EMERGING Spring Print

Technology disrupting operations and accelerating concept innovation

INDUSTRY LEADING FOUNDERS

RESTECH & RESTAURANT INNOVATION / COLLABORATION

LARGEST ACCELERATION PLATFORM

Fund

EMERGING

Innovative Portfolio Investments

Unsurpassed Team of Partners

Adam Breeden Founder/Co-Founder of Flight Club, Puttshack, F1 Arcade, Hijingo

Peter Venti Founder/CEO of FamilyMeal, Pippy Sips, RealFood

Randy DeWitt Founder/CEO of FB Society, Rock Fish, Twin Peaks, Velvet Taco, Whiskey Cake

Padma Rao Marketing & Product Executive Grubhub, Zynga, Netflix, Grubhub, Tapingo

Nick Hogan Founder/CEO of Flagship Restaurant Group, Blue Sushi Sake Grill, Anthem, Palma, Plank Seafood Provisions, Blatt Beer & Table, Ghost Donkey

We work with industry leaders

We are an extension of the operator’s team, evaluating the real estate opportunities across the country.

Concept Strategy

The process of formulating a strategy with short and long term goals between investment, real estate, and operations.

Customer Intelligence

Capturing relevant data and information to develop market positioning and complete picture of customers.

Strategic Expansion

Helping clients to grow with confidence, brilliance, and the pursuit of a perfect deal.

Lead Negotiation

Utilizing experience of hundreds of letter of Intents negotiations to position the terms in the most favorable but fair manner.

Predictive Analytics

Analyzing the strengths and weaknesses of current sites to optimize site selection with data science.

As real estate experts we negotiate with developers and landlords on our client’s behalf to most efficiently and effectively maximize returns and minimize risk.

EMERGING is a strategic partner

We work with today’s leading restaurant and entertainment concepts.

We are a team of data scientists, data engineers, analysts, real estate experts, creatives, and business professionals committed to pioneering the future of restaurants and entertainment. We are solutions-focused helping our clients to identify critical goals, develop plans, and execute on the most efficient path to excellence.

David Bagley Investment Director

David Bagley is Investment Director for EMERGING. He has over thirty years of experience in corporate finance, operations management, profit improvement consulting, and financial advisory services specializing in franchise and the restaurant and hospitality industries.

Martin Barboza Vice President

Martin Barboza has been providing marketing and repositioning strategies for real estate investment and development for 15 years. He has built a track record of maximizing investment returns during the hold period by ensuring an appropriate capitalization structure, while focusing on optimal property performance.

Mathew Focht CEO

Mathew has a passion for helping best in class restaurant and entertainment operators grow as recognized national leader in their category. Mathew has served hundreds of restaurant–entertainment owners and developers of lifestyle and mix-use centers. Mathew is the founder of EMERGING.

Tim Greenhagen Strategic Advisor

Tim began his career as a physicist, then ultimately building mathematical real estate models for Mcdonald's. He has 28 years of building the most advanced predictable models in real estate, site selection, sales projection, and cannibalization. His experiences include Mcdonald's, Chipotle, Boston Market, Redbox, and most recently Puttshack, Flight Club, Immersive Gamebox, Biscuit Belly, and many more emerging concepts.

Robert Johnson Vice President

As Vice President in the Chicago office, Robert focuses on national tenant representation, new development consulting and strategic capital partnerships.

Spending the majority of his career in hospitality, Alan brings extensive experience and knowledge in fundamental business facets including real estate, data analytics/ site selection, supply chain, operations, marketing, and technology.

Amy Krulas Finance Manager

Amy has extensive real estate industry experience working closely with small businesses to build and maintain the most effective accounting systems and strategies. In 2017, she was awarded LinkedIn's Profinder Best of Accounting Consultants.

Jack Neill is an Associate at Emerging Concepts, with responsibility for national tenant representation and leasing, market research, and supporting all members of the leasing team. Jack is a recent graduate of Indiana University. He earned his BSB with a double major in Finance and Real Estate through the Kelley School of Business.

Jack Neill Associate

Alan Katz Partner

Fernando is a Sr. Developer at F&B Insights, responsible for maintaining, improving F&B Insights's IT infrastructure and bringing new features into life. He was in charge of moving F&B Insights from an outdated monolith to microservices, pushing F&B Insights's infrastructure and scaling capabilities to a new level.

Hudson joined Tipzyy as it's first employee! As COO, he manages the product development and operations teams. He uses his extensive background in team building and project management to deliver high quality products and customer service to clients.

Crystal Rivera is an Associate at Emerging Concepts, responsible for national tenant representation and leasing, market research, and supporting members of the leasing team. Prior to joining Emerging, Crystal worked as a Brokerage Coordinator at Cushman and Wakefield.

He is the Senior Vice President of Acutely. He is started his career at McDonald’s in 1973 with the primary responsibility to develop statistical and mathematical models to predict new store sales volumes.

Crystal Rivera Associate

Fernando Paz Sr. Developer

Hudson Piehl COO

Jim Rand Senior Vice President

Clarissa Save Creative Director

Clarissa is a seasoned copywriter with 10 years of experience writing engaging advertising copy for e-commerce businesses, SAAS, and the hospitality industry. Clarissa specializes in writing creative product copy and loves to make words dance.

Schmidt Director

Megan Schmidt is a Director at Emerging Concepts, and focuses on national tenant representation strategy and leasing. Since joining Emerging Concepts, Megan has played an integral role in national growth strategy for early entertainment and restaurant concepts from both the US and UK.

Amanda Shafer Associate

Amanda is a recent member of the Emerging Concepts team responsible for National Tenant Rep & Market research. Her career history is in office leasing and working with hospitality groups in Chicago on the marketing and design front.

Megan

Noah Tracht Vice President of Strategic Partnerships

Noah’s passion for food & beverage goes back to his childhood, whether enjoying great home cooked meals or experiencing delicious food while traveling with his family, the love began early.

Steve Taylor

Senior VP of Business Development / Partner

Throughout his near 20 year Real Estate and Hospitality career Steve has represented best in class multi concept chef driven, corporate, franchised and emerging food and beverage concepts on a regional and national level.

Veronica Zemon Vice President of Business Development

Veronica has extensive experience building brands nationwide and creating comprehensive sales-driving solutions in the beverage industry. After completing her MBA, Veronica spent eight years working in the advertising agency world creating award-winning campaigns.

We coordinate the execution of your business strategies in real estate, supply chain, data science, finance, and labor providing you with an unprecedented value from one platform.

Museum of Ice Cream

World Famous Attraction

16

An experience that inspires imagination & connection

Museum of Ice Cream World Famous Attraction

Amulti-sensory experience with immersive installations that reimagines the way we experience ice cream. Museum of Ice Cream brings to life the universal power of ice cream by creating experiences that inspire imagination, helping to rediscover the kid in you. Designed to inspire human connection and energize the senses to reimagine the way we experience and love ice cream.

Thirsty Lion

Offering gastropub fare and from-scratch cooking with a culinary commitment to seasonal and fresh ingredients, the food is both craveable and bold.

At the bar, a wide range of local craft beers are available, an option for every palate and plate. Cocktails are crafted with fresh fruit purées, juices, and premium liquors, while wines come in 25 varieties. Enjoy your craft brew and meal while watching the game on one of the flat screens amidst an open kitchen, central bar and a patio that soaks up the sun.

THE MASTERS OF AL FRESCO ROOFTOP MOVIE VIEWING

LOVE, PEACE AND GREAT FILM

We believe that all experiences should be memorable, which is why we are on a mission to transform nights at the movies to cinematic events like no other. You bring your friends and loved ones, and we'll bring you city skylines, sunsets, starlit evenings, awesome drinks, delicious food, and great movies on the big screen. Driven by our love of film, our Rooftops promise a handpicked curation of cults, classics, and new releases. We stand for social cinema because we believe it’s the future.

www.rooftopcinemaclub.com

An Interview with Gerry Cottle—Founder and CEO of Rooftop Cinema Club

What can you say about someone who left the circus to pursue his passion for sharing an incredible experience of the immersive cinematic wonder on rooftops? Some would define this British entrepreneur with words like a free spirit, entertaining, and incredibly insightful. What began in 2011 in London’s Shoreditch has now expanded with a global footprint.

BY MARISA UPSON

Today, you’ll find several Rooftop Cinema Club venues in London, including the prestigious Kensington Roof Gardens, a unique retreat by Richard Branson. In the U.S., there are nine locations and growing. These unique entertainment concepts can be found in Chicago, Fort Worth, Houston, Los Angeles, Miami, New York, and San Diego. What can you expect? A wireless headset, comfy deckchairs and cozy blankets, innovative street food, and craft cocktails, beers, and wine under the brilliant starry sky. And, of course, popcorn.

Recently Mathew Focht, CEO of EMERGING, had the pleasure of speaking with Gerry Cottle about this incredible venture, including how it started and where it’s headed. Let’s see what he had to say.

Rooftop Cinema Club as an Experience

Mathew Focht: Gerry, it’s so great to have an opportunity to hear a little bit of your story. So, how would you explain and describe Rooftop Cinema Club today?

Gerry Cottle: Rooftop

Cinema Club is an openair film experience, screening classic cult and recent film releases. I think film lovers see it as a different experience from traditional cinema. It’s got this immaculate service, and there are no machines. It’s very, very personable, with delicious food and awesome cocktails.

It’s a real social experience. In fact, we call it social cinema and a film experience. Instead of turning up last minute and watching a movie, you get there early. You play games, socialize, and talk about your favorite movies. You have a really enjoyable evening, and then you sit down and watch your favorite movie on the big screen. It’s sunset, and then the stars begin to sparkle. It really is quite magical.

Mathew Focht: Beautiful. Obviously, you already have a great footprint in the U.S. with some wonderful cities. Where do you see Rooftop Cinema going in the next two to three years?

Gerry Cottle: So, firstly, Rooftop’s mission is to change the way people experience open-air cinema. Surprisingly, it’s been around for over 100 years, since the early 1900s. Sun Picture

Theater in Broome, Western Australia, is the oldest open-air cinema in operation.

But for us, it’s about making sure that people come to an open-air cinema and have experiences as good as any traditional cinema, from the quality of the projection to the sound and the overall ambiance and atmosphere we create within a cinema. So, for us, it’s always about how we can do things better. That’s number one. How can we give the best customer experience? While we’re a fun company, we take entertaining people seriously. There’s no product, and they don’t walk away with anything physical. They do, however, walk away with a memory.

We’ve got to make sure that we give them a great memory. They could be on their first date night or a couple that’s just had a baby and got a babysitter so they could go to Rooftop Cinemas. So we need to make sure it’s a great customer experience and film experience.

Regarding the company’s actual trajectory, we have a nice foundation here in the U.S. and plan to keep growing at a steady rate. We’re working with our partners and expect maybe 15 to 20 more venues within

a few years. So, there’s lots of exciting growth on the venue front and then lots of exciting growth regarding how we produce our events and create the experience for the consumer.

The Healing Power of Film

Mathew Focht: Well said. So, why are you in this business? What inspires you, and what led you to this great concept?

Gerry Cottle: Well, Mathew, thank you for asking the ‘why.’ That’s great to hear because we tend to talk about our product, our shows, and events. But it’s important

to talk about the why because we’ve got to have a purpose. Also, if we have a bigger purpose, that bleeds over into our staff and customers.

At Rooftop, everyone really believes in the healing power of film. Festivals are a part of it, but the film is really the ultimate escapism. You’ve got your boss, who could be annoying you, or maybe you just need to let your hair down at the end of the day. Film allows you to do that. You can switch it off, which is especially helpful in this post-COVID world. Of course, we want to keep our eyes on the future and where we’re

heading, but now more than ever, people really need escapism.

So, our job is to give the ultimate escapism. That’s why we do what we do, and we think film has this magic. It really transports people to somewhere, and we believe it’s a necessity. Watching a film is good for mental health, and it’s good for people’s happiness, especially enjoying it surrounded by the outdoors.

The Magic of Outdoor Cinema on a Roof

Mathew Focht: That’s wonderful to hear. I think

films definitely have healing power. So, as you know, the film industry has been under a lot of pressure— traditional movie theaters in particular. But what’s the difference? What do you tell a landlord or developer who’s wondering if Rooftop Cinema makes sense for their project or for their roof that’s in an urban environment? They’re hearing all this negative press and how it’s impacting the movie industry, including the downsizing of all these boxes. What do you say to that?

Gerry Cottle: That’s a good question, and we’ve got to

talk about it, right? You look at cinema as a medium, something that people have enjoyed for a long time. It’s survived two world wars and the onset of VHS. It’s survived television. Another example is the streaming networks, which we love.

We think they’re fantastic and offer great, great content. It shouldn’t be one for the other. We’ve all got a space here. Sometimes you want to sit at home, and you want to watch something. And sometimes you want that magical in-person experience, where you smell the popcorn and hear the laughter, and that only comes when you get off

your sofa.

While cinema is going through some tough times, I think it will be fine. I think what Rooftop really does is offer people a new way to watch movies. I think it’s more than a night out. I think people enjoy that, but also that it’s a celebration of movies. We show classics, some that you may have seen five or ten times, and maybe have them on DVD, hidden away in a cupboard somewhere. Then you go and see them and relive them on the big screen, and that’s what really makes the magic happen. That’s what people really buy into.

Of course, we also do new releases, but to be honest, the thing that’s really worked for us is the nostalgic stuff. It allows people to bring back those memories. And that’s what landlords also see—it’s a unique, new kind of cinema. In fact, we sell out way before we open.

As an example, you’ve got a kitchen in your home where you cook your meals. But that doesn’t mean you don’t want to go out to a nice restaurant. It’s the same with cinema. You’ve got a TV at home, but nothing beats going out to the cinema, especially now in this age. Well, we’ve created a social experience around it, making it a whole evening of fun.

The Urban Setting

Mathew Focht: So, in terms of real estate, what

is your preference? A traditional movie theater box looks at zones and the competition and density. As an unconventional Rooftop Cinema, what’s the magic spot or the bullseye for you in a location?

Gerry Cottle: Here’s the magic and why I think Rooftop Cinema works. A lot of open-air cinemas go into spaces outside of town, like big fields. For Rooftop Cinemas, firstly, the view is important, right? We are built for the new Instagram generation. You can see it in our followers, who far exceed any other cinema in the country. So, the views in big built-up areas really work for us.

The whole reason why I started Rooftop is because I lived in London, and I wanted to watch outdoor cinema, but I had to go out of my way to go and see

it. Part of the magic with Rooftop is that it’s in builtup, urban areas. So at some of our venues, you’ll be sitting there, and you’ll see people going about their day or the cleaners doing their business in the offices. That’s what makes the magic is the surrounding area. And the way we can do that is because it’s more boutique. We’re talking about rooftops between 10,000-15,000 square feet. It’s a real boutique open-air cinema experience. That’s what really, really works for us.

Another big plus for Rooftop is that we use headphones for sound. So again, we can go right into the mix here in the town center and be on a roof late at night, and we’re not disturbing anyone, which really makes a difference. So, we look for great views, and we look for built-up

areas.

About 60% of our demographics are 25- to 34-year-olds, people with disposable incomes, and movers and shakers. They are people that want to go and experience new things. Our audience is often the people with the new iPhone or the latest LG TV.

Another thing we get excited about is nontraditional areas. For example, consider parking garages. I live in California, and if you go down to the amazing town of Santa Monica, the parking garages are packed. But, if you go to the roof, no one’s there because they don’t park their cars in the sun. So, if we find the right space and it’s got the right mix, we will take these spaces and transform them, turning them into a cinematic paradise.

First, the turf goes down, and the lights go in. Our theme is bold, colorful designs, with a funky bar, a cocktail serving area, and a giant LED screen. We’ve got cinemas on top of shopping centers, warehouses, and even residential buildings. We’ve had one of our venues for seven years, and you can literally see the neighbors behind us. But once those headphones go on, no one cares.

I feel we’ve created one of the best uses for rooftops, and that’s what we get excited about. There’s really not anywhere we can upset people. All we do is bring additional income, additional exposure, and additional foot traffic to your underutilized rooftop.

From Circus to Cinema

Mathew Focht: I can tell you’re a little bit passionate.

Gerry Cottle: Yes, I’m an entertainer at heart.

Mathew Focht: What is your background, and what were you doing before building this brand?

Gerry Cottle: Thanks for asking. I’ve got a very colorful past. My dear dad was a circus owner. He ran away to the circus and met my mum. They went on to become one of the most well-known circuses in the world, which is quite funny because he was actually running away. Back then, everyone wanted to run away to the circus, and that’s what he did, and I’m very proud of him for that.

So, I grew up in the circus. I had the best of both worlds. I used to go to school, but I also had the circus world. I’ll share a story from when I was about eight that

depicts one of the aspects I really love about Dad. I remember walking into a big circus with Dad, and there was, as usual, a lot going on with all these acrobats and a big beautiful production. I remember looking at it all and thinking that Dad would really be enjoying it. But when I looked at him, I noticed he wasn’t looking at the ring, even though he had some of the world’s greatest performers there.

I watched him for about three or four minutes, and he was just looking at the audience. And as he watched them, a smile grew on his face. And I knew at that moment that’s why he did it. Yes, he loved the bombast of the circus, but what he really loved was seeing people smile and entertaining them, and I think that’s what I carried with me.

So, I went from being in the circus to spending a few years in London learning marketing and PR. I love the world of PR, and I was fortunate to create great stories for the likes of Cirque Du Soleil, Amnesty International, and Disney. I was kind of entertaining myself in an office job. And then I just had this moment when I realized I wanted to do something that made people smile, and that’s when I came up with the

cinema idea.

It’s the big top on a rooftop. And I still sell popcorn for a living, like my old man. And I really do this because I love to see people being entertained. I love to see people smiling. I’m an entertainer who’s no longer in the ring, but entertaining people through our social experiences.

And here we are, hopefully bringing this amazing concept to as many parts of America as we can.

Mathew Focht: Incredible. So, what aspects of your circus upbringing and your time in PR did you take with you to Rooftop?

Gerry Cottle: I really

learned the importance of advertising and selling an event. While the Rooftop is a cinema, we put on events every night. We don’t just turn the screen on, and people go in. It’s an event, and I think the circus taught me the importance of making things interesting. We’re always constantly evolving our programming and doing more than showing new releases. Of course, there’s nothing wrong with that, but we’ll leave that to the great cinemas out there.

Dad always used to say to me, “You can have a kettle that boils in a second, but if no one knows it’s there, it doesn’t matter.” He was an amazing man and an amazing marketer who

knew the importance of creating an interesting story. And now, my shows are my circus, and I look for ways to make sure they’re entertaining and interesting. While we show serious films, we also do things like special events where people can bring their dogs—the beautiful little things that mean a lot to people. We don’t take ourselves too seriously and make sure there’s something out there for everyone. In essence, the circus taught me how to promote a show, and I bought that to the cinema world.

The Ultimate Enjoyment: Escapism & Entertainment

Mathew Focht: Incredible. So, what is it that brings

people back to Rooftop Cinema, and how do you keep it viable as a long-term trend?

Gerry Cottle: It comes down to what we talked about earlier. It’s two things: escapism and entertainment. We are social animals, and we need to be together. So, we bring people together, and entertainment is the key. When you look back, you see that during the early wars and the toughest times, the last thing people sold were their radios. In fact, they would sell their refrigerators before they would sell their radios. There’s a famous saying, “When times are tough, give people bread and circus.”

Entertainment is the thing that will allow them to forget about all the tough things out there. Life’s not perfect, and there’s always something happening. But it would be boring if it was always perfect! And that’s why, since the beginning of mankind, we’ve always needed entertainment to take us away from our everyday lives. So, for me, the entertainment side of Rooftop is what really makes it special and why I believe people will keep coming back.

What’s really interesting about our business model is it’s changing with the times. For example, when I first started this, 80s films were huge. As we changed generations, the 90s films

became our big genre, and I think we’ll keep seeing this progression.

In London, we’re in our 12th season, and we just had our best year yet. And that’s one of the exciting things, that we’re lucky to have found a concept that’s evolving every year. To be in a mega city like London with all that competition and still be going strong shows the power of the concept, but also the power of film and the love of film and that’s why people keep coming back year after year.

Mathew Focht: That’s spectacular, Gerry. It’s a phenomenal concept, and we hope to be a part of your story long into the future.

Sandbox VR

Sandbox is a futuristic VR experience for groups of up to 6 where you can see and physically interact with everyone inside, just like the real world.

Inspired by Star Trek's Holodeck, their exclusive worlds let you feel like you're living inside a game or movie, and are built by EA, Sony, and Ubisoft veterans. Sandbox VR's funding was led by Andreessen Horowitz and includes investors Justin Timberlake, Katy Perry, Kevin Durant, and Will Smith.

EMERGING Capital Partners

EMERGING is the industry resource for companies ready to grow sustainably and prepare for their next capital event. As a trusted strategic partner, EMERGING offers a suite of services to identify critical goals, develop solutions, and execute the most efficient path to excellence.

Our mission is to invest in today’s emerging restaurants and connect owners to industry leaders that promote the growth of restaurants. Emerging Capital Partners includes owners, operators, marketers, developers, designers, investors, suppliers and real estate professionals supporting the emerging fast-casual, full-service restaurant, and entertainment concepts.

Pre-investment

• Benchmarking sales performance

• Whitespace Analysis - national growth potential

• Customer Demographic and Behavior Analysis

• Competitive Analysis

• 3-5 Year Strategic Plan

• Market Prioritization

• Supply Chain Assessment

• Technology Assessment

Post Investment

• Location Performance Analysis

• Targeted Marketing Efforts

• Validate pricing against the market

• Full Service Supply Chain Management

• Cost Reduction Roadmap

• Expansion Planning

• Market Prioritization through Mind Share and Market Share

• Negotiate and Facilitate Lease Execution

• Implement Process for Objective Real Estate

• Establish form LOIs and Work Letters

• Enhance staff knowledge, improve customer experience

An Interview with Partner Padma Rao, Chief Investment Officer

Recently David Bagley, Investment Director of EMERGING Fund, had the pleasure of speaking with Padma Rao, an innovation partner in the EMERGING Fund.

BY MARISA UPSON

Rao has an extensive background in technology and marketing, including as the Marketing & Product Executive at Grubhub, CMO of Tapingo, and as a consultant and advisor for various startups.

Today, however, she has her hands full as the CEO of Bankroll, the world’s first and Philadelphia’s only authentic luxury sports entertainment venue. The venue offers

unrivaled audio-visual capabilities, a fine dining experience, a theater-like ‘box seat’ venue, private dining spaces, and endless amenities that combine the world of entertainment, technology, and luxury. Let’s see what she had to say about her new venture.

RAO: I came to this field as a technology person. I had left Grubhub and was on the street, so to speak. I’m an advisor for Bullpen Capital, another venture fund, and I asked one of the managing partners, Paul Martino if he

had anything for me to do. I came on as a fractional interim CMO for Bankroll, and within eight months, I became the full-time CEO.

While this is not my first CEO gig, he was still taking a chance because my background is not in this space. But we’ve known each other for over 10 years, and I’m a go-getter, make-it-happen kind of person, which is why I’m currently standing in the kitchen and learning all this stuff. But there are really two things this opportunity

has given me. One is coming from the place where I’ve always worked in the physical world and the digital world and trying to combine those two things. They always feel like they sit adjacent to each other rather than organically embedded into one another.

And so, I asked, what would the world look like if things didn’t exist the way they did today and you built them from the ground up knowing all the things you know about technology today? It would just look different. It would feel different if everyone was kind of at the same level, right?

And then the second part was actually getting to manifest that. Now I have my own playground where I get to make that happen. I mean, the team at EMERGING thought I was insane because we’re opening in the next 10 days, and in December, I changed our POS from Aloha to Toast. That’s because there were a lot of things that we wanted to do, and while Aloha said they had the capabilities when it came down to it, and we’re asking for APIs, they didn’t have what I wanted.

And again, unfortunately for them, I’m super technical. So, I was like, no, that doesn’t work, and that’s

not what you promised. Toast, while not exactly what we needed, was definitely way closer and understood what we were trying to accomplish. And so we moved to Toast, but it takes someone like me to have the courage to do something like that because I’m not afraid of technology.

I already know the things that are going to happen. I know how to have the conversations and shortcut some of the salesmanship that happens in between and some of the redirection you get when you’re trying to implement these things. It’s a lot to ask of operators, to have that kind

of technical expertise when doing this. And so, a lot of this is my Petri dish, getting to figure all this out.

The other part is what would the world be like if we understood and knew how consumers wanted to consume technology but in physical spaces. And how do you use technology to bring people together instead of being in a physical space with everybody just looking at their phones? I’m super excited about it if you can’t tell.

EMERGING: That’s great. Also, the build-out that you’re doing here is

ridiculous—the dollars they’re spending to build an amazing place. I don’t know if you want to share anything, but it’s mindnumbing what you guys are doing.

Rao: So we took an old movie theater, the Boyd Theater, close to Rittenhouse Square, which is in the heart of Philly, and the space next to it where there used to be a Gap. We renovated the whole thing. We felt like it was in the vein of the viewing experience, the fact that it was an old movie theater.

And then we spent over $20 million on renovations.

It includes $2 million for the kitchen and over $3 million in tech. I think I might throw up just saying these numbers, but we’re super proud.

They’re putting the furniture together as we speak, and you can feel the vibe, and it just works. The luxury works, the screens are not too much, and it doesn’t feel like a normal sports bar with crap all over the floor.

We had to make the investment because part of the bet was the luxury piece of it and making it an outstanding venue. Our space is highly configurable and covers a spectrum of different types of spaces. Everything from what looks like a normal restaurant to an 8×12 foot screen in the front with 50 viewing seats and a private bar upstairs. There are also spaces that we call “the bungalows” where you have your own screens that you can program however you want. And there’s a couch with a table and then the central marquee space which is like a traditional bar area. It’s like you’re walking into an old-school movie theater, two floors high with two staircases—we left all that in place. And then there’s a bar in the center of it.

You probably end up in this

situation a lot where you go to a business dinner with a bunch of random people that you don’t really know, and you’re sitting next to two people that you’re not really excited about sitting next to because there are other people you’ve targeted. Or, you’re at some place where it’s your turn to go, like a putt, putt, and it’s like, no, I’m talking to the person I came to this event for, and I can’t take my turn. You take my turn. This space plays that middle ground—an activity that creates a casual moving environment, but, at the same time, it’s not a cold start with a bunch of strangers at a dining table.

So, we’ve kept the website down, so nobody knows what the space looks like unless you actually come to see it. Somebody just posted, and we doubled our social media to 1500. You actually can go to our social media, it’s on Bankrollphl, and you’ll see it’s just pure brand. You can’t even tell that we serve food at this point. But that’s part of it to me. I want you to walk in feeling the luxury and what part of that luxury is high-end food, the way that you want it. It’s the type of seating that you want and the type of viewing that you want. All of that is configurable for you.

Why Restaurants Should Invest with an Industry Insider

All too often, troubled investor relationships end up with restaurants in trouble. For upcoming chefs and restaurateurs who need capital, selecting the right restaurant investor is critical and often makes the difference between success and failure.

BY MARISA UPSON

One of the most important considerations is the level of expertise and the type of relationship these investors provide.

In the restaurant industry, you’ll find two common investors, those solely concerned about the investment for themselves and those who view the investment as a partnership.

An Investor

Some investors take the role of the money lender. Period. They invest so much money in a given amount of time, and the rest is up to the borrower. Some entrepreneurs look for this hands-off type of investor who provides funds in exchange for a future return or an ownership stake.

This investor may appeal to restaurant start-ups wanting to maintain the essence of complete ownership and retain the ability to make important decisions on their own. However, if you can enter into a partnership with an experienced and successful investor who has walked in your shoes, done the work, and come out the other side triumphantly, you’ve gained business knowledge that is hard to come by and can pave the way to successful

ventures for years to come.

The association between an investor and a borrower is, in many ways, like a long-term relationship and demands the same kind of scrutiny. Don’t jump into an investment relationship because you’re desperate for capital. Take your time and explore your options, and if you feel like you’re being pressured in any way, consider that a red flag. High-pressure sales tactics are almost always a no-win situation.

A Mentor

An experienced and successful investor in your niche offers expertise and skills in addition to capital. The key is finding an investor/partner that’s successfully traversed your sector. For example, if your concept is fine dining and your investor has experience in quick service, the gap may negate the valuable information and knowledge they may have otherwise provided.

Working with industry insiders gives you access to proprietary deals unavailable to those outside the profession. Industry experts can also demonstrate a track record of value creation and have developed key relationships that take years to carve out. These investors help

you tap into new markets and successfully navigate the current supply chain upheavals.

Highly Experienced Industry Insiders Funds with highly experienced team members in their niche offer a unique viewpoint. They can analyze business operations from the foundation up and offer advice that develops a solid structure in ways that an investment banker cannot. This way, restaurants build sustainable growth instead of rapid growth spurts that die off.

These insiders also know the upcoming trends and have, in many ways, disrupted and revolutionized the industry. For those looking to remain on the cutting edge of today’s fast-paced technology, working with those who have “walked a mile in your shoes” or, in most cases, thousands of miles, can quickly build strategic alliances that would otherwise take tremendous time and energy to develop.

In the end, entrepreneurs significantly reduce their risks in all areas and outperform those “breaking through” without the support of veterans.

An Interview with Partner Nick Hogan

For those in the restaurant industry, Nick Hogan may need very little introduction. He’s had incredible success as the co-owner and CEO of the Flagship Restaurant Group, the parent company of Blue Sushi Sake Grill, Anthem, Roja Mexican Grill, Palma, Plank Seafood Provisions, Revival House, Blatt Beer & Table, Cham Pang Lanes, and Ghost Donkey.

BY MARISA UPSON

His brands cover the full spectrum, from fast-casual to full-service, with the common theme of creating an exceptional dining experience that incorporates fun and creative food.

Recently, he shared some insights with Mathew Focht, CEO of EMERGING. Let’s see what they had to say about the restaurant industry at large.

The Makings of a Successful Restaurant Group

Focht: Nick, thanks for taking the time to speak with me today. I’m obviously excited to have you in the EMERGING Fund as an

innovation partner, and one who’s had tremendous success in the industry. So, let’s get some insights from you. How did you get into this career?

Hogan: I always had a strong desire to do something entrepreneurial. I went to college at Southwestern University of Arizona and then law school, and traveled quite a bit. Through those experiences, I ended up

falling in love with food and the industry, and it seemed like a natural fit.

At the time, I saw that there was a shortage of good, new creative concepts in the Midwest, and so, not knowing what I didn’t know, and I didn’t know a lot, I jumped in with some partners. That was the genesis of the Flagship Restaurant Group.

Focht: So, what is Flagship today, and how would you describe it?

Hogan: Flagship is primarily full-service, polished, casual, experiential dining. Most of our restaurants do 25-35% alcohol sales. We’ve challenged ourselves in a lot of different spaces, including sushi, seafood, Tex-Mex, burger and beer, and an American grill concept.

Our first concept was Blue Sushi, which opened in 2002. By the end of 2022, we should have about 20 units. We’re also opening the third Plank Seafood Provisions this year as well as another Anthem. Blatt

Beer & Table, a burger and beer concept, has three locations in Omaha, Nebraska.

Another concept just starting out is Ghost Donkey, a cocktail bar that we worked with the Amoco Design Group on. It’s currently in Denver, with expected openings in Phoenix, Omaha, and Dallas. We also opened Palma this last year. It’s our big 5,000-square-foot patio concept with fullservice and two bars and is probably closer to 50% alcohol sales.

Cham Pang Lanes is an entertainment concept with duckpin bowling, DJs, and a big circle bar. It also has pinball and pool tables and attracts many late-night customers. We’re also working on an American grill concept that’s going to be called Memoir. It’s a polished, casual, full-service concept with burgers, steaks, and seafood. Another new venture is a wine bar called the Corner Bar in Omaha.

Pyro is also a new concept we’ll be opening in Phoenix at 44th and Camelback. It will be our highest-end concept—a full-service Japanese Izakaya meets American bistro concept but polished with a

selection of fine wines and a big outdoor patio space. That’s one I’m really excited about.

Focht: That’s quite a combination of concepts. Amazing.

Hogan: It’s 20 years in the making.

Joining the EMERGING Fund

Focht: So, why do you want to be a part of the EMERGING Fund, and why do you think it’s a good venture?

Hogan: Of course, we all got into business to earn a paycheck and support ourselves and our families. And I love the industry that I chose. It was so exciting to get that first restaurant open and then open another one on the other side of town. Then, we opened the first concept in a different city and recognized ourselves as a regional group operating in various markets.

So, at this point, 20 years in, while still motivated by the bottom line, my partners and I are also motivated by being active in the industry and all the different facets. And that’s what’s exciting about participating in the EMERGING Fund—the

networking opportunities and getting to work with peers.

I don’t often have the chance to meet other individuals that are starting restaurant groups or developing and building a concept. While they’re my industry peers, we don’t necessarily interact very often. So, just being engaged at that level and seeing things develop from the ground floor in different verticals of the industry is really exciting.

Focht: Well said. What value do you think we can provide the founders of these earlystage tech and restaurant entertainment concepts?

Hogan: You’ve got a good group of people who have experience and have built brands on the tech side of the business. I’m sure these individuals will be really good at poking holes and identifying opportunities. They understand the mechanics and the challenges from a technical standpoint of delivering and the expectations on the restaurant side. I don’t think it takes too long to determine if there’s real value there for us, and if there is, then there’s value there for the industry as a whole.

Collectively, we operate a number of different kinds of concepts in various markets, each with a lot of different needs. So, when tech comes in and presents themselves to us, if we don’t find a use for it, it will probably be a problem in the industry as a whole. You’ve got the right people sitting around the table to determine pretty quickly whether or not the tech has a place in the industry, both on the technical and application sides.

Investing in the Restaurant Industry

Focht: Yes, that’s so true. Many of your concepts are different, so if a tech concept is useful to the industry, it would most likely be a good fit for at least one, if not all, of them.

So, as we go to market, we’re talking to private

equity firms and highnet-worth individuals. Sometimes, the conversation is, “You know, Mat, we typically invest in technology or concepts, but food and beverage technology and concepts coming together is pretty different.”

How do you feel about that? Do you see a place for concepts and technology to come together in the fund? And how do you see that as important to the future of this industry?

Hogan: I’m looking at it through the lens of an operator. For myself and others in the fund, we can quickly determine whether or not it has legs. Even though I’m not on the tech side, I’ve implemented or employed a fair amount of tech in our business, and I credit it with helping us in our accomplishments.

For example, back-office technology has come a long way since I’ve been in the industry, as well as the takeout and delivery platforms and reservation systems. Some of those things didn’t exist 20 years ago, and now they’re almost irreplaceable.

Today, if you really want to scale a concept and go into multiple markets, you’re going to be at a great disadvantage if you can’t wrap your head around the tech. When COVID hit, we couldn’t survive without takeout and delivery and had to figure out what the economics was on our end and what we needed to do to make it work. Now, it works beautifully, thanks to tech. Today, if you try to scale without the tech, you’re doing your investors a disservice. You have to embrace it and realize it’s as important as any other

element.

While I don’t pretend to know all things tech, I think myself and the other actors can determine the value in our industry. When it comes to back-office inventory management systems, accounting programs, or reservation programs, these things will drive incremental revenue.

Focht: We’re in a disruptive period right now, with labor and COGS getting pressure. If you don’t have control of the data and what’s happening in your four walls, it’s going to be super challenging. Brands have to identify the problem before they can take action.

Hogan: So true. And tech allows groups that are smaller to scale quickly and take it to the next level in a way that was previously reserved for the biggest players out there. The big groups would create their own tech. Now, that tech is readily available for the smaller operators.

The Future of the Restaurant Industry

Focht: So, in closing, what do you see for the industry as a whole in the future? What are some trends that stick out to you?

Hogan: I think, due to COVID, that we’re still

coming out of a period when the supply was very low in terms of any new units coming online. As I look out over the next 12-18 months, I see growth. I’m not saying that there won’t be some kind of a recession over the next 12 months, but I think the industry is in a pretty good place to absorb it, because we’ve been dealing with all of the headwinds, from labor to lockdowns.

Now, we’re coming out of it. I think, to our advantage going forward, we’re going to take a while for the unit count in the full-service category to get in line with where it was before the pandemic. And some of the labor challenges may start to ease as the unemployment situation changes.

I’m generally very optimistic. We continue to look for, absorb, and implement new technologies that allow us to run a cleaner, better, and more efficient operation and grow responsibly.

Focht: I think the restaurant industry’s projected growth is 10% annually for many years to come. Yet, it’s also facing disruptions with labor and the cost of goods. As an investor, why would somebody look at putting their capital in this space?

Hogan: Theoretically, it’s

a higher risk proposition when looking at the industry as a whole, but I don’t necessarily see it that way. We’ve gotten great returns out of the industry over the last 20 years. What it comes down to is that you need to put that money into a concept that has a stickiness to it, that people respond to and want to frequent, and that has the opportunity and a plan in place to grow.

You need to put your capital to work with a vetted concept run by professionals doing it the right way with a clear path forward. The guys you’ve put together have a long track record in the industry. They’re looking at it through pretty clear lenses and can make heads or tails of various concepts and what their opportunities are for growth.

It’s funny that, even in the restaurant industry, it’s known as high risk, but it’s really not if done by the right group of people with the right concept and you get things pointed in the right direction. Then, I think it offers some of the better returns that you can get out there. For instance, we’ve been cash flow positive since the day we started this business. Now, 20 years later, we’ve gotten a lot bigger.

Innovative Portfolio Investments

The F1 Arcade is an immersive, state of the art F1 racing simulation experience, gamified for a mass audience in a premium venue with best in class’ hospitality and design. https://f1arcade.com/

An immersive 3D booking experience like no other. An immaculate dining room is not. Tablz is redefining the future of dining, by enabling diners to select and upgrade to the table of their choosing. https://www.tablz.com/

FEDERALES is a lofty, open-air tequila and taco concept with an energetic atmosphere. (Chicago, Denver, Dallas). https://www.federalesbars.com/

Immersive Gamebox is an immersive team adventure inside the world’s smartest room. https://immersivegamebox.com/

Flight club has shaken up the Bar and Hospitality industry by reinventing the classic pub game of darts in one of the most unique venues.

https://flightclubdarts.com/

Puttshack is part of the ground-breaking social entertainment brand from the founders of Top Golf.

https://www.puttshack.com/

Overproof is a business intelligence company that helps customers in the adult beverage industry create, execute and analyze winning brand strategies.

https://overproof.com/

History of Vermouth

Vermouth and Soda a “hot girl” drink

60ml vermouth

10-20ml liqueur/syrup

Squeeze of citrus

~60-120ml soda

Choose red, white or rosé vermouth to make this easy cocktail. Pour the vermouth into a wine glass. Or any glass! Squeeze in a wedge of citrus and drop it in. Add liqueur or syrup to taste. Top with a splash of soda.

Vermouth: From Hippocrates to Emma D’Arcy

While vermouth is best known as the essential ingredient in Martinis and Manhattans, today, the hottest way to drink vermouth is on its own. It’s officially reached the pinnacle of alcoholic beverage stardom, making the ranks as the “hot girls” drink.

BY MARISA UPSON

Before we dive into the current sensation, let’s look back at its beginnings—a journey that will take us to China and the ancient Greeks in the time of Hippocrates.

Wormwood – The Beginning

Hippocrates considered the father of modern medicine, macerated wine with the herb wormwood and Dictamnus leaves from Crete around 400 BC. This was considered a medicinal concoction that Hippocrates

gave to his patients. Over 1,000 years earlier, medicinal alcohol combined with herbs and spices was also commonly used in China and India.

Germany, however, lays claim to its namesake, as their wormwood-infused wines inspired it. The German word for wormwood is wermut and hence, the name vermouth. Here, it also started as a medicinal drink around the 16th century and is an essential ingredient in absinthe, but that’s for another story.

Italians get credit for the modern sweet vermouth, which was also a medicinal tonic in the 16th century before transitioning to a sophisticated aperitif sometime in the 18th or 19th century. France lays claim to dry vermouth. Today, there are five styles: rouge, blanc, extra dry, dry, and half dry.

Wormwood is known to aid digestion and has been used since time immemorial to cleanse the stomach, alleviate stomach pain, and treat stomach disorders. For that reason, people today drink it as an aperitif and digestif. As with most things in this world, you’ll find many places and cultures had their hand in its creation.

What Is Vermouth?

Vermouth is an aromatized wine with herbs, spices, flowers, bark, seeds, roots, and

other botanicals added through maturation in barrels. Sometimes the alcohol content is strengthened with a neutral alcohol. Highquality vermouths may add ingredients like cinnamon, clove, cardamom, citrus, and gentian. Others blend vanilla, rose, lavender, cassia bark, and star anise. In Spain, it has been a long-held custom for people to drink it as a before-lunch aperitif.

Vermouth Today

The nonbinary celebrity from House of Dragons, Emma D’Arcy, made Negroni Sbagliato with Prosecco a viral video sensation in October 2022 when they mentioned it as their favorite drink while talking with her costar Olivia Cooke. The viral TikTok post made the popular Italian cocktail an immediate cultural phenomenon. And, as you can probably guess, the unsung hero of our popular drink is nonother than vermouth—red vermouth also referred to as sweet vermouth. The drink consists of equal parts sweet Vermouth, Campari, and Prosecco.

Drinking vermouth over ice has also become the new rage thanks to the highquality vermouths offered in various flavors and complexities. Italians, French, Spanish, and, currently, Americans drink it on ice with a lemon twist if drinking lighter vermouths and an orange twist if enjoying darker vermouths. Some restaurants also serve it neat in a chilled glass over frozen grapes. And, sometimes, a splash of soda is added for a light boozy spritzer.

At just 105 calories per 3 oz serving, it’s also considered one of the best types of alcohol for weight loss. Another reason it may have made its way to fame is the many polyphenols it contains, a significant amount more than white wine. Polyphenols, a naturally occurring compound in plants, have been shown to help regulate weight and even protect against some chronic diseases.

What do you know about your on-premise sales performance?

F&B Insights cleans and enriches monthly on-premise sales data from bars and restaurants to deliver beverage alcohol brands unprecedented access to in-venue cocktail sales performance and trends.

Cocktail Analytics

• Segmented cocktail styles

• Total units sold

• Total volume sold (OZ & 9LE)

• Share of cocktail sales

• Cocktail rank on menu

• Week over week performance

• Sales and performance trends

Consumer Analytics

• Peak days and hours

• Sales trends

• Average group size

• Average check size

• Per person average

• Food and drink pairings

Program Analytics

• Segmented cocktail styles

• Total units sold

• Total volume sold (OZ & 9LE)

• Share of cocktail sales

• Cocktail rank on menu

• Week over week performance

• Sales and performance trends

Product Mix

• Spirit category sales mix

• Spirit category sales rank

• Supplier menu presence

• Sales and performance trends

The F&B Insights marketplace makes it easy for brands to meet and access cocktail sales insights from new bars and restaurants.

How Alcoholic Beverage Brands Can Optimize Sales and Marketing Strategies Through the Power of Data

Do you know how your spirits, wine, and beer brands perform at various bars and restaurants? If not, you’re leaving valuable data on the table. This information can help you reach customers, increase sales, and determine your target audience.

BY MARISA UPSON

As you know, the beverage industry is highly competitive, with major players controlling a significant share. Knowing the details of your on-premise sales performance can help you set yourself up for success, steering your brand to the venues and markets that will help it thrive.

Let’s see how you can accelerate the growth of your brand by determining which venues have the highest probability of the most sales and which markets drive these sales.

The Importance of DataDriven Decisions

Today’s world is all about

data, and the businesses that take advantage of this are finding exponential growth. According to the McKinsey Global Institute, data-driven organizations are 23 times more likely to acquire customers and six times as likely to retain customers.

While those numbers appear extraordinary, leveraging data helps make informed decisions, and these decisions affect all aspects of a business, from the customer experience to the target market and promotions. Today, there is no aspect of business that is not touched and somehow defined by data.

So, how do you take advantage of the data

coming out of the venues that are selling your brand?

That’s where F&B Insights comes in.

The Data Mine: POS Systems

At F&B Insights, we clean and enrich monthly onpremise sales data from bars and restaurants. Then, we deliver these actionable reports to alcoholic beverage brands. The result is insightful awareness of trends and sales performance specific to different types of establishments.

When you know your share of the category sales and who is leading the charge, you can change your marketing and focus venues

accordingly. F&B reports share the total volume sold, the share of the cocktail menu, and sales and performance trends. You can also uncover food and drink pairings and share this information with other venues, spurring sales of your brand.

The Target Market

Do you know your target market? There was a time when these markets were fairly straightforward. Those times, however, have changed. For example,

consumers younger than 60 have a much lower share of wine consumption. Brands took notice and started to tell their story and change their labels, and those companies began appealing to the Millennials.

The same could be said for whiskey as its fan base grew older. Instead of standing idly by, the Scotch whisky industry began recruiting a new generation through innovative flavors and digital marketing changes explicitly designed

for the younger crowd.

Grow Your Brand

Using clean, organized data, you can determine industry trends, identify new behavior, and make data-driven marketing and brand-based decisions. Do you target specific venues based on a customer profile that aligns with your market or a detailed venue profile?

Now, you can use this data to determine if your marketing approach is working, or if it needs tweaking. Is your company aligned with the demographics you were hoping for? If not, it’s time for a change. If it is, pat yourself on the back and stay focused on the end game that’s clearly in sight.

The F&B Insights marketplace offers the perfect place to meet new restaurant and bar partners. And now, with your keen insights, you can choose venues that have a proven track record of success.

Are you ready to take advantage of the data that restaurants and bars accumulate daily on your brand? To get a demo, learn more about this exciting opportunity for beverage vendors, or schedule a consultation, contact F&B Insights today.

Never miss a pricing opportunity again.

MENU PRICING

The world's largest menu database gives you the competitor and market pricing information you need to make informed decisions about how to price your menu.

→ Price items with confidence.

→ Get real-time competitor pricing alerts.

→ Make up inflation & supply chain pressure costs.

Add code fbmenu20 for 20% discount

How Customer Personas Benefit Restaurants

How much do you really know about your customers? Do they listen to music or talk radio on the way to work? What do they do for fun on the weekends?

BY MIKE WALTMAN

For restaurant businesses that recognize the profit potential of developing a precise customer segmentation strategy, customer personas lay the foundation for prudent decision-making. Research shows that companies using documented customer personas are twice as likely to achieve or exceed revenue goals. That’s a serious ROI relative to a purely time-based investment.

Let’s take a look at what a customer persona is and how it can benefit your restaurant.

What is a restaurant customer persona? A customer persona is a fictional character developed from market research, customer interaction, and exhaustive data analysis to represent one of your existing or prospective restaurant

customers.

Let’s call this hypothetical customer Johnny. Johnny is in his mid-40s and comes into the restaurant a few times a week around noon wearing a polo or dress shirt without a tie. A few other guys who tend to fit Johnny’s description and order similar food also frequent your restaurant around the same time of day.

To build a customer persona for this Johnny character, we mix demographic information, such as age, marital status, and profession, with intimate insights into his possible habits, goals, and burdens. The result is a dynamic profile of your “Johnny” customer segment–conveniently organized into a single document.

Multiple personas are created for each unique customer segment and shared throughout every level of restaurant operations. The personas help to unify the team’s understanding of your customer segments and foster a customer-centric approach to decisions making.

Benefits of a customer persona

Customer personas allow you to anticipate your customer’s needs before they even walk through the door. They foster empathy, which allows you to craft customer experiences that’ll leave people thinking, “man, this place really gets me.” Here are just a few ways customer personas

can enhance your business.

Targeted Marketing

“When you speak to everyone, you speak to no one” – Meredith Hill

Generalized marketing doesn’t work. Every business is vying for attention, and unless you can speak your customer’s language, you’ll find yourself lost in a sea of noise. According to research on marketing strategy, targeted ads are twice as likely to convert leads as non-targeted ads. Utilizing customer personas allows you to create content and copy that will capture the attention of a specific customer segment. It helps establish a genuine connection by showing them you understand their interests, problems, and desires.

Customer personas improve conversion rates and enhance value propositions. As a matter of fact, 82% of companies report an improvement in value proposition after integrating customer personas. These businesses can dedicate more time to developing brand perception tailor-fit to the values of the prospects most likely to become new or repeat customers. Customer data analysis from our partners at Acutely

helps make sense of large data sets, providing you with the in-depth information needed to build an effective customer persona.

Opening New Locations

As you collect and analyze data to develop your customer persona, you’ll notice the emergence of customer location trends. You might find accumulations of highvalue customers living in the same neighborhoods, commuting to work using the same routes, and grabbing their midday meals in the same spots. Restaurant professionals looking to expand their brand and deliver value to customers in more convenient locations will find answers through their customer personas.

However, a customer persona lacking detail and accuracy can be misleading. You’ll need high-level data informing your customer persona to pinpoint the best possible location for your next restaurant. By tapping into the power of big data and your business’s POS system, Acutely’s data scientists ensure you’ll develop the complex and quantifiable customer understanding needed to inform your expansion strategy.

LEARN HOW EMERGING CAN IGNITE YOUR GROWTH

Turn Data Into Action.