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Friends of Branded!

Happy Saturday and I hope you had a great week!

The title above, of course, is from the movie Ghostbusters, the 1984 supernatural comedy directed by Ivan Reitman and written by Dan Aykroyd and Harold Ramis. One could logically assume that with Halloween landing next Thursday, that such was the driver of this week’s title and maybe its theme.

Solid logic, but you’d be mistaken.

Yes, the title is from the movie, and yes, Halloween is next week (those are both indisputable facts). But it’s not the joy of the celebration observed on the eve of the Western Christian feast of All Hallows’ Day and is the beginning of the observance of Allhallowtide, the time the liturgical year dedicated to remembering the dead, that inspired this week’s theme (thank you Wikipedia for the help with the defining of Halloween).

This week’s theme is inspired by what appears to be a spike in outbreaks of foodborne illnesses that are impacting the foodservice and hospitality industry.

I bet you didn’t have foodborne illnesses on your bingo when you saw the star of Ghostbusters, Bill Murray, in the image above!

First and foremost, while not perfect, I believe the Food & Drug Administration (“FDA”) does an outstanding job overseeing our industry. I feel confident in that statement despite the eyerolls I just felt as you read that last statement b/c outbreaks of foodborne illnesses are pretty rare. And in the category of maybe randomness, I feel equally positive about the Federal Aviation Administration (“FAA”), not that they’re perfect either, but planes aren’t falling out of the sky and occurrences of failures are rare!

But back to the topic of foodborne illnesses (yes, a light topic for a Saturday morning read).

The CDC estimates that around 48 million people in the US alone suffer from a foodborne illness each year. This leads to approximately 128,000 hospitalizations and 3,000 deaths. It goes without saying that these numbers are substantially higher on a global basis, especially in regions with limited access to clean water, adequate refrigeration, and safe food preparation practices.

The most common foodborne illnesses are caused by bacteria like Salmonella, Escherichia coli (E. coli), and Listeria, viruses like norovirus, and even parasites. The good news is that most cases are preventable with proper food handling, cooking, and storage practices, but contaminated water and food production issues can make foodborne pathogens hard to avoid entirely.

As an industry, here’s why we need to care, BIG TIME!

Take for example, the recent Boar’s Head listeria outbreak, the recall of over 7 million of pounds of deli meats across the United States, 59 hospitalizations and 10 confirmed deaths. Boar’s Head shares have dropped 8% over the past 3-months and 20% year-to-date.

To be clear (and as highlighted above), I believe the US food system is SAFE, but that doesn’t mean consumer confidence can’t be shaken and the drop in sales of Boar’s Head products have dropped noticeably as consumers appear to be opting for alternative deli meats in light of the health concerns (oh…and the lawsuits are coming and 3 more wrongful death lawsuit have already been filed: Wrongful death lawsuits filed in Boar's Head listeria outbreak).

Just this week, McDonald’s had to take (my favorite sandwich) the Quarter Pounders off the menu at 20% of its restaurants after an E. Coli outbreak.

The McDonald’s outbreak proved to have knock-on effect with our friends at YUM! Brands Inc. as they withdrew fresh onions from some Taco Bell, Pizza Hut, and KFC locations “out of an abundance of caution.” Specifically, the company said it would “continue following supplier and regulatory guidance to ensure the ongoing safety and quality of [its] food.”

Below please find some of the most high-profile food-related illnesses at restaurants over the years.

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Last week I was proud to give a shoutout to our friends at EMERGING, one of Branded’s favorite strategic & value-added investors and its partnership with one of our portfolio companies, Leasecake.

This week I want to give a shoutout to another strategic most and value-added investment platforms, our friends at Savory Fund and its sale of Mo’ Bettahs.

When we think about value-added investors focused on driving emerging brands, Savory is among our favorites and one we recommend to brands. This crew took Mo’ Bettahs from 6 units in 2017 to 56 units at the time of the sale.

Mo’ Bettahs was acquired by private equity firms Blue Marlin and Trive Capital.

When I write about the hospitality industry being among the most democratic, I believe the story of Mo’ Bettahs is an ideal example. The company was founded in 2008 by Hawaii-born brothers Kimo and Kalani Mack. These gentlemen never expected to own a restaurant. They were two city bus drivers from Hawaii who knew how to cook, how to eat and how to work.

As a testament to selecting the right partners, in connection with sale of Mo’ Bettahs, Kimo and Kalani Mack said of Savory, “we wouldn’t be here without our Savory partners, Andrew and Shauna Smith. They have been by our side at every step of growth, all while respecting and honoring our experience and heritage. We are honored to continue the journey with them as we welcome Blue Marlin and Trive to the Mo’ Bettahs’ fold. Their partnership will enable us to share good food and ‘spread da aloha’ across the mainland for years to come.”

Mo Bettah’s is a leader in the Hawaiian category and is a truly exciting fast casual brand. Schatz and I had the privilege of dining at Mo Bettah’s on a visit to Utah to see our friends at Savory and I can only hope that this concept makes it way to NYC someday!

Ohana!

Today’s second Shoutout goes to our friends at Restaurant365 (“R365”), a leading back-of-house accounting, inventory, workforce management and payroll solution developed specifically for the restaurant industry.

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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 as we're now able to announce our newest portfolio company, Starfish Technologies, to join our Branded Bunch!

As we enter the final two months of the year, it will be a big sprint to finish and we're thrilled to be supporting a diverse group of hospitality companies, including, but not limited to?Big Chicken;?LDV Hospitality;?Craveworthy Brands;?and?Fishbowl.

New to the list this week, we're proud to include Mr. Bing, a company that is all about East Asian Street Sauces and bold flavors. That’s right, Branded is getting a little saucy and we couldn’t be more excited about our spicing things up!

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: Bad Ass Coffee CEO Tells the Brand's Badass Story

Join Michael Schatzberg, “The Restaurant Guy,” and Jimmy Frischling, “The Finance Guy,” In our latest Hospitality Hangout episode, we dive into the remarkable journey of Scott Snyder, CEO of Bad Ass Coffee of Hawaii. Scott shares how he transformed the brand from its quiet beginnings into a powerhouse in the coffee industry, merging authentic Hawaiian culture with a modern approach. From his unconventional relaunch on Friday the 13th in 2020 to scaling up stores across the U.S., Scott explains how Bad Ass Coffee is carving out a unique space in the competitive coffee scene.

Don’t miss Scott’s exciting news: Bad Ass Coffee is opening its first New Jersey store next month in Hackensack, with their inaugural franchisee convention in Denver on the way too! As always, we close out with a lighthearted round of “Branded Quick-Fire,” where Scott tackles trends like TikTok drinks and plant-based milk. Tune in to catch the full story and more!

Tune into the episode and subscribe to our channel here: Hospitality Hangout With Scott Snyder

Re-Run of the Week:

With the recent acquisition of a majority stake in Mo’ Bettahs Hawaiian Style Food by Blue Marlin Partners and Trive Capital from Savory Fund, now’s the perfect time to revisit our conversation with Mo’ Bettahs CEO, Rob Ertmann, on Hospitality Hangout.

Hosts Michael Schatzberg, "The Restaurant Guy," and Jimmy Frischling, "The Finance Guy," sit down with Ertmann to uncover the story behind this vibrant brand, from its modest beginnings to its impressive nationwide growth. Rob shares a behind-the-scenes look at Mo’ Bettahs’ journey, discussing how Savory Fund helped them evolve from a six-unit concept into a powerhouse with over 40 locations.

From partnerships with tech giants like Olo and Ovation to an expanding presence in cities like Las Vegas, Houston, and Phoenix, Mo' Bettahs' journey is a case study in smart growth. Tune in to hear how Mo’ Bettahs has crafted its unique recipe for success.

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

You can tune in on:

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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?

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TECHNOLOGY

Level Up Your Marketing with Gamification: Turn Engagement into Fun

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

Want to keep customers hooked? Gamification is your new secret weapon.

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MARKETING

FINALLY! A Source For The Best Restaurant Marketing Tips, Tricks and Tactics!?!??

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

Meet Up Up and Away - The restaurant marketing podcast saving the world from bad marketing!

At this time, we've already got 5 incredible episodes that give you marketing tips, tricks and tactics you can start to implement today!

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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