Finish Strong (with a Smile)
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Friends of Branded!
Happy Saturday and I hope you had a great week.
The holiday season is in full swing and that of course means different things for different people (and different things for different businesses).
For some, it’s a time to winddown and wrap things up before taking a break for the holidays and ringing in the New Year.
For others, it’s a sprint to the finish with the goal of getting those final projects in the books before the ball drops in Times Square, my Bostonian friend JB’s favorite place second only to Fenway Park (how long do you think I can keep this New York vs Boston joke with my boy JB going? Oh, it’s already well passed its expiration date. Sorry about that). 😊
I think for most people, the weeks between Thanksgiving and New Year involve some combination of work, holiday cheer (in whatever way you like to recognize the holidays) and hopefully some reflection on the year we’re putting to bed as well as thinking about the year ahead.
I’ll take this moment to channel my inner Barbara Streisand (who my mom believed is a national treasure) and bring back a memory from the corner of my mind and specifically December 2023. The Branded team worked around the clock to close on the sale of Targetable to Chowly, on the very last business day of the year.
I’ll give a ‘legacy’ shoutout to Targetable’s former CEO, Andrew Nash, Chowly’s CEO, Sterling Douglas and Branded’s CIO, Mark Senkpiel, (along with many others) that worked until the evening of Friday, Dec 29th to make that closing happen. I was out at Doug Quinn’s Hudson Malone as I waited for the call from Sterling to confirm that we closed (and I may have ordered an adult libation to recognize a most meaningful moment for Targetable, Chowly & of course Branded as well).
Will there be another photo finish for Branded in December 2024? Stay tuned and I’ll be sure to let Doug Quinn know if I plan to be at his bar again, this year on Friday, Dec 27th (the last business day of 2024). 😊
For Branded, 2024 was dominated by a number of special situations and I’ve covered the companies that we worked closely with and advanced. Several themes, however, have or are developing and it has created a wealth of activity at the Top of our Funnel and has us thinking a great deal about the year ahead.
It’s hard not to believe that the embracement of AI won’t be a most meaningful trend for 2025. The restaurant industry has long been among the slowest industries to adopt technology & innovation, but with the explosion of tech that has burst onto the scene since the global pandemic, from my seat, I see a bar-belled approach when it comes to what operators are focusing on for the year ahead. On one side, I see a ‘back-to-basics’ approach, which I define as operators looking to provide their guests with experiences, value (not expensive or cheap, but value for their money), and personalization. From our Hospitality Hangout podcast and specifically the segment “hot or not,” I can tell you that QR codes for ordering have completely fallen out of favor and I see this as an example of going “back to basics.”
On the other side, I expect (which isn’t hard to say b/c much of this is already happening) AI to be an important solution for how operators can leverage and be tactical with the wealth of data that’s being collected.
Guest data, which can also be defined as consumer preference data, represents value to a number of different stakeholders in and around the foodservice and hospitality industry. For most operators, the data available or delivered as comma separate values (“CSV”) file doesn’t represent value, I’d say it represents work that is unlikely to get done and therefore won’t be much of any help. Tech platforms that are taking in the data from operators and converting into actionable and tactical recommendations and / or solutions for operators are going to have a strong 2025.
Leveraging guest data will support operators need to connect, personalize, and improve guest experiences and it will also sharpen operators’ ability to make more informed, data-driven, and therefore less emotional decisions. If personalization is what’s going to be required to win a greater share of the guests’ wallet, then optimization and efficiency will be the obsession of operators when it comes to back of house (for example, optimizing labor, procurement, and inventory). AI represents an opportunity for the democratization of our industry as independent operators (over 70% of the restaurants in the US) can have access to information that will help them be a more efficient and engaged businesses with their guests. This is something that's typically been limited to only the largest hospitality operators that had the depth and scale to carry the human capital resources to perform such work.
Using this week's Shoutout section to recognize a few of Branded's portfolio companies that making things happen as we bring 2024 to a close!
The first shoutout this week goes to our friends and partners at Fishbowl.
While I shared a few technology ideas above that are gaining traction with their respective audience, one area of tech where there can be no debate is about the importance of loyalty programs. I don’t think I need to convince you of this. You know why? It’s b/c you’ve already embraced the importance of loyalty. You’re part of airline loyalty program, a hotel loyalty program, and probably car rental loyalty program as well (and most likely more than one of each of these categories).
Operators, friends, you need to embrace loyalty for your restaurants! Why? B/c according to National Restaurant Industry State of the Industry 2024 Trends Report, 81% of consumers not currently enrolled in a loyalty program say they’d join. If you’re not running a loyalty program in 2024, I fear you can’t truly understand how many guests (and how much revenue) 81% represents.
Fishbowl has created the “Ultimate Guide to Loyalty & Rewards” and it will give you everything you need to know to build a loyalty program that actually works.
The second Shoutout this week might look like it’s going to our friends & partners at Mr Bing Foods, but it’s really going to the entire pizza industry (okay, it is about Mr Bing).
Yes, the pizza industry, the one with a market value of about $50 billion, the one that sells about 3 billion pizzas each year, and food 1 out of 8 Americans eat daily!
To the good people over at the National Association of Pizzeria Operators (“NAPO”), I love that you were among the very first to embrace crushed red pepper flakes as a condiment to add a little heat and flavor to pizza. I also love tradition, but you’ve been using crushed red pepper flakes on pizza since the mid-20th century. But isn’t it time for an upgrade?
Please allow me to introduce you to my good friend, Mr Bing! They have a line of products that will make your pizza standout. On your pizza, in your pizza, insider the dough, mixed with the sauce, this is a match made in heaven!
Bold statement coming, but I’m standing by it, Mr Bing’s Chili Crisp Hot Honey drizzle is a level up from Mike’s Hot Honey. There, I said it!
Bing it on Mike!
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.
Featured Episode: Let The Food Speak – Sweetgreen’s Blend of Art and Science
This week on Hospitality Hangout, we’re thrilled to feature an incredible guest: Jonathan Neman, co-founder and CEO of Sweetgreen. Jonathan shares the inspiring story of how he and his college friends turned their hunger for quick, healthy, and affordable food into a fast-casual revolution. Hear about Sweetgreen’s journey from an idea to a brand that blends art, science, and purpose to create real, wholesome food.
From the philosophy behind their innovative menu to Sweetgreen's vision for sustainable growth, this episode is packed with insights on the future of food, tech, and hospitality. Plus, get the scoop on Sweetgreen’s upcoming loyalty app relaunch and Jonathan’s take on drone delivery, fake meat, and more in our fun games segment.
Tune in now to catch this amazing conversation and find out how Sweetgreen continues to lead with purpose and passion!
Tune into the episode and subscribe to our channel here: Hospitality Hangout With Jonathan Neman
Re-Run of the Week: Best of the Crystal Ball Moment
In this week’s podcast re-run, we’re honoring the legendary Amazing Kreskin, who passed away this past week. We were lucky to have Kreskin as a guest in a special "Best Of" episode of Hospitality Hangout, where we dove into “The Crystal Ball Moments” segment—our chance to ask hospitality and tech leaders to predict the future, all while channeling their inner Kreskin.
In this episode, our guests—including Brian Anton of Citi, Andrew Smith of Savory Fund, and Kimberly Grant from Four Seasons Hotels—made bold predictions about the future of dining, technology, and hospitality. From shifts towards in-person dining, the rise of touchless technology, to the blurring of lines between fast casual and dining experiences, their insights still ring true today.
To honor Kreskin’s memory and his influence on how we see the future, we ask you: where do you see hospitality and technology in the next two years?
Tune into the episode and subscribe to our channel here: Hospitality Hangout With The Amazing Kreskin
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?
TECHNOLOGY
The Five Guys Burgers Spillover Effect: How Software Companies Can Serve Up Exceptional Value
By: Seth Temko, Solutions Services Partner at Branded Hospitality Ventures
Software companies can significantly enhance customer loyalty and perceived value by adopting a "spillover strategy," offering unexpected extras and benefits reminiscent of Five Guys' generous servings of fries.
MARKETING
Increase Revenue In January With These 5 Restaurant Marketing Tactics
By: Rev Ciancio, Head of Revenue Marketing at Branded Hospitality Ventures
Here are 5, easy to execute tactics that work for all restaurants of all sizes and service models that you can start to plan for today that will help you to have a successful January with your restaurant.
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
Seed Raise: Tokenizing premium spring water & helping 1.4 billion people in need of clean drinking water 💧 Quenching thirst, boosting profits 💧 30M+ Impressions/Year | RWA | DeFi | DAO
1wSounds like an exciting lineup this week, can't wait to dive in!
3X Exited Tech Entrepreneur | Building AI Employees for Hospitality | Mia Converts Private-Events Leads into Revenue.
1wGreat read! Very inspiring and informative. You’re spot on about the importance of balancing AI innovation with the "back-to-basics" approach in hospitality. Looking forward to seeing how this evolves in 2025!
CEO & Co-Founder, Incentivio, Inc.
1wTech platforms that are taking in the data from operators and converting into actionable and tactical recommendations and / or solutions for operators are going to have a strong 2025. - Quoting Jimmy...