Who Wants to be a Billionaire?

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Friends of Branded!

Happy Saturday and I hope you had a great week!

Can you keep a secret? No really, can you? Schatzy likes to say that he can keep a secret, but it’s the people he tells that can’t. ??

In all seriousness, despite the reports and headlines about the challenges in funding and how the spickets have been turned off with respect to capital flows, well, capital is in fact flowing.

I’m not saying the flows (remotely) match those of 2021, but deals are getting done and among the most active investors, few have changed their respective deal closings this year compared to last.

For all the writing I do about emerging foodservice & hospitality technology, innovation and brands (and yes, I write too much), I had a really fun week spending time with the emerging companies Branded is supporting as we work to bring their respective investment rounds to a close.

So, for this week’s Top of the Fold, I want to shift the focus from hospitality operators (the folks Branded desperately wants to see win and who we promote the tech & innovation companies to that we believe will help them do just that), and instead speak to the Founders of tech & innovation companies that are looking for capital.

Founders, friends, we know what you want and what you’re looking for: (i) capital and (ii) time (and if you can’t get our time, you’ll still be absolutely happy to take the capital).

Before diving in (and no Mr. Barton, I will not be inserting a random reference to an 80s movie here, although I do believe what I did just now is akin to breaking the 4th wall), I think it’s important to put some context or maybe guardrails around this investing topic.? Specifically, since I believe it’s important to write about what you know, I’m using Branded’s early-stage investment thesis?(Seed-Stage and Series Seed-Stage investments) as my point of reference. There are certainly similarities and commonalities across the spectrum of investing from the angel round to the to IPO (and every stage in between), but Branded’s focus in in the Seed and Series Seed Stage, at least for now (IYKYK). ??

I’ve got nothing but respect for venture capital’s big dogs and by that, I mean the renowned venture platforms that have been around for 20 years or more and have billions of assets under management. For these folks to move the proverbial ‘needle’ they need to make big bets and hit big winners.

Branded’s focus, as highlighted above, is primarily on emerging companies and I define that has companies with a minimally viable products (“MVP”) and at least some revenues (proof of concept). I don’t know many venture platforms that claim to be “unicorn” hunters (a company that has an accelerated path to a billion-dollar valuation), but I will say that Branded is NOT a “unicorn” hunter. Please don’t misunderstand, if we have a unicorn, I’ll be the first (after the Founder) to celebrate, but b/c the likelihood of unicorn success is incredibly low and not consistent with our operator-centric strategy, its not something we look for and I dare say even raises red flags for Branded if we feel that’s the path a Founder believes he / she needs to take.

Hospitality operators are among the most just-in-time (“JIT”) professionals of any industry I’ve ever seen and if our focus is on identifying technology & innovation that can help an operator today, then, by all means, unicorns become even less likely. Branded likes to invest in companies that are among the ”one of a few“ players in the given space. We don’t like “one of many” opportunities b/c we have concerns around the competition or saturation of players resulting in a race to the bottom when it comes to pricing. We also don’t like “one & only,” b/c that is often far too much of a hit or miss scenario and also tends to lean on the need to change human behavior or define an entirely new category.

Don’t get me wrong, there have been incredibly successful companies that have changed human behavior. Starbucks changed human behavior by launching as a “third place,” a comfortable space between home (the first place) and work (the second place). Chipotle did it as well by making the “bowl” a new category within the fast-casual dining experience.

Both are amazing stories and wins, and both would have been hard companies for Branded to have embraced b/c of the uniqueness of their offering when they were coming to market.

CONTINUE READING HERE

The first shoutout this week goes to our partners at Leasecake , the markets leading lease & location management solution.

The entire Branded team wants to raise a glass to Leasecake not only on the closing of its $10mm Series A extension round, but for doing so with our friends from EMERGING, the leading growth equity fund for restaurant-entertainment concepts and restaurant technology.

When Branded talks about investors that represent strategic capital, the folks from EMERGING are exactly that and we're thrilled to have them be part of the Leasecake family!

You can read more about this in the press release here: The EMERGING Fund Backs Leasecake with Strategic Investment

For the remainder of Shoutout section, I want to share some thought leadership and specifically a few LinkedIn posts from friends & partners of Branded.

It's not lost on me that my own content tends to be a little lengthy (just a little), so I thought it would be refreshing to not only see who I'm following, and what I'm reading, but given these are all LinkedIn posts, by definition they're SHORT reads!

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.

This was an exciting week at Branded and as I wrote above, we have the privilege of working with and supporting a number of tremendous companies in the B2B SaaS, and emerging restaurant space.

This week we shared some awesome updates on our friends at Big Chicken ; LDV Hospitality ; Craveworthy Brands ; and the OG of guest engagement, Fishbowl .

We love sharing our insights on our portfolio companies with interested parties. Please reach out to me directly if you'd like to discuss.

LEARN MORE HERE

Featured Episode: Loyalty Programs & The North star of Successful Restaurant Marketing

Join Michael Schatzberg, “The Restaurant Guy,” and Jimmy Frischling, “The Finance Guy,” as they sit down with Julie Wade, the marketing mastermind behind Taziki’s Mediterranean Café. Julie shares how her passion for personalized hospitality is driving the brand’s success. At Taziki’s, it’s about more than just meals—it’s about creating meaningful connections with every guest. Julie reveals how this focus, combined with premium, fresh ingredients, sets Taziki’s apart from competitors.

Key highlights include:

• How personalized marketing is Taziki’s "North Star."
• Why Taziki’s offers high-end quality at fast-casual prices.
• Breaking news: New openings in Detroit and Texas signal big growth.

Plus, don’t miss the fun “Branded Quick-fire” games and deep reflections from Jimmy and Schatzy!

Tune in to hear the inside scoop on the future of hospitality and what’s next for Taziki’s!

Tune into the episode and subscribe to our channel here: Hospitality Hangout With Julie Wade

Re-Run of the Week:

Get ready to pull up a chair and dive into a conversation filled with inspiration and industry insights on the Hospitality Hangout Podcast! In this episode, Greg, the mastermind behind the world’s largest franchise operation, shares his journey from flipping burgers at McDonald’s to leading over 2,600 units across iconic brands like Applebee’s, Taco Bell, Panera, and more. Greg reveals the secret ingredients to his success: operational excellence, strategic diversification, and adapting to market trends.

This episode is packed with valuable lessons for anyone in the hospitality industry—don’t miss it!

Tune into the episode and subscribe to our channel here: Hospitality Hangout With Greg Flynn

You can tune in on:

Spotify: Click Here

Apple Podcasts: Click Here

Watch on YouTube: Click Here

Are you loving the Hospitality Hangout? Let us know! Please leave us a review here !

Who Made The B List?

FIND OUT HERE

TECHNOLOGY

Why Defining Minimum Deal Economics is Key to Hypergrowth Without Sacrificing Profitability

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

In the race for hypergrowth, software companies must avoid bad deals by defining minimum deal economics to maintain fiscal responsibility and long-term success.

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MARKETING

BIGGEST TAKEAWAYS: Fast Casual Executive Summit Conference 2024

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

Fast Casual Executive Summit just concluded in Denver, CO. This is a show for proactive brands and proactive thinkers. They also have a built in dinner and networking event. If you want to make great connections, put it on your agenda for next year.

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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