Repo Men

Recommended - Continue Reading in Browser

Friends of Branded!

Happy Saturday and I hope you had a great week!

According to the Center for Disease Control and Prevention, as of early Friday morning, the death toll of people who consumed products tainted with listeria linked to Boar’s Head deli meats stood at 9 people. In total, 57 people have been hospitalized b/c of the outbreak that started in May.

Boar’s Head recalled millions of pounds of meat that were manufactured in a physicality in Jarratt, VA.

The above numbers make this outbreak the largest of listeriosis since 2011, when 13 people from 8 states did from eating cantaloupe contaminated with listeria.

2011 was also the year that the President Barack Obama, specifically on January 4th, 2011, signed into law the Food Modernization Act (“FSMA”). FSMA gave the Food and Drug Administration (“FDA”) the authority to regulate the way food is grown, harvested, and processed. The law, granted the FDA a number of new powers, including mandatory recall authority, and required the FDA to undertake more than a dozen rulemakings and issue at least 10 guidance documents, as well as a host of reports, plans, strategies, standards, notices and other tasks.

In the spirit of my embracement of Milton Friedman’s theory around self-interest (which is to say that “self-interest is NOT myopic selfishness, it’s whatever it is that interests the participants, whatever they value, whatever goals they pursue”), it’s important to note that FSMA was prompted after reported incidents of foodborne illnesses during the first decade of the 2000s and was largely crafter by members of the Grocery Manufacturers Association. Tainted food has cost the food industry billions of dollars in recalls, lost sales, and legal expenses.

Just a little more history before we move on (and dive in). FSMA is similar to the Food Safety Enhancement Act which passed the House in 2009. This was considered the first major piece of federal legislation addressing food safety since 1938 and the first piece to address the intentional adulteration and food defense. I’m going to pause here…and repeat that last point to emphasize that this act that passed in 2009 was the first major piece of federal legislation addressing food safety since 1938!

In 2011, the CDC estimated that each year, 48 million people get sick, 128,000 are hospitalized, and 3,000 die of foodborne diseases.

In 2011, “Rolling in the Deep,” by Adele, was the best-performing single of the year, topping the Billboard Year-End Hot 100 list. (I don’t know why I felt the need to share that, but as I writing the above statistics about food illness and death, I felt the need to look up the song of the year from 2011).

Let’s jump forward by a little over a decade.

In November 2022, food recalls by the FDA hit a 10-year high or a more than 700% jump from 2021 to 2022. 416.9 million units were recalled in 2022. This spike is what led the FDA to create FSMA 204 Rule, also known as the FDA Food Traceability Final Rule, which requires companies to keep additional records for designated foods to protect public health. was, well, finalized. The objective of FSMA 204 is give the FDA the ability to get ahead of recalls so it can more quickly and precisely get food out of the supply chain when an issue arises.

In 2022, “Heat Waves,” by Glass Animals was the No. 1 Billboard Hot 100 song. I figured I needed to be consistent and provide the top song on both sides of these regulatory bookends (and yes, I checked several sources to ensure “Heat Waves” by Glass Animals was in fact the number song in 2022 b/c I didn’t believe it either).

Now here’s the money shot and the key point for the foodservice industry to know, foodservice and hospitality businesses have until January 20th, 2026, to comply with FSMA 204.

I’ve been reading a lot about the confusion and misconceptions around FSMA 204 and in order to satisfy these regulations, a collaborative effort and conversation needs to take place. The parties that are required to engage of course include the food safety teams, but also corporate leadership teams, supply chain partners, IT departments, and more. All hands-on deck friends!

READ MORE HERE

Branded continues to appreciate and applaud the work of our portfolio companies and the value they bring to the industry. This includes the thought leadership and content our partners create.

Shoutout #1 goes to our friends at Chowly and specifically a post shared by it’s Co-Founder and CEO, Sterling Douglass. It’s not lost on me that this post by Mr. Douglass is consistent with a position Branded’s holds true – that the consolidation in restaurant tech will and needs to continue. Sterling breaks the categories into 3 meaningful categories, and I found his post to be really interesting and worthy of sharing.

I think that Restaurant Tech Consolidation will continue. You'll see 3 categories emerge:

1. Off Premise Platform

2. POS

3. BOH Platform

?? Off Premise Platform

This is everything outside the 4 walls of the restaurant.

It's not just delivery and pickup orders. Orders originating outside your restaurant are definitely part of it, but there's more here.

It's also every digital INTERACTION outside the 4 walls. This is digital foot traffic. And it's going to be a bigger and bigger part of the restaurant whether you like it or not.

It's not a "nice to have" anymore. It's playing a major role in whether restaurants are staying in business or not. I'm seeing it almost every day now unfortunately.

This includes listings, reviews, website, social posts, paid ads, reels, stories, emails, text, bio's in your profiles, and any other digital interaction you can think of.

As tech continues to consolidate, you will see more and more companies trying to tie all of this together. Because when you get the whole diner lifecycle in one place, you get the data you need to thrive.

?? POS

Yeah yeah, not the most earth-shattering take I've had that POS will be a main category of restaurant tech.

But let me add a spin on this.

POS will own everything INSIDE the 4 walls of the restaurant. Payments, KDS, Data repository for menu and orders, Kiosk, pay at table, and other interactions that occur inside the restaurant.

Point solutions will always exist, but you look at POS product roadmaps and their releases, you'll see a lot in this category of things (among the other 2 main categories as well).

?? Back of House Platform

Everything that's needed to manage the literal operations of the restaurant is here. Food and Labor are the essentials here, but also measuring your business will live in this category.

Supply chain, group purchasing, inventory management, recruiting, staff and schedules, accounting, and things that measure the business.

Measuring and managing everything below revenue in your P&L hits here. Restaurants that have tight measurement, management, and execution of these numbers will always have a better chance of thriving than those that don't.

?? Imagine a world where 90% of a restaurant's tech is only split between 3 pieces of technology that all work together.

This is where restaurant tech is headed.

Of course, there will always be point solutions and some truly best-of-breed products, but those will become the exception and not the rule for next few years.

What do you think? Do you think there are different categories? Do you think POS just eats everything? Do you think consolidation won't accelerate?

Shoutout #2 goes to our friends at Copia, and the organizers of the Prosper Forum.

The Prosper Forum has become a favorite event of Branded and that’s b/c of its incredible C-suite of attendees, its thoughtful and most relevant content, and its mission to create a better table and elevate the future of foodservice & hospitality.

CONTINUE READING HERE

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.

Branded's current focus is on our favorite QSR partner,?Big Chicken?and our favorite FSR partner,?LDV Hospitality.

This week I'll also include Craveworthy Brands as key part of Branded's current focus. This emerging multi-unit & multi-brand company goes beyond just restaurants and touches so many parts of the hospitality ecosystem that are important to Branded.

We also loved Gregg’s session down at Prosper for his candor, directness and love of the industry and the people that make it so special.

You’re a good man Mr. Majewski and the Branded Team is thrilled to be working with you, your team and to be on this journey with Craveworthy!

More to come next week as we'll be adding B2B SaaS to our arsenal of work along with these amazing restaurants companies we have the privilege of being involved with.

For avoidance of any doubt on the focus of this B2B SaaS company, did you read the Top of the Fold? ??

You want to learn more? Join the Network!

LEARN MORE HERE

New Release:

Get ready for a Summer REWIND episode of Hospitality Hangout! Join Michael Schatzberg, “The Restaurant Guy,” and Jimmy Frischling, “The Finance Guy,” as they chat with Perry Miele, President and CEO of Nestlé, who has dedicated 30 years to the company with an unwavering passion for the food industry. Highlights of his tenure include the push for “Making More Possible,” embracing robotics, and leveraging AI to enhance both traffic and profitability. Nestlé’s innovations, inspired by the challenges of the COVID pandemic, have been pivotal in shaping the future of food service. In breaking news, Perry has announced his retirement after three decades at Nestlé but plans to remain active in the hospitality industry. Don’t miss this episode—your next favorite podcast is just a play button away!

Tune into the episode and subscribe to our channel here: Hospitality Hangout REWIND Episode with Perry Miele

Re-Run of the Week:

Ben Leventhal, the visionary behind Blackbird Labs, has revolutionized restaurant loyalty with his latest venture, blending cryptocurrency and dining rewards. Known for founding Eater and Resy, Leventhal’s new app uses crypto tokens to reward loyal customers, aiming to support struggling restaurants and keep dining culture vibrant.

We had the incredible opportunity to host Ben Leventhal on our podcast Hospitality Hangout Podcast, where he shared his groundbreaking ideas and insights into the future of restaurant loyalty programs. This episode is packed with fascinating details about how Blackbird Labs is set to transform the way we dine out and interact with our favorite restaurants. Don’t miss this exclusive conversation with one of the most influential figures in the hospitality industry!

Tune into the episode and subscribe to our channel here: Hospitality Hangout Featuring Ben Leventhal

You can tune in on:

Spotify: Click Here

Apple Podcasts: Click Here

Watch on Youtube: Click Here

Are you loving the Hospitality Hangout? Make sure to subscribe, download + leave us a review!

Who made the B List?

FIND OUT HERE

TECHNOLOGY

The Hidden Cost of Success: How Resource Allocation Shifts from Product Development to Services in Software Companies

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

As software products mature, companies often find themselves shifting resources from innovation and development to services and support, which can impact their agility and ability to stay competitive.

CONTINUE READING HERE

MARKETING

The EASIEST Way To Evaluate Tech - A Note From Restaurants to Vendors

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

As we get around Labor Day, into the fall and trade show season, everybody is going to get back into growth mode. That includes both restaurants AND the vendors we partner with.

CONTINUE READING HERE

JOIN THE HEADLINE

Ready to showcase your ideas and insights?

Share your article with us for a chance to be featured in The Hospitality Headline!

LEARN MORE HERE

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 [email protected] 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