EMERGING - FALL/WINTER 2023

I N D U S T RY’S TO P R E S TA U R A NT A N D E NT E RTA I N M E NT C O N C E P T S

I S S U E 0 4 | FA L L / W I N T E R 2 0 2 3

Federales

Immersive Gamebox

Flight Club

Puttshack

Formula 1 Arcade

Chowly

EMERGING

FUND INVESTMENTS

Overproof

Tablz

1Huddle

Botrista

EMERGING FUND

Innovative Portfolio Investments Technology disrupting operations and accelerating concept innovation.

FEDERALES is a lofty, open-air tequila and taco concept with an energetic atmosphere. (Chicago, Denver, Dallas).

Immersive Gamebox is an immersive team adventure inside the world’s smartest room.

www.federalesbars.com

www.immersivegamebox.com

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.

With Chowly Online Ordering, third-party marketplace POS integration, Smart Pricing, delivery services, and best-inclass reporting, Chowly helps restaurants of all sizes compete and succeed at the highest level. www.chowly.com

www.f1arcade.com

The fastest way to onboard, upskill, and fire up your team!

Increase Ticket Size with Craft Beverages. www.botrista.com

www.1huddle.co

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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. www.flightclubdarts.com

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

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

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.

www.overproof.com

www.puttshack.com

www.tablz.com

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Unsurpassed Team of Partners

INNOVATION PARTNERS

Adam Breeden

Randy DeWitt

Peter Venti

Padma Rao

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

Founder/CEO of FamilyMeal, Pippy Sips, RealFood

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

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

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Nick Hogan

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

VENTURE PARTNERS

Sterling Douglass

Damian Mogavero

Bhavuk Kaul

Taylor Katzman

Co-Founder/CEO of Chowly

Co-Founder/Former CEO of Plate IQs

Founder/Former CEO of Avero

Rom Krupp

Founder CEO of OneDine, Marketing Vitals

Founder/CEO of Provi

GENERAL PARTNERS

Mathew Focht

GP EMERGING Fund/ Founder & CEO EMERGING

Dave Bagley

John Davie

GP EMERGING Fund/ Founder & CEO Buyers Edge Platform

Matt Menna

GP EMERGING Fund, Managing Principal and Chief Design Officer at Sterling Bay, Founder/ Founder and Managing & Principal Four Corners

Request Information on Fund

GP EMERGING Fund, Chief Investment Officer

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FA L L / W I N T E R 2 0 2 3

An Interview With Mike LaVitola, Co-Founder and Chairman of Foxtrot and why he’s excited about EMERGING fund!

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INDEX

Culinary Dropout Damn good food for damn good people

40 Buying vs. Leasing Real Estate for Your Restaurant Becoming the Best New Restaurant in the World

JF Restaurants

The Pub offers a unique combination of British hospitality and American flair

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Strang Chef Collectives

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Breadless

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Restaurant-industry vets raising $100M venture fund

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The New Craft Beverage Maker Is Here: Botrista

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Become Inspired by the Top Independent Restaurant Groups in America

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Restaurant Experiences, Eatertainment, and Generation Z

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Brassica is a casual, colorful sandwich and salad shop with a focus on beautiful architecture

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Formula 1 Racing Coming to Las Vegas In November

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EMERGING CONCEPTS

Buying vs.

Leasing Real Estate for Your Restaurant Selecting the ideal location for a restaurant is a pivotal decision that can make or break its success. Yet, once you’ve decided to open a restaurant, another crucial choice looms large: Should you buy or lease the property?

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ach option has advantages and disadvantages, and your decision hinges on numerous factors, such as your financial stability, long-term aspirations, market dynamics, available liquidity, and growth potential. To make this intricate decision smoother, enlisting the services of a specialized commercial real estate firm that deals with restaurants can prove invaluable.

Ownership and Control Buying: Opting to purchase real estate means you become the rightful owner of the property. This allows you to build equity over time and furnishes you with a stable base and total control over your restaurant’s location, eliminating concerns about lease renewals or rent hikes. Furthermore, you can tailor the space precisely to your restaurant’s requirements without landlord interference.

Leasing: Leasing offers a higher degree of flexibility. It enables you to adapt your restaurant’s size or location as your business evolves and your needs change. Landlords often shoulder the responsibility of property maintenance and repairs, alleviating you from unexpected expenses and landlordrelated headaches.

Buying: Acquiring commercial real estate necessitates a substantial upfront investment, encompassing down payments and closing costs. Owning property can sometimes limit your flexibility if you wish to relocate or change

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your restaurant significantly. Real estate markets are prone to volatility, which can influence property values and potentially affect your business’s financial stability.

On the bright side, ownership can accumulate equity over time and provide long-term financial security. Additionally, there may be potential tax advantages, including deductions for mortgage interest and property taxes.

Leasing: Lease agreements often come with periodic rent increases, which can gradually evolve into a significant operating cost. Leasing means you won’t accumulate equity in the property or partake in the potential appreciation of property value. As a tenant, you have limited control over the property and are subject to the landlord’s constraints on renovations and design changes.

Renewing a lease is never guaranteed, and landlords may choose not to renew

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for various reasons.

Liquidity and Potential for Future Growth Buying: Although buying offers longterm stability, it can tie up a substantial portion of your capital in the property.

This diminished liquidity can hinder your capacity to invest in other areas or expand your store count.

Leasing: Leasing preserves liquidity, necessitating fewer upfront capital investments than buying. This liquidity can be indispensable for dealing with unforeseen expenses, adapting to market shifts, or seizing growth opportunities, such as opening additional locations.

Buying or leasing real estate for your restaurant is multifaceted and contingent on your unique circumstances, long-term objectives, and risk tolerance. To navigate

the complexities of purchasing or leasing restaurant real estate, consider enlisting the expertise of a commercial real estate firm specializing in restaurants. These professionals can help you assess your business needs and goals, identify suitable properties or lease agreements, negotiate favorable terms, provide insights into local market conditions and trends, and assist in navigating legal and regulatory considerations. With their guidance, you can make an informed decision that paves the way for your restaurant’s success in the long run.

Emerging Concepts provides real estate solutions for the industry’s top restaurant and entertainment concepts. If you are looking for representation or are interested in bringing one of our industryleading concepts to your project, please schedule a call.

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Real Estate Solutions for the industry’s top restaurant and entertainment concepts We are an extension of the operator’s team, evaluating the real estate opportunities across the country. 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.

Contact Us

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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.

Lease Negotiations

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

Predictive Analytics

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

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INTERVIEW

An Interview With Mike LaVitola, Co-Founder and Chairman of Foxtrot Recently, Mathew Focht, Founder and CEO of EMERGING, had the pleasure of speaking with Mike LaVitola, co-founder and chairman of Foxtrot and an advisor for EMERGING Fund.

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f you haven’t yet heard of Foxtrot, you will. This brand, in many ways, defines the preferences of today’s consumers.

It’s about convenience, great food (local and national), sustainability, effortless delivery, and an app. They’ve definitely checked all the boxes.

So, what exactly is Foxtrot? It’s a convenience store. Surprising, I know.

It’s really the convenience store we’ve all dreamed about, a place to stop in for the best coffee, food, alcoholic beverages, and non-alcoholic drinks when you’re on your way to work or heading home after a late night with friends. Think local food, handpicked wines, and fresh chef-prepared meals. They also offer delivery and takeout. They also promote sustainability.

Let’s see where LaVitola’s inspiration came from and his role in EMERGING Fund.

What Inspired You To Do Foxtrot?

After college, I moved to Austin, Texas, and one of the things I loved about that city was there was such a vibrant scene around food and beverage. There were amazing craft breweries getting started, tequila bars, incredible taquerias, and delicious bakeries. It infused everything around the city and really made it an amazing place to live.

And so, when I moved back to Chicago, one of the things that struck me was that the same scene existed here but in disparate parts of the city. And it certainly didn’t exist in the retail spaces where

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customers shop most, which are ultimately convenience stores. No matter where I moved in the city, I found there was always a convenience store on every corner, but it was never filled with the kind of products that I knew were delicious and innovative.

These places were spread across the city but not next door.

And so, what Foxtrot was ultimately about was curating all the great, delicious things happening in the city and elsewhere and putting it into a format that I think people thought of as, you know, pretty tired.

What Is Your Role at the EMERGING Fund?

I’m excited to be an advisor at EMERGING Fund because it really sits at the intersection of the two most critical things for emerging concepts. The first one is location, data and analytics, and site selection. And then two, once you find those great concepts that are producing and growing, infusing technology into them so that they can do so in a capital-efficient way and in a way that empowers teams and gives great experiences to customers.

I haven’t seen the combination of those two pieces of the business anywhere else.

EMERGING Fund can offer immense value for founders in terms of deep domain expertise, so it’s not talking in generalities about strategy going forward.

It is a roster and a bench of CEOs, founders, and operators who have been there, done that, and are doing it across hundreds of thousands of locations.

They can give advice and mentorship in 16

very candid and practical ways that most investors simply can’t.

EMERGING Fund sits at this really interesting intersection, where I think there’s a pretty large gap between traditional venture capital and later-stage private equity. It’s where most of the best concepts are off the ground, ready to scale, and need capital, but there’s plenty of capital out there.

It’s really about finding a strategic advisor who can pair that capital with hard-won knowledge of what it takes to scale concepts and the technology that underpins them. EMERGING Fund is becoming the hub for concept founders,

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operators, and CEOs to come together and benefit from the innovation that they see every day across their industry.

As an operator, you’re also inundated almost every day with new technologies and new pitches, new concepts, and new ideas. And so, having a network and an ecosystem of all the other leaders in the industry who have tested these technologies, tested these concepts, and tested these ideas to see who the ultimate winners are is incredibly valuable.

An Exciting Future

in Dallas, Washington D.C., Virginia, Austin, and Bethesda. They also offer nationwide delivery. We’re excited to see where this innovative brand finds itself down the road.

As LaVitola said so well, EMERGING Fund is made up of leading founders and CEOs in restaurants and restaurant technology.

They invest in explosive growth areas and partner with leading entrepreneurs to accelerate go-to-market strategies under a modern fund. To learn more about EMERGING Fund or to schedule a consultation, contact EMERGING today.

Currently, Foxtrot offers 15 stores throughout Chicago, as well as locations E M E R G I N G

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EMERGING CONCEPTS

Becoming the Best New Restaurant in the World Do you ever wonder how to make the “Best New Restaurants in the World” list? A daunting task, to say the least. The list, created

by Condé Nast Traveller, is in its 27th year, sharing the world’s best restaurants since 1996.

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s George Bernard Shaw said, “Imitation is not just the sincerest from of flattery, it’s the sincerest form of learning.” Let’s see what we can learn from a few of the restaurants that hit the pinnacle of “World’s Best.”

New Restaurants Making the Grade Where do we start? You’ll find these worldclass restaurants in Paris, Barcelona, Madrid, Cape Town, Rio de Janeiro, and Bangkok, to name a few of the many cities across the globe. Here, we’ll focus on the ones that made the best of the best mark in the U.S., their defining differences, and their similarities.

Only five U.S. cities found their way onto the list.

New York City Two new restaurants in New York City made this impressive list: Place des Fêtes and Masalawala & Sons. Place des Fêtes is a wine bar in Clinton Hill. Care to start with sardine toast, smoked butter, and kosho with some crispy maitake mushrooms with black garlic fudge? It’s a menu that places it at the pinnacle of wine bars.

Masalawala & Sons lays claim to family recipes and age-old authentic cooking techniques of India. To get a seat indoors requires a reservation. You’ll find small, medium, and large plate options on the menu, with items like Biyebarir fish fry with bhetki, cilantro-chili, butter batter, and kasundi.

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Atlanta La Semilla impressively established itself as one of the best new restaurants among the multitude that opened in Atlanta. This plant-based oasis with a Latin flair offers unique specials, like reserve wines, chef specials, happy hours, and vinyl DJs every Wednesday night.

Along with enmoladas con verduras and chochoyotes, it offers an extensive list of sugarcane and agave spirits and biodynamic wines.

Berkeley Located outside the Hearst Museum of Anthropology on the UC Berkeley campus, Mak-‘amham/Café Ohlone is dedicated to the Ohlone culture. Guests pass through native plant gardens before they reach the singing trees, seven native trees with the voice of elders and children speaking and singing in the Chochenyo language.

Once dinner begins, diners are serenaded by the songs of flickers, blue jays, blackbirds, and geese, eating amidst an abundance of plants, shells, and earth.

A few of the menu offerings include traditional Ohlone dishes like fine black oak acorn soup, chanterelle mushrooms, and Tomales Bay mussels and clams.

Boston Alyssa Mikiko Di Pasquale, the owner of Boston’s first sake bar, The Koji Club, is known for her extensive sake knowledge and love of hospitality. Koji Club features sake from small rural brewers in Japan and combines them with a variety of 20

cuisines.

If you didn’t know much about sake, you will once you enter these sacred sake halls. If you get hungry while trying the nearly limitless sakes, like Nigori Junmai, Farthest Star ‘Mountains on the Moon,’ enjoy caviar, Japanese curry empanada, or mushroom miso soup. Calling this new bar unique may be an understatement.

Philadelphia Her Place Supper Club made the best new restaurant list. I know seeing a supper club on such a competitive channel is a surprise. This restaurant, however, defines today’s in-demand experience.

The family-style tasting menu and intimate atmosphere create a place where strangers become friends as the host describes each dish as it’s delivered to the dining room.

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Atlanta ranked as one of the best cities to open a restaurant. That ranking considered median income, workforce potential, restaurant sales and restaurants per capita. Of course, finding an ideal location isn’t just about sales. It’s also about competition, over-saturation, and disposable income.

As Amanda Shulman, chef and host, describes it, “Her Place is kind of like a restaurant but kind of like a dinner party…

Imagine showing up to your mom’s friend’s house for dinner and just eating whatever she makes—it’s a little like that. The food leans French and Italian with some Jewish touches swirled in.” The restaurant offers two seatings of 24 guests each.

Opening the Next Best New Restaurant So, what does it take to receive this distinguished accolade? And is one of these cities the place to consider for your next location? As you can probably guess, opening a restaurant in New York City would be both exciting and challenging.

Why? There is a tremendous amount of competition. In fact, according to VinePair, you could eat at a different restaurant every day for 22.7 years and never visit the same place twice.

What about Atlanta? A few years ago,

There must have been, however, several entrepreneurs that read those findings.

2022 saw a record number of restaurants opening in Atlanta. If you check out Eater’s very long list of Atlanta restaurants yet to open in 2023 and 2024, one wonders if the next chefs will have to start elbowing their way into The Big Peach.

We’re especially excited about one of our clients, Puttshack, opening its second Atlantic area location at the High Street development.

Outside of location, it’s clear that creativity and unique offerings are the glue that holds these best restaurants together.

Are you ready to explore the world together and find your brand’s next location? At Emerging Concepts, we work with today’s leading restaurant and entertainment concepts, helping them make critical choices, developing expansion plans, and directing them toward their short and long-term goals.

Our team comprises business analysts, data scientists, and real estate and restaurant experts, working together to create unprecedented value for our clients.

To learn more about our process or to schedule a consultation, contact Emerging Concepts today.

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JFRESTAURANTS.COM

JF Restaurants JF Restaurants is a hospitality group rooted in collaboration and innovation, founded by restaurateur & Michelinstarred chef, John Fraser.

We create moments that move people by using food, beverage, hospitality and design.

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EXPERIENCETHEPUB.COM 6,000-7,000 SQ FT NATIONWIDE MARKET

The Pub offers a unique combination of British hospitality and American flair.

The award-winning exterior of The Pub is modeled after the classic corner pubs of London. The gastropub style menu incorporates brilliant pub fare with an extensive beverage selection. Along with the signature Fish-n-Chips, guests can enjoy an assortment of small plates, salads, sandwiches, burgers and classic pub dishes.

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Strang Chef Collectives More than a food hall, Strang Hall Chef Collectives are a new dining experience that offers a unique and amazing culinary experience.

Exposing innovative chef creations to the masses, their aim is to rise above the ordinary while remaining approachable. Housing several local chefs, Strang Hall Chef Collective provides an authentic experience in a casual modern environment.

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EATBREADLESS.COM SIZE: 1,500–2,250 SF

Breadless Based out of Detroit, with two new locations coming soon, Breadless sandwiches and bowls combine the nutrition of supergreens with the flavor of fine dining.

100% gluten-free and offering meat, vegan, keto and Whole30 options, it is always nutritious, flavorful, and low-carb.

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EMERGING FUND

Restaurantindustry vets raising $100M venture fund A Chicago venture capital fund backed by restaurant-industry veterans is looking to invest in restaurants and tech companies.

Mathew Focht, a longtime consultant who has worked with chains such as Bar Louie and Cheesecake Factory on real estate and supply-chain issues, has raised more than $50 million of a planned $100 million fund.

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nvestors in the Emerging Fund, which takes its name from Focht’s Emerging Concepts restaurant real estate company, include Randy DeWitt, founder of the Twin Peaks restaurant franchise; Taylor Katzman, founder of online alcoholordering platform Provi; and Sterling Douglass, founder of restaurant software company Chowly.

Matt Menna, managing principal at Sterling Bay and co-founder of restaurant

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operator Four Corners Tavern Group, is a general partner in the fund.

“We were already helping operators, so we thought: Why don’t we start a fund?” says Focht, 47. “We have deal flow other funds don’t have access to because of our data and customers.”

Emerging plans to focus on restaurant concepts with one to six units, as well as restaurant-tech startups.

“The restaurant space is a challenge to finance through conventional sources,” says Jay Stieber, general counsel and partner at Lettuce Entertain Enterprises, who is an investor in the fund. “As you’re growing, it’s mostly friends and families, or private placements. The restaurant industry is really struggling with higher costs, particularly labor, and tech can help provide some solutions to those problems.

There’s a good marriage between tech and restaurants.”

The fund already has made a number of investments, roughly split between technology and restaurant concepts, including F1 Arcade, the Formula One restaurant and bar concept, and Puttshack.

Article Courtesy of Crain’s Chicago Business, John Pletz senior reporter covering technology, aviation, and cannabis for Crain’s Chicago Business.

ChicagoBusiness.com is the news site of Crain's Chicago Business, one of more than 20 business publications owned by Crain Communications.

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I N N OVAT I O N PA RT N E R S

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Increase Ticket Size with Craft Beverages The heart of our beverages was born on the farms. We source our tropical fruits from around the world from partners who are certified in quality, providing our craft beverages unique tastes that stimulate your taste buds.

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EMERGING FUND

The New Craft Beverage Maker Is Here: Botrista According to The Oxford Companion to Spirits and Cocktails, the Cocktail Renaissance started around 2004. It marked the revival of the art of mixing drinks. While some in the industry stand firm that the art never died, the younger generations hadn’t quite embraced the cocktail culture.

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ow, the term is craft cocktails, drinks with complex flavors, and unique ingredients, and created by those unafraid of fire and ice. And let’s not forget the mocktail, a nonalcoholic beverage with many of the same fresh ingredients and wellness spins.

So, how do you embrace this growing demand for specialty non-alcoholic drinks if space is limited and the nearest mixologist is 100 miles away? That’s where Botrista comes in—a brand making craft beverages accessible through the power of technology.

The Problem – Restaurants are losing profits from declining soda sales and consumers are looking for healthier craft drinks. The recent labor shortage and training make menu expansion hard.

The Opportunity – Increase beverage sales and profitability with easy operations, consistency in quality, and recipe costs.

What Is Botrista?

Botrista is an automated DrinkBot with patented blending technology, patented

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algorithmic dispensing technology, and sugar-level customization. Did someone say premium drinks from the footprint of a fountain machine and a full bar in 4 square feet? Yes, yes they did.

You’re probably wondering what you can make from this autopilot beverage station.

The better question would be, what can’t you make? Your guests have the choice of expertly crafted cocktails made with natural ingredients, aqua fresca, and plantbased oat milk drinks.

A few of the top sellers in these categories include passion fruit vodka, watermelon peach, and butter salted caramel. Globalflavored teas, natural lemonades, coffees, smoothies, energy drinks, frappes, and boba tea with its chewy tapioca pearls are a few of the remarkable options.

And, for the eco-friendly, health-conscious, it gets even better. They source their tropical fruits from the highest-quality farms around the world. Tropical fruits, natural sweeteners, plant-based milk products, herbs, and vitamins are combined and packaged in a plug-andpoor system, minimizing waste.

Who Came Up With This Incredible Technology?

And, more importantly, why didn’t I? The mastermind behind Botrista DrinkBot is Sean Hsu, a serial inventor and entrepreneur. His inspiration came from watching staff hurriedly making coffee and milk teas at a busy café. The line grew longer, and guests turned to water when 36

they couldn’t find a drink that interested them. With a background in robotics and experience in liquid dispensing at Tesla, Hsu was ideally suited to find a way to automate the process, only on a much grander scale.

Botrista’s Director of Culinary Development and the guide behind the ingredient compositions is Rex Huang, a one-time

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And, more importantly, why didn’t I? The mastermind behind Botrista DrinkBot is Sean Hsu, a serial inventor and entrepreneur. His inspiration came from watching staff hurriedly making coffee and milk teas at a busy café.

Francisco International Airport, Crawdaddy Restaurant, and Ike’s Sandwiches. Ike Shehadeh reported that, since installing the Botrista DrinkBot, new customers are coming in just to get the beverages.

At one fast-casual restaurant franchise, incorporating Botrista has resulted in 18% growth in the average check size and gave them the option to lower labor costs.

Venture capitalists and strategic investors also believe in this unique offering, with total funding currently at over $55 million.

Botrista is currently operating in the U.S., Canada, Australia, and Asia.

The EMERGING Fund Chef de Cuisine at Ninebark Napa and the head of the restaurant and bar at twoMichelin-starred Atera in New York City.

What Brands Are Embracing Botrista DrinkBot? A few of the many brands embracing these 100% natural beverages include The Halal Guys, Goldilocks at the San

At EMERGING Fund, we’re excited to be a part of this incredible brand that we believe will take the craft beverage movement by storm. EMERGING Fund is made up of leading founders & CEOs in the restaurant and restaurant technology sectors. To learn more about one of the largest acceleration platforms or to schedule a consultation, contact EMERGING today.

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I N N OVAT I O N PA RT N E R S

We make implementing boba easy!

A fast, varied, and delicious boba menu you can depend on so that you never miss a drink sale.

Request more information on Botrista

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Brown Sugar Boba Delicious and ready to serve. Our brown sugar Boba is fragrant and chewy. A perfect match for any Boba drinks.

No added preservatives.

Microwave for 15 seconds and then add to your Boba drink.

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CULINARYDROPOUT.COM 7-12,000 SQUARE FEET

Culinary Dropout Damn good food for damn good people.

At Culinary Dropout, raise your glass to friends coming together. A place where food and music are life. Join us at happy hour for ice cold beer and our famous soft pretzels with provolone fondue. At dinner, a signature cocktail and slow braised 36-hour pork ribs are a perfect pair. While you and your crew enjoy damn good food & drinks, a local band plays live for great vibes. Come hang out and stay a while.

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EMERGING CONCEPTS

Become Inspired by the Top Independent Restaurant Groups in America Recently, Nation’s Restaurant News and Technomic came out with the most influential restaurant groups in America. These represent the largest restaurant groups based on unit count—upscale and fine-dining multiconcept brands walking the fine line between operating as major chains and the independence of, well, independents.

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They’re first brick-and-mortar was Marquee, a nightclub in New York’s Chelsea neighborhood that brought in 1,200 people every night and continues to evolve today. They joined with Marc Packer and Rich Wolf, of Tao restaurant in Manhattan, who opened Tao Las Vegas in 2005, and Tao Group Hospitality was born.

Today, they operate 89 locations in the U.S., Gulf States, London, and Singapore.

A few of their concepts include pan-Asian Tao, Chinese Hakkasan, Beauty & Essex in partnership with Chef Chris Santos, LAVO Italian restaurants, and more. Their focus is creating remarkable experiences for their guests, whether Michelin-starred restaurants or award-winning nightclubs.

Lettuce Entertain You Enterprises

Let’s explore the top contenders and how they ascended.

Tao Group Hospitality Noah Tepperberg and Jason Strauss met in high school. They started with school parties and their event planning grew from there to become Strategic Group, a marketing, PR, and special events company. They’re doing the same thing three decades later on a much grander scale.

If you’re looking for the definition of a diversified portfolio, you will find it in Lettuce Entertain You. In 1971, Rich Melman and Jerry A. Orzoff opened R.J. Grunts in Chicago. A few of their many famous guests include Dan Aykroyd, John Candy, John Belushi, Gilda Radner, and many of the Chicago Bears. Within five years, it was followed by Fritz, The Great Gritzbe’s Flying Food Show, Jonathan Livingston Seafood, and Lawrence of Oregano, a hip Italian restaurant.

Their strategy since the beginning has been to find trusted partners to run their concepts, all of which have been created in-house. And, despite their steady expansion, they take their time, structuring deals with landlords and setting themselves up for success before they open. They open one restaurant at a time and make sure each restaurant is working

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before they open the doors of their next.

Today, they operate 110 units in seven states and Washington, D.C. Hal Smith Restaurants Like many in the restaurant industry, Hal Smith started what was to become his restaurant empire by working in one. He worked his way up the restaurant ladder, ultimately becoming chairman and CEO of Steak & Ale Restaurant Corporation, a

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subsidiary of Pillsbury. He also became CEO of Chili’s, Inc. and Chi-Chi’s, Inc. In 1992, he founded Hal Smith Restaurants. His concepts include Louie’s Bar & Grill, Charleston’s Restaurant, Mahogany Prime Steakhouse, Red Rock Canyon Grill, Toby Keith’s I Love This Bar & Grill, Krispy Kreme, and more. Today, they own 81 units in seven states in the Midwest.

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Thompson Hospitality Warren Thompson’s desire to own a restaurant started at a young age. And he, like others, decided to work from the ground up. The foundation for Thompson Hospitality began with the acquisition of dozens of Big Boy restaurants in 1992, most of which converted to Shoney’s.

Today, they operate restaurants, hotels, and contract food services.

Thompson’s current plan centers around efficiency, staying local, penetrating markets, and remaining consistent. A few of their concepts include Makers Union, Wiseguy Pizza, and Matchbox. According to NRN, with 67 units, they are “the largest minority-owned food service and one of the largest retail food and facilities management companies in the country.”

Independent Restaurants That Excel It’s clear that what all these extremely successful restaurant owners and operators have in common is a love of the industry, a fearless attitude, an innovative spirit, and a growth strategy that doesn’t wait for the right time.

Cameron Mitchell Restaurants, Thunderdome Restaurant Group, Hillstone Restaurant Group, Cunningham Restaurant Group, Sage Restaurant Concepts, and STARR Restaurant Group, along with the four featured enterprises, make up the top 10 independent restaurant groups in the nation.

At Emerging Concepts, we help leading restaurants and entertainment concepts develop successful expansion strategies.

This includes evaluating real estate opportunities across the nation using data analytics, competitor analysis, and extensive target market research.

Then, we negotiate with developers and landlords on our client’s behalf. To learn more about our process or to schedule a consultation, contact Emerging Concepts today.

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RESTAURANT EXPERIENCE

Restaurant Experiences, Eatertainment, and Generation Z taking to win this generation’s hearts.

Unique flavor combinations and new occasions are some of the calling cards.

Their dining habits differ from their older brethren, the millennials, partly because they have yet to embrace the actions that require financial responsibility, such as having kids and purchasing a home.

Therefore, they can spend more money on unique food and beverages as well as experiences the restaurant industry is expanding on in search of brand-loyal youngsters.

Experiential and Eatertainment— the two words currently defining the restaurant industry. Why? Well, blame it on the kids. Actually, not just the kids. If you were born from 1997 to 2012, you’re considered a Gen Z.

Let’s explore what restaurants are doing to grab Gen Z’s attention.

What Does Gen Z Want?

his generation has reached the ripe old age of 26. Where did the time go? And as they enter and excel in the workforce, their spending power grows. And they’re spending a sizable share of their income on food and beverages—yay for us.

So, what does this segment of the population look for in a restaurant? I’m unsure when generalizing generations began or who started the trend, but it feels a little non-PC. And yet, there are environmental influences that shape us, no matter how fiercely independent we may proclaim to be. So, with that disclaimer…

According to Morning Consult, experimentation and trying something new are the tactics restaurants are

Gen Z embraces individualism, making customization key. Gen Z is also a big driver of the takeout and delivery

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Their estimated disposable income? $360 billion in 2022.

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platforms. In response, restaurants like Wingstop are planning restaurants with no dining area. They are social diners, heading out with friends and eating whenever the spirit moves them, whether that be 9 p.m. or 5 a.m. In response, restaurants are changing hours and going big on shareables.

They are also digital natives and, as Business Insider so eloquently states, “They eat with their phones first and are pulled in by influencer marketing.” They are also the most diverse generation.

What does this mean to restaurants?

According to Restaurant Dive, eateries should expect about 60% of order growth to arrive through digital channels in the next several years. Brands with a strong digital presence will draw in this phonefirst generation.

How Do Restaurants Appeal to Gen Z? So, what does this have to do with the increasing demand for experiences and how do restaurants appeal to this demographic? In addition to unique dishes, flavors, and global food, they’re also the generation that takes advantage of chef’s table experiences, a form of experiential dining.

They want this experience to start before they even enter your restaurant.

They want to be engaged on social media, drawn into your sustainable practices, and see numerous positive reviews. Where do they live in the digital world? Instagram, TikTok, YouTube, and Snapchat.

When they get to your restaurant, they want to be inspired by locally and sustainably sourced food with authentic flavors, eco-friendly practices, and shareable cuisine. The big thing about Gen Z is their experience over things.

Innovative and interactive experiences that bring lasting memories and an Instagram post call to this younger generation.

A few examples include themed dining experiences and the growing pop-up restaurant. Pop-up restaurants that offer authentic cuisine from a different culture are particularly popular.

An example of a restaurant going all out on the themed dining experience is The Cauldron Co. in New York City. You can choose from several magical immersive experiences, such as ‘Potion Making,’ which includes a magic wand and brewing your own molecular cocktails. If you’re looking for a full-service bar and restaurant, head to their British pub that serves a fantasy-inspired menu. The experience starts on their website, where you use Tablz technology to explore their dining room in 3D and choose a table.

Are you active on social media? Do you have a restaurant app and loyalty program? Are you offering something unique that provides a different experience than your surrounding competitors? If so, you’re well on your way to appealing to Gen Z.

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REAL ESTATE

The Call of the Suburbs: Restaurants Set Their Sights on the Cities’ Fringes What we once thought of as a temporary solution to a stay-athome world ended up changing how we spend our days. According to EPC Group, 56% of companies worldwide are operating as hybrid or fully remote models, and 82% of employees in the U.S. would like to telecommute at least once a week.

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hat we didn’t quite anticipate were the changes this employee transformation would have on the suburbs. With more people spending more time at home, the suburbs are expanding, with coffee shops, stores, and restaurants sprouting up to fulfill the need this changing landscape has delivered.

People no longer need to pay the high prices associated with city life, and sprawling suburbs suddenly seem much safer than the tight, cramped, congested metropolis.

Vox recently reported on Watertown, Massachusetts, a Boston suburb.

Developers are snagging up real estate, and a once closed-down mall is transitioning into the Arsenal Yards, a multi-use space with residences,

restaurants, and retail stores.

The number of new households moving to the suburbs grew by 43% in 2020 compared to 2019. The rising population increases the need for the services these once city-dwellers grew accustomed to, like coffee shops, gyms, and restaurants.

While suburbs used to be quiet during the day and busy during the rush hour commute to and from the workplace in the city, those days are quickly changing. This means that businesses once empty during the day now have a regular flow of people to count on.

Restauranteurs are heeding the call and heading to the suburbs to answer this growing demand. Let’s look at the latest

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restaurants. When you forgot to make a reservation and headed down the street to another neighborhood eatery, you would find the same wait or longer.

suburbanites and if this migration is sustainable.

The Next Frontier for Restaurants— Suburbia First, I’d like to say that as a one-time suburban dweller on the outskirts of Chicago, I’d be remiss not to mention that the move to suburbia for restauranteurs is not such a new thing. I remember hourlong waiting lists at one of my favorite 52

So, were there just not enough restaurants for the suburbs, or did I simply have good taste and knew where the best food was?

Perhaps, many operators simply didn’t know that the new happening place was a 30-minute drive from the bright lights of the big city.

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Now, they do.

U.S. Foods brought to light some interesting statistics. The highest density urban zip codes averaged 122 upscale restaurants per square mile in 2015. On the flip side, suburban zip codes came up with only 23 upscale restaurants per square mile. While time has certainly narrowed the gap, it’s clear that the competition pales in comparison. And, operators can still count on reduced leasing rates, at least for now.

Is the Migration to the Suburbs Sustainable?

While many question just how long this pattern will and can last, people are purchasing homes in suburbs, which means the trend is probably a lasting one.

In fact, the rising prices for homes in many suburbs far exceed the increasing home prices in major cities.

Let’s look at a few of the latest restaurants calling suburbia home.

The New York Times recently reported on some of the independent restaurants making their way into the outskirts of big cities. Jalea, a Peruvian restaurant known for its unique spices and fresh flavor combinations, opened up in St. Charles, 23 miles away from St. Louis, MO, the city with a flourishing restaurant scene. They found lower rent, less competition, and locals eager to try Peruvian food.

Roots Southern Table recently opened its doors in Farmers Branch, a Dallas suburb.

There, acclaimed chef Tiffany Derry serves up jerk lamb chops and duck-fat fried chicken and made Esquire’s list as one of the best new restaurants in America in 2021.

Vice recently reported on several restaurants making their way into the Philadelphia suburbs. Where once stood only chain restaurants like TGI Friday’s and Olive Garden, you now find a vegan bistro, two pho restaurants, a gastropub, two breweries, and a farm-to-table tavern.

The Bay Area suburbs are now home to State Street Market, a recent addition to Los Altos. In this former grocery store turned Spanish-colonial-inspired food hall, you’ll find a dozen eateries, including Bao Bei, an Asian fusion hot spot. Michelinstarred chef Srijith Gopinathan will soon be joining them with the opening of Little Blue Door.

Some of the big names in the restaurant scene are setting their sights on the suburbs. The Cava Group acquired Zoe’s Kitchen in 2018, adding 288 stores to their portfolio, and is the parent company to the Mediterranean chain, Cava. CNBC reported that 80% of their locations are in suburban markets. Shake Shack also recently reported that their suburban units are performing better than those in the city.

Of course, as the call to the suburbs beckons, shopping centers, high-end housing, and rising rents will undoubtedly follow. It’s not a matter of if the move is sustainable but, more likely, how long it will be affordable.

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C L I E NT F E AT U R E

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BRASSICAS.COM SIZE: 2,500–3,000 SF

Brassica 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.

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Formula 1 Racing Coming to Las Vegas In November

range from standing room only (sold out), grandstands, premium clubs, private suites, and luxury hospitality. These tickets are available in different zones placed along the 3.8-mile circuit length. Prices range from $1,000 to $22,800. If you’re a fortunate Las Vegas resident, you get the deal of the day, starting at $200.

It’s coming. Can you feel it?

For $1 million, Wynn Las Vegas will provide you with six tickets, four nights in a 5,800-square-foot three-bedroom duplex, Dom Perignon, caviar, dinner at Delilah, VIP access to events, tickets to shows, golf, spa sessions, and more. Caesar’s Entertainment is offering their ‘Emperor Package’ for $5 million. One can only imagine.

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f you’re in Las Vegas, you definitely know that Formula 1 has arrived.

From November 16 – 18, attendees will experience an unforgettable race, with Formula 1 race cars cutting right through the heart of the Las Vegas Strip, racing past the Bellagio, the Venetian, and Caesars Palace at 212 mph. Fifty laps later, the winner will be declared.

If you’re considering buying tickets to the 2023 Formula 1 Grand Prix race, options

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Why so expensive? It’s all about supply and demand, and the Formula 1 Grand Prix race is the most popular event ever witnessed in Las Vegas. Wow.

If you’re a restaurant in Las Vegas during this time frame, good for you. While there may have been some disruption as roads were repaved, bridges built (yes,

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a bridge), cables, wiring, and security addressed, the founders believe this spectacular undertaking will be well worth the disruption. It’s considered a long-term project that will extend far past the current three-year contract. If you’re wondering, the next race starts on November 23, 2024.

But wait, isn’t Las Vegas also hosting the Super Bowl? Yes, yes they are, just three months later. If any city can pull this off, it’s definitely the Entertainment Capital.

The Experience Unlike NASCAR, which consists primarily of oval tracks and stock cars, Formula 1 cars are built from the ground up, with teams creating aerodynamic wonders. So far this season, team Red Bull has taken the lead in every race except one.

They’re also, as noted, not oval tracks but take place in the midst of the cities on the same roads you and I drive on. According to Autoweek, this is the biggest event in the world in 2023. Founding partners, which include MGM Resorts, Caesars Entertainment, Wynn Resorts, and the Las

Vegas Convention and Visitors Authority, have been attending Grands Prix to learn more about the race and how it will impact Las Vegas. Their goal? To create a new standard for the fan experience.

While much of 2023 has been devoted to creating the space for this grand event to occur, next year, you can expect more music and sporting events to offer an even better experience to the fans. This year, the Sphere, Las Vegas’ newest landmark, is a hot spot for premium entertainment, including J Balvin, Major Lazer, A-Trak, and Mark Ronson.

Restaurants and the Formula 1 Grand Prix According to the New York Post, restaurants along the 3.8-mile circuit are expected to pay a $50,000 venue fee for access, a significantly lower amount than first anticipated. Some restaurants have been bought out. The good news is that the 300,000-plus people showing up for the event will be looking for restaurants to dine in.

According to KSNV, the race is expected to have a $1.3 billion impact on the local economy. Executive chef and partner at Ferraro’s Ristorante, Mimmo Ferraro, told the local news station that they’ve been preparing for the “last couple of months.”

That would translate to June 2023. Just an eighth of a mile from the paddock, he believes it will be the best business his family’s restaurant has seen since its conception in 1985.

They’ll be loading up on caviar, lobster, crab, and white truffles!

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SIZE: 15-18K SF

F1 Arcade A first of its kind premium F1 experiential venue.

F1 Arcade is an ambitious project that will allow people to get even closer to the Formula 1 experience by giving guests the chance to get behind the wheel of bespoke racing simulators in stylish surroundings with a highquality hospitality offering.

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Puttshack investor launches new restaurant VC fund in Boston Puttshack, a mini golf destination aimed at adults, is among the portfolio companies of the Emerging Fund, which invests in restaurants and social-entertainment businesses.

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he restaurant and technology industries are becoming increasingly intertwined, with the rise of such venues as Puttshack and F1 Arcade as well as companies such as Toast, a Boston restaurant-technology provider.

John Davie, CEO and founder of Walthambased Buyers Edge Platform, has watched this trend unfold and has been part of the story” Since the company’s founding in 1998, Buyers Edge is made up of more than a dozen brands that provide foodservice customers with data, technology, buying power and expertise. Now

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Davie and his friend Mathew Focht are embarking on a new venture to support restaurant technology and innovation.

Davie and Focht are announcing the launch of Emerging Fund.

Their goal is to provide capital, strategic growth resources, mentorship and connections for up-and-coming entrepreneurs in the restaurant, restaurant tech and social entertainment spaces.

Focht is chief executive of Emerging and is also an industry veteran. The new fund works with restaurant and entertainment businesses to solve real estate, supply chain, data science, finance and labor pain points.

The Emerging Fund has raised $54 million and aims to bring that total to $100 million for its first fund, Davie said. The fund’s portfolio companies already include Flight Club, Puttshack, F1 Arcade, Tablz and Overproof.

“It’s such a massive industry. I think everybody would agree that people are probably going to eat out more over time. And so it’s just a great investment opportunity,” Davie said.

Over the last few years, Davie said he and Focht have been personally investing in

Over the last few years, Davie said he and Focht have been personally investing in companies in these industries. They’re rolling those investments into the Emerging Fund and starting to support more companies.

companies in these industries. They’re rolling those investments into the Emerging Fund and starting to support more companies. In addition to the capital that Emerging Fund can provide, Davie said its strength is the expertise the team and its investors bring to the table. Davie said the fund has 45 limited partners, 34 of which are entrepreneurs in restaurants or food service technology companies.

“Which I think makes us unique. A lot of times, private equity funds’ investors or limited partners are usually large college endowments, pension funds and stuff like that. Ours is mostly entrepreneurs and people that have founded businesses,” Davie said.

Focht is based in Chicago and runs the day-to-day operations of the fund alongside three other full-time employees. Davie is in Boston and said he is a primary investor and general partner in the fund.

The Emerging Fund will focus on earlystage companies raising seed through Series B rounds. Its initial investments will range from $50,000 to $5 million, depending on the investment stage. Followon rounds will be up to around $10 million per investment.

“We want to partner with founders, make a minority investment, let the founders run their business and we want to support them as a partner and really just help them grow their top-line revenue and introduce them to a lot of the restaurant relationships we have,” Davie said.

Article courtesy of BOSTONINNO by Hannah Green - Inno Reporter

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EMERGING FUND

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