used the expression and echoed similar ideas as they resonated with his themes, but Sir Charles was not the definitive source.
Final comment on the “never say never” expression, the cinema embraced the expression in 1983 with the James Bond movie Never Say Never Again and, the phrase was popularized again in 2010 by Justin Bieber’s song Never Say Never, which reinforced the phrase’s association optimism and perseverance.
Two mentions of Justin Bieber in the Top of the Fold this week? That’s a first for the H^2! (okay, I’m done with this “never say never” phrase) 😊
There are plenty of restaurants that operate with a minimally viable tech-stack and that’s completely cool and in fact, can at times be the best decision. My Pop once had a less than hospitable experience at an airport restaurant with an ordering tablet, despite a bartender being only a few feet away from him and no other customers waiting to be served. My Dad made me promise I wouldn’t mess up any of his favorite old school joints in his neighborhood with my work in connection with the digitization of our industry. I agreed, and I don’t expect Nicola’s, Elio’s or Home Kitchen will ever embrace a digital tech stack that makes my Dad feel uncomfortable.
At the core of Schedulefly’s business, I understand, is its legendary customer service. That screams ‘hospitality’ to me which is not remotely limited to restaurants. Hospitality is the act of being friendly, welcoming, and generous towards guests, visitors, or strangers. It encompasses a range of practices and behaviors aimed at making others feel comfortable, valued, well-treated and seen. Hospitality might be associated with restaurants, but it exists (or should exist) in all industries and of course, in one’s personal, social, and professional lives.
Can technology be an ally and help enhance a restaurant’s ability to be more hospitable? I say yes it can and there are specifically guest engagement and data platforms that we believe can help operators enhance their ability to be hospitable, connect even deeper with their guests and b/c this is a business (and an extremely competitive industry) earn a greater share of a guest’s wallet by creating a more personal connection.
The holiday season is in full swing and for the restaurant industry, it represents the busiest and most profitable time of the year. Holiday parties, celebrations and gatherings are of course great fun. The festive atmosphere is contagious and restaurant sales (and especially alcohol sales) spike in December (restaurants LOVE the month of December).
While this is a great time of year for so many, take a moment to recognize the staff that is making many of these experiences successful and joyful. Yes, they’re making money in connection with the holiday season, but they’re also working incredibly hard and earning every penny. Let’s be as generous as we can this holiday season, be kind and remember, that there are those less fortunate that could use a hand or a kind word.
Quite simply, let’s all try to be a little more hospitable!
It takes a village.
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This week’s first shoutout goes to one of our restaurant partner companies, Handcraft Burgers & Brew, Branded’s restaurant evangelist, Rev Ciancio and our newest portfolio company, Mr Bing Foods.
There’s a great deal of joy that comes from working with emerging and early-stage companies, and that joy is only magnified when our partners come together to make some magic happen together.
Andy that’s what happened this week when Handcraft launched its newest LTO (limited time offer) that combines its awesome burgers with Mr Bing’s Sriracha Mayo and Chili Crisp.
The crew at Handcraft always subscribes to my Pop’s mantra that while it’s nice to be important, it’s important to be nice. $1 from the sale of every Bing Bang Fried Rice Burger sold in December goes to benefit Toys for Tots in NYC. Through the gift of a new toy or book, Marine Toys for Tots’ Programs deliver joy and send a message of hope to America’s disadvantaged children.
Here’s a link to video of this special burger: Hancraft Burgers + Mr Bing
Yes, Branded is having a great deal of fun with the market’s leading East Asian Street Food sauces company (and we’re just getting started). 😊
Bing it on!
The second shoutout this week goes to Branded Hospitality OG, and by that, I mean our very first investment, PourMyBeer & PourMyBev.
Branded Restaurants was a customer of the technology before we invested into the company. The self-pour beverage system exceeded our expectations around labor savings, eliminating waste (and theft) and created an unrivaled guest experience.
While the attached story isn’t our own, we liked what Mr. John Felico did with Auggie’s Draft Room, that we wanted to share his success with our hospitality (and investor) community.
From $200K to $2 Million: John Felico's Secrets to Restaurant Success
And finally, a third shoutout to Mr. Brian Ronholm and Food Dive for the opinion piece of the importance of food traceability and the time embrace the upcoming food traceability rule.
Mr. Ronholm, is the Director of Food Policy for Consumer Reports, and he argues that one of the most efficient ways to combat a foodborne illness outbreak is to ensure that the contaminated food is quickly and accurately traced and removed from the marketplace.
This is exactly what the Food Traceability Rule was designed to accomplish, and our industry was afforded about 15 years to address the issue and become compliant with the rules.
What are your thoughts? How important is this for the hospitality industry? For our guests?
In an effort to be nothing less than transparent, the trust and confidence consumer's put on our industry is critical to our success and addressing food traceability should be seen as table stakes and embraced, not challenged and pushed out indefinitely.
Here’s Mr. Ronholm’s article: The time is now for the upcoming FDA Food Traceability Rule
Pulled directly from the article:
Congress and the FDA need to work with consumers in demanding better protections from foodborne diseases. As someone who has dedicated my career to food safety and public health, I want to urge legislators and the FDA to reject attempts to roll back twenty years of bi-partisan work in support of this critical food safety tool.
Saving lives now should be motivation enough to implement the Food Traceability Rule. This imperative becomes even more urgent against the backdrop of numerous food recalls over the past several months that have claimed lives and sickened many. And last year, food recalls reached their highest level since before the pandemic.
Branded isn’t sitting on the sidelines when it comes to the importance of food traceability and we’ve invested into the only “layer zero” platform, Starfish, to help the industry be prepared and compliant with the new regulations.
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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.
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Featured Episode: Mario Del Pero from Busser to Boardroom
In this episode of Hospitality Hangout, Mario Del Pero, founder of Mendocino Farms and co-founder of Dom Food Group, shares his journey of mentorship, innovation, and strategic partnerships that have shaped his success in the restaurant industry. He discusses the concept behind Dom Food Group as a food venture studio, focused on helping emerging restaurant brands thrive from the start. Additionally, Mario dives into his latest venture, Neighborly, which brings multiple dining experiences together under one roof, maximizing space and culinary diversity.
Schatzy and Jimmy engage Mario in thought-provoking discussions about the future of virtual kitchens, the challenge of balancing quality, affordability, and fair wages, and how convenience stores are disrupting the restaurant landscape. They also explore the role of AI in the industry before wrapping up with lively games like "Trivia Tuesday" and "What's Hot and Not." This episode is packed with insights for restaurant operators and entrepreneurs looking to innovate while staying true to their brand's authenticity.
Tune into the episode and subscribe to our channel here: Hospitality Hangout With Mario Del Pero
Re-Run of the Week:
In this special re-run episode of Hospitality Hangout, hosts Michael Schatzberg ("The Restaurant Guy") and Jimmy Frischling ("The Finance Guy") revisit their insightful conversation with Morgan Harris, Co-Founder and Chief Customer Advocate of Restaurant365. He discusses the unique challenges that restaurants face and how his vision led to the creation of Restaurant365, a solution that integrates accounting and inventory management to streamline operations for restaurant operators.
Key takeaways include Morgan's emphasis on the critical role of inventory management in restaurant accounting and the importance of generating profits for long-term sustainability. He also touches on how outdated technology initially hindered adoption and how Restaurant365 overcame these barriers through strategic partnerships with accounting firms. This episode is a must-listen for those interested in understanding the complexities of restaurant accounting and how Restaurant365 is helping operators thrive in a competitive landscape.
Tune into the episode and subscribe to our channel here: Hospitality Hangout With Morgan Harris
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MARKETING
The Year-End Wrap-Up: How to Drive More Engagement From Guests During The Holiday Season
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
It's the holiday season, which is generally a time of increase in the hospitality business. That doesn't make it easy; everyone is trying to capture that business, and that just makes it more opportune.
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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 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