Friends of Branded!
Happy Saturday and I hope you had a great week.
A little disclaimer to kick-off this week’s Top of the Fold – I’m a middle child. When I share that with folks (on or about my age), it’s not uncommon for me to hear something to the effect of “Marcia, Marcia, Marcia” in reference to the 1970s American sitcom, The Brady Bunch (and if you’re interested, the episode where Jan Brady said that iconic line that would forever be said to middle-children was called “Her Sister’s Shadow” which aired in Season 3, Episode 10, on November 19th 1971).
Let’s move away from 1970s sitcoms but stick with the position of being in the “middle.”
It’s not great position to be in the sport of tennis as being “caught in the middle” refers to a player finding themselves in the awkward position on the court, typically between the baseline and the net. This area of the court is often called “no-man’s land” b/c it’s strategically disadvantageous (too far from the net to effectively volley and too close to the baseline to effectively return groundstrokes).
Moving on from tennis but continuing with the expression “caught in the middle,” it literally means being placed in a difficult or awkward situation where someone feels stuck between two opposing sides, perspectives or forces. It often implies a sense of conflict, indecision, or being pressured to choose sides. The phrase can be used in various contexts, including interpersonal relationships, politics, business, or emotional situations.
I can continue, but let’s agree that the “middle” is often a tough place to exist and that appears incredibly true when it comes to the restaurant industry right now.
This week Schatzy and I had the privilege of participating in the ICR Conference and we’re grateful to our friends from ICR for including us and the hospitality they showed all the attendees. This event is attendee and content rich, and it kicks off the conference season (while the Restaurant Finance & Development Conference in November brings the conference season a close).
There’s no question that one of the key takeaways from the ICR event was that restaurant traffic is down, and brands are looking for ways to attract and drive traffic. Readers of the H^2 are fully aware of the many challenges and headwinds impacting restaurants and I’ll include here the increasing costs of labor and food as the two biggest factoids negatively impacting our industry. Readers of the H^2 also know that sales numbers of US restaurants are at a record high of over $1 trillion.
However, in this current economic environment, not all segments of the restaurant industry are faring equally and just in case it’s not already obvious where this is all going, it’s the “middle” or ”mid-market“ restaurant segment that is getting hit the hardest.
First, let’s put a definition around “mid-market” restaurants. It’s typically positioned between low-cost, casual eateries and upscale fine dining establishment. Mid-market restaurants aim to strike a balance between affordability and quality. The pricing of mid-market restaurants is considered “moderate”, and this segment often caters to middle-income customers. With respect to the quality of food, as you’d expect, it’s higher quality than fast-food joints, but not as elevated as fine dining restaurants. Ambiance - (if you’re into that sort of thing, which I am), comfortable, pleasant, attractive, but not luxurious.
Don’t get me wrong, I’m a LOVER of mid-market restaurants and in fact, Branded Restaurants used to own a few mid-market brands ourselves (emphasis on “used to own”). I’d like to say that our converting two of our mid-market brands into upscale joints was primarily driven by the price of New York City real estate, but it’s clear that the challenges of operating mid-market restaurants isn’t limited to New York City (you see JB, I’m admitting New York isn’t so special or unique when it comes to the squeezing of the middle).
I’m not remotely trying to throw shade on anyone, but in 2024 we saw bankruptcies of Red Lobster (it wasn’t the free shrimp), Bucca di Beppo, Rubio’s, Tijuana Flats, and TGI Fridays. The first TGI Fridays was opened in 1965 by Allan Stillman and was located on the corner of 63rd and First Avenue in New York (and is recognized as the world’s first singles bar).
All the above-mentioned bankruptcies showed a range of problems from rising labor costs to low traffic. According to the Bureau of Labor Statistics Data, restaurants raised prices 30% in five years, while overall prices went up 22% and grocery prices went up 27%. Consumers reacted by pulling back and the segment of the restaurant industry that got hit the hardest, is the one in the middle. High-end restaurants are weathering the storm with its less price sensitive clientele (read: wealthier guests who are less impacted by economic pressures) as well as guests that want to have that special experience (and maybe extend themselves to get it). Meanwhile, strong brands and concepts, catering to changing consumer preferences and offering significant perceived value with its limited service or fast casual formats have performed well in this environment. Fast Food & Fast Casual joints offer convenience, affordability, and value.
This is where the rubber meets the road - all restaurants are facing risking labor, food, and operational costs, but mid-market restaurants are more challenged when it comes to passing these costs onto the customer without losing price-sensitive guests. The core consumer base for mid-market restaurants is mid-level income earners and guess what? The middle-class has been disproportionately impacted by economic uncertainty and that’s led to the tightening of discretionary spending.
Right or wrong, the consumer perceives that mid-market restaurants are offering neither low prices nor the elevated experience associated with fine dining.
And while I’ve been challenged by a number of people (with whom I have great respect for) about my views on how the restaurant industry is saturated (and that includes a continued and dramatic increase in dining options available to consumers), I will double-down on how increased competition is particularly damaging to the mid-market restaurants.
As I wrote back on December 28th in the Top of the Fold article, Value Time, there’s been a surge Fast Casual and Limited-Service brands which have captured the attention, loyalty and the wallets of guests by offering higher-quality food at slightly lower prices and faster-service.
This week’s Top of the Fold is NOT intended to be a continued argument or the talking of Branded’s book when it comes to Fast Casual and High-End Dining restaurants (that appears below in the Access Hospitality Network section of this week’s H^2 😊), but it is intended to make you think about the middle and the difficulties when it comes to be stuck there.
Don’t get me wrong, I love being a middle child (and my brothers and I each play our role), but speaking only about the restaurant industry, it’s a tough place to exist right now and the trend or direction the market is going doesn’t suggest there’s any let-up insight.
Is it hopeless for mid-market restaurants? Heck no, but actions need to be taken (if you’re standing still, you’re falling behind). Of course, I’m going to push for the embracement of technology and innovation, but only b/c these tools represent operational efficiencies for your business. You need to define your value proposition, and you can ONLY do that by connecting and engaging with your guests.
Revisiting the ICR Conference just for a moment, if there was one tech-theme that was universally discussed at the event, it was guest engagement, (not just loyalty, but the understanding of your guests and their preferences) and to that successfully requires knowing your guests (which requires guest data and even more importantly, knowing how to utilize the data).
As always, Branded is here to help operators that want to explore solutions to this most important challenge.
This week’s H^2 is loaded and we again have some contributing authors that I want to highlight and thank.
The Good Doctor Melissa Huges is back with her second article, "Peak-End Effect" in her “Food for Thought” series.
We’re privileged to also have a contribution from Sterling Douglass, Co-Founder & CEO of Chowly (and one of my favorite LinkedIn accounts to follow). Chowly, this week launched its new platform, and we feel so fortunate to have Sterling write it about it here in the H^2.
You can find Melissa’s and Sterling’s contributions if you scroll below.
It takes a village.
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Sometimes I use the Shoutout section to share the things I’m reading or that caught my eye. Other times I use this section to share some intel about a Branded portfolio company.
The FIRST Shoutout this week encompasses both, as I want to recognize the market’s most extraordinary guest engagement platform (you had to guess from the Top of the Fold section that I wasn’t done with guest engagement & guest data, right?) Fishbowl and specifically share a post they put out this week on “The Secret to Winning Restaurant Week.”
The Secret to Winning Restaurant Week
The reason I grabbed Fishbowl’s blog this week is b/c of its focus not just on guest engagement (one of the most important parts of a modern tech-stack), but on guest data as well.
Restaurant week attracts a mix of first-time visitors and occasional diners, and this is an audience operators need to learn more about. Guest data enables you to more successfully market and engage with your guests.
If you want to learn more about how Fishbowl helps restaurant groups, marketers and operators optimize your business for every Restaurant Week and every other occasion, you can contact me directly or connect with Fishbowl using the link here: when you contact us here: contact Fishbowl.
I want to use the SECOND Shoutout this week to recognize our partner, Copia and its partnership with the California Hotel & Lodging Association (“CHLA”).
The CHLA and Copia have partnered to help redistribute surplus goods – food, clothing and more, to local non-profits.
Copia’s app will automatically match any available donation items to local 501c3 organizations in real time, provide transportation and send donation receipts for record.
This collaboration with Copia will make it easier for to provide support LA organizations in need.
Copia has agreed to waive its fee for CHLA members this month and only pass along the cost of the driver.
Do you know Copia? What about the company’s CEO, Kimberly Smith?
Here’s a great episode of the Prosper Brief where Kimberly shares her journey of leading a profit-for-purpose organization aimed at combating food waste. Kimberly delves into the innovative technology behind Copia, the power of connecting surplus food to communities in need, and transformative partnerships with major brands like The Cheesecake Factory (The Cheesecake Factory Doubles Food Donations to Local Nonprofits Through Its Nourish Program).
Kimberly celebrates impactful collaborations and highlights the profound joy of serving others (and embraces something my dad his three sons, that while it’s nice to be important, it’s important to be nice).
Take a listen and get to know Copia and Kimberly Smith!
The THIRD and final Shoutout this week once again goes to our partners at Starfish (what can I say, this fast growing and "PLAID for product traceability" keeps making things happen…I just want to share it here!).
When you’re uniquely building a source of truth and empowering transparency, safety, and trust in the food supply chains worldwide, other companies take notice.
This week I’m excited to share that Starfish has partnered with Open Food Chain, a leading food traceability infrastructure platform that eliminates data silos end-to-end. Open Food Chain specializes in collecting and sharing reliable data to ensure food manufacturers address their ESG reporting needs.
This partnership, will combine Open Food Chain’s blockchain-powered traceability platform with Starfish’s trusted data-sharing network to create globally accessible, connected supply chains.
By joining forces, Starfish and Open Food Chain are addressing the industry’s toughest challenges, supporting critical regulations like FSMA 204 and EUDR and driving safer, more sustainable, and globally connected supply chains. This partnership empowers Open Food Chain's customers to seamlessly connect and share data with trading partners worldwide, unlocking value through advanced traceability, transparency, and compliance capabilities.
Together, Starfish and Open Food Chain are making traceability technology more accessible than ever before, equipping businesses with the tools they need to innovate, connect, and thrive in an ever-evolving industry.
Bold statement coming but stay tuned as Starfish continues to transform the global food supply chain! That’s right, this emerging company is going to elevate and transform the global food supply chain!
Mic drop. 😊
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.
So now that we’re no longer in the Top of the Fold section, let’s talk a little bit more about the Fast Casual segment of the industry. I’d like to dive into this topic further and I will express my views with one of Branded’s partners, Craveworthy Brands.
Founder and CEO of Craveworthy, Gregg Majewski, joined us down in Orlando for the ICR Conference along with our friends and partners from Everstar Asset Management.
Craveworthy, launched in 2023, has grown to 15 brands with over 200 restaurants in the US. The Craveworthy portfolio is purposefully crafted with some of the most unique, scalable, and highly engaging brands in the Fast Casual section.
Besides supporting Mr. Majewski, the former CEO of Jimmy Johns and a team with incredible restaurant expertise and experience, the Branded Team loves how Craveworthy embraces innovation and technology to streamline its operations and support its growth.
Craveworthy’s mission is to elevate emerging brands into nationwide sensations through strategic franchising model. By harnessing its innovative shared resource model, Craveworthy delivers unparalleled value to both consumers and restaurant operators (and how on-brand for Branded Hospitality is that!).
I had the privilege of being a guest on Gregg’s podcast, Room for Seconds where Gregg and I had a dynamic conversation about entrepreneurship, technology, and the ever-evolving hospitality industry. I’d also like to add that the camera adds 10 lbs. (and Gregg had 4 cameras on me). 😊
My enthusiasm for Gregg and Craveworthy is the unique opportunity the Branded Team has been afforded to work with an industry leader and expert who also recognizes that the restaurant industry and our guests are changing and that we need to change as well.
If you’re interested, you can check out the episode Gregg and I did together her: Room for Seconds w/ guest - Jimmy Frischling
If you’d like to learn more about Craveworthy, please contact me directly.
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Featured Episode: Big Moves in Hotel F&B: Jason Himber’s Vision at Mina Group
In our latest Hospitality Hangout episode, Jason Himber takes us on an inspiring journey from his early days as a young bartender to leading one of the most successful restaurant groups in the industry. From flipping burgers to mastering finance and strategy, his career path is anything but ordinary.
Jason discusses the rise of eater-tainment, where dining, retail, and entertainment intersect to create memorable guest experiences. He explores ways hotels can generate revenue by creating in-house dining concepts, instead of relying on third-party delivery services.
In a tech-saturated industry, Jason emphasizes the importance of operationalizing technology, using tools like POS systems, loyalty platforms, and analytics software such as Klaviyo and Power BI to drive marketing and operations. And in a major announcement, the Mina Group is making its international debut with the opening of Talid, a Middle Eastern-Mediterranean restaurant in Derea, Saudi Arabia.
Tune in to this engaging episode of Hospitality Hangout to hear Jason’s insights, learn more about the innovative strategies shaping the future of hospitality, and get the latest updates from the Mina Group.
Tune into the episode and subscribe to our channel here: Hospitality Hangout With Jason Himber
Re-Run of the Week: Revolutionizing Hospitality with Comcast's Technology Solutions
This episode revisits Brian’s path growing up within Comcast, a global powerhouse in telecommunications, entertainment, and digital solutions. As the largest internet service provider in the U.S., Comcast is continuously reshaping how technology enhances businesses, especially in the hospitality sector. Brian talks about how Comcast Business evolved from serving small businesses to supporting regional, national, and global companies with managed tech solutions. He highlights the company's commitment to integrating smart solutions into hospitality operations, focusing on critical areas like security, compliance, and operational efficiency.
Brian also discusses Comcast’s strategic investments and partnerships, where mentorship and leveraging their vast portfolio accelerate growth for emerging companies. AI, IoT, and automation are at the forefront of their solutions, with platforms like MachineQ automating tasks, allowing managers to focus on guests and drive revenue. He also debunks the myth that tech will replace human staff, instead showing how it helps redeploy staff to guest-focused roles.
As a final reveal, Brian announces that LetzChat and other innovative tools are now officially part of Comcast Business’s product offerings, marking a significant leap forward in smart solutions for the hospitality industry. Schatzy and Jimmy wrap up the episode with their signature energy, including games like “Tech Time Warp” and “Hot or Not,” making it a fun yet deeply insightful conversation.
Tune into the episode and subscribe to our channel here: Hospitality Hangout With Brian Klinger
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MARKETING
Rank Higher In Google Searches With These 3 Tricks
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
Check the analytics of your restaurant's website. I'll bet Google is driving at least 67% of the traffic to your website. Assuming that's the case, let's agree; ranking high in Google is incredibly valuable.
Food For Thought
PEAK-END EFFECT
By: Dr. Melissa Hughes, keynote speaker & author
Ever wonder why a guest raves about their stay because of a simple farewell gift, or why a single poor moment overshadows an otherwise great experience? The answer lies in how our brains form and recall memories. In hospitality, it’s not just the food that people remember—it’s the moments.
Guest Writer Of The Week!
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By: Sterling Douglas, CEO at Chowly
More money, more time, more control in 2025.
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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