EMERGING Magazine Spring 2024

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

ISSUE 05 | SPRING 2024

INTRODUCTION

EMERGING is a strategic partner We work with today’s leading restaurant and entertainment concepts.

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

Learn More

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OUR TEAM

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

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DATA SCIENCE

Insights for the food and entertainment industry Acutely uses experience and data science to generate realtime, evidence-based observations that reduce risk and maximize revenues across the food, entertainment and retail industries.

Our Data Scientists work as your in-house Business Intelligence Data Partner. We utilize big data and client specific POS-data to glean actionable insights to increase your revenue.

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Customer Analysis Who are your Customers and Why? Before you open a new location or start a marketing campaign, you need to understand your current VIP and Core customers. This knowledge will help you mitigate downside risks and maximize your revenue potential.

• What makes your current location(s) successful?

• Who are your VIP, Core, and Infrequent customers?

• What are your VIP demographics? Where do they work, live, and spend? What are their dining frequency, transportation preferences, driving paths, and buying habits?

Schedule a Demo

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SPRING 2024

Museum of Ice Cream World Famous Attraction

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INDEX

Northstar An elevated cafe boasting organic New American cuisine with counter service, an open kitchen & housebaked sweets.

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Technology and Tomatoes — What’s Up With Restaurants in 2024

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Blanco Cocina + Cantina

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Get Inspired: Restaurant and Restaurant Tech Events 16 to Attend in 2024

Eatertainment Restaurant Concepts on the Rise

Mark Your Calendars: The Bar & Restaurant Expo is Coming to Las Vegas

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Interview with Hilary Slocum

Growth Equity Investors that Are Also Strategic Growth Partners. Why it’s Important.

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Spring Cocktail

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Gain Visibility into On- Premaise Sales Performance and Trends

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Botrista

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TECHNOLOGY

Technology and Tomatoes— What’s Up With Restaurants in 2024 Technomic, a leader in food service insights, recently came out with their What’s in Store for 2024 report. On the downside is higher prices and sagging consumer confidence. Their suggestion? Lean into technology and look to innovations in menus and service.

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By Marisa Upson

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hey suggest the breakfast boom will continue as customers enjoy the restaurant experience without having to pay for lunch or dinner. The same goes for brunches as a replacement for dinners.

Let’s explore some of their trending predictions, including the unique ingredients they expect to see on menus and the technology that will help restaurants ride out changing consumer sentiment.

Practical Technology Technomic sees restaurants transitioning from technology that delivers a wow factor to technology that provides practical support. Examples include tech that enables kitchens to operate as central hubs, such as online ordering systems integrated with kitchen display systems.

These systems offer your customers a flawless takeout experience while freeing

up FOH staff. A popular brand in this arena is Chowly, an all-in-one digital ordering platform.

More restaurants will also turn to predictive analytics, integrating sales data, supply chain management, and marketing software. This technology gives operators the information they need to successfully predict supply and demand, staffing their restaurants, and purchasing inventory accordingly.

These systems use advanced data analytics and machine learning to analyze historical sales data, special events, seasonal trends, and possible weather patterns to forecast demand accurately.

This allows restaurants to proactively manage their inventory and streamline operations.

In the realm of automation, it’s increasing in the kitchen, with technology automating repetitive and dangerous tasks. And, as with every other industry, artificial intelligence (AI) will further immerse itself in restaurants.

Food for Thought Interestingly, they are forecasting 2024 as the year of the tomato. Why? Because of its health benefits and numerous applications.

It also aligns with the global flavor trend, enabling chefs to create tomato-based sauces from around the world.

One of the suggested leaders in this category is Mayan sikil pak, a pumpkin seed salsa derived from the Yucatan

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peninsula. Another prepared tomato dish on their list is Philippine sarsiado, a dish combining fried fish, sauteed tomatoes, eggs, and aromatics.

this same line, more restaurant menus will display the regions or country of origin of their various global dishes, such as Senegalese-style chicken.

Some additional predictions include fatinfused fried desserts, bizarre beverages, and pungent ingredients. If there’s one thing you can count on in the restaurant industry, it’s remaining on the cutting edge of changing consumer preferences. Along

Leveraging Technology & Reducing Carbon Footprints One of the increasingly popular innovations in restaurant technology is food waste management strategies using advanced

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substantially on inventory waste.

More restaurants are turning to this technology, as well as recycling systems for managing package waste, to save money and reduce their carbon footprint.

As extreme weather events increase and the 2024 El Nino takes hold, you can expect more operators to turn their attention to technology that can decrease their environmental impact.

Tell Your Story Virtual reality (VR) has been making its way into restaurants for some time as operators look for ways to provide guests with unique experiences. One way they’re using this technology is to provide brand storytelling.

This interactive journey takes guests through the sourcing and creation of the items on their menu. For restauranteurs who purchase locally or forage for wild plants, VR offers an exciting way to engage and share this experience with your customers.

analytics and AI. These systems can recognize food that’s thrown away, recommend changes in the menu, and record how much of your guests’ meals end up in the trash.

They may also integrate with inventory tracking software, determining how much inventory goes bad before it even makes it into your recipes. They recommend portion control and purchases, cutting back

From advanced technology to changing flavor profiles, there’s much to consider.

That’s where EMERGING comes in. As a strategic partner with today’s leading entertainment concepts and restaurants, we coordinate the execution of a brand’s business strategies in the supply chain, data science, technology, growth, finance, labor, and more. We help you identify opportunities that can take you to the next level or your next location.

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C L I E NT F E AT U R E

Northstar An elevated cafe boasting organic New American cuisine with counter service, an open kitchen & house-baked sweets.

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Focusing on using local, organic and sustainable ingredients while providing a lively atmosphere to enjoy a meal, glass of wine and live music. www.thenorthstarcafe.com

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C A P ITA L PA RT N E R S

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

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

Are you capital Raise Ready?

Pre-investment

• Benchmarking sales performance • Whitespace Analysis - national growth potential • Customer Demographic and Behavior Analysis • Competitive Analysis • 3-5 Year Strategic Plan • Market Prioritization • Supply Chain Assessment • Technology Assessment

Post Investment • • • • • • • • • • •

Location Performance Analysis Targeted Marketing Efforts Validate pricing against the market Full Service Supply Chain Management Cost Reduction Roadmap Expansion Planning Market Prioritization through Mind Share and Market Share Negotiate and Facilitate Lease Execution Implement Process for Objective Real Estate Establish form LOIs and Work Letters Enhance staff knowledge, improve customer experience

For more information, please choose a time to have a chat with us.

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EMERGING CONCEPTS

Get Inspired: Restaurant and Restaurant Tech Events to Attend in 2024 Are you ready to raise the bar this year?

There’s something about starting a new year that fills people with inspiration, hope, and energy! Now, the trick is to stay inspired throughout the coming year.

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By Marisa Upson

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ne way to accomplish this is by attending the many events found in our industry. From the Bar & Restaurant Expo to the FSTEC Conference, you’ll find more than enough gatherings to help keep you engaged, up-to-date, and excited about this sometimes challenging career path.

Let’s look at some of the events we can expect in 2024 so you can start putting them on your calendar! Some of these events offer early bird specials, which means the sooner you commit, the more you save.

ICR Conference: January 8-10 You’ll have to be quick on your feet to attend the ICR Conference in Orlando, FL, this year. And if you haven’t received an invite, you’ll need to request one. This event is about creating connections and discovering the latest trends and financial strategies in restaurants, restaurant tech, food and beverage, retail, and other industries. Some of the presenters in the restaurant industry include Darden Restaurants, Inc., First Watch Restaurant, Inc., and Dave & Buster’s Entertainment, Inc.

IFA Annual Convention: February 17-20 This year, the IFA Annual Convention is at the Phoenix Convention Center. This gathering is for those in the franchising community and attracts about 4,000 attendees every year. It’s the place E M E R G I N G

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to learn the strategies of successful franchises and wander through the many exhibitions in the vendor exhibit hall. A few of the 200-plus exhibitors include BizBuySell, Corporate Image Group, and Franchise Altitude. The International Franchise Association (IFA) is the largest membership organization for franchisors, franchisees, and franchise suppliers.

MURTEC Total Intelligence: March 11-13 The Multi-Unit Restaurant Technology Conference takes place at the Paris Hotel in Las Vegas, where restaurant technology executives will explore Total Intelligence.

According to MURTEC, Total Intelligence is about the “thoughtful pairing of technology with human intent, emotional connection, ethical consideration, and tribal brand 18

knowledge.” The keynote speaker, Will Guidara, is the author of the best-seller Unreasonable Hospitality and a hospitality authority. The Restaurant Technology Network’s Start-Up Alley is a competition where the best restaurant technology start-ups vie for a spot to show their solutions live at MURTEC.

Bar & Restaurant Expo: Unlock Your Profit Potential: March 18-20 Taking place at the Las Vegas Convention Center, the Bar & Restaurant Expo is the place to go for entrepreneurs looking for additional streams of revenue and innovations in food and beverage. Over 13,000 attendees pack the center, many in search of strategies to maximize their profits in 2024. The Expo Hall is where you’ll sample the latest trending

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from top celebrity chefs, culinary leaders, and mixologists. And, of course, there’ll be time for networking and socializing.

FSTEC: September 16-18 If you’re interested in the latest restaurant technology, the FSTEC Conference at the Gaylor Texan Resort & Convention Center in Grapevine, TX, is for you. As I’m sure you’ve noticed, technology in the restaurant sector is taking on a life of its own. Yes, we were pushed into the hightech world out of necessity a few years back, but now it’s no-holds-barred. Here, you’ll discover the latest tech innovations and insights in data, AI, operations, and creating unforgettable customer experiences.

flavors in food and beverages. You can also head over to the Shake it Up cocktail competition. From networking opportunities to VIP workshops, this expo explores how to enhance your bottom line.

The National Restaurant Association Show: May 18-21 The National Restaurant Association Show is open to restaurant, food service, and hospitality professionals and is the largest gathering of food service professionals in the Western Hemisphere.

This year, it’s happening at McCormick Place in Chicago. Some highlights include the 1,800 suppliers and exhibitors on the trade show floor and inspiring speakers, including the chef, restaurateur, and humanitarian José Andrés. You’ll also experience culinary and beverage demos

Restaurant Finance & Development Conference: November 11-13 The Restaurant Finance & Development Conference is, in a nutshell, the financial conference of the year suited for operators, owners, and financial experts in the restaurant industry. It’s the place to meet the top lenders and investors, buy and sell restaurant businesses, make invaluable contacts, and attend financial workshops. This year, it takes place at the Fontainebleau, one of the newest luxury hotels in Las Vegas. Educational sessions cover finance, accounting, technology, operations, and more.

And we’ve just scratched the surface!

Now’s the time to set your goals, expand your horizons, and set sail for an exceptional year. May these events help you reach and surpass your vision.

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F E AT U R E

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RESTAURANT INDUSTRY INSIGHTS

Mark Your Calendars: The Bar & Restaurant Expo is Coming to Las Vegas While numerous restaurant industry events await our presence this year, there’s one coming up in March that you may not want to miss. From March 18-20, at the Las Vegas Convention Center, you’ll find the Bar & Restaurant Expo.

By Marisa Upson

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hat’s so great about this expo?

Samples. Just kidding! Actually, the samples are great and represent the latest food and beverage trends, but it’s also the place to learn, have fun, get inspired, and nudge elbows with the 13,000-plus movers and shakers.

Let’s explore some of the highlights. After all, some call this the best hospitality event on the planet.

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Learning From Seasoned Professionals You could gain a tremendous amount of information by attending all the lectures and even a boot camp from 9 in the morning until 6 in the evening. I’m tired already. There are those, however, with an incredible zest for knowledge that do just that!

On the last day of the expo, four masterclass options can leave you excited about returning to the business with some extra knowledge. These include:

If you’re new to the business, the Startup Essentials Bar & Restaurant Bootcamp will touch on the details a new owner or operator needs to know. This full-day affair covers everything from concept development to financing, finding your location, dealing with landlords, hiring, marketing, and more.

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You could also attend Mixology Training at the Jalisco Underground in Resorts World.

There’s a morning course focused on the ever-expanding non-alcohol craft cocktail and an afternoon on upgrading your cocktail menu.

Here are just a few of the many more topics to explore: • • • • • • • • • •

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Finding a Path to Profitability The Tipping Transformation Optimizing the Customer Journey Demystifying Data Social Media Tactics The Elevated Guest Experience Developing and Enhancing Your Menu Getting Found on Google The Gen Z Era And Many More!

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Bar Manager Masterclass Bartender Masterclass Chef Masterclass: Discover how to develop a roadmap to ownership GM Masterclass

The Keynote Speaker Many of you have heard of Julie Reiner, the co-owner of Milady’s (a neighborhood bar in New York with elevated food and cocktail offerings), Clover Club (known for its tremendous drinks), and Leyenda (a Latin American-inspired Brooklyn Coctelería).

She’ll explore how to increase profits, create successful partnerships, understand your brand, raise money, and more.

Getting Your Exercise Did I mention that the showroom floor is 75,000 square feet? Within those square feet are live cooking demos, the zero-proof experience, and the Cocktail Clubhouse with complimentary beverage samples.

You’ll also find the Japanese Food and Beverage Showcase and the Food & Beverage Innovation Center. And, of course, many, many exhibitors.

Enjoying the Party Parties are, of course, a part of the expo and offer an excellent opportunity to network. The Welcome Kickoff Party takes place at the Ayu Dayclub at Resorts World.

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Southeast Asia’s islands inspired this outdoor oasis.

The Platinum Parties involve getting into exclusive nightclubs with early admission and complimentary drinks. Are you a general manager? The general manager meetup may be for you, a place to share strategies, horror stories, and good food and drinks.

You also get to join in on the fun at the World Tea Expo with international pavilions from Japan, Kenya, Sri Lanka, India, Vietnam, South Africa, and many more.

Who Attends the Bar & Restaurant Expo?

Unlike some events, you can attend this expo no matter your level of expertise in the industry. Restaurant owners, national chain operators, new recruits, and hospitality groups join the fun, learning from successful entrepreneurs and discovering the latest industry trends.

As the expo states, “If you own, operate, plan to open, or work in a bar, pub, tavern restaurant, casino, lounge, resort/hotel/ motel, wholesale, distributor, or nightclub, join your crew at the Bar & Restaurant Expo.” Did they leave anyone out?

If you’re in the industry, it’s a great place to source suppliers (500 options) and test new technologies you may not otherwise learn about.

So, set the date, and get inspired!

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Discover strategies and innovations driving financial success in the dynamic world of food and beverage See it. Taste it. Experience it.

Bar & Restaurant Expo is specifically tailored to address the unique challenges facing the hospitality industry by offering practical solutions and innovative ideas to unlock untapped revenue streams.

From single-unit bar and restaurant operators, to national chains, hospitality groups, bartenders, and newbies just entering the business, join 13,000+ movers and shakers for an exciting and insightful event where experts and successful entrepreneurs come together to share their knowledge and strategies for maximizing profitability in the food and beverage sector.

Learn, network, test solutions, and sample food and beverage trends that can enhance your bottom line!

Register Now

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C L I E NT F E AT U R E

Blanco Cocina + Cantina Blanco is more than your typical Mexican restaurant, it‘s an escape from the ordinary, a happy hour hang out, a place to sit back, recharge and party.

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It’s a vacation in your neighborhood that helps you relax with your favorite people. For great Mexican food, margaritas, and good times, Blanco is the perfect place to find your bliss. www.blancococinacantina.com

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EMERGING FUND

Eatertainment Restaurant Concepts on the Rise Restaurant Business shared some interesting statistics regarding the fast-paced advancements of eatertainment concepts as they take the restaurant industry by storm.

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By Marisa Upson

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hat’s happening? For some time, consumer preferences have been shifting away from physical goods and toward experiences.

Lockdowns that accompanied the pandemic put fuel on the fire, transforming the desire for more socializing and interactions into a demand. Today, restaurants and entrepreneurs are heeding the call.

Let’s explore some of the top contenders and how to integrate an enhanced experience into your brand.

Restaurant Brands Aligning With Eatertainment Today, you can find a host of activities to accompany your dining, from bowling and golf to cricket, surfing, and F1 racing. And, unless you’ve been tucked away in the office, you’ve undoubtedly heard of pickleball, one of the fastest growing sports in America and part of an entertainment concept called Chicken N Pickle.

Opening in 2015, it was one of the first pickleball concepts to hit the scene with an indoor and outdoor entertainment complex and a chef-driven menu. Today, they have eight locations and more on the way. And they have significant competition, with pickleball-themed entertainment concepts like Electric Pickle, PickleBar, and many more on the way.

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Visits to eatertainment concepts were up 23% yearover-year in January 2023.

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Visits to Topgolf were up over 22% when tracking the past three years as of February 2023.

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Visits to Bowlero were up over 18% in that same three-year comparison.

For the pickleball curious, it’s a mix of tennis and ping pong, played on a court about half the size of a tennis court.

Puttshack, founded by Adam Breeden and the creators of Topgolf, incorporates modern technology into an immersive mini-golf experience. Guests also enjoy a globally inspired, chef-driven menu and craft cocktails. Recently, the brand received $150 million from BlackRock.

Breeden is also behind F1 Arcade, a much talked about Formula 1 Grand Prix-themed car race simulation concept.

Bowlero combines upscale bowling and shareable, including a Dunk Tank fishbowl cocktail that, with 123 ounces, is meant to be shared. Currently, they operate over 325 entertainment centers across the U.S. How about surfing? Zach Shor, former Topgolf executive, and Urban Entertainment Concepts are betting big on this one. GoodSurf, an eatertainment concept combining wave pool surfing with island eats, has $100 million in debt commitments geared to their U.S. rollout that should begin in March 2024 in Texas.

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Enhancing the Restaurant Experience Of course, not all of us have the mindset or desire to turn our restaurants into social entertainment concepts with a competitive edge. So, how do you appeal to those looking for an experience without the gaming element?

One brand started a unique concept by creating a shared, interactive dining experience. GEN Korean BBQ House, a brand under GEN Restaurant Group, was founded by two Korean immigrants in Los Angeles in 2011. Since then, it’s gone public, raising $43.2 million in its IPO and beating expectations. They’ve expanded throughout California as well as Texas, Florida, Washington, New York, Nevada, Hawaii, and Arizona.

Raw meats, sauces, and marinades come to the table, where customers cook them at their grill-lined table. While cooking your own food at a restaurant may seem somewhat counterintuitive to the idea of a relaxing dinner out, it brings the in-

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demand elements in today’s dining: social, customizable, conversational, and globally inspired.

In their IPO filing, they noted their unique culinary experience appeals to Gen Z and Millennials. In addition to the experience, their customers also appreciate the vibrant Korean pop music and modern décor.

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An immersive experience with live performance elements, from local bands to murder mystery events, cabaret acts, aerialists, and arias– Magic and theater elements resonate with today’s eatertainment guests Adding a karaoke room Encouraging socialization with unique seating

The EMERGING Fund Creating Memories An experience involves active participation and a unique environment that creates memories. Some of the ways restaurants are incorporating this growing trend without going over budget or involving major structural upgrades include: • • • •

Providing menu items with global regional flavors Instagram-worth presentations, including meals, cocktails, and décor Wine or whiskey tastings and special events Chef-driven menus with shareable small plates

As a company that’s been involved in the restaurant industry for decades, EMERGING recognized the changing landscape and the growing demand for entertainment and technology. As a result, the EMERGING Fund was launched and has since raised $52 million on its way to $100 million to invest in restaurants and eatertainment concepts as well as technology geared for our industry.

With innovation partners such as Adam Breeden, emerging concepts not only gain financing, but the expertise of those in the field. To learn more about the EMERGING Fund or to schedule a consultation, contact EMERGING.

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E M E R G I N G U P DAT E

Hilary Slocum has an impressive and entrepreneurial background with 12+ years of experience across a range of start-ups and publicly traded companies such as Grubhub, Just Eat Takeaway, Choco, Tapingo as well as consulting for many startups on their Go-to-Market strategy.

Her accomplishments range from running strategic projects for Grubhub CEO, launching the US market for GmbH company Choco, and taking the business from 0 restaurants - 50,000 and $0 $10M ARR in under two years. Hilary has also led and assisted with BD deals with large companies like: Aramark, Sodexo, Starbucks, and Chick-fil-A.

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Hilary can quickly jump in and dissect the complex intermingling of challenges while driving relationships to an end. She has extensive experience negotiating and providing great outcomes in gaming, sports, alcohol, food supply chain, logistics, and restaurants.

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EMERGING FUND

Hilary Slocum, EMERGING Fund’s New VP of Strategic Partnerships Recently, Mathew Focht, CEO and Managing Partner of EMERGING Fund, spoke with Hilary Slocum. Hilary recently came on as the VP of Strategic Partnerships and is the newest member of the EMERGING team.

By Marisa Upson Fresh Out of College and Onto the Startup Tapingo Focht: It’s great to have you as the VP of Strategic Partnerships. You’ll add tremendous value to our investors, LPs, and general partners. Thanks for joining the team. Can you tell me a little bit about your background and career?

Slocum: The first big thing that happened to me after graduating college was getting into the startup world. I was pegged to work at Tapingo, a mobile commerce app startup focused on the college student segment. In essence, we enabled students to order their food ahead of time, enabling them to access dining between those short intervals between classes.

At the start, there were only five to ten people on the team. This meant I had to be involved in every aspect, from selling to college campuses and literally knocking on

doors to integrating campus cards. It was one of those unique moments where you got to get your hands dirty.

We ended up working with over 250 college campuses and integrated with many QSR brands, including Starbucks. One of the unique features was allowing students to utilize their Campus Dining Tenders to purchase the orders on the app. This ability was unique and one that drew Grubhub’s attention.

They were also interested in connecting with younger customers compared to those already in their professional careers.

In 2018, Grubhub acquired Tapingo for $150 million. At that point, we were doing 100,000 transactions a day.

Getting to Grubhub and having the opportunity and responsibility to share the progress with the CEO was very exciting. I wasn’t very old at that time, and people put their trust in me. They trusted me to figure things out, get things done, and make a

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generating revenue for the business as well as growing the customer base across the U.S. I had to figure out which markets to go after and why we were going after them.

What size suppliers and restaurants should we be targeting? And all of that had to be backed up with a strong reason because we had big investors with a lot of money behind the business. Getting to work with the CEO on that was an amazing opportunity, and I think it really helped me grow in immeasurable ways, personally and professionally. It set me up for success in a role like this.

meaningful impact on the business. As a publicly traded company, there were many people I had to report back to.

From Tapingo to Choco From there, I was fortunate to be sought after for a position with Choco. Choco is a one-stop platform for restaurants and suppliers to connect and grow, streamlining the ordering process and bridging the gap between the two. My job was to scale and launch the U.S. business for Choco, which started in Berlin and had a strong presence in Europe.

It was an incredible opportunity, and I was able to curate and create a team that grew from zero to over 100 people. I worked on 34

Focht: You’re super talented and could be doing anything in life. I really think you’re in the sweet spot of the world in New York, surrounded by a lot of successful people in many different industries. So, why are you in this space? Why are you suffering through the pain of food and beverage and hospitality? And why in the startup space, specifically?

Slocum: I honestly really love to serve the restaurant industry. I am incredibly passionate about all of the operators within the space, whether it’s the cook in the back of the house or the guy doing the dishes to the servers and the general managers— these entertainment complexes, as you like to say.

I think there is so much opportunity in the industry, and I think that, frankly, this industry is underserved. The opportunity for new technology and innovations in this space is ripe but hasn’t been tapped into in the way it can be.

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My favorite thing is teaching an operator about new technology that transforms their business, their family, and everything in between. This industry keeps changing and evolving, and it’s something that I continue to grow more and more passionate about.

But beyond technology, what inspires me the most is the people. That’s who you’re spending day in and day out with, solving problems and helping make each day better. It’s about connecting with folks and feeling like you can make a big impact together.

On to EMERGING Focht: So, why are you interested in being the VP of Strategic Partnerships?

Slocum: It makes perfect sense, considering where I’ve been in my career and where I want to go. I love the individual relationships you’re building, whether with investors, restauranteurs, day-to-day operators, or founders and CEOs. I think this is a really unique opportunity to marry all of my different skill sets and create great outcomes for the investors within the fund, for individual restaurants, and also for the founders that we support and partner with. So, I’m incredibly excited to roll my sleeves up and take all the different things I’ve taken from other roles and bring them together.

Focht: Well said. What do you see as some of the headwinds and challenges in the industry today?

Slocum: One of the challenges I see in the

I think this is a really unique opportunity to marry all of my different skill sets and create great outcomes for the investors within the fund, for individual restaurants, and also for the founders that we support and partner with. restaurant industry is a huge fragmentation in the market. There are so many different products, services, and offerings. It’s hard for anyone to know what to utilize and implement. I think that’s one of the biggest challenges within the restaurant industry and this space in general.

But I’ve had the opportunity and have been fortunate enough to spend a lot of time with a lot of different technology platforms and services that serve this industry. I think what will be exciting within this role is building out that matrix. It’s understanding who’s the right fit for this product and how it’s really going to move the needle for their business. And that’s something that I’m uniquely positioned to bring to the team.

It’s a very natural fit based on my background and experiences that I’ve had in the industry. I feel that EMERGING is in this breakout position, and you have the tools and the knowledge to take the entire restaurant and tech industry to the next level. I think my background uniquely positions me to help restaurants, investors, operators, and the fund in general to provide great outcomes. And I’m really excited about what’s to come.

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EMERGING FUND

Leading Founders & CEOs in Restaurants and Restaurant Technology (ResTech) ....founded EMERGING Fund to Invest in the explosive growth areas that are going through the most disruptive period in history

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Technology disrupting operations and accelerating concept innovation INDUSTRY LEADING FOUNDERS

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RESTECH & RESTAURANT INNOVATION / COLLABORATION

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LARGEST ACCELERATION PLATFORM

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CAPITAL EMERGING FUND PRIVATE EQUITY VENTURE

Growth Equity Investors that Are Also Strategic Growth Partners.

Why it’s Important In the world of business and finance, private equity, venture capital, and growth equity are all terms that are frequently used interchangeably.

However, each of these types of investments has its own unique characteristics and investment strategies.

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n this article, we will explore the differences between growth equity, private equity, and venture capital, and why it’s important to have a strategic growth partner as an investor.

Firstly, let’s define each of these investment types.

Venture Capital On the other hand, venture capital is typically focused on investing in startups and early-stage companies with high growth potential. Venture capital firms will often invest in companies that have not yet generated revenue or profit, but have a promising business idea or technology.

Private Equity Growth Equity Refers to investments made in private companies that are not publicly traded on the stock market. Private equity investors typically look for mature companies that are looking to expand or improve their operations. They may also target companies that are struggling financially and need to be turned around.

Sits somewhere in the middle between private equity and venture capital. Growth equity firms typically invest in more mature companies that have already proven their business model and have achieved some level of revenue or profitability. These companies are looking to accelerate

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their growth and expand their operations.

Growth equity investors provide capital to these companies in exchange for an ownership stake, but they also provide strategic guidance and support to help the company achieve its growth objectives.

So what are the key differences between these types of investments?

The primary difference is the stage of the company’s growth that they are targeting. Private equity focuses on mature companies that are looking to improve operations or expand, while venture capital is focused on early-stage companies with high growth potential. Growth equity is focused on companies that are looking to accelerate their growth.

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Another key difference is the level of risk involved. Venture capital investments are typically considered the riskiest, as they are often made in companies that have not yet proven their business model or generated significant revenue. Private equity investments are generally considered less risky, as they are made in more mature companies with a track record of success.

Growth equity investments fall somewhere in between, as they are made in companies that have proven their business model but are looking to expand rapidly.

So why is it important to have a strategic growth partner as an investor?

The answer lies in the value that these investors can bring to the table. A growth equity investor with a strong network and

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experience in the industry can provide valuable guidance and support to help the company achieve its growth objectives.

This may include access to new markets or customers, strategic partnerships, and advice on operational improvements.

In addition, a strategic growth partner can help the company manage risk. Rapid growth can be risky, and it’s important to have an investor who can help the company navigate the challenges that come with scaling. A growth equity investor with experience in the industry can help the company identify potential risks and develop strategies to mitigate them.

Finally, a strategic growth partner can help the company achieve its long-term goals.

Growth equity investors typically take a long-term view of their investments, and

they are focused on helping the company achieve sustainable growth over time.

This is different from some other types of investors, who may be more focused on short-term gains or a quick exit.

In conclusion, growth equity, private equity, and venture capital are all important sources of capital for companies looking to grow and expand. Each type of investment has its own unique characteristics and investment strategy. However, when it comes to accelerating growth and managing risk, a growth equity investor that is also a strategic growth partner with a strong network can be the ultimate investment partner. They can provide valuable guidance, support, and resources to help the company achieve its growth objectives and become a sustainable, successful business over the long term.

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D R I N K F E AT U R E

Spring Cocktail A delectable confirmation that winter is bidding farewell!

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Dirty Shirley Vibrant and flavorful, with a touch of sweetness and a hint of alcohol, the Dirty Shirley Temple is rapidly becoming a favorite among cocktail enthusiasts. And who can resist? It’s a spirited twist on the nostalgic beverage many of us enjoyed in our youth. Let’s be honest, a shot of vodka has a way of elevating any overly sweet mocktail!

Ingredients 2 oz. vodka 1 oz. fresh lime juice 1 oz. grenadine 4 oz. lemon-lime soda Maraschino cherries and lime wheels, for serving.

Step 1 Fill a tall glass with ice cubes. Pour vodka, lime juice, and grenadine over ice. Add lemon-lime soda and stir with a longhandled spoon to combine.

Step 2 Serve topped with cherries and a lime wheel.

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P O RT F O L I O I N V E S T M E NT

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Grow faster with Overproof Take your brand to the next level. Link your data, teams, accounts and depletions on a single platform that grows with your business.

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Gain Visibility into OnPremaise Sales Performance and Trends

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F&B Insights delivers comprehensive reports that provide beverage alcohol brands with valuable data and insights, empowering them to understand consumer behavior, identify microtrends, and make informed decisions that drive growth.

Book a 10-Min Call

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Tablz is a guest fulfillment system that is used by hospitality leaders to improve the dining experience for the top 19.5% of their guests.

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What is guest fulfillment?

Guest Fulfillment systems like Tablz work with existing reservation systems like Opentable, Resy, and Sevenrooms.

Despite being powerful reservation management tools, these systems unfortunately play table roulette with premium diners causing serious guest service issues and diner dissatisfaction.

Tablz fulfills guest expectations by 3D mapping dining rooms, enabling them to visualize and voluntarily upgrade to the table of their choosing.

Get Started

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P O RT F O L I O I N V E S T M E NT S

The Botrista Technology, Inc. warehouse is jamming with activity as we are daily sending out Botrista Pros to restaurants across the country.

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All hands on deck!

Sean H., Dan Mosher, Hector Pascal, Bryan K. and Nolan Schachter are leading the team to keep these bots moving. Botrista has already made its mark in 34 states, 16 more coming soon 😁. Keep an eye out for a Botrista Pro in your city.

Contact Us

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F&B INSIGHTS

How does it work?

Use our menu database to identify pricing opportunities and keep tabs on your competitors.

Connect with suppliers who want to partner with venues like yours on the F&B marketplace.

Integrate your POS so F&B Insights can pull your sales data for suppliers, and run supplier-sponsored training programs.

F&B Insights collects fees from your supplier partners so you get paid in one monthly payment.

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MENU PRICING

Why Are Beef Prices Soaring and What’s an Alternative for Restaurants?

If you’ve looked at the predicted restaurant trends for 2024, you’ve undoubtedly come across the ubiquitous plant-based menu. I have to say, at this point, I think we should take it off the “trend” list and consider it an integral part of our culture.

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By Marisa Upson

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oday, restaurants embracing plant-based and vegan fare are simultaneously supporting healthconscious generations and the planet.

Meat production, after all, accounts for over 55% of the greenhouse gas emissions in the entire food production industry.

They’re also helping enhance their bottom line. Why? Because the price of beef is on an upward trajectory and is expected to continue to rise in 2024. Let’s explore

where it’s been, where it’s headed, and what restaurants are doing, considering little relief.

The Price of Beef in 2023 It started with drought. Actually, it started with the pandemic, but that’s a story we’d like to leave behind as 2023 comes to a close. So, this year, ranchers faced severe drought that led to reduced production and herd size, resulting in soaring prices.

Thanks to elevated prices and the increased demand as everyone fired up

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their backyard grills, the summer of 2023 saw some of the highest beef prices in history, as wholesale prices soared well above $300/cwt.

Currently, live cattle prices in Chicago are nearing a record at about $1.79 per pound, according to the Financial Times. And the western U.S. continues to face some of the worst dry spells seen in 1,200 years.

At the end of December 2022, the stored hay in the U.S. had reached the lowest level since 1954. Add on the high global price of grains that accompany the war in Ukraine, and you can see why ranchers are reducing their herd size, particularly in states like Texas and Kansas.

The Price of Beef in 2024 According to the USDA, food-at-home prices are predicted to increase by 1.6%, while the estimated food-away-from-home prices see a 4.3% rise in 2024. Beef prices, however, lead the pack. In September, beef prices were up 28.6% year over year, while chicken prices were down 23.5%, as reported by Gro Intelligence. Pork prices are also down 10% year over year.

Some of the current conditions affecting beef and meat prices include Proposition 12, California’s animal welfare rule, and the decline in the cattle population. The forecast for 2024 is that the cattle market will hit a 60-year low as their numbers continue to shrink. And, as the economic certainty of supply and demand tells us, that does not fare well for beef prices in 2024.

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The weather will also play a critical role in prices. Another year of drought and poor crop production could catapult prices come spring or summer. On the positive front, El Nino is anticipated to continue through the spring. This translates to drought improvement across the Southeast, Gulf Coast, and Texas due to wetter-thanaverage conditions. Unfortunately, drought conditions are expected to persist in portions of the central U.S., the northern Great Plains, and the Rockies.

Restaurant’s Reactions Restaurant Business reports that the average price for a burger in America is about $16. As we know, at some point, consumers can no longer keep up with increasing prices, no matter the cause or how much they like their beef. As a result, restaurants are getting creative, looking to add additional vegetarian dishes, reducing portion sizes, changing recipes, or altering menu items.

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can reduce the environmental impact. They also consider animal welfare and socially responsible animal raising. In light of this, many restaurants share their sources and stories, such as the rancher who raises the beef they serve and their sustainable practices.

One shift for some operators is turning to cheaper cuts of high-quality beef like flatiron steak or tri-tip instead of strip steak. Smoked brisket and short ribs are also popular items. The good news is that today’s customers value global cuisine and fusion flavors, making experimenting with different cuts of beef easier. According to Technomic, some of the most popular flavors incorporating beef include Lebanese, sriracha, Buffalo, mango, and Tex-Mex. Others offer 7oz Certified Angus Beef Prime sirloin, elevating the top sirloin while still finding affordable prices. Many offer customers upgrades in menu items, such as a choice of a New York striploin or filet, for an additional cost. Reducing portion sizes may translate to a 7oz burger patty going to 6oz.

In light of the continuing price pressures and economic challenges, restaurants are expected to continue to use their creativity to come up with menu items that excite their customers without reducing demand due to escalating prices. For many, that may translate to more plant-based and vegan offerings.

F&B Insights Do you know how your local competitors are pricing their beef and the changes they’ve made to their menus? While it’s one more task on your manager’s plate, it’s an important one to consider. If you find yourself significantly outpricing other restaurants, you may find a diminishing demand. And, if you’ve yet to embrace some plant-based items, you may find groups going elsewhere due to their friend who’s a vegan.

Sustainability

Fortunately, F&B Insights makes it easy to monitor neighboring and national restaurants. With the world’s largest database of menus, you can always stay in the know and even receive notifications when a local restaurant changes its menu.

Today’s customers also care about the sustainable and responsible production of beef and how modern farming practices

To learn more about F&B Insights or to schedule a consultation, contact F&B Insights today.

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C L I E NT F E AT U R E

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Museum of Ice Cream World Famous Attraction

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multi-sensory experience with immersive installations that reimagines the way we experience ice cream.

Museum of Ice Cream brings to life the universal power of ice cream by creating experiences that inspire imagination, helping to rediscover the kid in you.

Designed to inspire human connection and energize the senses to reimagine the way we experience and love ice cream.

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EMERGING FUND

The State of Restaurant Tech Venture Capital Funding Despite the 2023 AI frenzy, PitchBook data showed the funding for U.S. startups dropped by almost 30% compared to 2022. That translates to about $170.6B injected into startups in 2023.

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By Marisa Upson

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hat number is also significantly lower than 2021, which saw the peak of venture capital funding, with startups raising $348B. So, are you wondering who received the lion’s share?

No surprise to many, OpenAI, the startup that made headlines with ChatGPT and DALL-E, received the top deal of $10B. Stripe, the fintech payment services provider, came in second with $6.5B at a $50 billion valuation. In March 2021, the company was valued at $95B, according to Crunchbase.

So, what about our illustrious industry?

Let’s find out.

Global Food Tech Globally, in 2023, some of the top funding segments in food technology were sustainable packaging ($0.9B) and restaurant software ($0.8B).

Interestingly, some segments coincided with trending patterns. For instance, plantbased products raised $0.5B, precision fermentation $0.4B, and functional beverages $0.3B. Another growing segment is climate foodtech startups, which account for about one-third of food tech VC funding. The global food system contributes to about 30% of the greenhouse gas emissions, which come from livestock as well as agriculture operations. Regenerative agriculture and aquaculture each received $0.5B.

Restaurant Tech According to AGFunder, restaurant tech has raised over $61 billion in VC funding over the last decade. Restaurant delivery was one of the first tech startups to raise E M E R G I N G

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VC funding. Their data also revealed that, over the last decade, food delivery startups came in at the top 20 funding rounds for all restaurant tech. Other leading segments that received funding include POS systems, FOH management software platforms, digital inventory systems, AI-powered drivethru lanes, and food waste measurement tools.

The restaurant software startup Snappy secured $7 million in a Series A round.

Snappy provides restaurant management technology for POS, loyalty programs, online orders, reservations, mobile apps, and websites, all customer touchpoints.

It features online ordering capabilities, a kitchen display system, loyalty programs, QR-based dine-in menus, advanced analytics, and reservation and waitlist 62

management tools. It looks like they marked all the in-demand boxes.

Ghost Kitchens Ghost kitchens were top contenders during the pandemic. Now, as CNN Business reports, “Ghost kitchens were supposed to revolutionize restaurants. They’re crashing.”

The end of 2023 saw Kitchen United selling or closing all of its locations. This well-known brand was backed by Kroger and had raised $175 in funding. In 2022, CloudKitchens raised $850 million in a funding round. In 2023, it closed locations, laid off staff, and cut back on real estate purchases.

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in a fleet of trucks that cooked meals in New York and New Jersey suburbs. The undertaking transformed into brick-andmortar kitchens in 2023 when parking hundreds of vans proved challenging.

The goal remains the same: to cook highquality food fast and cook it closer to the customer to retain its original quality.

Today, Wonder is growing a brick-andmortar kitchen network, partnering with renowned chefs like Bobby Flay and Michael Symon to create exclusive menus and provide a variety of popular cuisines.

The restaurants under the Wonder umbrella include Bobby Flay Steak, Yasas, Jota, Streetbird, Fred’s Texas, Hanu Poke, and many more.

They currently have food halls in New Jersey and New York that offer delivery, pickup, and dine-in.

The Wonder Group In November 2023, Wonder Group, the food delivery startup, received an investment of $100 million from Nestle. Along with the money comes a strategic partnership, with both companies planning to sell prepared food and high-tech kitchen equipment to hotels, hospitals, and sports arenas, according to CNBC. Wonder Group may sound familiar as they recently made news when they purchased Blue Apron for $103 million.

In 2022, the mobile restaurant delivery company raised $350 million at a $3.5 billion valuation. Founded in 2018 by Marc Lore, former CEO of Walmart eCommerce, Wonder started out with mobile kitchens

The EMERGING Fund EMERGING’s venture capital fund also made the news when it reported raising over half of the $100 million goal for investments in restaurants, entertainment concepts, and restaurant tech. As of October, the fund had invested in five restaurant tech companies and five earlystage concepts. It’s looking to make up to 25 initial investments.

To learn more about the EMERGING Fund or to schedule a consultation, contact EMERGING.

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