Revamped Article
Exploration or Voyage: A Depiction of the Path Taken
Hey there!
Weekend vibes all around! We hope your first working week of 2024 was a blast.
For Team Branded, the exciting news of our friends and associates at Chowly acquiring our partners at Targetable was definitely a highlight.
Let's face it, Mom always knew best when she said, "Take joy wherever you can find it." Personally, I found immense joy seeing two of Branded's portfolio companies uniting, not just for business purposes, but both being dedicated to resolving crucial pain points for restaurant operators. Here's the announcement: Chowly Acquires Targetable
Speaking of acquisitions, one of my predictions for 2024 was the surge in M&A activities and consolidation across the food and beverage industry. Now, let me be clear, the upcoming merger between Chowly and Targetable had nothing to do with that prediction. But, hey, it sure did affirm my belief that the industry, and especially operators, are moving towards reduced ISV (Independent Software Vendors) volume and integrated solutions that deliver better value. I've often argued that "best-in-suite" will outperform "best-in-class," and I've heard quite a bit of feedback on that topic.
At Branded, we believe the food and beverage industry is fundamentally powered by great people, and technological advancements should complement, not overshadow, that human element. We've invested in emerging technology and innovation for three decades, and we've always been guided by the conviction that this industry – however complex – is ultimately about great people.
But, let's not forget, trust is essential in the food industry. Trying an unknown dish or a new place to eat is something many of us don't do often. It's incredible to think that millions of people consume various foods every day, trusting the industry and its preparation methods, even when they have no idea about the source of their food. That's something the FDA should be acknowledged for. Yes, you read that right! I gave a shout-out to the FDA, and I'm sticking by it!
Now, let me address the predicted consolidation trend in more detail. It's not only being driven by the needs of hospitality operators but also by meaningful changes in the venture capital industry and the scarcity of early-stage capital. As we kick off 2024, I want to directly communicate with founders and leaders of early-stage tech and innovation companies.
I recently spoke with a media outlet (keep an eye out for the article next week) about Branded's interest in the early-stage market and our business model that focuses on these companies. Early-stage businesses are the sectors Branded finds most impactful, and I believe we excel in this domain. It's where I love to be, helping build businesses and support the new generation. I love using baseball analogies, and I've chosen the sport of baseball as my go-to sport – yes, you've been warned!
Despite Branded's enthusiasm for emerging technology and innovation, we still maintain our longstanding convictions as restaurant owners and operators with over 30 years of experience. Early-stage investing might seem small-ball and risky, but that's precisely when we like to play. Identifying, vetting, validating, investing and accelerating early-stage companies is what Branded is passionate about and, I dare say, good at!
The last few years have seen many large hedge funds and even corporations venturing into the early-stage space, hoping to up their odds. However, some of these players didn't fully appreciate the grit and determination associated with playing small ball or building businesses. The early-stage market experienced a downturn, partly due to a shortage of capital. But fret not, I see a thawing in the capital flows on the horizon!
If you're an emerging technology or innovation company leader, you want to secure capital? Here's my advice:
- Show us you understand your customer.
- Highlight how you can address their challenges.
- Share how your unique solutions can deliver immediate or near-term value.
- And finally, don't just reel off the amount of money you've raised or talk about prestigious accelerators or expected billion-dollar valuations. Instead, tell us what you're doing to help the hospitality industry.
Now, I'm stepping into 2024 with the confidence that this will be a buyer's market! Multiple values are lower than they've been for several years, and capital remains scarce, making deploying capital more advantageous than finding it. Remember, these market conditions won't last forever; they usually don't.
The saying, "Misery acquaints a man with strange bedfellows" may be a bit strong, but it sure is a strange and interesting time when everyone needs to do more with less, and that includes leveraging infrastructure and overhead to cover more ground. This calls for creative thinking, and let me tell you, I'm EXTREMELY excited about the year ahead!
Among our existing portfolio companies, we're preparing for some of them to "graduate" and move onto the next level. We're eager to welcome and collaborate with new players onto our team and into our portfolio. So, let's make 2024 a fantastic year for the Branded community and let's do this together!
As always, it takes a village. For those interested in learning more about Branded's portfolio companies, investment strategies, and future opportunities, feel free to explore becoming part of our Access Hospitality Network.
Tune in to a special edition of Hospitality Hangout, where hosts Michael Schatzberg and Jimmy Frischling were joined by Marianne Radley, the CMO of Smoothie King, for an insightful discussion on effective marketing strategies in the food and beverage industry. You can listen on Spotify, Apple, Amazon, iHeart, or your favorite listening platform!
This week's winner of the WITW (What's In The Wrapper) contest goes to David Nichols and Alex Nichols from Colorado. The Branded Team is fortunate to have a direct relationship with these Nichols! Alex was an outstanding summer intern, and David is the President at Spirits Network & NBTV Channels, another Branded portfolio company and key partner for our Hospitality Hangout and a popular libation at B Works!
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Seth Temko, Solutions Services Partner at Branded Hospitality Ventures emphasizes the importance of embracing failure as a stepping stone to success, not as a mark of defeat.
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IN THE NEWS
Stay updated on the latest happenings in the hospitality and food service industry, as we highlight key stories featuring our partners and friends.
Got Questions? We've Got Answers!
Fireaway your questions, and we'll answer them each week, with the option to remain anonymous or receive a shout-out when we feature your question!
See you next week, at the same time, on the same platform!
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.
Stay informed and connected! Check out Branded At-A-Glance January 2024 to learn more about Branded.
Jimmy Frisch & Julia Suchocki
Branded Hospitality [email protected] & [email protected] Park Ave South, 4th Fl | New York, NY 10003
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.
- Branded's involvement in the food service industry extends beyond investments, as they strive to connect and collaborate with new entities in their portfolio.
- Aside from the food and beverage industry, Branded also has interests in technology, education-and-self-development, entertainment, and general-news sectors.
- In the technology section, a podcast named "Hospitality Hangout" is featured, where industry experts discuss effective marketing strategies in the food and beverage industry.
- The podcast is available on various platforms like Spotify, Apple, Amazon, iHeart, and more.
- Branded Hospitality Ventures is an investment and advisory platform that focuses on food service, technology, innovation, and capital, aiming to provide value to its portfolio companies through investment, strategic counsel, and industry expertise.
