The AI Race Is On - R U Game?

Recommended - Continue Reading in Browser

Friends of Branded!

Happy Saturday and I hope you had a great week.

When Schatzy and I attend industry events, we like to play a game where we select the word (or words) we expect to hear most often. There’s no judgement here and this game isn’t about our support or otherwise for these words, but rather our predicting what themes and trends we expect will be uttered the most by the speakers, panelists, and subject matter experts (“SME”) attending the event.

It’s like “corporate bingo, the hospitality technology edition.”

For 2025, this game is being suspended or at least reconfigured where the objective is to predict the second most used words b/c the top answer on the Family Feud board is all locked-up and it will come as no surprise that “Artificial Intelligence” is the hot topic of the year.

Artificial Intelligence (“AI”) is so popular right now, that Schatzy is thinking of changing the name of one of his three sons to “Alfred Irving Schatzberg” in order to at least have one of his children use the initials “AI” Schatzberg. He believes this is a recipe for success, not just for his son whose name that will be changed, but for generations of Schatzbergs to come! ??

In all seriousness, public companies are being penalized for not focusing and investing on this technology aggressively enough as AI is being touted as one of the most important and transformative technologies of our time. The potential (or promise) to enhance productivity, improve decision-making, and enable innovations across multiple industries is game-changing. The experts I follow (and respect) tout AI not just as a technological advancement, but as a paradigm shift that is reshaping industries, economies, and daily life.

This is clearly big, important, and is going to rock the world of hospitality & restaurants, right?

Not so fast young grasshopper, not so fast.

Despite the above statements and my conviction that these bold predictions are in fact true, let’s bring these macro and visions of grandeur into the world of hospitality and specifically restaurants and tell you the realist of the real deals - our industry will lag the AI boom.

Sorry, not sorry, but the restaurant industry is not a tech-forward one. We never have been a tech-forward industry, and I don’t expect we ever will be one.

None of this is meant to be negative or my throwing shade on our industry, but we need to be realistic (especially when it comes to a paradigm shift that is expected to reshape industries, economies, and daily life, which of course, includes hospitality and the restaurant industry).

I’m NOT suggesting that AI isn’t important and to the contrary, Branded believes it’s critically important, but the vast majority of our industry will be slow to adopt and embrace this technology.

Please skip to the Access Hospitality (although I’d prefer that you finish reading the Top of the Fold first and work your way down to the Access Hospitality section ??) to see how Branded has positioned itself for this paradigm shift that is AI and for those interested, an opportunity to join us (yes, there is a CTA aka: a Call to Action below).

Just b/c the restaurant industry isn’t a tech-forward one doesn’t mean there won’t be first-movers and AI enthusiasts. For many restaurant companies and even more so for the ecosystem that sells into restaurants and wants (needs) to see the industry not just survive but thrive, this is your moment to differentiate yourselves and be ahead of the curve. However, and for the majority of industry folks that want to do things the way we’ve always done them, take a ‘wait & see’ approach and get there, when they get there, respect!

There are so many reasons why our industry is not a tech-forward one and we’re more accustomed to playing the role of the caboose on this technology and innovation train. We’re the last of the trillion-dollar industries to join the digital revolution and a benchmark I typically use is that we’re a decade behind retail. That’s right, while I of course know that our close cousin (the retail industry) isn’t a bastion of technology front-runners, like the two joggers in the woods running from a bear, the retail industry only needs to beat us to be viewed as technologically superior (and again, they’ve got us beat by about a decade).

One of the key factoids creating this 10-year gap benefitting retail is the strong tech leaders they’ve got on their team that keeps them ahead of restaurants in the technology and AI race.

CONTINUE READING HERE

The FIRST shoutout this week goes to the good Dr. Shaquille O’Neal, NBA Hall Famer, FIBA Hall of Famer and recognized as one of the league's greatest players of all time when he named to the NBA 75th Anniversary Team, on the announcement this week that his contract with TNT has been extended.

According to various news sources, Shaq agreed to a long-term deal with TNT Sports valued at $15mm per year.

Why is Shaq getting a shoutout from a hospitality-focused newsletter for this most meaningful extension of his TV contract?

Great question (of course). Stay with me friends.

First, let’s understand that despite all of Shaq’s basketball awards, honors and recognition, my young daughter knows Shaquille best for his being the boss of Josh Halpern, the CEO at Big Chicken. She also knows that Big Chicken is NOT an endorsement deal for Shaq (she’s paying attention and is one smart cookie) but rather the “O’Neal-Family business,” which includes his mother, Lucille (and her recipes), his daughter, Taahirah, and several of his uncles including Uncle Mike & Uncle Jerome.

Finally, like so many Americans, my daughter believes most that things are better when you add mac ‘n cheese, so “The Ultimate” is a menu item that is both approved and a “Frischling-Family favorite”).

Branded’s relationship with Big Chicken started with Josh Halpern, Sam Stanovich, Big Chicken’s Head of Franchise Partnerships, and specifically the company’s desire to build a best-in-class tech stack. As I was able to meet other members of the team, including the good people from JRS Hospitality, Authentic Brands Group, Shaq, Lucille, Taahirah and Uncle Mike (I appreciate you Uncle Mike), Branded became excited about the idea of Branded not only supporting Big Chicken’s building and leveraging of technology, but to our making this one of our first investments into an emerging restaurant company.

One of the questions I enjoy answering the most in connection with this investment is about Shaq’s popularity and relevance given he retired from the NBA in 2011.

This question was a slam dunk (pun obviously intended) as Shaq is arguably more popular today than at the height of his playing career and that includes with an audience that never saw him play the sport. Shaq’s brand has grown beyond that of basketball and is an icon for new generations.

Shaq’s enduring relevance comes from his larger-than-life personality that is magnified by his diverse media presence and business ventures. His relationship and relevance with the NBA and how much longer that would last was a question that I believe has now been asked and this week has been answered in a most meaningful way.

What does this long-term contract mean for Big Chicken? As far as I’m concerned, it does little b/c this brand is already being recognized as an outstanding operator (Announcing the 2025 Outstanding Operator Winners), and working incredibly hard to always be improving and delivering value for its franchisees and its guests.

CONTINUE READING

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.

This week I want to feature Branded's partnership with the good people over at ARI Venture Studio (“ARI-VS”), the first venture studio to focus exclusively on technology solutions for restaurants and a curated thesis on Artificial Intelligence.

The Top of the Fold reflects Branded’s assessment on the restaurant industry’s position when it comes to the embracement and engagement of AI.

If left on our own, history will repeat itself and by that, I mean we will be a laggard in the adoption of this paradigm shift that is AI-solutions. For the reasons included above, and specifically the meaningful capital needed and expertise gap, the path for the restaurant industry to economically and successfully win in the AI race is a most challenging one.

The driving force behind Branded partnering with ARI-VS is the need to close the gap on both capital and expertise, and b/c of the importance of AI and the associated the efficiencies for our industry is paramount. The goal of our partnership with ARI-VS is to be partners with the company that will be creating the next generation of AI-enabled solutions for restaurants.

The venture studio model is not a venture fund, and this is a most important distinction. ARI-VS is structured as a holding company and a new asset class that aims to systematically build new startup ventures by combining the financial resources of a venture capital firm, the expertise of accelerators and incubators, and the creativity and drive of startup founders.

Positioned as “factories that build businesses,” venture studios are companies that apply venture building methodologies to systematically identify market opportunities, develop ideas for businesses that can pursue those opportunities, assemble founding teams to operate those businesses independently, and support the businesses’ growth from inception to spin-off.

ARI-VS is uniquely an operating company that is harnessing the power of AI to reshape the future of the restaurant industry. With decades of start-up experience, deep industry relationships, and a relentless passion for innovation, ARI-VS is not just creating and launching software startups, the platform is setting a new standard for what’s possible in ResTech. ARI-VS’ proprietary development platform accelerates the journey from concept to reality, turning bold ideas into operational beta start-ups in weeks, not months.

CONTINUE READING

In this episode of Hospitality Hangout, we’re taking a deep dive into what makes Shake Shack one of the most exciting brands in the industry. Rob Lynch joins us to share how the company is navigating rapid expansion while staying true to its core values of great food, hospitality, and community.

At one point, the idea of reaching 450 locations seemed like a stretch—now Shake Shack is setting its sights on 1,500. We discuss a major shift happening in the restaurant and hospitality industry, where CMOs are increasingly stepping into CEO roles, bringing a guest-first mindset to the highest level of leadership.

Rob opens up about the challenge of scaling while maintaining brand identity, balancing non-negotiables with efficiency, and integrating digital innovation without losing the human connection at the heart of Shake Shack’s success.

And of course, no episode would be complete without some fun. Rob takes on our signature segments, including Hot or Not, where he weighs in on AI-powered ordering and drone delivery, and Fast Money, where he competes for the ultimate bragging rights.

Listen now and stay ahead of the game! ??

Tune into the episode and subscribe to our channel here: Hospitality Hangout With Rob Lynch

You can tune in on:

Spotify: Click Here

Apple Podcasts: Click Here

Watch on YouTube: Click Here

Who Made The B List?

FIND OUT HERE

MARKETING

THE Restaurant Marketing Playbook - 2025

By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures

There are so many moving parts to marketing these days, so many channels where we have no control of the algorithms, and it’s hard to find a guide for best practices, right? Restaurant marketing is so much easier when you have the manual.

Continue Reading

Technology

Marketing Lives in the Future: Why Your Marketing Team Can't Help You This Moment

By:?Seth Temko, Solutions Services Partner at Branded Hospitality Ventures

Marketing lives in the future by necessity, focusing months ahead on creating and optimizing lead generation programs while sales handles immediate deal closures, which is why marketing teams can't help with end-of-month sales targets but are often better at predicting long-term revenue numbers.

Continue Reading

Food For Thought

The Psychology of Menu Fonts

By: Dr. Melissa Hughes, keynote speaker & author

Fonts are silent storytellers. They set the tone, evoke emotions, and communicate the restaurant’s personality before you even read a word.

Continue Reading

That’s it for today!

See you next week, same bat-time, same bat-channel.

It takes a village!

Jimmy Frischling Branded Hospitality Ventures [email protected] 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