Friends of Branded!
Happy Saturday and I hope you had a great week!
This week I was afforded the opportunity to participate in Big Chicken’s Franchisee Conference out in Las Vegas. The invitation came from Branded’s friends & partners, CEO, Josh Halpern and VP of Partnerships, Sam Stanovich.
To be clear, Branded is NOT a franchisee partner of Big Chicken. We are, however, a stakeholder of the company as a result of an investment we made in Q2 2024 into this fast-growing quick-service restaurant (“QSR”) company (and we aspire to be a most strategic and value-added partner).
As the industry’s conference season is about to launch into high gear (and for Branded, it all starts this weekend down in Amelia Island, FLA with the Prosper Forum), I’m sure all of you can relate to the challenges of being away from home (as well as the office) b/c of business travels. On the work side alone, Branded has a portfolio of over 50 companies, so any time spent on a single company comes at the expense of others (and time is the one and only true zero-sum game).
I admit that I called Mr. Halpern two-days before the conference, explained the many demands and projects I’m juggling and the associated stress I was feeling about being on the road this week. I simply asked Josh if he felt I needed to be at this event. Mr. Halpern is a straightshooter and tells it like it is. He told me I’d benefit from being at the event, that I’d see & learn a great deal about Big Chicken, the company’s culture, its team, its community, and that it would also be a good time.
I booked my flight, hotel and flew to Vegas!
Branded and its partners have a long history owning and operating full-service restaurants (“FSRs”), but I’ve never been part of a QSR company, and I’ve never attended a restaurant company’s franchisee conference until this week (and you never forget your first time).
From the moment the conference began, what amazed me was the diversity of the people and areas of expertise that had assembled for this event. In addition to the Big Chicken Corporate team and franchisee partners, the event included food suppliers, service providers, and technology companies that are all supporting Big Chicken.
I’ll also share that the swag provided at the event was pretty awesome (and made me somewhat of hero when I returned home).
As a rookie at an event like this, I had no basis to be surprised to see the various parties that support Big Chicken all come together to be in the room with the franchisees and Big Chicken corporate team. However, I learned over this two-day event that this type of inclusivity is in fact not common and as one franchisee expressed in the closing session, the level of openness, approachability, and engagement at this event was unlike anything he’d seen before from his experience with other franchise companies.
My sharing some color from the Big Chicken Franchisee Conference isn’t b/c I believe readers of the H^2 will necessarily care about how one emerging QSR company is charging ahead with its business, but rather b/c of the discussions or maybe continued debate regarding the Tale of Two Cities we’re experiencing right now with record breaking sales for the restaurant industry and brands that are soaring while at the same time the failure rate among restaurants continues increasing as well.
It was the best of times, it was the worst of times…A Tale of Two Cities, by Charles Dickens, deals with the major themes of duality, revolution, and resurrection in London and Paris, as the economic and political unrest lead to the American and French Revolutions (A Tale of Two Cities, at a Glance, by CliffNotes). 😊
As I listened, learned, and participated in the Big Chicken Franchisee Conference (of course I participated, when have you ever seen me attend an event and not get involved), many of the very drivers, tools, and ethos that Branded extols and has been arguing will truly benefit operators was on full display (and Big Chicken brought the receipts!).
It goes without saying that any confidential information that was shared at the event will not be shared here (but drop me a note to my personal e-mail if you want me to send it with you…I’m kidding Josh!).
The industry headwinds and challenges operators are facing are real and the top two answers on the Family Feud board continue to be increased labor costs and food inflation. We’ve seen how many QSR brands are discounting menu items and dropping prices massively to get guests in the door. But this comes at a real expense to the business, particularly, the franchisees!
Big Chicken and I’m confident other QSR franchisors are doing everything possible to focus on the costs side of the equation (whether Big Chicken is doing it more or less successfully than its competitors I defer to others to opine on or debate). My point is that addressing the cost side of the ledger is table stakes. The key question is what else are you going to do to win?
Friend and partner Sterling Douglass, CEO of Chowly, will be happy to know that I’m NOT going to talk about the saturation of the industry or the blurred lines among foodservice venues that afford guests more dining options than ever before as one of the key drivers of the increasing failure rate of restaurants (or did I just do that?).
While I believe the saturation and blurred lines are most certainly meaningful contributors to the increasing failure rate, they're somewhat akin to labor costs and food inflation, as they're for all intents and purposes out of an operators’ control.
If some of the biggest headwinds are out of our control, then what’s in our control? Great question and thanks for asking.
How we each run and manage our respective business, the culture we create, and the execution strategy we embrace, are what’s in our control.
As a person who prides himself on the importance of being part of a community, the notion of winning together and the value you can both create and capture when you successfully build a flywheel was my biggest takeaway from the Big Chicken Franchisee Conference.
Sounds a little touchy feely you say, stick with me here young grasshopper.
Big Chicken is a company that wants partners and is committed to winning together with its community. The Big Chicken founders and corporate team are passionate about their company, and they want franchisees who are passionate about Big Chicken, passionate about their guests, and passionate about creating Big Smiles! That’s right, passionate about creating Big Smiles!
The founders at Big Chicken don’t believe they’ll win b/c of what they sell (even though what they sell is awesome). They believe they’ll win b/c of why they’re selling it.
So, again, what the heck is this “Big Smiles” mantra all about?
Let’s start at the top, the VERY top, the 7-feet-1-inch top to be specific! This business is first and foremost the O’Neal Family business. Can you think of anyone on the planet with a bigger smile than Shaquille O’Neal?
A few weeks ago, I wrote about my being at the PepsiCo Studios (in the room where it happened) for a recording of some work Mr. O’Neal and his family were doing for Big Chicken. There were no scripts and as the filming was underway, Mr. Perry Rogers, one of the founders and a member of the Board at Big Chicken, smiled and suggested to Shaquille that he should “Shaq-It-Up.” From that moment on, the room was filled with laughter, joy, fun and big smiles.
At the franchisee event this week, during the Q&A that followed a fireside chat between Big Chicken’s Head of Marketing, Mr. Joshua Sims Sr., and Mr. O’Neal, I specifically asked what “Shaq-It-Up” means to him.
My question and Mr. O’Neal’s answer is provided here in the attached link (and you’re damn right I asked permission to share this video before taking any liberties): Shaq-It-Up
Shaquille likes to have fun; he enjoys laughs and smiles (both his smiling and making other people smile). This is his family’s business and the food, and ideation of this company comes from the meals he grew up with at home with Mama Lucille and the family (and you can bet there was a great deal of laughter at that table).
Big Chicken’s purpose is to create smiles b/c that is authentic to Shaquille, his family and their business. This purpose can only happen "The Shaquille Way," which is defined as doing it with family & love, generosity of spirit, and passion & fun. Of course, the food needs to be excellent b/c its who Big Chicken is, but it’s the creation of restaurants that offer comfort, care and fun that are the reasons why they’re doing it.
Now, of course I know that not every QSR restaurant has a founder whose popularity spans across various demographics, touching sports, entertainment, music, and business which makes him a relatable figure and influencer across a broad audience. In fact, I’ll argue there’s no other QSR that has such founder.
So, what did I learn at the Big Chicken Franchisee Conference that is relevant to the other 99.99% of QSR companies?
First, I learned that the “Shaq-effect” has a shelf life of about 2-weeks (that even after The Diesel makes an appearance at a Big Chicken location, the sales normalize after 2-weeks), so there’s a lot more going on at Big Chicken than the Big Man.
Culture eats strategy for breakfast: you’ve all heard that expression before.
Big Chicken has a vision but is committed to stay true to its values. They want to do the right thing, have a long-term vision, be guest-centric (like Branded is operator-centric) and team dedication. They want to tell it like it is by embracing transparency, be fearlessly honest and strive for relentless improvement. They’re committed to partnership and want franchisees that embrace Big Chicken’s values.
And while much of the above can fall into the qualitative and subjective bucket, the specific area of collaboration where Branded and Big Chicken began its journey together and where I believe other QSRs can or should be focusing on – the tech stack!
Big Chicken is a BIG embracer of operator-centric technology companies and I feel fortunate that several of their tech partners are also portfolio companies of Branded. I’ve provided a few examples below of the technology platforms Big Chicken embraces:
· The company embraces Bite as its kiosk partner and there’s some bespoke work that Bite is delivering for Big Chicken as a most meaningful partner to the business. According to a Harvard Business Review Study, kiosks are effective at upselling customers by suggesting add-ons or upgrades during the ordering process. This automated upselling has been shown to increase average order value by 15-20% on average.
A quick side bar, the next time you see Mr. Brandon Barton, CEO at Bite, please take a moment to ask him about his love of Tom Hanks and specifically the film Joe Versus the Volcano. At a round table discussion at the Big Chicken event (aka: dinner & drinks at a table that was round), Mr. Barton had a great deal to share about this film and of course the incredible Tom Hanks.
· The company embraces Curbit, the capacity management solution for restaurants to help manage pick-up and delivery orders more efficiently. Curbit creates innovative AI solutions for the restaurant and hospitality industry. Its unique approach empowers restaurants, streamlines order flow, eliminates kitchen stress, and provides timely delivery and pickup of fresh food to your guests. Curbit simplifies restaurant operations and elevates the overall dining experience. They ensure “Happy Handoffs” for all guests, and you know what happy guests do, they smile! (see what I did there).
· The company embraces Ovation, the actionable guest feedback platform that drives revenues. Big Chicken cares deeply about its customers and what they’re saying. This is a group that tracks and reads each and every review! They leverage Ovation to make sure their guests have an easy button that gives them a voice and allows them to be heard. They also use the feedback to enhance the guest experience through targeted training in partnership with Opus.
Each of the above are examples of how a QSR is leveraging technology to enhance the guest experience, increase sales and help keep your guests coming back (and you're not required to have a 15-time NBA All-Star on your team to embrace or use any of these tools). 😊
I’ll go one step further (and this is important), Big Chicken wants each of the above-mentioned tech platforms, as well as the others they use, to be successful. They want these companies to win, and they want to contribute and be part of their success.
Big Chicken believes that its ecosystem, its community, needs to win, together. That includes of course its franchisees, its guests, and its suppliers. This is a company that hires based on its values, selects franchisees based on its values and sources suppliers and vendors based on its value (and while they didn’t say it, I hope they accepted investors based on its values as well).
I know this has been a lengthy Top of the Fold on my experience this week with a single portfolio company, but there were also several Branded portfolio companies, strategic partners to Branded and friends that were all in the room where it happened.
This event was bigger than the participants spending two days learning about the trailing 12-months and forward looking 12-months of a QSR company. This was about how a community can win together in the hospitality industry and have a whole lot of fun & smiles while doing it.
It takes a village!
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I want to use the Shoutout section this week to recognize our friend and newest partner, Shawn Walchef and the entire team at Cali BBQ Media!
My first interaction with Shawn and his team was a few years ago out at the MURTEC conference in Las Vegas when we shared a room for us to host our respective podcasts. Since then, our teams have become much closer and I’m excited to say that Shawn and Schatzy are working on a big reveal!
Cali BBQ + Branded Hospitality = It Takes a Village
Mr. Walchef is an expert in digital storytelling, and he likes to say that it’s important to be the show, not the commercial. In addition to owning the successful and delicious Cali BBQ, Shawn launched his media company to help support the industry and the many restaurants and technology companies that are part of the digital transformation that is underway.
Cali BBQ Media helps brands and leaders leverage the new Business Creator Economy with strategic Digital Storytelling and Digital Hospitality.
Shawn is authentic, passionate and in the spirit of Big Chicken’s commitment to partnership, along with Branded’s obsession with our village, this is a person that wants to lift people up and celebrate their successes.
The Branded team is thrilled to be working with Shawn and the team at Cali BBQ and I look forward to Shawn and Schatzy making the BIG announcement!
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New Release:
Get ready for an electrifying episode of Hospitality Hangout! Join Michael Schatzberg, “The Restaurant Guy,” and Jimmy Frischling, “The Finance Guy,” as they chat with hospitality powerhouse John Meadow. From washing dishes at Au Bon Pain to launching iconic spots like Gin Lane and Scarpetta, John’s journey is a masterclass in passion and innovation. Tune in to hear how he transformed the hospitality scene and brought LDV Hospitality to the world! Don’t miss it—your next favorite podcast episode is just a play button away!
Tune into the episode and subscribe to our channel here: Hospitality Hangout With John Meadow
Re-Run of the Week:
We’re excited to share that the Flynn Group, led by Gregg Flynn—a former guest on Hospitality Hangout—has just acquired 83 more Wendy’s restaurants! As the world’s largest franchisee, Flynn Group now boasts a total of 277 locations, reinforcing its dominant position in the fast-food industry. Catch Gregg’s episode for exclusive insights into this major expansion and the future of franchising.
Tune into the episode and subscribe to our channel here: Hospitality Hangout Featuring Gregg Flynn
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TECHNOLOGY
Why Most CEOs Don’t Fully Grasp the Complex World of Marketing
By: Seth Temko, Solutions Services Partner at Branded Hospitality Ventures
Despite their intelligence and leadership skills, many CEOs struggle to understand marketing's diverse and complex nature, often leading to underappreciation of its strategic value.
MARKETING
Which Restaurant Trade Shows to Attend This Fall
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
The fall trade show season is right upon us, which means more learning, more networking and more food crawls! Which ones are you planning to attend? Which ones will I be at?
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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