If You Ain’t First, You’re Last

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Friends of Branded!

Happy Saturday and I hope you had a great week.

Despite rolling into the holidays, it was a busy and engaging week at Branded as we’re working to complete a few projects before year-end. What on the surface appeared to be separate and distinct events this week, combined with a LinkedIn post that I loved, is the driver of this week’s theme and the title above from the 2006 sports comedy, Talladega Nights: The Ballad of Ricky Bobby.

For those less familiar with this Will Ferrell movie, the quote comes from Ricky Bobby’s father, who made his son believe that if you don’t finish first, it’s the same thing as finishing last. That’s some tough love from a father to a son (or maybe it’s just tough).

This lesson is also, of course, completely wrong. Even in the film, there’s acknowledgment that not finishing first isn’t the same thing as finishing last (there’s second place, third place, etc). Let’s move on from Will Ferrell and this comedy classic (and I know my wife and younger brother are disappointed b/c they’d absolutely prefer that I continue with Mr. Ferrell as they share a deep love for his movies).

First, the LinkedIn post, by our friend and partner Mr. Gregg Majewski, Founder and CEO at Craveworthy Brands: This is a winner-take-all industry

In the LinkedIn post, Gregg gives high praise to Mr. Ron Shaich, an industry legend and the person who built Panera Bread, and is the chairman of Cava. Regardless of the respect and high praise for Mr. Shaich, Gregg does share a disagreement with this legend as he simply doesn’t agree with Ron’s “winner-takes-all" ethos for the hospitality industry (and for avoidance of any doubt, I agree with Mr. Majewski).

Gregg has an awesome podcast called "Room for Seconds” and I feel that way NOT b/c Schatzy and I have both had the privilege of being guests on Gregg’s show, but b/c it represents “real talk” (that’s a nod to you MR) about the industry, with industry leaders.

People in the restaurant industry (and I’m sure other industries as well) know that names are important, and I’ve always believed that the name of Gregg’s podcast wasn’t random and that there was real meaning behind it to him. In fact, while I thought I knew the double entendre behind the name, it turns out there are several meanings to the name, and he shared one of them in this LinkedIn post: “The name of my podcast, Room for Seconds, says it all. You don’t need to be in first place to dominate this industry.”

Now let’s connect a few dots with other things from the week we just put to bed.

Branded hosted a webinar on Thursday with our friend and partner, Mr. Josh Halpern, CEO at Big Chicken. We had a strong audience for this call and several great questions were asked. One of them, which I admit is always asked whenever there’s a discussion about chicken quick serve restaurants (“QSR”) companies, and that is the level of competition in this segment of the market.

Let’s be clear, the "chicken wars” in the US are fierce, they’re ongoing and they’re also not new. I believe the competition reached a fever-pitch in 2019 when Popeyes launched its chicken sandwich and directly challenged Chick-fil-A. I found the whole battle between Popeyes and Chick-fil-A to be good fun, but let’s be clear, chicken has been a most popular protein and market segment long before this war between Popeyes and Chick-fil-A emerged, and it will remain so for as long as consumers eat (which I expect will be forever).

Quick digression, did you know that the name of the restaurant company Popeyes has absolutely nothing to do with the cartoon character Popeye the Sailor (created by Elzie Segar in 1929)? Did you know that Popeyes, the restaurant company, had to pay a royalty to the owners of Popeye the Sailor for use of the name, even though the company wasn’t named after the character? The name of the restaurant company comes from the 1971 film The French Connection and the character Popeye Doyle, played by Gene Hackman.

I think Popeye, the restaurant company, needed better counsel, but enough about that and this topic is way above my paygrade. 😊

The chicken wars might get the attention and make for fun headlines, but the truth is that this category is on fire! Chicken is America’s favorite protein. Is this a new fact? Not at all. Chicken claimed the top consumption spot on America’s protein ranking list back in 1992 and it remains in the pole position today. Back in 1992, the average America consumed 66.5 pounds of chicken per year. In 2023, the average American ate an estimated 101.7 pounds of chicken per year.

According to an article from Chicken-Chick-In (a critical piece of reading in the Frischling-household), chicken has the “Trifecta Effect”: (i) nutritional value; (ii) affordability; and (iii) reliability.

Thus far we’ve talked about room for seconds and how this industry, that is wonderfully fragmented, can produce quite a number of winners. We’ve also talked about the chicken wars or more importantly, the popularity of this protein. So, what’s left? Sauces, my friends, sauces!

On Tuesday this week, the good people at Nation’s Restaurant News shared an article about KFC introducing a new chicken tenders-focused concept call Saucy. You can read the article from NRN here: KFC is introducing a new tenders-focused concept called Saucy

Out of respect for the good people at KFC, I’ll share that this new concept will feature 11 sauces and 11 beverage and is 100% owned by parent company, Yum Brands. My favorite part of the article is the quote from KFC’s chief new concept officer, Christopher Poirier, who joined the company in January 2024. According to Mr. Poirier, “everyone is obsessed with sauces – more is more. With Saucy, we’ve taken KFC’s famous Original Recipe and amplified it with a brand-new concept that let’s consumers play with flavor.”

According to Technomic’s Flavor Consumer Trend Report,  34% of consumers consider what sauces and condiments are available when deciding what restaurants to visit. This trend and love of sauces is not lost on the Chicken QSR players and the president of KFC US operation, Arun Lal said that the challenging macroeconomic backdrop makes it the perfect time to experiment with a new concept.  So, here’s one of the industry’s strongest players, acknowledging that the company needs to innovate. Mr. Lal said, “we strongly believe that every brand must innovate. This is a time where innovation is key for every business and for every brand. We don’t want to be left behind. We are pushing the boundaries of serving what we serve in KFC but in a different asset format and with a different experience.”

How much fun do you think we had at Branded this week and specifically with our newest partners at Mr Bing Foods as we watched with glee what a legendary company like KFC is doing and specifically their embracement of the importance of sauces and how it allows the guest to personalize their dining experiences.

Yes, in a single week we had the privilege of hosting a webinar with our partners at Big Chicken, celebrated the continued enthusiasm and market recognition that sauces are becoming a valuable and important market segment, and feel so fortunate to work with partners that are working hard to prove that the hospitality industry isn’t about one player taking all. Foodservice brands such as Big Chicken, Mr Bing, and Craveworthy as well as so many of our tech portfolio companies believe there’s room at the table for many folks to win.

You don’t need to be first, but you do need to be bold, take risks, build a community, and as Gregg wrote in his post, “take what’s yours.”

It also always helps to win with partners & friends and maybe do a little shake ‘n bake along the way.

It takes a village.

This week’s Top of the Fold certainly mentioned a few of Branded’s partners and portfolio companies. Acknowledged.

So, in the spirit of the of the holidays and in the spirit of this newsletter, I want to use the Shoutout Section this week to truly recognize some folks doing great things in this industry we love.

Readers of the H^2 and listeners of the Hospitality Hangout know how much we love podcasts and that includes our friends that are creating and putting out interesting, relevant, and fun content.

This week, I want to raise a glass (and maybe a mic🎙️) to our amazing industry friends, @Tammy Billings, @Chrissy Ouellette, and @Erin Levzow for the launch of their fantastic new podcast, @Byte-Sized & Bossy! With humor, heart, and a female-forward perspective, this show dishes on everything from career growth to breaking barriers - and even breaking plates, all with a dash of tech and restaurant industry insights.

They kicked things off with a bang, featuring none other than Branded’s own CMO & Partner (and Producer of our own Podcast), @Julie Zucker, as their first guest. Julie shared her insights and energy, setting the bar high (very high) for what’s sure to be an incredible series. Don’t miss the fun—check it out here: Watch Episode 1

Byte-sized brilliance, boss-level vibes—what’s not to love? 👏

You can check out the episode here: Byte-Sized & Bossy

The second Shoutout this week is admittedly a most local one and I want to recognize, congratulate, and thank, a few great friends on the opening of their joint on the upper east side of Manhattan (and conveniently, in the neighborhood that both Schatzy and I live in), Nightly's.

I grew up in this neighborhood and my entire family sill lives within half a mile of each other (heck, I live on the backside of the hospitality I was born in).

My wife likes to joke that the Frischling's are the “not funny version of Everybody Loves Raymond” (the sitcom from the 1990s)  b/c of the frequency in which my family gets together, hangs out or just randomly stops over at each other’s homes (and b/c I’m not nearly as funny as Ray Romano or even as I think I am).

However, this neighborhood I love has traditionally not been associated as the “cool” one of New York (truth hurts). When I was growing up, you had to go south of 14th street to find the cool joints or leave the borough of Manhattan.

Decades have passed and things have changed, and a joint like Nighty’s is an AWESOME and welcomed addition to our neighborhood.

Nightly’s, is an updated version of classic New York bistro. From craft cocktails to a menu that features a number of New York classics and dishes that make you smile. Nightly’s a joint, it’s a clubhouse and it’s welcoming, warm, cool, and fun.

I’ve lived in New York City all my life (and my boy JB both loves and hates that about me), and I’ve traveled around the boroughs of New York to checkout so many new places over the years, especially when they involve friends of mine.

Making a visit to Nightly’s was (selfishly) the shortest commute I’ve ever had to make to experience a place opened by friends (I know, this is NOT about me), but leaving the commute aside, it was so wonderful to experience a vibe like Nightly’s so close to home.

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.

LEARN MORE HERE

Featured Episode: Let The Food Speak – A&W’s Century of Craft and Nostalgia

This week on Hospitality Hangout, we’re thrilled to feature Kevin Bazner, CEO and Chairman of A&W Restaurants! Starting as a dishwasher at 14, Kevin’s rise to the top is a story of grit, hard work, and respect for every role in the industry.

In this episode, Kevin spills on how A&W blends 105 years of history with bold, modern moves like kiosks and self-ordering while keeping that classic Americana charm alive. Plus, we dive into their craft root beer evolution, wild trends like dirty sodas, and how they’re winning over Gen Z with authentic flavors and nostalgia.

Don’t miss hot takes on craft mocktails, Instagrammable drinks, and A&W’s frosty root beer staying cool in a modern world!

Tune into the episode and subscribe to our channel here: Hospitality Hangout With Kevin Bazner

Re-Run of the Week:

In this special edition of Hospitality Hangout, recorded live at the FSTEC Conference in Grapevine, Texas, Schatzy and Jimmy welcome back Phil Crawford, Global F&B Head of Adyen, for his third appearance on the podcast. Phil brings his deep expertise to discuss the intersection of payments, technology, and the evolving dining experience.

Phil explains how Adyen is addressing the challenges of fragmented payment systems by unifying data to improve reconciliation, marketing personalization, and fraud prevention. Looking ahead, Phil predicts that biometric recognition, predictive technology, and seamless payment systems will revolutionize restaurants in the next five years. He also highlights how Adyen’s global reach enables restaurants to meet guest expectations across borders, delivering frictionless, tech-enabled dining experiences.

Reflecting on tech trends, Phil shares that while QR codes may be fading, tap-and-go payments and data-driven menu personalization are paving the way for the future of hospitality. He emphasizes the importance of simplicity when adopting new technologies.

Tune into the episode and subscribe to our channel here: Hospitality Hangout With Phil Crawford

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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