MAGAZINE
DECEMBER 2024 ⏐ VOL. 2 ⏐ ISSUE 7
EMERGING is a growth capital fund at the forefront of the technology-driven transformation in the restaurant and entertainment sector.
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Tyler Connaghan
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Restaurants are embracing technology to remain competitive and develop brand recognition. We are fortunate to work with the most innovative and successful operators and technology companies. We love serving our entrepreneurs and investors. Let’s explore this changing landscape.
Incorporating technological advancements enables restaurants to increase efficiency and provide guests with the experience they’re searching for. A survey by SpotOn found that while 56% of independent restaurants use some form of technology, over 80% still use legacy POS systems. OnePoll reports that 57% of restaurant owners believe technology has been critical to their survival.
Advanced cloud-based restaurant POS systems integrate with the latest software that offers operational advancements, streamlining tasks and significantly reducing workloads. They’re essential in today’s fastpaced, ever-changing, and challenging hospitality sector. Top considerations include labor management and
scheduling software, first-party and third-party online ordering, accounting platforms, employee scheduling software, and loyalty programs.
These systems also integrate with tabletop ordering or payment devices, inventory management, online reservations, catering management platforms, and customer relationship management. This level of integration offers a robust restaurant management system, providing detailed reports that drive beneficial insights.
Restaurants are also leaning toward automation in kitchen processes and using AI to optimize productivity and efficiency. Using data analytics software, operators can recognize trends, helping them with labor management and enabling them to offer guests customized items based on their preferences.
Mathew Focht
MATHEW FOCHT Editor, CEO EMERGING
Brassica is a casual, colorful sandwich and salad shop with a focus on beautiful architecture.
Empowering Foodservice Operators in the Digital Age
Acceleration Platform
The Resilience of Experiential Entertainment Concepts in Market Consumer Downturns
How AI Is Quickly Redefining the Restaurant Industry
Real Estate Solutions
The Strategic Growth Partner
Overproof Feature
How Restaurant Operators Are Integrating Technology… Or Not
Preparing Your Restaurant Beverage Program for Fall & Winter
The Next Step for Sportainment Concepts: Stadiums
Stadium and Sports Team Owners Want SPORTAINMENT
Reimagining the Baseball Experience
Jason and Travis Kelce on a Mission to help Build the next great Brand
An Interview with Taj Adhav, the Founder of Leasecake
The State of the Restaurant Industry in Q4 2024
Network of operating companies provide unmatched competitive advantages
EMERGING is a growth capital fund at the forefront of the technology-driven transformation in the restaurant and entertainment sector.
Restech & Restaurant Innovation / Collaboration Strategic growth resources, mentorship, and invaluable connections with influential industry insiders assisting them in scaling their ventures.
Largest food & beverage network with GP operating companies include Buyers Edge Platform, a leader in digital procurement solutions for the foodservice industry, Emerging Concepts, a strategic real estate partner for today’s top restaurant and entertainment concepts, and other industry top companies.
General Partners and Investors are the foremost figures in the F&B sector. Predominantly entrepreneurs who have successfully scaled their companies to top industry valuations, some even surpassing multi-billion dollar benchmarks.
Largest food & beverage network with GP operating companies include Buyers Edge Platform, a leader in digital procurement solutions for the foodservice industry, Emerging Concepts, a strategic real estate partner for today’s top restaurant and entertainment concepts, and other industry top companies.
Learn More
Largest food & beverage network with GP operating companies include Buyers Edge Platform, a leader in digital procurement solutions for the foodservice industry, Emerging Concepts, a strategic real estate partner for today’s top restaurant and entertainment concepts, and other industry top companies.
GP affiliated companies have established Over 1,000 Channel Partners in F&B industry.
Emerging Concepts and select partners provide real estate solutions with today’s leading restaurant and entertainment concepts. The team executes a data backed real estate strategy for each site nationally.
EMERGING has attracted an unparalleled limited partner network of 70+ restaurant and technology leaders on a mission of mentoring investments, driving portfolio innovation, and fostering collaboration to achieve goals.
Industry leading Founders and CEOs that are investors and advisors in the Fund. Supporting investments through diligence and go-to-market expansion. Meet monthly and frequent discussions.
Buyers Edge Platform (BEP) is the supply chain partner for over 200,000 restaurants nationally.
Institutional investors unfamiliar with eatertainment and experiential entertainment concepts often group them with restaurants and all the challenges that entails.
By Marisa Upson
These concepts, however, are far different and, ultimately, rank much better in the risks versus rewards equation.
Why?
Today’s consumers are hungry for experiences, so much so that they place it above pricing and are willing to
pay a premium for a great experience. Even, and sometimes especially, during economic downturns, they look for the intangible value an experience provides, including emotional connections and active participation.
Many of these concepts are also scalable and can adapt to changing markets, providing guests with options that may more readily align with their budgets. Let’s look at what this means
to investors and those in the business of delivering exceptional experiences.
A report conducted by Solomon Partners found the demand for sitebased, experiential entertainment at record levels. As consumers begin to rethink how they spend their dollars, the expected trend of staying closer to
home and creating “staycations” is just beginning to emerge.
According to a recent report by Bankrate, since Labor Day, the yearover-year growth rate of airport travel has slowed to a crawl with diminishing demand after experiencing postpandemic record increases. Their recent travel survey also found that over 80% of holiday travelers are changing their plans, choosing to travel for fewer days, selecting more affordable accommodations, or driving instead of flying.
Like travel, dining out is considered a discretionary expense. And, like travel, it’s seeing some flattening out in sales. And then there’s dining with added experiential entertainment. In 2024, Sevenrooms gathered information from thousands of consumers and over 750 global operators to uncover current dining habits.
One of the key takeaways was that customers would pay more for an elevated dining experience. In the U.S., one person will spend up to $63 more. In Australia, that number jumps to $97. Additional data showed that experiential dining drives over 35% more revenue than traditional reservations. In the U.S., more than 660,000 upgrades and experiences sold in 2023, according to Sevenrooms’ analytics. These experiences generated over $33 million in revenue, with an average revenue increase of $85,000 per venue.
History tells us that during economic downturns, consumers look for affordable, high-value experiences
and activities close to home. When people start taking a closer look at their budgets, it’s the large luxury goods that are the first to go by the wayside. Counter to that is the local entertainment alternatives that experience an increase in spending.
In the past, these alternatives consisted of mini-golf, bowling, movie theaters, and arcades. Today, with advancements in technology, these alternatives have become high-tech experiences on steroids with global cuisine and craft cocktails.
Concepts like Puttshack’s high-tech mini-golf game saw their annual revenue reach $15 million as of November 2024. As an eatertainment concept, customers remain for longer periods, contributing to their balanced revenue stream that sees about 55% of their overall earnings coming from high-quality food and beverage sales.
Bowlero, the largest bowling center operator in the world, with most of its locations in the U.S., features craft cocktails, hand-crafted pizzas, and gourmet burgers. The third quarter of
Concepts like Puttshack’s hightech mini-golf game saw their annual revenue reach $15 million as of November 2024.
2024 saw their revenue hit $260.20 million, bringing the total revenue over the last 12 months to $1.19 billion. This figure represents a 12.45% gain yearover-year. The company’s founder and CEO, Tom Shannon, shared this with Solomon Partners, “If you have inflation, high gas prices…it’s easiest for (consumers) to spend close to home. Not getting on an airplane… not paying exorbitant hotel prices…not getting in the car and traveling long distances.”
At EMERGING, as the leading growth equity for restaurant entertainment concepts, we’ve witnessed the competitive social entertainment boom firsthand. As a strategic growth partner for some of the leading brands, such as Puttshack, Batbox, F1 Arcade, Flight Club, and Immersive Gamebox, we’re excited to help take these entertainment concepts to the next level. To learn more about our process or to schedule a consultation, contact EMERGING.
AI seems to be popping up just about everywhere you look, and the restaurant industry is no exception.
By Tyler Connaghan
If you’ve ever used an app to order from your favorite local restaurant and noticed personalized recommendations based on your past orders, or even been offered a special deal from a national chain based on your location, you may have experienced AI in action.
Even beyond the ordering process,
AI is also behind automated chatbots that handle reservations and robotics technologies that have learned to mimic the movement of professional chefs.
What’s more AI’s role in the restaurant industry is expanding at an incredible rate, especially in the corporate sector. According to a recent article by World Metrics, 85% of industry experts believe AI will have a significant impact
on industry growth.
As organizations continue prioritizing AI over digital technologies more and more, we’re learning that there are several ways to leverage it, from streamlining back-of-house operations to optimizing the customer experience.
The benefits are clear: AI can help businesses run more efficiently, reduce costs, and offer personalized
experiences that keep customers coming back. From the consumer standpoint, this means faster service, more accurate orders, and uniquely personalized dining experiences.
While it’s still very much in its infancy, there are many brands and companies at the forefront of this revolution. In this guide, we’ll take a look at how these industry disruptors are paving the way for the future of restaurants.
Yum Brands is the parent company behind fast food giants like KFC, Pizza Hut, and Taco Bell, and over the past few years, they’ve led the charge in AI adoption. More than any other major fast food corporation, Yum Brands has heavily invested in artificial intelligence and AI startups to revolutionize how they operate, serve customers, and tap into their vast amounts of data.
One of the key areas Yum Brands has focused its AI efforts on is in reinforcement learning. Unlike traditional programming, where an AI follows pre-set instructions, reinforcement learning allows AI systems to learn and improve from their interactions with the environment. In simpler terms, AI gets better at making decisions the more it’s used, much like how people learn from experience.
Yum Brands has applied this technology across multiple aspects of its business, including back-office operations, customer insights, and marketing strategies. But where it’s really making waves is in customerfacing solutions, particularly at Taco Bell.
Starting in 2021, Yum Brands rolled out AI-powered drive-thrus at five locations. As of August 2024, this same technology can be seen at hundreds of U.S. Taco Bell locations across the U.S, reducing wait times, improving order accuracy, and allowing employees to focus on other important tasks.
Pizzeria owners are now gearing up for a new wave of AI tech with PizzaBox AI, a revolutionary Pizza Subscription Management Platform developed by industry radical Andrew Simmons. Known for shaking up the pizza world, Simmons’ latest initiative is set to change how pizzerias operate and how customers enjoy their favorite slices.
In today’s market, subscription services are everywhere we look, from Spotify to Netflix.
Now, PizzaBox AI is bringing that same model to the pizza industry.
Powered by RestoGPT’s advanced AI technology, PizzaBox AI’s subscription service guarantees customers one pizza per week for an entire year.
For an annual price of $197, pizzerias can sell specific subscriptions, such as a weekly medium pizza. It’s a win-win situation. Customers get their favorite pizza regularly without having to think twice, and pizzerias secure upfront revenue that helps stabilize their business.
Better yet, the company handles the subscription service from beginning to end, from payment processing to creating branded customer ordering pages, as well as automated redemption codes and consumer account management.
Inventory Management with CLEARCOGS and LeanPath
Generative AI is making a big impact in the restaurant industry as well, not just in customer-facing roles but also behind the scenes, helping food service providers become more sustainable.
Experts suggest that AI has the potential to cut food waste in restaurants by as much as 25% through the use of predictive analytics.
Companies like LeanPath and CLEARCOGS are at the forefront of this movement, using data analytics and in-kitchen monitoring to reduce waste and lower food-production costs. These platforms combine culinary experience with artificial intelligence to turn data into actionable insights that help prevent waste before it occurs.
By analyzing patterns in food usage, predicting demand, and identifying
areas where waste is most likely to occur, these intelligent systems have helped kitchen staffs across the country refine their inventories and menu offerings.
Popmenu has long been a pioneer in integrating AI into restaurant technology. Early on, the company set the standard for how AI can support and transform the industry. Today, Popmenu’s AI features are designed to tackle some of the most significant challenges faced by restaurant operators, from bridging labor gaps to managing key tasks like creating marketing content and handling customer calls.
40% of restaurant operators turned to
new tech after the pandemic, as they were struggling with limited time and resources. Still, many find it difficult to consistently engage with their guests. Popmenu’s AI stepped in to fill this gap, automating marketing efforts across digital channels in a way that’s both personalized and effective.
By analyzing billions of guest interactions, Popmenu’s AI can pinpoint which marketing strategies are driving the most sales and provide operators with a playbook for continued growth. This means restaurant owners can focus on what they do best — serving great food.
Pushing the AI Envelope with EMERGING
It’s an exciting time to be in the
hospitality industry. From menu generation to performance forecasting and waste reduction, AI is rapidly transforming how restaurants operate. The pace of change is quick, and the innovation potential seems limitless.
Here at EMERGING, we work hard to stay ahead of these advancements as the industry continues to embrace AI integration. As a leading growth equity firm for ResTech, our mission is to collaborate with restaurant owners, helping them understand the full potential of AI and data science, so they can run their businesses more efficiently and profitably.
As AI continues to shape the future of the restaurant industry, EMERGING will be here to guide you through these changes.
EMERGING has attracted an unparalleled limited partner network of 70+ restaurant and technology leaders on a mission of mentoring investments, driving portfolio innovation, and fostering collaboration to achieve goals.
The limited Partners are predominantly entrepreneurs who have successfully scaled their companies to top industry valuations, some even surpassing multi-billion dollar benchmarks.
Emerging Concepts and select partners provide real estate solutions with today’s leading restaurant and entertainment concepts. The team executes a data backed real estate strategy for each site nationally.
Emerging Concepts is a team of data scientists, engineers, analysts, real estate experts, creatives, and business professionals committed to pioneering the future of restaurants and entertainment concepts.
Emerging Concepts coordinates the real estate strategy execution while optimizing supply chain, data science, technology, finance, and labor from one platform. Contact Us
Schedule a Consultation
Overproof offers alcohol enterprises the power to streamline their unique business operations, elevate customer experiences, and drive substantial sales growth. Overproofs team of experts works closely with enterprise leaders to understand their specific needs and create tailored solutions that optimize sales teams, enhance operational efficiency, and fuel revenue growth at scale.
Investment: Jan-April 2022, December 2023
Website: Overproof.com
Botrista provides automated beverage solutions to foodservice operators. Operators can increase ticket size and beverage attachment by serving non-alcoholic craft beverages to younger generation consumers.
The trendy innovative craft beverages include boba teas, smoothies, iced coffee, flavored lemonades, energy drinks, and more. Importantly, data shows these new options drive overall drink sales higher without cannibalizing existing soda sales.
Botrista enables operators to add a new beverage category to their menu without the operational complexities. Botrista’s platform allows operators to subscribe to world-class quality from the leading ingredient manufacturers that they partner with. The vision is to make any staff member a professional barista or bartender with the easy-to-use Botrista system.
The annual Foodservice Technology Conference (FSTEC) took place last week at the Gaylord Texan Resort & Convention Center in Grapevine, Texas. For those interested in the impact technology is having on the industry, this is one of the must-go-to conferences.
By Marisa Upson
Restaurant Business’s editorial team recently returned, sharing some insights into the direction ResTech is headed.
Interestingly, one of the takeaways was that the rise in technology designed to help with the labor challenges of recent years wasn’t really doing that much to help. Self-order kiosks were reported to increase the need for additional labor,
while voice-order AI may prompt some labor savings.
This information is a far cry from the many headlines that suggest technology is our savior. According to HungerRush, Restaurant technology
can reduce labor by 21%. A few of their suggestions include handheld tablets, AI for phone orders, self-ordering kiosks, and digital QR menus.
It seems there have been several restaurants of late that have tried to develop their own delivery model only to return to third-party delivery services. It is hard to tell whether the cause is the processes involved, dealing with a delivery model that includes their own drivers, or the high insurance cost.
Panera Bread transitioned to a hybrid delivery model that incorporated their own delivery drivers while using thirdparty partners to process the orders. Taziki is also using a hybrid delivery model. Chick-fil-A has developed a new prototype with two lanes provided solely for mobile-order-ahead customers.
Apparently, one of the challenges with delivery is customer expectations. Do you remember Domino’s “30 minutes or free” promise? While no longer in effect in the U.S. due to reckless driving, lawsuits, and lost reputation, for many, it’s still considered the golden
rule. When it takes longer to get their delivery orders, dissatisfaction ensues. But is that a practical benchmark? No, not really.
Pizza Hut acquired Dragontail Systems, a kitchen order management and delivery technology system. It uses AI to plan optimal delivery routes, sync the timing of the orders, and combine orders by location. David Gibbs, CEO of parent company Yum Brands, told Nation’s Restaurant News that the technology increased consumer satisfaction by 7%, resulting in improved consumer frequency due to the delivery of fresher, hotter pizzas.
The “RAG model,” a method for testing technology in the real world, was also mentioned during FSTEC. Regarding the use of technology, R stands for Red, which means forgetting about the rollout. A means Amber and refers to investigating the technology further. G stands for Green and means go ahead and deploy.
Chick-fil-A is establishing guidelines and protections for using AI and other types of technology in their restaurants.
The “RAG model,” a method for testing technology in the real world, was also mentioned during FSTEC. Regarding the use of technology, R stands for Red, which means forgetting about the rollout. A means Amber and refers to investigating the technology further. G stands for Green and means go ahead and deploy.
The conference also highlighted the importance of preparing now for the unknown that is to come. The example used was Habit Burger & Grill, a brand that built a customer platform that is usable in multiple formats. When the pandemic hit, they immediately went curbside, enabling them to stay ahead of the curve when restaurants shut down.
From automated phone ordering to advanced delivery and order fulfillment, it’s a whole new world that’s rapidly changing. Another recent addition to the ResTech segment is Fourth iQ, an AI platform that optimizes inventory and workforce operations. Some of the restaurants that have implemented the technology note reduced labor costs and an increase in accurate sales forecasting. Early adopters include Chili’s, Noodles & Company, and Pizza Hut.
Other changes in this segment come from the ever-evolving voice AI category. Recently, Adora POS partnered with ConverseNow to provide automated phone ordering. This month, TouchBistro acquired Peachworks, enabling it to launch a new labor and inventory management BOH solution. This system is designed to help operators make better databacked decisions that help reduce costs and improve sustainability.
Although the amount of technology aimed at the restaurant industry can be slightly overwhelming, keeping abreast of the latest changes supports decisionmaking that results in enhanced operations. Sometimes, the little things extended over a long period make the biggest difference to restaurant’s success.
I know. It seems we just overhauled our beverage menu to align with the summer season. Now, with fall in full swing and winter on its heels, it’s time to gather our team together and discuss what seasonal flavors will call in the customers.
By Marisa Upson
Warming and sweet, some of these beverages come out of the liquor closet every year, so attuned to the changing season that guests ask for them as soon as the weather starts to change. Others are
just making headway, entering the fray in new and exciting ways.
Here, we’ll explore a few of the most popular beverages that many restaurants embrace this time of year, as well as the new ones that are gaining traction.
Halloween is fast approaching, a holiday that restaurants tend to either embrace wholeheartedly or totally ignore. A middle-of-the-line approach would be to add a beverage and appetizer aligned with the Day of the
Dead. What could be more perfect than the Zombie? If your guests like rum, tropical flavors, and fire, it’s hard to imagine a more fitting drink.
1 ½ oz. golden rum
1 oz. dark rum
½ oz. white rum
½ oz. 151-proof rum
1 oz. fresh lime juice
1 tsp. papaya juice
1 tsp. pineapple juice
1 tsp. fine sugar
Mix ingredients together, except for the 151, and pour over ice. Hallow out the squeezed lime half, place it on top of the cocktail, fill it with 151, and light. For an extra touch, shaking cinnamon over the flames causes sparks.
With the growing appreciation of true craftsmanship and all things older, coming back into the fold is cognacbased drinks. Its complex flavor and amber color make it perfect for the season. VSOP stands for “Very Superior Old Pale” and requires a minimum age of four years.
Some of the best cognacs for autumn nights include Camus Cognac VSOP, a drink that offers subtle tastes of vanilla, orange zest, and cinnamon. Martell VSOP is aged in oak barrels, with plum and apricot providing the undertones. The award-winning Cognac Park VSOP is known for its vanilla and honey flavor and is served on the rocks or in negroni variations.
Keep in mind that many suppliers and brand ambassadors work with restaurants to develop tastings that highlight their brand. For
instance, Uproxx reported that Alexis Brown, Hennessy’s National Brand Ambassador, helped Maple & Ash in Chicago pair white and black truffles with cognacs. At Stetson’s Steakhouse, they did a five-course meal that incorporated various cognacs.
The following date-infused cognac is a perfect accompaniment to fall.
2 oz. date-infused VS cognac ½ oz. pressed coconut water
½ oz. pineapple coconut sugar syrup (1 to 1 blend of coconut sugar and pineapple juice)
Stir and serve over ice.
Fall and winter wouldn’t be the same without the beverages that warm us from the inside out.
Oaxacan Coffee
Mezcal, whipped cream, and coffee are the basis of this flavorful, warm concoction.
3 oz. hot coffee
1 ½ oz. mezcal, such as Koch El Ancestral Espadin Mezcal de Sola de Vega
½ oz. piloncillo syrup (simmer 1 cone of piloncillo in 1 cup water in small saucepan)
Sweetened whipped cream
Other popular warming beverages include Café Cubano, Frenched Hot Chocolate, and Apple Brandy Hot Toddy.
You know it’s fall when Starbucks whips out the Pumpkin Spice Latte, and the lines begin to form. Just as this drink is the brand’s most popular seasonal beverage, you can create a program that people look forward to as the seasons change. Some of the classics that can call in the crowds include:
Spiced Pear Martini:
1.
A combination of pear liquor, vodka, and a dash of cinnamon, this beverage is definitely a fall classic. At the Ritz-Carlton in Sarasota, Florida, you may find a cognac cocktail incorporating this fall fruit. The Perfect Pair blends St. George Spiced Pear Liqueur with cinnamon, demerara sugar, lemon juice, and cardamom bitters.
2.
Pumpkin Spice White Russian:
This simple rendition of a white Russian takes this wellknown beverage to a fall favorite. Simply add cinnamon and pumpkin spice cream.
3.
Smoky Maple Old Fashioned:
Yes, the old-fashioned is still popular, in part due to its timeless nature and easy adaptations. In this one, you mix together a combination of smoky tequila, maple syrup, sugar, bitters, and whiskey, creating an ideal beverage for fall evenings as the weather starts to cool.
We recently explored the exploding restaurant concepts known as sportainment. Somewhere between social entertainment, eatertainment, and competitive socializing lies this evolving category, yet another word that defines the growing consumer demand for enhancing dining and highquality food with entertainment.
By Marisa Upson
But what makes sportainment different? And what does it offer that’s driving investors to the table?
Here, we’ll explore some of the key differences that set it apart and why those in the sports arena are looking closely at this excelling segment of hospitality.
Do you remember when the stadium experience consisted of vendors strolling through the crowds, tossing hot dogs, and passing beers down the aisle? Anyone for a bag of salted peanuts? While nostalgia can leave one yearning for those simpler times, technology and an increasingly saturated market have led to stadium redevelopments.
What’s at the core of this redevelopment? Fan engagement. What restaurant concept aligns perfectly with this intention? Sportainment. Stadiums are becoming more than sports arenas. Today, they are filled with activity, community hubs that are significantly increasing their game-day earnings.
Upgrading the facilities with interactive, sportainment concepts encourages fans to arrive early, stay late, and spend more. It draws in the segment of the population that’s not quite enthralled in the sport enough to find themselves on the edge of their seat shouting at the top of their lungs. They are, however, interested in the experience.
They’ll watch the game for a while, then head to Batbox for a round of baseball, F1 Arcade to enjoy the thrill of full-motion racing simulators, or Bad Axe for some good ‘ol lumberjack axe throwing. As this segment advances, there is no sport that will not find itself amidst this category. Today, we have crickets, surfing, pickleball, baseball, golf, basketball, and more. Tomorrow? Let your imagination soar.
As stadiums redefine their purpose and become multi-use centers, they not only spark commercial activities but also bring people together and create jobs. Thousands of jobs can find their way into the local economy, sparking economic development. Property values may increase as stadiums transition from venues for sporting events to dynamic centers that enhance community engagement
and the fan experience.
Do you remember shopping malls? Many are now called mixed-use developments, repurposed to serve the community through integrated technology, experiential living, and entertainment. Improved amenities, enhanced food and beverage offerings, and creating opportunities to connect and engage are transforming what’s possible. Both stadiums and sports team owners see the potential and the ability to leverage stadium spaces to an even greater degree, enhancing their local and even global appeal.
Increasing revenue offers clubs a competitive advantage, giving them more capital for youth development and player acquisitions. The resulting enhanced sponsorships and business
partnerships work like a progressive chain reaction, influencing the team’s and the arena’s overall success.
Thanks to smart cameras and multimedia experiences, today’s stadiums face increasing competition from enhanced home viewing. Despite this and because of the high cost of stadium attendance, revenue has increased while attendance has stagnated. To offset this direction, stadiums are looking to win fans and keep them coming back.
There are four main areas seen in today’s sportainment concepts. The right one for each venue depends on the surrounding community and the engaged fan analysis. The following represent a few different categories implemented in sports arenas.
These spaces are as much about training as they are about entertainment. They offer state-ofthe-art world-class instruction, optimal playing experiences, and spa-like amenities. Think Padel Haus and Five Iron Golf.
Here, you’ll find full-motion simulators and unrivaled social gaming. The thrill is in the activity itself, putting users in the center of the action. Think F1 Arcade.
As the name implies, these venues fall into the more relaxed affair, the lounge experience reimagined. Elevated cuisine, friendly competition, and a shareable menu usually define these
spaces. Think Flight Club and Electric Shuffle.
This high-energy venue offers an incredible experience that falls somewhere between a nightclub and a sports club. World-class food and beverages take this concept into the ether. Think Roaring Social.
Some other unique venues that are hard to pigeonhole include Sports & Social. Essentially a sports bar on steroids, you’ll find a wall-sized big screen, betting terminals, billiards, bowling, air hockey, Skee ball, arcade games, and more within its walls.
Fowling Warehouse combines football and bowling to create a sport unlike any other and one that’s quickly gaining traction across the country. The possibilities in sportainment are genuinely only limited by one’s imagination. At EMERGING Fund, we are keenly aware of the growing potential inherent in sportainment. As leading founders and CEOs in the restaurant and restaurant technology industries, we invest in the explosive growth areas that are challenging the industry and creating the most disruptive period in history.
To learn more about the EMERGING Fund, schedule a discovery call today.
Brassica is a casual, colorful sandwich and salad shop with a focus on beautiful architecture.
Serving fresh, made-from-scratch, meals inspired by eastern Mediterranean cuisine the Brassica team celebrates colorful vegetables, braises antibiotic-free meat, and bakes organic pita in a roaring hearth, fresh to order.
Size: 2,500–3,000 SF www.brassicas.com
I know, just when you were getting used to the word “Eatertainment,” another phrase has entered the social competition with the great food and beverage arena: SPORTAINMENT. Andrew Petcash, the founder of Profluence, a venture fund and media brand designed around all things sports, used the term in a recent LinkedIn post.
By Marisa Upson
So, what’s the difference? And are there eatertainment concepts not designed around sports? As eatertainment has risen the ranks to the darling of today’s generations looking for the combined ingredients of a great experience and exceptional food,
the tides are shifting. What began as arcade games with tokens and prizes to be won among ball pits and sky tubes has transitioned from appealing to families to drawing in the sports-minded and those simply looking for a good time.
According to research published in Psychological Science, sharing experiences with another person, even someone you met just minutes ago,
Here, we’ll explore the differences and which concepts are taking the world by storm.
Concepts in this competitive landscape lean toward high spend on gameplay versus F&B. Five Iron Golf offers state-of-the-art simulators and instructions. It’s a place where you can take a lesson and join a league, putting it squarely in the high-spend gameplay category. These concepts tend to fall into the active sports category. Some of the others in this segment include:
• SPIN with Olympic-caliber ping pong tables
• BOUNCE uses proprietary ping pong projection mapping technology
• SIXES for those into social cricket
• Batbox for an immersive, social and tech-infused baseball experience
intensifies that experience, making the pleasurable even more enjoyable. That defining quality in human nature may be part of the reason eatertainment is such a fascinating concept.
Take an everyday activity, such as singing in the shower, and add the energy of group participation, and you have the foundation of a successful endeavor. This is the idea behind concepts like Lucky Voice, a unique creation that’s a little like karaoke on steroids.
BRKTHROUGH, a social gaming concept, offers 40 rooms that provide physical, mental, and skill-based challenges. From trivia to prisons, jungles, and spaceships, it offers elevated, immersive experiences.
Garden Social adds engaging DIY experiences, like candle and terrarium making as well as yoga.
So, how do we define Sportainment? Is it all about the athletes looking to up their game? Or is it the curious looking
• Chicken N Pickle is the off-and-running sportainment concept with pickleball courts and a chef-driven restaurant
On the other hand, Flight Club is elevating darts using technology, craft cocktails, and globally inspired dishes. While an established sport and a serious tradition in the U.K., most people in the U.S. see it as a fun way to pass the time with friends. The high spend in this concept goes to F&B.
Elevated bowling concepts are also on the rise, with Bowlero leading the pack as the world’s largest owner and operator of bowling centers combining interactive arcades and inventive dining.
for a good time while trying something new? According to the National Golf Foundation, over 50% of Topgolf guests may have never played the game before.
Venues such as this one give people a chance to experience a sport they’ve never tried without going all in on equipment and finding themselves on a golf course with near-professionals looking on and lining up behind them, waiting to take their shots. It’s approachable, beginner-friendly, and fun.
Today’s successful concepts usually focus on one sport combined with elevated food and drink offerings.
As with most activities, proprietary technology is enhancing the experience and creating leaders in the industry. It’s providing a seamless digital experience in which guests no longer need to keep score. Examples include Puttshack’s patented Trackaball technology, using sensors and high-tech balls to keep
track of players’ progress through mini golf courses. Flight Club uses groundbreaking dart-tracking technology.
Petcash offered a unique look into additional opportunities possessed by the high-tech sportainment concepts, including micro-academies where youth can train during the weekdays and corporate events. Both ideas provide solutions to the challenge of increasing weekday revenue.
Another essential element you’ll see amidst the top brands is inclusion, the ability to create a space where people of varying skill levels can come together and enjoy the offerings, whether they intend to simply have a good time or increase their capabilities.
At the EMERGING Fund, our innovative investment portfolio includes many of the top players in the sportainment sphere, including Puttshack and Flight Club. To learn more about our take on this progressive sector or to discover investment or partnership opportunities, contact the EMERGING Fund.
Batbox is an innovative Eatertainment concept that celebrates baseball by combining simulated gameplay with a highenergy sports bar.
Jason and Travis
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Travis Kelce, the Kansas City Chiefs tight end, Jason Kelce, the former Philadelphia Eagles’ center, and Andy Sauer, CEO of Garage Beer, have set out on a quest to make beer relatable.
By Marisa Upson
As the major investors in Garage Beer, the Kelce brothers are helping to redefine light beer and stand behind and in a brand they enjoy.
Not just investors, these two are knee-deep in the process of building a brand and involved in all the many aspects from marketing and expansion to brewing, distribution, and sales.
Garage Beer hit the market in 2018 under Braxton Brewing. In 2021, Andy Sauer purchased it, reduced some of the hoppiness, and changed the design. Garage Beer relaunched in January 2023, growing 252% in the first year and becoming the bestselling light craft beer in three states. Since the Kelce’s joined the team in June 2024, it’s gone from distribution in 12 to 30 states and is expected to be in all 50 in early 2025.
To say these three know a thing or two about building a beer brand is an understatement. Let’s take an in-depth look at some of the practices they shared, and the tools and philosophies they used to help take Garage Beer to the top of the market.
As important as authenticity, engagement, and connecting with people emotionally, Garage Beer is a brand that feels relatable like it belongs in your fridge and the cooler at the game. It’s there when people celebrate victories or share a good story about the fire.
The Kelce’s align with this vision. They’re approachable and hardworking, and much of their charisma
According to Sauer, three pillars make up the foundation of a great brand.
While a great product is essential, it must also be a product people genuinely want. Garage Beer stands out in a crowded market because it’s a light, drinkable beer that appeals to a wide range of people, from casual drinkers to neighborhood tailgaters. It’s approachable, consistent, and good.
Working with Jason and Travis Kelce has been a game changer for the brand, but it’s much more than a celebrity endorsement. The Kelce’s are investors, owners, and advisors actively involved in sales, marketing, distributor phone calls, and much more. Their involvement is about more than money. It’s about believing in a brand and sharing something they love. Authenticity is essential to people today, and you can be certain that they can tell the difference.
They know their core consumer inside and out. They’re the everyday beer drinker—the guy who cracks open a cold one after mowing the lawn and the friends who enjoy a backyard barbeque together. Unpretentious and inclusive, it’s a beer that fits seamlessly into everyday, real life. engagement, they’ve developed a community that brings people together to share a laugh and create lasting memories.
and humor have been incorporated into the brand’s voice. When you hear them talking about Garage Beer, you’re not hearing a sales pitch but a genuine regard for the product and the people it brings together.
It’s essential to connect with your audience by listening and interacting to create a community. A community, after all, comes together and unites for a common good. To make Garage Beer a part of their lives, it has to resonate with their lives. Through the stories they share, the events they participate in, and social media
To achieve this level of engagement, Sauer and his team built their brand from the ground up, starting in their home state of Ohio. They spent time in bars, at events, and conversing with neighbors and people enjoying their beer. Their success wasn’t built on marketing hype but through developing real relationships and authentic connections. The people who support them are more than buyers; they’re their biggest fans.
1. Start with a Relatable Story
People don’t just buy products; they buy into stories. Your brand’s origin story matters more than ever. Why did you start this? What problems are you solving? And, more importantly, how does it connect with your audience? Authenticity is the currency of 2024. If you’re trying to fake it or force a narrative, consumers will see right through it. Be real, and make sure your story resonates on a human level.
2. Know Your Core Audience Inside and Out
In today’s world, you can’t be everything to everyone—at least not in the beginning. Start small
and win big with a niche audience. Figure out who your core consumers are and speak directly to them. Get specific about their values, habits, and needs. Build loyalty in that group first and let them amplify your message. Once you have a strong base, you can expand strategically.
3. Focus on Building Fans, Not Just Customers
It’s one thing to sell a product; it’s another to build a following. The most successful brands today don’t just have customers—they have fans. These are the people who will post about your product, share it with friends, and defend it in online debates. To build fans, you need to deliver more than a great product. You need to create an emotional connection and a sense of community. Ask yourself:
Why would someone feel proud to be part of this brand?
4. Leverage Digital to Build Connections, Not Just Ads
Social media and digital platforms are more powerful than ever, but the game has changed. It’s no longer about how much you spend on ads—it’s about how creative and personal you can be. People want to engage with brands that feel like people. Be present in comments, DM people back, and create content that feels natural, not corporate. If your customers feel like they know you, they’ll root for you.
5. Choose Your Partnerships
Carefully
2024 collaboration matters, but not all partnerships are created equal. Whether it’s a celebrity, an
influencer, or a complementary brand, make sure they genuinely align with your values and audience. Consumers are quick to spot partnerships that don’t make sense, and it can hurt your credibility. Find people or brands who believe in what you’re doing and want to help grow it authentically.
6. Be Intentional About Your Community
The brands winning today are the ones building real communities. Think about how your product can bring people together—whether it’s a lifestyle, a shared value, or even just the way they use your product. Find ways to foster those connections, both online and offline. Community is what turns a product into a movement.
7. Adapt Quickly to Trends Without Losing Your Core Identity
The world in 2024 is moving fast. Consumer preferences, technology, and even the economy can shift overnight. You need to be nimble and ready to pivot. That said, don’t lose sight of your brand’s core identity in the process. Stay rooted in your values and mission but be willing to experiment with new ways of reaching your audience or enhancing your product.
8. Make It Easy for People to Share
Word of mouth is still the most powerful form of marketing, but you must make it easy for people. Whether it’s through shareable packaging, social media challenges, or a brand story that people want to talk about, create moments where your audience
can amplify your message for you.
9. Stay Resilient and Patient
Finally, and maybe most importantly, remember that building a brand takes time. The world is noisy, and breaking through isn’t going to happen overnight. There will be setbacks, frustrations, and moments when you wonder if it’s all worth it. Stay focused on your mission, keep learning, and trust the process. Building a consumer brand in 2024 isn’t easy, but with persistence and purpose, it’s possible.
A big thank you from EMERGING for sharing these incredible insights. If Sauer hasn’t written his first book yet, we believe he should.
PLANK is a coastally-inspired oyster bar and seafood grill.
The menu is faithful to the tradition of fresh seafood, high-quality ingredients, and a made-from-scratch mentality. Plank’s inspired chefs create classic dishes that deliver coastal flavors in a unique setting. Thoughtful service, notable flavors, and social moments are found here. Plank wants to expand nationwide in lifestyle centers, regional shopping centers, and urban projects with great restaurant co-tenancy.
5,500-6,000 SQ FT Nationwide plankseafood.com
Leasecake is an industry leader in lease and location management solutions tailored for restaurants and multi-unit operators. It’s designed to reduce risks and protect the locations, helping operators make smarter decisions and keeping track of events critical to their long-term success.
By Marisa Upson
On October 22, 2024, EMERGING, the leading growth equity fund for restaurant-entertainment concepts and technology, joined Leasecake as a key strategic investor, successfully closing the concept’s $10M Series A extension. If you’re thinking this could be a perfect partnership, we couldn’t agree more.
Recently, we had the pleasure of speaking with the founder of Leasecake, Taj Adhav. Adhav’s extensive background includes starting his career as a Big Four CPA and working as an Imagineer at Disney
on large real estate projects and new business launches. From there, he transitioned into technology, joining Channel Intelligence.
This background in technology and real estate gave him the skills and knowledge he needed to become the founder of Leasecake. Here’s what he had to say about his journey thus far, from starting out with Techstars to partnering with the Emerging Fund.
Taj Adhav: I first pitched the idea of Leasecake at Techstars Global Startup Weekend, and I immediately saw how the market resonated. We won Techstars globally across 200 cities in 58 countries.
Leasecake is real estate and location management made easy for multiunit restaurant operators. Whether they’re franchisees or franchisors, they are focused on building their restaurant empire, not their real estate empire. Yet, at the heart of every great restaurant is a location, and that location requires a lease.
The amount of risk in that lease sometimes sneaks up on you, not to
We’re so excited to be a partner with the EMERGING Fund. Over the last few years of getting to know Mat and his team, they’ve been phenomenal partners even before Emerging became an investor in our platform. I think they see the future. They certainly are technology innovators driving new value to the restaurant industry.
I think they have a unique mix in that the Emerging Fund lives at the intersection of private equity, technology, and restaurants. They have a unique perspective that I think, frankly, will change how restaurants are run and operated, allowing the restaurants in their portfolio to outcompete others in their markets. So, I couldn’t be more happy, couldn’t be more proud to be a partner with the Emerging Fund.
mention the cost of missing critical dates of permits, licenses, and vendor contracts that might have some really onerous terms. So, what Leasecake does is help you stay one step ahead to help you focus on driving your business and reducing the risk that you ultimately don’t even know exists.
For example, at a portfolio level and at a customer level, we can provide analyses that show you your critical or your exclusivity provisions over the last 10 years. How has your negotiating leverage changed or improved with your landlord? What are the things that they’re looking for? What’s coming up in your renewal options across your portfolio to negotiate? We’re not referring to just your rent rates or escalators, but other key things that
terms that we agreed to 15 years ago.
So, creating a standard, tenant-friendly lease, customer by customer, restaurant by restaurant, QSR to fine dining to family, using the power of AI to give you knowledge and standardization of a lease, is key. We see AI as the creation of the ultimate tenant-friendly restaurant-based lease, and we’re on our way already. So that’s the vision of where we’re going, and that vision is a reality today.
We hear so often from prospects that we’re speaking to, and even customers who have been with us for four or five years said, “Hey, you know what, before Leasecake, here’s what happened: It cost me $200,000 because I missed a renewal option.”
And I said, “Okay, so walk me
And they said, “You know what, I had a pretty good relationship with my landlord, and I just thought, you know, hey, I missed it by one day. And I would call him up and say, ‘Hey landlord, this is me. I missed the renewal option by one day. I’m really sorry. I’m going to go ahead and give you
And the landlord says, “No, time out. I’m sorry, I’ve already got a tenant lined up. I’ve had a prospective tenant lined up to take
“
What inspired me to create the company was the life that I’ve lived. I feel like I have been training for this all my life. I was a CPA for 15 years. I was the youngest kid, immigrant family, first generation. And I saw what my parents built as commercial tenants coming from India to Canada with $6 in their pocket.
your space, and I’ve been waiting for you to mess up.” It cost them $200,000, not just in missed revenue because they had to shut everything down, but also to renegotiate with that landlord. Signing up for another 10-year term was just incredibly expensive.
So, we hear this time and again, and in some cases, we’ve heard of milliondollar mistakes, especially in high-traffic areas. So, what Leasecake does is help you stay one step ahead to help you focus on driving your business and reducing the risk that you ultimately don’t even know exists.
We’ve been building Leasecake with purpose. We started small, but we recognize that the opportunity is massive within the restaurant space, and that is definitely our focus in North America. We started with franchisees, but becoming a standard for franchisors
and corporate restaurants of all shapes and sizes, private and public. Our plan for the future, over the next couple of years, is to be the industry standard for real estate and location management.
What inspired me to create the company was the life that I’ve lived. I feel like I have been training for this all my life. I was a CPA for 15 years. I was the youngest kid, immigrant family, first generation. And I saw what my parents built as commercial tenants coming from India to Canada with $6 in their pocket.
What’s happening now is this movement to a true support infrastructure where they’re using technology to help differentiate themselves versus the other brands. I’ll give you some examples. Now, technology is used by really large franchisors to say, you know what, you’ve got a choice as a franchisee to open up another brand, but you should choose our brand because we’re providing a platform that allows you to scale.
At the EMERGING Fund, we’re excited to partner with this innovative company that shares our vision of helping restaurants grow faster while reducing risks and enhancing profitability. As the preferred real estate and location management platform used by global restaurant brands like Dave’s Hot Chicken, Jersey Mike’s, and Lettuce Entertain You, the future’s looking very bright for Leasecake.
Black Box Intelligence recently released its State of the Restaurant Industry Q4 2024 report. According to the report, resilience and value are driving success as 2024 comes to a close. Some of the positive trends noted include positive growth in off-premise sales.
By Marisa Upson
Here, we’ll explore the good and the bad and what to expect according to this data and their latest analysis and insights.
The Black Box Intelligence analysis revealed resilience and stability in both traffic and sales for quick-service restaurant brands. The price-conscious consumer is tagged as the reason for
this segment’s continued consistent earnings.
This summer, QSRs went all-in on value meals. Fall has witnessed the arrival of apple cider donuts, pumpkin spice lattes, and Spicy Honey Pepper
Pimento Chicken Sandwiches.
Fast casual dining has seen a small boost in traffic. This activity is considered a backdrop to the narrowing price margins between the fast casual and quick service segments. According to Placer.ai, both categories remain popular among households earning $75,000 to $100,000.
Additionally, these segments are increasingly similar, with fast-casual chains adding drive-thrus, and QSRs increasing both prices and quality. Fast casuals actually outperformed QSRs during the first half of 2024, coming in at a 3.2% year-over-year visit growth compared to 0.4% for fast food brands.
As expected and in comparison, casual and family dining experienced underperforming traffic and sales.
The tropical cyclone, Hurricane Helene, caused widespread destruction and fatalities across the Southeastern portion of the U.S. in late September. It was the deadliest to hit the mainland since 2005’s Katrina. Hurricane Milton, the most powerful tropical cyclone in 2024, made landfall in Florida just two weeks later.
Restaurants in Florida, Georgia, and South Carolina experienced a drastic reduction in sales, with some registering a loss of up to 10%. Despite this, Blackbox reports a stronger than anticipated resilience, noting restaurants’ ability to adapt and recover.
Their analysis also reveals strong off-premise sales, with limited-service restaurants experiencing an 8% growth year-over-year. Full-service restaurants were also positively impacted by rising delivery sales. This trend is expected to continue into 2025.
and bar sales increasing by 1% monthover-month in September, outpacing other industries. Retail sales increased by 0.4%, demonstrating consumers’ continued preferences for experiences over objects. According to Restaurant Business, this figure represents the best performance for restaurants since November.
According to Black Box, the perceived value and the importance of it are driving consumer reviews. Their priority, as seen in reviews, is consistency, quality, and value. The analysis also reveals a direct link between guest sentiment and weekly sales, and that link is significant. In full-service restaurants, establishments that received high ratings saw weekly sales hit the $100,000 mark compared to lower-rated restaurants that reached a mere $30,000.
Fast casual dining has seen a small boost in traffic. This activity is considered a backdrop to the narrowing price margins between the fast casual and quick service segments. According to Placer.ai, both categories remain popular among households earning $75,000 to $100,000.
So, what are restaurants doing to catch the tailwind? Many are investing in online ordering systems like Chowly, the off-premise platform that integrates the POS system, online ordering, and more. They are also updating delivery menus to improve the customer experience and meet the growing demand. Some of the most popular foods ordered for delivery include burritos and burrito bowls, tacos, create-your-own pizza, and lemon za’atar fried chicken bao.
While it may not feel like it, federal retail sales data showed restaurant
A continuing challenge is retaining staff, especially when it comes to full-service establishments and managerial roles. As we know, this high turnover rate directly impacts the bottom line.
The restaurant employee turnover rate measures how often employees leave their jobs. So, an hourly turnover rate of 16.9% in full-service restaurants means that about 17 hourly employees quit out of 100. Attracting and retaining skilled staff has always been a challenge and continues to be so today.
What are the keywords for the restaurant industry at this time?
Cautious optimism and potential challenges.
√ Massive flow of off-market deals
√ Access to proprietary data creates visibility to market leaders
√ Attractive terms driven by position as strategic partner
√ Pre-existing working relationships with company founders
√ Access to influential industry insiders to scale and partner
√ Delivering asymmetric returns with growing companies
