Get Off the Couch (Please)!
Michael “Schatzy” Schatzberg
??Hospitality|Investor?? Food Service|Technology|Innovation|Emerging Brands|Restaurant Owner|Venture Capitalist|TechStars Mentor|Advisor|Co Founder| Podcaster???Influencer?? Managing Partner|Talk Show Host
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Friends of Branded!
Happy Saturday and I hope everyone had a great week.
In last week’s H^2 I not only wrote about the goodwill and camaraderie that exists among restaurant operators as well as among ResTech operators (healthy competition and cheering for the competition), but it also gave me the opportunity to share a favorite image from Rocky III. With that in mind, I’m NOT going to say that I’m the world’s greatest fan of the Rocky filmography , but I will say that I rank pretty high on that most important list. ??
Each week I welcome and appreciate feedback on the H^2. One long-term reader wrote that while he felt I somewhat covered it in last week’s Top of the Fold section, that I didn’t capture the full extent of just how tightly knit the hospitality community is and specifically how interconnected restaurant operators are with technology operators.
His point, that I agree with 100%, is that a technology company that wishes to succeed in the hospitality industry will win or lose by how they take care of THEIR customers (the restaurant operators). If successful, these restaurant operators will scream your praises from the mountaintops, but fail to take care of them, and it will be your death sentence. Well said AO, well said my friend!
Winning the technology game in the hospitality industry reminds me of the 1980s Faberge Shampoo commercial with Heather Locklear , and yes, they told two friends!
I’ve never seen an industry that's as closely knit as the hospitality industry, and I know statements like “this time is different” are dangerous and fraught with failures of those who subscribed to whatever they’re doing being different. I think this industry is different.
Let me explain and for avoidance of any doubt, I’m NOT talking about financial markets or an economic environment being different b/c such dangerous thinking has truly led to financial wreckage! It’s not the “this time is different” syndrome I’m referring to, but rather, that the hospitality industry, as an asset class, is different.
This industry being DIFFERENT comes from the (i) extreme fragmentation, (ii) the high-touch nature of foodservice, (iii) the thin separation between the manufacturing facility (kitchen) and the retail facility (the dining room), and specifically and uniquely from (iv) a most unique and personal relationship that people have with the product - food & beverage.
We’re not selling diapers, batteries, sweaters, or other non-perishables & staples in the hospitality industry (and we’re certainly not selling staples). We’re selling something that our guests will consume, and it doesn’t get more personal than that!
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The Branded team believes in showing-up and the importance of in-person gatherings. Next week we’re putting our money where our mouths are and we’re hitting the road. I want to use this shoutout section to highlight not only the events we’re going to, but the companies and teams that are making this happen.
Schatz will be heading to Scottsdale, AZ for the IFMA's Presidents Conference . This is the premier industry event for foodservice management and senior leaders across the supply chain.
I have the privilege of hitting two events next week.
I’ll first be joining our friends at Winsight & Informa for the Global Restaurant Leadership Conference (“GRLC”) in Miami. GRLC is bringing together the top 150 executives from leading global restaurant companies to network, share insight and build partnerships. The Branded team has worked closely with Winsight on FSTEC and specifically the Innovation Alley. We’ve been consistent attendees at the Restaurant Leadership Conference and I’m now super excited to be part of Global RLC.
We appreciate our friends at Winsight, now owned by our friends at Informa . The company names may be changing, but these B2B foodservice and hospitality events remain the gold standard.
After spending a couple of nights on Brickell looking out on Biscayne Bay, I’ll make my way north to Palm Beach and the Palm Beach CorpGov Forum . This is a new event for Team Branded and I’m excited to be speaking on a panel titled the P/E Edge Kickoff: Fundraising and Value Creation.
I’ll be on stage with Rafique Jiwani , Vice President, Private Equity, Goldman?Sachs; Tom Nolan ,?CEO, Kendra Scott and moderated by John Jannarone, ?Editor-in-Chief, Capital Markets Media.
Branded takes great pride in the company we keep and the community we continue to build. I’m LOVING this crew gathering for the 3rd Annual Palm Beach CorpGov Forum and thrilled to have our name associated with this event.
The winner of this week's WITW is Branded contest, our friends Sam Stanovich and Josh Halpern (where is your Branded swag Josh?!?). The photo is from Houston, TX. Does anyone where Branded swag better than Sam? Maybe. Does anyone do it with a bigger smile and more joy than Sam? Nope!
Branded considers Sam and Josh to be among the finest gentlemen in the hospitality industry and we absolutely love what these folks are doing over at Big Chicken . See you in Vegas for RFDC fellas (but that's a shoutout for next week)!
To participate in the contest: Email [email protected] or contact your friend at Branded to submit a photo of yourself wearing a piece of Branded "swag" and let us know where in the world you are!
BUSINESS
My Team is Better Than Yours...
By:?Julie Zucker, CMO & Partner at Branded Hospitality Ventures
Despite the title of this article, I am not here to pontificate on my team, rather how great teams stem from a great leader.
领英推荐
Over my career thus far, I’ve had the privilege of learning from many amazing colleagues, and an even greater pleasure of being a mentor/leader to others. I’ve taken the “good” from my mentors and incorporated those skills into how I lead. I’ve taken the “bad” I’ve seen in the workplace and used that as motivation on what not to do. Somewhere in between, I’ve found my own groove.
In addition to sharing my favorite 5 Tips on Becoming a Better Leader by Gary Vaunerchuk . I will share my favorite tool in my box, something I use both as a leader, friend, daughter, sister and mother. Start each day (or most days) with a motivational quote. Sometimes we just don’t have the words, so whether you use an app, or just google, within minutes you can find the perfect quote wrapped up in a nice “screen shot” package that with a click of a button or "send" on a text – you can start someones days on a bright note. And you’ll never know just who needed to hear what you have to share.
TECHNOLOGY
To Avoid Marketing that Underperforms, Budget for Some ‘Marketing R&D’
By:?Seth Temko, Solutions Services Partner at Branded Hospitality Ventures
When it comes to marketing planning and budgeting, I believe that most companies get stuck trying the same things month after month, and seeing results that are less than optimal. Here’s how it goes down. The organization agrees on an annualized assumption of marketing spend and marketing return. The head of marketing allocates dollar amounts to specific marketing channels or line items: online ads, events, personnel, contractors, design, and so on. This gets turned into a marketing plan / calendar and spend gets broken down by quarter and month for specific tasks, programs, campaigns, etc.?
Budget becomes plan, becomes marching orders.
This is all well and good, and it is the right approach with the majority of a company’s marketing funds. However, I advocate for setting aside a portion of a marketing budget as discretionary. Think of it as Marketing Research & Development. Let me describe where I developed this belief, and then explain why this approach can work.
FINANCE
The State Of Restaurant M&A in 2023: Historical Environment Could Define The Next Decade
By:?Noah Stern, Associate, Branded Hospitality Ventures
2023 has seen a sharp uptick in restaurant M&A. Why do investors believe this is the best time to invest in the last decade?
In October of 2023, private equity firm Apollo Global Management acquired The Restaurant Group, the London based company that owns Wagamama, for $623 million. In August, Fogo de Chao, the Brazilian steakhouse, was acquired by Bain Capital for an undisclosed fee. This was in conjunction with Fogo de Chao’s plans for an IPO, which is expected as early as 2024. In May of 2023, Olive Garden parent company Darden Restaurants acquired Ruth Chris for about $715 million.
It is exactly these types of deals that can differentiate winners and losers. While this environment will not last forever, and terms will eventually come closer to equilibrium, deals in 2023 could prove to shape the next decade of the restaurant industry.
Restaurant Industry Movers in the Market
—Data as of 11/3/23
MARKETING
??Want your restaurant to come up at the top of search results on sites like Google and Yelp?
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
There isn't much I don't know about how your business profile works on publisher sites like Google, Yelp, Bing, Yahoo, Siri, Apple Maps, Facebook, Alexa, Tripadvisor and more ... seriously, ask me anything about local search.
Taking everything I have ever learned about local search, I can share that if you want your restaurant locations to come up at the top of "near me" and menu item searches on these apps, maps and sites, follow this playbook.
IN THE NEWS
Hospitality Tech and F&B Innovation IN THE NEWS:
We love to highlight Food Service & Hospitality news, especially when it’s Partners & Friends making it!
And in other News…please see some of the stories that caught our attention and that we’re paying attention to. This week was loaded with headlines and news!!
That’s it for today!
See you next week, (about the) same bat-time, same bat-channel.
It takes a village!
Jimmy Frisch & Julia Suchocki Branded Hospitality Ventures [email protected] & [email protected]
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