Friends of Branded!
Happy Saturday and I hope you had a great week.
There’s a crew that has developed over the past few years and gathers for dinner when we’re out on the road at industry events.
This group, led by our very own Frank Sinatra (our Chairman of the Board), and includes loyalists such as our own Dino, Black Widow, Dr. Evil; Number 2; Schatzy; The Joker; Mom; Sammy; Wonder Woman; Mr. Fabulous; The Queen; Lurch; and a variety of other characters that make the hospitality industry such a wonderful one to be part of it. It’s a solid crew, I feel lucky to be included and if I'm being totally honest, this may very well also be a support group for any of us when needed.
The reason I’m bringing this cast of characters up here at the start of this week’s H^2 is that regardless of the city we’re in, the event we’re attending or the specific participants that have assembled together to share a meal, at the end of each dinner, a single dessert with a candle will emerge from the kitchen, arrive at our table, and the group will sing Happy Birthday to my dear friend & business partner, Mr. Michael “Schatzy” Schatzberg.
The origins of this tradition of singing Happy Birthday to Schatzy at every dinner and how it started I can’t even remember, but it brings joy to the group and as my mom taught her three sons, “take joy wherever you can find it.”
Well, there’s no road trip or gathering and this modern-day version and our very own Rat Pack isn’t together at an industry event, but today, Saturday, Feb 1st, is in fact, Schatzy’s birthday.
Happy Birthday Schatzy, and remember, you & agreed that we’ll lie about our age the other way (by adding years); in order to have people think we look pretty good for our age! 😊
While readers may now assume that the title of this week’s H^2, Love is in the Air, is for Schatzy on his birthday, well, you’d be wrong.
As we put January to bed and launch into the month of February, the month that proudly contains Valentine’s Day (a topic my daughter still wants me to cover here in the H^2), it’s the mergers & acquisitions (“M&A”) market and specifically expectations for a busy year for the Food & Beverage industry that has me bursting with enthusiasm, pride and love.
With Dry-January now in the books (oh, I wasn’t dry for January, I just thought the month was officially renamed “Dry-January” 😊), I feel confident in saying that bankers are going to earn their fees (or at least charge them) as the environment for M&A is proving to be an attractive one. For the M&A market as a whole, due to favorable economic conditions, falling interest rates and substantial uninvested capital (there’s a record over $6 trillion that’s accumulated on the sidelines) the market is expected to surge.
Despite the overarching belief that the M&A market is going to be active, in an effort to set the stage here (and to some extent stay in my lane), my focus is NOT on the big deals that make headlines and send shockwaves (okay, that was a bit overdramatic), that send waves through the markets, but rather the smaller deals that don’t typically make the headlines, but remain oh-so important for our industry.
I want to first make it clear that smaller deals will not take a backseat to larger deals (at least not on my watch).
From a soapbox perspective, small market M&A deals are essential for fostering entrepreneurship, innovation and supporting economic vibrancy. Small market M&A deals also offer strategic expansion opportunities and contribute to a more competitive environment. But here’s where the rubber hits the road, small and strategic M&A are key contributors to customer acquisitions.
That’s right, the need, justification, and driver of small market M&A in the hospitality industry is the need to meet our customers where they’re at and for avoidance of any doubt, I’m not talking about the guests. The guests are the customers of the operators and Branded’s focus is on technology companies that deliver value to operators. We know that if technology is focused on the needs of operators and delivers value on the most pressing and highest priorities, challenges or opportunities, then it will help operators take care of THEIR guests.
When that happens, we all win.
Sorry, not sorry, but for our industry, the number of operators who are looking for bundled and integrated solutions continues to grow. Tech platforms that offer best-in-suite as opposed to best-in-class solutions are garnering greater attention. I have some good friends in this industry who disagree with me on this point, respect, but you can’t ignore that there is tech-fatigue among operators and there’s only so much time that operators can allocate to technology and the managing of a myriad of technology vendors.
The hospitality industry is NOT a technology business, we’re a people business first and foremost, and then we’re food & beverage business. As my friend and one of New York City’s finest chefs, most gracious restaurant owners and just a wonderful human, Denis Franceschini, of Bar Italia said to me on Wednesday night, “hospitality is about exceeding the expectation of our guests” (and Denis, you do that day in and day out, for all your guests. Thank you, my friend).
This position I hold regarding tech-fatigue may appear to be in direct conflict with Branded’s investment thesis that the industry is undergoing a most meaningful digital transformation. But here’s the thing, the significance of this digital transformation and tech-fatigue can both be true.
We will always be required to balance the need to be hospitable with the need to be efficient and that’s why I expect to see an active and I dare say robust M&A level of activity in 2025. Leveraging tech platforms that can deliver an array of services and features is the feedback we’re getting from operators. Reduce the friction, the number of independent software vendors (“ISV”), increase simplicity and ideally deliver value at a better price.
You can ignore this color and feedback if you want to, but Branded takes insights from operators seriously (and that’s the reason our hospitality operating partners and experts are the first screen in our diligence process).
Think about other industries that have successfully bundled solutions and have been rewarded for doing so by their customers.
- Telecom & Entertainment: Internet + TV + Phone bundles from service providers.
- Financial Services: banking packages that combine checking, savings, credit card and mortgages.
- Tech & Software: Microsoft’s word, Excel, PowerPoint, and Team
- E-commerce & Retail: Amazon’s “Frequently Bought Together” bundled suggestions.
I know I’ve said our industry is different (and I believe that to be true), but certain fundamental truths are just that – true.
Bundled solutions can increase sales and attract & retain customers. The customers of these technology companies will benefit from cost savings and added value. Bundling solutions reduces friction and complexity and represents one of the most powerful strategies for enhancing customer satisfaction and driving revenues.
The Branded team is involved with a number of strategic discussions, and I feel fortunate to have a seat at the table (and there’s room for many at this table).
For large-tech platforms, what feature or point solution are you missing that would make your platform that much more desirable to operators.
For mid-side tech platforms, what feature would level up your platform and make you more competitive with your peer group and even larger platforms?
For small players, this is where you make 1 + 1 = 11. Think of the cost savings you could capture, the customers (revenues) you could acquire, and the functionality that will diversify your business and help put a moat around it.
At the end of 2023, Branded helped bring two of our portfolio companies together when Chowly acquired Targetable, a digital-marketing platform.
Almost exactly one year later, Chowly launches its all-in-one platform: Tech supplier Chowly launches all-in-one off-premise 'platform'.
Chowly, has spent the last few years adding new products (often by acquisition), and integrated them into a single system that is more than the sum of its parts. Yes, when Branded invested into Chowly it was a feature which specifically addressed “tablet hell” and was a third-party order aggregator to help independent restaurants. POS companies created its own aggregator tools and Chowly’s position as a middleware company was less than ideal (was that an understatement Sterling, Justin & Tom?).
Chowly was only the second investment (preceded our investment in Mr. Josh Goodman’s PourMyBeer & PourMyBev) and its willingness to listen to its customers and make the necessary adjustments to its company and become a platform is something I continue to be impressed by and proud to be on this journey with Chowly.
According to Chowly’s Co-Founder and CEO, Sterling Douglass, regarding The Chowly Platform, “everything is done in one place, managed in one place, and then we measure everything for them, so we can tell them exactly where their orders are coming from.”
I’ll also share a superfluous shoutout to our friends at Olo, the amazing restaurant technology platform that’s ‘the Chowly for enterprise restaurants’ (see what I did there?). 😉
Yes, I like Branded’s position as the M&A market heats up b/c as an early-stage investor, I feel we have as good a handle on the talent that’s ready for the majors and can help mid-size and large tech platforms identify the emerging tech that will be accretive and embolden their businesses.
Do I believe there’s a first-mover advantage for companies to explore M&A opportunities?
Is Schatzy’s going to receive a plethora of Happy Birthday e-mails, texts, LinkedIn messages and calls today?
You can bet on both of these things being true!
It takes a village.
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The FIRST shoutout this week is to bring attention to a webinar on data-driven loyalty and specifically to our friends & partners at Fishbowl along with our friends at Restaurant Loyalty Specialists.
This coming week, on Tuesday, February 4th at 12pm EST, RLS’s Olga Lopategui will host Brandon Flude, VP of Engineering & Product at Fishbowl and Chris Munz, VP of Enterprise Partnerships at Fishbowl.
You can register for this webinar here: Data-Driven Loyalty Webinar
Loyalty continues to be an area that Branded is focused on and investing into. Operators hate discounts, but they love rewarding their loyal guests.
Loyalty is now table-stakes, and this webinar will help you raise your game.
The SECOND Shoutout this week goes to our friends & partners at Copia and specifically the January edition of Food Policy Debrief which put a spotlight on this tech-driven surplus recovery platform.
The Food Policy Debrief shares the scoop that while Copia typically partners with third-party delivery services for donation pickups, its new feature connects local nonprofits and food recovery organizations (FROs) directly with donating businesses—AND compensates them for their efforts! That means nonprofits get the resources they need to continue their vital work, and businesses get to maintain their cherished community ties while meeting sustainability goals.
The Branded Team loves Copia, and here's why this company matters:
👉 Businesses now have an even smoother way to give back.
👉 Nonprofits get essential financial and logistical support to keep feeding those in need.
👉 It’s a win-win for communities and sustainability and that Food Policy Debrief highlighted is why this matters!
You can read the January edition of Food Policy Debrief here: The Food Policy Debrief - January 2025
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.
Last week I introduced Branded’s newest portfolio company, Embed Digital to the Branded H^2 community and this week I want to use the Access Hospitality section to make a call to action for hospitality operators.
If you’re an operator that wants to boost revenues with high-impact digital menus and smart signage, I’d like to speak with you.
I specifically want to discuss the Digital Menu Controller by Embed Digital, and how it makes managing your digital menus simple by allowing you to easily create, update, and control digital menus across all your screens with ease.
What Embed’s DMC platform offers:
- Engage customers in real-time with dynamic, customizable digital menus and content tailored for your business.
- Remotely manage and update your menus across one or multiple locations from one simple dashboard.
- Boost sales and streamline operations by integrating directly with your point-of-sale system, ensuring your customers only see what’s available.
The Digital Menu Controller, by Embed Digital provides the following:
- Built-In Menu Builder Tool: Quickly design menus with no design experience needed.
- Seamless POS Integration: Integrates with top POS systems like Toast, Square, and Clover.
- Flexible Subscription Plans: Choose plans to fit your business needs.
- Support & Resources: Get access to our knowledge base and tech support.
Do you want to learn more? You can contact me directly or spike your leaning curve by taking a look at this video: Emded Digital - Digital Menu Controller
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Featured Episode: Big Rock, Ocean Prime, and Butcher and Rose Make Big Moves in Fine Dining
In this episode of the Hospitality Hangout, David takes us behind the scenes of leading a hospitality powerhouse, sharing stories of growth, innovation, and creating unforgettable dining experiences. Cameron Mitchell Restaurants, known for its fine dining and new concepts, continues to set the standard for guest engagement and operational excellence.
Key Highlights:
- David's “Meet Cute” moment with Cameron Mitchell, starting with a FedEx letter and a Cheesecake Factory meeting that sparked a long-term partnership.
- Exciting news: Cameron Mitchell Restaurants is opening 7 new locations in the next 14 months, including Big Rock Chop House, Ocean Prime, and Butcher and Rose.
- The rise of Prime Social Reserve, a private dining experience inspired by London’s exclusive clubs.
- How Cameron Mitchell Restaurants stays ahead of changing consumer trends with healthier options, mocktails, and innovative menu changes.
- A company culture focused on loyalty and respect, with associate retention rates far above industry standards.
- Fun and engaging topics like Wendy’s Double Stack Biggie Bag, QR codes in fine dining, and the debate over pickleball court takeovers.
Tune in to Hospitality Hangout for more exciting trends, insider tips, and inspiring stories from hospitality visionaries!
Listen now and stay ahead of the game! 🎧
Tune into the episode and subscribe to our channel here: Hospitality Hangout With David Miller
You can tune in on:
Spotify: Click Here
Apple Podcasts: Click Here
Watch on YouTube: Click Here
Are you loving the Hospitality Hangout? Let us know! Please leave us a review here!
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MARKETING
Mastering Google Search For Restaurants - Everything You Need to Know Right Now!
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
2 out of 3 people who dine with you are coming from a Google search. Id say that makes Google pretty important to your business, wouldn't you?
Technology
The Art & Science of Purpose-Built Marketing: 5 Keys to Level Up Your Game
By: Seth Temko, Solutions Services Partner at Branded Hospitality Ventures
Transform your ad hoc marketing approach into a strategic powerhouse with these five key principles.
Food For Thought
Smile Power
By: Dr. Melissa Hughes, keynote speaker & author
This neurotransmitter cocktail puts the brain in a happy and relaxed state creating the optimum conditions for a positive experience.
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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