A Deeper Dive

Let’s meet 7 Brew, one of the fastest-growing chains in the country. This week’s episode of the Restaurant Business podcast “A Deeper Dive” features John Davidson, CEO of the rapidly growing drive-thru coffee chain. If you haven’t been to a 7 Brew, just wait: One will probably show up near your house sometime soon. The company’s unit count nearly tripled last year—enough to make the brand No. 3 on the Restaurant Business Future 50 ranking. It has grown even faster this year.   But anybody who listens to this podcast probably knows that such fast growth comes with serious risks, and we talk with Davidson about how the brand set itself up for growth and how it’s been able to grow that quickly. And it will only continue to grow quickly in the coming years. We also talk about why drive-thru coffee is so popular—several fast-growing chains in the U.S. serve drive-thru coffee in fact. And we talk about the chain’s expansion into smaller markets. We also talk extensively about training and operations. And why Davidson wants 7 Brew to be “the Dollar General of coffee,” and what that means. We’re talking 7 Brew on A Deeper Dive so please have a listen.

How do you build a restaurant brand platform? This week’s episode of the Restaurant Business podcast A Deeper Dive features Gregg Majewski, the longtime industry executive and founder of Craveworthy Brands. We spoke with Gregg at the FSTEC Conference in Texas earlier this month. Majewski had worked for years in the industry as an investor and executive, most recently as CEO of Mongolian concepts BD’s Mongolian Grill, Genghis Grill and Flat Top Grill. Earlier this year he created Craveworthy Brands, which hopes to strike gold by finding the next big concept. It has several brands under its umbrella, including the Mongolian concept and emerging chains like Lucky Cat, Krafted burger bar, Budlong Hot Chicken and Wing it On. The company is on the verge of a trio of acquisitions, one of which Majewski reveals on the podcast. We talk about the strategy behind the acquisitions and why it makes sense to operate many brands under one umbrella. We talk about the market for mergers and acquisitions and where that’s headed in the future. And we talk about other issues, such as third-party delivery and why Majewski thinks more brands should hold off on excessive charges on third-party delivery orders. It’s a fascinating conversation with the latest restaurant brand collector so please have a listen.

How can a small restaurant operator think about marketing? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Chip Klose, the host of the Restaurant Strategy podcast and author of the book The Restaurant Marketing Mindset. We wanted to talk with Chip about marketing, and why it’s so important for restaurant companies. We initially thought we’d discuss some recent industry marketing trends but we ended up talking entirely about how small brands and operators should think about it. Klose coaches operators on the topic. And he believes that marketing is vital for operators and that they should get into that mindset even before they open their doors. He discusses the best way for operators to get into that mindset. We also talk about social media and the best way to leverage that medium to keep pace with large brands. It’s not as simple as just having someone “do social media.” And we talk about where the best marketing takes place. Hint: It’s not far from the restaurant. It was a fascinating conversation about marketing so check it out.

Why are consumers and franchisees so interested in chicken tenders? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Andy Howard, the CEO of the chicken chain Huey Magoo’s. Howard has had a long history in the chicken business, a history that mirrors the evolution of the chicken business. He talks about Huey Magoo’s, the Florida-based concept he acquired a few years ago, and which has become one of the fastest-growing chains in the U.S. He talks about the company’s growth in recent years and the factors behind that growth. We also talk extensively about consumer demand for chicken and how that demand has evolved. An abnormally large number of the fastest-growing chains in the U.S. sell chicken. We also talk about demand from franchisees, and why Howard is the one who leads franchise sales for his brand. And we discuss what he looks for in a franchisee, and what kind of real estate the brand looks for. It’s a fascinating conversation with the owner of one of the fastest-growing chains in the U.S., so check it out.

o you get a popular local concept ready for prime time? This week’s episode of the RB podcast “A Deeper Dive” features Greg Vojnovic, the longtime development executive, who joins the podcast to talk about his small chain, called the Hot Dog Shoppe. Greg has had a long career in the restaurant industry and used to head development for Popeyes and then Arby’s as it formed Inspire Brands. He has since taken on an 80-year-old hot dog and fries concept out of Youngstown, Ohio. He believes the concept has all the right ingredients for expansion. And we ask him all about what it’s like to prepare a brand like that for expansion outside of its home market. Greg has spent the past two years getting it ready to franchise. We talk about what he’s done to do that, how the brand can translate its Ohio success to places like Florida, and what kind of locations the chain can go into. I also ask him if the world is ready for more hot dogs. It’s a fascinating conversation about taking a local concept national so please have a listen.

How will Subway’s sale change the sandwich business? This week’s episode of the Restaurant Business podcast “A Deeper Dive” features Michael Goldberg, the CEO of the 100-unit California chain Ike’s Love and Sandwiches. Goldberg, who has been with the chain for more than four years, discusses a wide variety of topics. He discusses Ike’s history and its plans for growth. He also talks about the surge in sales for the chain’s catering program, and some of the steps the company is taking to meet that demand. He also talks about the restaurants’ return on investment and why Ike’s loves corporate locations. The chain prefers opening in second-generation locations, including closed Subway restaurants. That leads into a discussion on the overall sandwich market and the recently announced sale of Subway to Roark Capital. Goldberg has some interesting things to say about that sale and Subway’s impact on his chain and the market. We’re talking sandwiches on the podcast this week, so check it out.

The restaurant industry has had plenty of its share of fraud, accounting scandals and outright theft. This episode of the Restaurant Business podcast A Deeper Dive features a discussion on some of the more interesting such events in the past and features Editor-at-Large Peter Romeo, host of the Restaurant Rewind podcast. Romeo is the unofficial historian of the restaurant business. We look back at some of the most famous events in the industry, such as the accounting issues at Buca di Beppo and Krispy Kreme 20 years ago, and the impact those events have had on financial reporting. We also talk about some smaller frauds, like the guy in Michigan who used his company’s loyalty program to take from the till. And my personal favorite, the restaurant in California that used a fake priest to elicit confessions of wrongdoing from its employees.

What is going on with Big Boy? This week’s episode of the Restaurant Business podcast A Deeper Dive features Tamer Afr, the CEO of the family-dining chain, to talk about the state of the brand. Afr has an interesting story. He had never been in the restaurant business until just less than five years ago, when he bought Big Boy as a potential growth opportunity. He then had to learn the industry while fixing a chain with an 87-year history. Afr talks about what kind of changes he’s been making, such as its reach into delivery and its foray into international markets. And we talk about what kinds of things Big Boy is doing now, why the brand has so many different alternative names such as Frisch’s Big Boy and Bob’s Big Boy and how they’re all related. And we talk about the chain’s new drive-thru concept it just opened in Michigan. It’s an interesting conversation about buying and fixing a legacy brand, so please have a listen.

Where are commodities headed in the coming months? This week’s episode of the Restaurant Business podcast A Deeper Dive features David Maloni, the principal with the consulting firm Datum FS, to talk about where food prices are headed. Maloni is a recognized expert in commodities forecasting and supply chain issues. We talk about the state of food prices in the U.S. and his projections for costs going forward. In short: Maybe don’t consider marketing a bacon double cheeseburger. Beef costs are going up and will likely stay there for a while. Maloni discusses why and how long it could take for those prices to ease. We talk extensively about chicken, and why those costs are so cheap. And we talk about other commodities such as pork belly, grain prices and cheese. We’re talking food costs on A Deeper Dive so check it out.

What do Subway, Chipotle and Texas Roadhouse have in common? They’re all subjects of this week’s episode of A Deeper Dive. I asked a pair of, uh, veteran editors to join me on the podcast to talk about a single event they covered over the past decade that was particularly memorable. Restaurant Business Editor-at-Large Peter Romeo and Executive Editor Lisa Jennings were happy to oblige. The rule: We could not talk about the pandemic, because that was too obvious. But the result was an interesting discussion on a trio of seismic events that had a major impact on the industry and particularly the aforementioned restaurant chains. We talked about Subway and the infamous Jared Fogle incident, about Chipotle’s foodborne illness outbreak and the death of Texas Roadhouse founder Kent Taylor. Check it out.