The Signs are Everywhere
Michael “Schatzy” Schatzberg
?? Hospitality & Foodservice | ?? Investor | Technology & Emerging Brands | Restaurant Owner | TechStars Mentor | Advisor | Co-Founder & Managing Partner | ??? Podcast & Talk Show Host | Industry Influencer ?Entrepreneur
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Friends of Branded!
Happy Saturday and I hope everyone had a great week.
What do the investment firms Blackstone Group and Pershing Square mean to you or make you think? For those less familiar with either of these investment companies, Blackstone is the world’s largest alternative asset manager with more than $1 trillion in assets under management (AUM). Pershing Square is a hedge fund management company known widely as an activist investor.
Regardless of whether you think highly or less so of these firms (for avoidance of any doubt, I think highly of them), I’ve never heard anyone refer to them as “dumb money,” ever.
So, why am I opening this week’s edition of the H^2 with these two incredibly successful and large investment firms, it’s b/c of two specific announcements I read about this week.
Blackstone acquired Tropical Smoothie Café for an estimated $2 billion. Pershing Square shared that 36% of its portfolio are in two well-known restaurant stocks, Chipotle Mexican Grill and Restaurant Brands International (RBI).
As an active investor in the world of emerging hospitality technology, innovation, and restaurant brands, there’s one comment I hear more than any other when introducing Branded’s investment strategy, “restaurants are very risky.” Yes, yes they are, but it’s an asset class that Branded not only loves and has great conviction in, but one that deserves far greater attention.
I had the privilege this week of attending a new-to-Branded in-person event hosted by our friends at Source50 Summits. Unlike the vast majority of the conferences Branded attends, this was not a hospitality or technology industry event, but was industry agnostic. Source50 Summits bring together an ensemble of investment professionals across a wide spectrum of asset classes and industries. For Schatz and me, it gave us the opportunity to not only learn about the areas of interest and focus of other investors, but to also hear their thoughts and reactions on the sector that Branded is exclusively focused on.
In the spirit of give and take, this summit also afforded Branded the opportunity to speak and engage with these professionals about the digital transformation underway in the world not only of restaurants, but hospitality at large.
The one comment I tried to get across in each of our meetings (other than an apology for my bringing them into this weekend ‘read’ and its lack of brevity) was that every single person at the event (and every single person we know), will consume food & beverage, every day, for the rest of their lives. How and where we each do it will of course vary broadly and will continue to change and evolve, but like oxygen and gravity, it’s a permanent and consistent part of our respective lives.
Next week, I expect the Shoutout section will be used to announce our two latest investments and portfolio companies joining our Branded Bunch. As we’re completing the onboarding of these companies, I was feeling a little nostalgic about our very first investment, PourMyBeer and as the article below by our friends at PourMyBeer make clear, this self-pour solution is most certainly NOT limited to alcohol (and the company now also operates under the name PourMyBev).
It’s not lost on me that this was a specific company I spoke quite about quite a bit this week while I was down in Naples for the Source50 Summit (so maybe it wasn’t all about nostalgia). ??
When people ask me about automation and specifically innovations (where hardware meets software) that are going to impact the industry, I know there are some big things happening in the world of robotics and I can’t wait to see how these innovations improve and create much needed efficiencies.
Our friends at PourMyBeer contributed their own piece of thought leadership this week and I’m proud to share their article with you below. Whether you want to use this self-pour solutions company for serving alcohol or non-alcohol (as the article below will illustrate) to your guests, there's no finer or stronger solution in the market.
Enhancing the Guest Experience with Non-Alcoholic Self-Pour Beverage Offerings.
Readers of the Hospitality Headline, that are interested in learning more about Branded’s portfolio companies, investment strategies and future opportunities, are invited to explore becoming part of our Access Hospitality Network.
In today’s episode of Hospitality Hangout, Michael Schatzberg, “The Restaurant Guy,” and Jimmy Frischling, “The Finance Guy,” are joined by Tracy Kim, CEO of DIG.
Tracy tells us about her journey from a pre-med student at Stanford and earning her MBA at Harvard Business School and her subsequent leap into the hospitality sector, culminating in her leadership role at DIG. Fast forward, Tracy dishes out how DIG has ‘bowled over’ their audience and positioned itself as the go-to solution for lunch and dinner. Tracy also shares how DIG has used data and technology to modify their approach to capturing new audiences. Plus, why culture is more than just training and the importance of a truly dedicated team.
Who made the B List?
TECHNOLOGY
Navigating the David vs. Goliath Landscape: How Small B2B SaaS Companies Can Overcome Size Perceptions and Acquisition Fears
By: Seth Temko, Solutions Services Partner at Branded Hospitality Ventures
Explore strategic approaches for smaller B2B SaaS companies to build trust and allay fears among potential clients concerned about their size and the risk of acquisition by larger, less innovative firms.
MARKETING
The 4 Best Restaurant Trade Shows to Hit This Spring
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
We are hard-core into trade show season here in the first half of the year! A super fun but super busy part of the calendar. Which ones are you planning to attend? Which ones will I be at?
That’s it for today!
See you next week, (about the) same bat-time, same bat-channel.
It takes a village!
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
20+ Years Uncovering Prime Real Estate Opportunities for Savvy Investors | We Invest In Every Deal Alongside You
8 个月What innovative guest experience strategies have you seen implemented recently that you believe will redefine customer expectations in the hospitality/food sectors?
Hospitality Marketing Executive – Brand, Customer & Technology Evangelist. Inbound Strategies & Brand Marketing Solutions.
10 个月go deep!
Revolutionizing kitchens with healthier, safer, and cost-effective MUFA cooking oils.
10 个月Mike - the investors in QSRs (Pershing Square and Black Rock) are like Emu's. They bury themselves in analytical reviews but not product reviews. In fact, the analysts of RBI, MCD, Yum Brands, etc., are not worth the $ they are getting. MCD and Yum Brands have been caught twice for using poor-quality products and fancy marketing language. It will happen again soon, and this time, the heads will not just be those at the top - the rot goes all the way down.
Hospitality Fortune 500 District Operations Manager | Food Amenities Work Place | Long Lasting Client Relation Expert | Visionary Leader | Revenue Strategy Driver | Creating Enthusiastic Customer Centric Teams
10 个月Awesome recap; thanks for creating it- leaves me feeling invigorated and inspired on the future for my industry that I am so passionate about!