Friends of Branded!
Happy Saturday and I hope you had a great week!
The hospitality industry conference circuit is picking up steam and if the Prosper Forum last week and the QSR Evolution and co-located event, NextGen Restaurant Summit are any indications, our brothers and sisters in the industry are hitting the road b/c these events have been loaded with participants and energy.
While I’m kicking off this week’s edition of the H^2 with an acknowledgment of the robust conference schedule, the theme of this week’s Top of the Fold, labels (and our need to rethink them), is not remotely limited to conferences.
At one conference I recently attended, a friend was telling me about her discussion (negotiation) with the event organizer and the rate she would need to pay to attend b/c she’s a “consultant.” The rate offered to my friend was different than the stated rate for “operators,” as were the rates for “investors,” “technology providers,” “suppliers,” etc. There was a rate for each category or vertical that a person or a company was assigned at the discretion of the event organizer.
As readers of the H^2 know well (or at least I hope you do), I’m a free markets person, so everyone should manage, organize, and run their business as they feel is appropriate and that absolutely includes conference organizers assigning different rates for the many constituents that wish to attend these important events (and if you want to put labels on people, I’m happy to lend you my label maker…which unlike the one given to Tim Whately, mine works!). 😊
It should go without saying that my belief in free markets doesn’t mean I’d accept, as a left-handed & hairline challenged person, that I should be charged a higher price than, for example, a right-handed & with flowing locks person (and you can take a few liberties and extrapolate from that what I believe most people would find are other unacceptable distinctions and pricing policies), but away from that, run your business!
As I wrote above, this is not about conferences and events, but how our industry puts labels on all aspects of the participants that its comprised of (and to be clear, such labeling isn’t, of course, limited to our industry).
In a world where being agile and integrated have become incredibly important, I think the lines are being wonderfully blurred, which makes these labels somewhat antiquated, and I dare say even archaic.
I know not all readers of the H^2 are sports fans but think about the game of basketball and specifically the role of the center (aka the “BIG,” or the “FIVE,”) in the NBA.
Back in 2013, Forbes ran an article titled “NBA Centers Face Extinction.” And according to a Wikipedia page on basketball centers (yes, there’s a Wikipedia page for pretty much everything), “with the addition of a three-point field goal for the 1979–80 season, NBA basketball gradually became more perimeter-oriented and saw the importance of a traditional center diminish. Modern day big men include elite playmakers and passers such as Nikola Jokic and elite versatile scorers such as Joel Embiid.”
My last basketball comment (for this edition of the H^2), the Portland Trailblazers, in 1984, with the No. 2 pick in the NBA draft, selected Sam Bowie over Michael Jordan. The Houston Rockets had the first pick and selected Hakeem Olajuwon (and won 2 championships with this Hall of Famer). The Trailblazers, wanting a center, selected Sam Bowie and passed on Mr. Jordan b/c the position (label) he played (shooting guard) was already filled (by a most talented and Hall of Famer, Clyde Drexler).
There’s plenty to debate about the 1984 draft, but that’s a topic for the Thanksgiving dinner table or any night out with your friends.
My point, things change, positions change, the needs of organizations or ways to win (in any sport or business) change. Labels, classifications, or compartmentalizing certainly have the potential to bring order to chaos, but a reliance on them can also create unnecessary limitations, restrictions, and inefficiencies.
On a most personal note (yes, its business, but it’s also personal), people have tried to put a label on Branded since we first launched our platform and have at times expressed frustration that we’re not easily put in a box, a single lane or can easily be labeled.
We’re operators (with a portfolio of 20 restaurants in New York City), we’re investors (52 portfolio companies (and counting) with 48 in the B2B technology & innovation space), we’re advisors (we have a robust go-to-market suite of services and aim to help navigate and chaperone our clients on their journey in the hospitality industry); and we have a most meaningful marketing & media offering (that includes over a 100,000 listeners to our weekly podcast, (Hospitality Hangout), and I’m grateful for the number of folks that engage weekly with this newsletter).
I’m sorry, not sorry, that we don’t do one thing which would make it easier for others to put a label on us, but we feel our agile and integrated platform affords us the opportunity to navigate the many challenges and opportunities in the foodservice and hospitality industry. It also allows us to engage and work with such a diverse and interesting group of people from across the industry and no one should doubt the joy and value we get from our community.
The funny thing is, we’re seeing more and more people and platforms that are also diversifying their business and doing more than one thing with their platform. And for avoidance of any doubt, we think that's AWESOME!
Restaurant operators investing in tech? Respect! Corporations creating digital studios and investment platforms (Corporate Venture Capital or “CVC”)? Respect! Investors getting into the weeds with their portfolio companies and delivering services to add value to their holdings? Respect! Tech CEOs publishing thought leadership (Sterling Douglass & Nabeel Alamgir), or hosting podcasts (Brandon Barton and Josh Sharkey)? Respect (and gentlemen, you’re crushing it)!
This shouldn’t suggest that focus isn’t important (of course it is), but all the examples above seem to make these people and platforms only more connected to the industry, more insightful, and more valuable.
We’re also seeing this trend of blurred lines in the tech-stacks themselves and the current divide between “best in class” vs “best in suite.” The debate between these two camps is a fair and most meaningful one. Which strategy or position is the right answer isn’t the right question. As in most cases, it depends and there’s no one solution that “fits all,” but I don’t think anyone can argue that hospitality operators see at least some value in tech and innovation platforms that can deliver a suite of services and make a point solution or two redundant.
Sticking with my sports analogies (but keeping to my commitment to be done with basketball today), baseball fans love when the relief picture comes out of the bullpen in a crucial situation to face that single batter, but we also love the versatile player who can play any number of positions, on any given day, when needed (and speaking only for myself, if I had single spot on my roster, I prefer the versatile player…sorry Charlie!).
You want to paint by numbers? Labels will prove helpful to you. You want to paint outside the lines? Well, that’s less rules based and requires more creative thinking.
Stay with me friends, b/c we’re coming in for the big finish!
Rules-based thinking can be more easily outsourced or programmed.
You don’t believe me? About a week ago, in a leaked recording, AWS’ CEO, Matt Garman, shared thoughts on AI during an internal fireside chat. The optimistic advice he offered developers was their need to be more creative, continue to upskill and learn about new technologies in order to increase their productivity. The advice provided suggested that developers need to focus more of their skills and energy on the most innovative work b/c, according to Mr. Garman, “being a developer in 2025 may be different than what it was as a developer in 2020.”
From the Business Insider article that shared color from this AWS fireside chat, the views on what AI will do to the job of developers from other high-profile executives were included:
· Nvidia's CEO, Jensen Huang, has said that "everyone is a programmer now" because of new AI coding assistants.
· Microsoft CEO Satya Nadella has speculated that easier access to AI technologies will create 1 billion developers.
· Emad Mostaque, Stability AI's former CEO, even predicted that there would be "no programmers in five years."
Not from the Business Insider article or in reference to AI, but still a favorite quote of mine from Ferris Bueller, “Life moves pretty fast. If you don't stop and look around once in a while, you could miss it.”
The changes in our industry, and the digital transformation that’s underway, are significant, and if you don’t stop to think about and assess it, you just might miss it.
It takes a village.
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I’ve been using the Shoutout section to bring a little well-deserved attention to some of Branded's portfolio companies that doing great things in the industry (and b/c it’s fun to give a little boost or boast about these friends and partners).
This week’s shoutout goes to a good friend of Branded and a company we feel is one to watch (and engage with).
I’ve written before about Mr. Gregg Majewski, Founder & CEO at Craveworthy Brands, a dynamic company that is fueling the next generation of fast casual restaurant brands.
But this shoutout is not remotely arbitrary and is completely tied to the theme from the Top of the Fold.
Try to put a label on Mr. Majewski and his company. Seriously, try!
This is a company that in a short period of time has not only acquired or developed 14 brands (since launching in 2023) and has over 200 units on its platform, but has created a most innovative and shared resource model (which VERY much includes its commitment to being a tech-forward operator) making this one of the most supercharged restaurant groups capable of harnessing the best brands of tomorrow.
We all know the guests are important (seriously, they're not always easy, but try running a successful restaurant without them), but I love how Craveworthy has built a foundation which creates purchasing power (read: supply chain) thanks to some amazing and longstanding partners of Mr. Majewski.
Add to that Craveworthy’s commitment to leveraging both best-in-suite AND best-in-class technology (it’s never one or the other), and this is why Branded cares and is so enthusiastic about this company.
And I almost forgot, Craveworthy has an awesome podcast! Yes, Gregg is a podcaster!
“Birds of a feather flock together” and the Branded Team has a big love of the Craveworthy Team b/c of how they too embrace being an agile & integrated company (and maybe also b/c they too have the ethos of "why walk, when you can run")!
This week's shoutout to Craveworthy was driven by the company being one of the hardest to put a label on b/c while they’re of course a restaurant owner / operator, it’s their commitment and embracement of other verticals (such as technology) that makes them hard to put into a corner (and I don't recommend anyone to try to put Mr. Majewski in a corner). 😊
In the spirit of the conference circuit and Branded wanting to acknowledge the good people that put these events together, Craveworthy will be heading to The Great American Franchise Expo this weekend at the American Dream Mall in East Rutherford, in the great state of New Jersey (see Schatzy, I LOVE NJ).
Craveworthy will be holding court at Booth Number 209 and sharing its diverse portfolio: Craveworthy Brands - Franchising
You want to learn more about Craveworthy, check them out this weekend or give me a call.
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's Top of the Fold focused on the important issue of food traceability and the industry's readiness (or lack thereof) for FSMA 204 and the January 2026 deadline that is fast approaching.
Accredited Investors and Qualified Purchasers interested in learning how Branded is expressing its view and positioning itself as a solution provider to address food traceability are invited to connect and explore areas of collaboration.
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New Release:
Join Michael Schatzberg, “The Restaurant Guy,” and Jimmy Frischling, “The Finance Guy,” as they chat with Noah Glass, founder and CEO of Olo, he shares his journey in revolutionizing the restaurant industry through technology. With a diverse background from Political Science at Yale to tech startups, Noah launched Olo to streamline digital ordering and delivery. Under his leadership, Olo has integrated both digital and traditional payment systems, improving customer experiences. Tune in to hear Noah discuss Olo’s latest innovations, how data-driven decisions are transforming restaurants, and the balance between in-person and digital transactions. Plus, enjoy fun segments like “What’s Hot and Not” and “Trivia Tuesday” with Jimmy and Schatzy!
Tune into the episode and subscribe to our channel here: Hospitality Hangout Episode With Noah Glass
Re-Run of the Week:
Throw back to an exciting episode of Hospitality Hangout as Michael Schatzberg and Jimmy Frischling bring you the best insights from FSTEC 2023 in Dallas! In honor of seeing you all at FSTEC 2024 next week....They sit down with industry leaders John Pepper of 211VC, Emily Williams Knight, CEO of the Texas Restaurant Association, Angela Leet, CEO of QSR Automations, and Dawn Gillis, CIO of Golden Corral. Dive into John Pepper's journey from restaurant startups to tech innovation, Emily Williams Knight's leadership insights from the Texas Restaurant Association, Angela Leet's future-focused discussion on quick-service automation, and Dawn Gillis’s transformative tech initiatives at Golden Corral.
This episode is packed with engaging conversations and playful segments like "The Spice is Right," offering a fun and informative look at the latest trends and challenges in the hospitality industry. Whether you’re a restaurant professional or a tech enthusiast, tune in to discover the future of restaurant tech and enjoy a carnival of insights and entertainment! Don’t miss out!
Tune into the episode and subscribe to our channel here: Hospitality Hangout FSTEC 2023
You can tune in on:
Spotify: Click Here
Apple Podcasts: Click Here
Watch on Youtube: Click Here
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TECHNOLOGY
Unlocking the Power of Online Communities: Strategies for Engagement and Growth
By: Seth Temko, Solutions Services Partner at Branded Hospitality Ventures
Building your own online business community promotes relationships, creates meaningful value and gives remarkable business insights.
MARKETING
BIGGEST TAKEAWAYS: QSR Evolution Conference 2024
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
The QSR Evolution Conference just concluded in Atlanta, GA. This event was a 3-in-1 as it was paired with the NextGen Restaurant Summit and Pizza Power Forum. There was A LOT to learn.
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That’s it for today!
See you next week, (about the) 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 food service, 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