June 28, 2024 • 30 mins
Join our host Brian Sheehan as he chats with Nicole Tanner, the visionary Founder of Swig, home of the Dirty Soda. Discover how Swig is bubbling up across the country. Don't miss out on this engaging conversation filled with entrepreneurial wisdom and innovative ideas.
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Episode Transcript
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Brian Sheehan (00:04):
Welcome to Retail Intel, the podcast where we
dive deep into the dynamic worldof commercial real estate.
I'm your host, Brian Sheehan,and I'm thrilled to be your
guide on this journey throughthe bustling streets of retail,
the aisles of shopping centersand the world of commercial
property investment.
With me today is Nicole Tanner,founder of Swig.
(00:27):
If you're not familiar withSwig, it is a drive-through soda
fountain chain that was foundedin 2010 in this home of dirty
soda.
Swig has reimagined the sodafountain for the modern age and
is expanding rapidly across thecountry.
I'm excited to learn more,Nicole, welcome.
Nicole Tanner (00:46):
Thank you so much , Brian, for having me.
It's a privilege to be on yourshow.
Brian Sheehan (00:50):
Before we get started, can we talk about your
background, what you were doingprior to founding SWIG?
Nicole Tanner (00:56):
Yeah, I'm a mom of five beautiful children and
now five grandbabies,grandchildren.
But back in the day before Istarted Swig, I had my
associate's degree in reallysecretarial and I had just a
good basic job with that and gotmarried and started having
babies and worked up until mysecond baby and then stayed home
(01:17):
with my kids and I would go toSonic all the time for my drink
fix, which was a Diet Coke withlime.
I loved the pebble ice, I lovedthe foam cup and even their
straw was a little bit biggerthan other locations.
So you could get a really goodswig if you will through it.
But a lot of times in myexperience, whether at Sonic or
(01:39):
other, like a gas station, thatwas my other option.
Or, yeah, I guess you could goto McDonald's they have a good
beverage as well soda but it wasgetting all my kids unbuckled
out of the car walking into agas station, which is dangerous
with littles because they'regoing to grab all the treats
they can.
So it was like I think there'sa better way to be getting my
drink fixed, and oftentimes atSonic.
(02:01):
And listen, I love Sonic, but Ijust saw that there were some,
some things missing and that waslike that customer interaction
of like I see you as a person.
I'm grateful that you'rechoosing to come here on a
regular basis, like knowing myname, knowing my drink, like I
know that I craved to be treatedlike that and I think everybody
kind of wants that to be madeto feel known, and I just felt
(02:22):
like that was missing in myexperience there and other
places.
And sometimes the wait was long, like they're cooking and
prepping food and so I just wascoming for my diet Coke fix, but
oftentimes I'd be waiting, youknow, like 10, 15 minutes for
just my drink.
I'm like I'm a busy mom, like Igotta get going, I've got kids
to pick up from school andwhatever soccer practice, and so
there was just kind of thatneed of like I think there's a
(02:44):
better way to provide peoplelike me their drink fix, and I
knew that there had to be otherpeople like me that wanted it.
I sat outside of a gas stationand watched how many people
walked out with just fountaindrinks and it was astounding in
like a couple hours time.
So I'm like, okay, there's theneed If they could stay in their
car and just get that beverageand get it fast and get it with
(03:07):
a smile and hey, I see you, Iknow you even better.
So we take your order person toperson, like Chick-fil-A.
Like we don't take it on asquawk box ever.
It is out in front with an iPad, person to person.
And we do that veryintentionally so that we can see
people where they are at inlife.
Like you're going through ahard time, we always ask how
your day's going.
We call them by name if we knowthem and a lot of our regulars
(03:28):
we do know their name, we knowtheir drink and I really feel
like competitors out there aregoing to do exactly what we do.
But for us, we are more thanthat drink.
Actually, we are about beingthe best part of people's day,
even with just a drink, but it'sbecause of how they feel when
they come through thatdrive-through line.
So that's how it started.
Brian Sheehan (03:47):
I just thought I would appreciate something like
that and, yeah, just starteddown that path it's incredible
there's so many lessons in therefor today's restaurant
multi-unit operators and justsomething as simple as trying to
remember customer's name andusing it and having that
in-person interaction.
Nicole Tanner (04:08):
Yeah.
Brian Sheehan (04:09):
And that was a real driving force for you
behind the creation of thisincredible brand.
Nicole Tanner (04:13):
Yeah, absolutely, that was a big part of it.
Those three things so makecustomers feel known like
amazing customer service, a fastline and a superior product.
Those three things are whathave built us.
So anything that we bring onthe menu or any place that we go
, we just make sure that webring those three core values
with us.
Brian Sheehan (04:31):
You had this experience and something was
gnawing at you, I guess.
Right, Talk about how youdecided to then take the leap to
start Swig.
Nicole Tanner (04:43):
Yeah.
So I found an old buildingright by used to be Dixie
College here in St George.
It's now Utah Tech.
Literally it was a standalonebuilding.
It had been a skate ramp parkat some point in time, with
ramps up the side of it.
It had been a U-Haul rentalplace.
It had been through many ownersand it was vacant at the time.
But I could see the vision.
There was a huge parking lotand then this little 700 square
(05:07):
foot building in the middle ofthe parking lot so I can
envision cars wrapping around itgetting their drink.
It was an older gentleman herein St George who has since
passed, but he's like 85 yearsold and I think he looked at me
like I was crazy, like you'regoing to make money off of just
selling fountain drinks, likehow.
But he gave me like the lowestrent we had for years.
(05:29):
It was $500 for that lease,like so cheap.
But he's just like I want togive you a shot and honestly,
that low rent was probably a bigpart of why we were able to
survive.
But then you know, the firstyear or so you don't pay
yourself unless you have moneyto pay yourself, and so I think
that's what helped us to, tocontinue down the path of
(05:50):
surviving, building your ownbusiness.
It's.
It's such a risk because you'reyour marketing team, you are
your HR team, your developmentteam, you're the manager.
You know you're, you'reeverything.
But I think, because I waseverything and doing all of that
, it was very rooted and very Iknew what was going on.
In that one location, the teamfelt like family and um.
(06:13):
So we established that reallystrong culture, which is still
who we are.
We are a family here at Swig.
Our teams we call them teammembers, not employees we go to
the finish line arm in arm.
So I think that really is whatbuilt us.
I was a busy mom of five, so wewere going everywhere, but the
team, we rallied behind eachother and, day in and day out,
(06:35):
served those drinks to ourcustomers and really just trying
to get to know our customers.
I think people looked at Swigback then of like what are they
doing?
That is like who makes moneyoff of selling fountain drinks,
but now they're like.
I think people looked at Swigback then of like what are they
doing?
That is, that is like who makesmoney off of selling fountain
drinks, but now they're likedang.
I should have thought of thatyou know, but I think people are
like, okay, let's go supportthem.
This was 2010, we just beenthrough 2007-2008 the crash, and
(06:59):
so people still wanted to dosomething for themselves.
They probably weren't going outto dinner as much, but they
wanted to to do something forthemselves.
They probably weren't going outto dinner as much, but they
wanted to go do something forthemselves, and whether that was
a $3 drink, that was somethingfor them.
And so I really think it was.
People thought, you know, crazyto open up a new business right
after a recession.
I honestly think it was a greattime because of the cost of
(07:21):
what we sold and because peoplewere made to feel special.
People were losing their homes,they were losing their jobs and
we saw them.
Where were they at?
We met them, you know, in theircar and saw them as a person
going through hard times, andthen we saw them a great drink
afterwards.
Brian Sheehan (07:37):
So it was something they really needed and
it was the right price.
You're delivering it in theright way at the right time.
Nicole Tanner (07:44):
I'll tell you a quick story.
So we sold drinks for a dollarfor the first two months, just
to get people in.
Just any size a dollar and justmarketing.
Right, just come, try us.
And within the first monththere was a gentleman sitting
out on front of our front porchat the original Swig, and Pepsi
wouldn't come in, by the way,because we had Coke in there,
because of course I need a Cokemachine.
Pepsi was like, oh, you'reeither Coke or you're Pepsi,
(08:05):
right.
And I was like, well, we needPepsi because we love our
Mountain Dew drinker and Pepsidrinkers.
But they were like, no, sorry,we just don't do that.
So I'm like, well, time'sticking, money's going down the
drain.
I just opened the doors with noPepsi machine and was serving
Pepsi and Mountain Dew out twoliter bottles because I had to.
And within the first couple ofweeks month there's a gentleman
(08:25):
sitting out in front of the onthe patio and I opened the
window and said, hey, how is?
How's your?
Your Pepsi or Mountain Dew?
I can't remember which one andhe's like this is the best Pepsi
I've ever had.
He had no idea how it waspoured or how it was, how it was
prepared.
It was how he received it andhow he felt sitting there on the
chair relaxing with his Pepsi.
(08:45):
So it was just it's how youmake people feel when you serve
something to them.
And yeah, it was pretty cool tosee that he already felt that
within the first month Pepsi,you know, wised up and they came
in like a month and a halflater and so then we had Pepsi
and Coke in the store.
Now we have it everywhere.
Brian Sheehan (09:10):
And I think we kind of created a market where
that does exist now incompetitors, like what we're
doing, how you feel, reallyimpacts the flavor of whatever
it is that you're consumingTotally.
Nicole Tanner (09:14):
It's how you feel in that moment.
Yeah, and you remember it right.
It's that nostalgia of like, ohyeah, and you know, st George
is a vacation destinationbecause we're warm and, you know
, in the desert, and so a lot ofpeople were traveling through
and so we became theirdestination spot.
We were the place they had tohit when they were on vacation
or traveling through or whatever.
And I really think that was abig part to the success of Swig
(09:36):
is we were in a vacation, youknow destination, and so we
became that nostalgia of like,hey, when you're in St George,
make sure you get your swig.
And we became the place to hit.
Brian Sheehan (09:46):
That's so important.
I think about the trips we'vebeen able to take as a family,
and you do.
You create these memoriesaround a shared meal or, in this
case, a drink beverage.
I guess I'm also thinking too,that there's a nostalgia for a
soda fountain, but there's somany people alive today that had
(10:06):
no experience of a sodafountain.
I mean, I'm old enough toremember going there with
grandparents and getting a sodaand thinking it was a very
special experience.
But now you're in a position tocreate that same dynamic
through Swig.
Nicole Tanner (10:24):
And a drive-thru and a car, yeah yeah.
Instead of walking up to theold soda fountain, you know, at
the drugstore or whatever,whatever we had back in the day,
this is in your car in the airconditioned of your car and it's
convenient, but you still feelthat connection and that value.
Brian Sheehan (10:40):
You know clearly, nicole, you have a passion for
this business.
I guess I'm curious what is itthat you love most about
operating a drive-thru?
Nicole Tanner (10:49):
I think everybody , every person on this planet,
has something they are goingthrough Everyone.
You may not see it, you know,you may not know it, but I love
that.
I get to be and SWIG gets to be, and we get to be the best part
of people's day and I tell ourteam show up for that customer
every time if you can, becauseyou don't know what they're
(11:11):
going through.
So treat every customer likethey're your favorite customer.
So for me it is helping liftthe load of anybody.
And it sounds so silly likeit's through a drink, but again,
it's not just a drink.
It is about how you feel inthat drive-through line and
making them feel special.
So, lifting a load, we have ourgivebacks, our save the cups.
(11:31):
We can talk about that later,but it's our charity for women
fighting breast cancer.
I'm a breast cancer survivorand so we give back to women
fighting breast cancer.
But we want to be a part ofeach community and so we give to
women in those communities.
We pay for their medical billsas they fight breast cancer.
So it's being a part of thecommunity.
Lifting a load, whether it's adrink, whatever, it is just
(11:54):
making it a fun family outing,like let's go to Swig and you
get that family bonding time.
So that's the big part for me.
The second part is growingleaders.
You know, we hire, we start.
Usually they're usually 16 yearolds, it's their first job and
we teach them leadership skills.
We teach them.
Nowadays it's kind of hard forteenagers to talk to adults or
to talk to people in general,you know.
(12:15):
So we're teaching themleadership skills and getting
outside of their, you know,comfort zone, and so it's
growing leaders.
I now say many times when I'mtalking to people sharing the
story is that we are aleadership company.
Now that happens to sell agreat beverage because we have
over 1,500 team members.
We have leaders who've startedat 16, and now our district
(12:39):
managers or area directors ortraining managers, or literally
the sky's the limit.
Especially right now, as we'regrowing, there is so much
opportunity for our amazing team, and so it's just it's really
cool to see where it's at and tobe able to grow leaders and
then lift the load for ourcustomers through the drive-thru
.
Brian Sheehan (12:58):
I can understand how that would be really
personally rewarding.
When you started the business,was that part of the vision that
you had in mind, or you justopened the one and kind of hope
and see where it goes from there?
Nicole Tanner (13:12):
Yeah.
So the vision for the people,the customers, was definitely
there.
I didn't know that thisbusiness was going to scale like
it did and then I would havethis many team members.
But I love people, like Ireally do, like I just love
people.
And so I felt that right awaywithin the first swig of like oh
(13:32):
, these are like my kids.
You know the first, I had 15employees when we started team
members and two of them were myown kids, so they were 14 and 16
, but they felt all like theywere my kids and then just see
them, you know, grow up and todo other things.
But like we've had some peoplemeet and get married because
they met each other at swig.
Like we've had some people meetand get married because they
(13:52):
met each other at Swig and we'vehad like long lasting, deep
friendships built because theyworked at Swig.
Like it's pretty incredible tosee how it's just from one
little idea just expanded intofriendships and marriages and
like literally just connection.
I guess that's what I'm sayingis it's that connection and I
hope that it would be that.
(14:13):
So, yeah, connection throughthe drive-thru and in the store.
Brian Sheehan (14:16):
I think about you as an inventor of a category.
I mean Sonic, as he's mentioned, has been around for a while,
been familiar, gone throughdrive-thrus for food, what feels
like my whole life.
But there's something reallyunique about Swig, and I don't
think it's just the maybelimited menu or focus on a
(14:38):
specific product, but I guessI'm curious how you think about
that.
And then also, since yourcreation it seems like, and
really especially so since COVID, there's been this explosion of
growth in kind of thedrive-through only the limited
menu use category and I guessI'm curious how you think about
(15:00):
that.
Nicole Tanner (15:01):
Yeah, I mean, here's the thing we were always
built on a drive-through, right,as you heard the story now,
like that's how it was.
So we had been in operation 10years when 2020 hit and we
already were so well equippedfor what came we had all of our
locations were drive-thrus.
We just partnered with SavoryFund and invested in technology
(15:21):
and just systems inside thestore so we were able to handle
what was coming down thepipeline from the CDC of like,
okay, now you need to wash yourhands this many times, and now
you need gloves, and now youneed masks.
You couldn't find masksanywhere and we had one of the
team at Savory sew 500 masks forall of our team members.
So that is kind of who we were.
(15:42):
But, yeah, I feel like duringCOVID, everybody's like, oh,
drive-thrus, okay, let's nowinvest in drive-thrus.
And so end caps all of a suddencame like very scarce in 2021,
22.
Yeah, it was just hard to findwords before we were able to.
It was for the picking Like youcould find them pretty easy.
But after COVID, we all learnedthat the essentialism of a
(16:05):
drive-thru and how amazing itcan be still and you can connect
through a drive-thru but stillget your product, your food,
whatever it is.
So, yeah, it really has kind ofskyrocketed us out.
That's where we were and weprepped for just growth.
And then COVID hit and weopened still probably six
locations in 2020, because wewere just prepped and ready.
(16:26):
But everybody now sawdrive-thrus as like valued right
.
And then Swig is like oh and sodefinitely more attention on
Swig post 2020, because we'dalready built a strong base.
We'd already had we had, Ithink, 22 locations at least,
and so we were already growing.
And so then people realizedwait, what is this Swig thing?
(16:48):
And then we got recognized forDirty Soda.
And so then people realize wait, what is this Swig thing?
And then we got recognized forDirty Soda.
We were on TikTok.
Olivia Rodrigo posted on herInstagram page in 2021, I think
2022.
I don't know 2021.
And she'd gone to one of ourSwigs in Salt Lake City.
She loves Swig, and so shetalked about Dirty Soda.
(17:09):
And then everybody startedtrying to make D soda at home
and went viral on TikTok.
We've been serving dirty sodasince 2010.
The Today Show called me andwanted to know about dirty soda
and Al Roker was drinking theirversion of a dirty soda on the
Today Show.
So, yeah, after 2020,definitely more eyes were on
(17:30):
Swig and what is this dirty soda?
What are these drive-throughsoda chains, going on, and it
definitely brought a lot of eyesto what we were doing.
Brian Sheehan (17:39):
So you've continued to grow since then.
It's really exciting to get tobe a part of that.
We've done a few deals withSwig.
We're hopefully going to domany more in the future.
We just love it.
It's such a great fit forGrocery Anchored Shopping Center
and I guess I'm curious asfounder and your description of
(18:02):
your role now in the companywhere do you want to see Swig be
in five years, 10 years?
What do you see in the futurefor Swig in five?
Nicole Tanner (18:10):
years, 10 years.
What do you see in the futurefor Swig?
You know, brian, it's really anincredible, surreal anytime I
look at where we are right now.
The last year has been prettyunreal as far as, like, the
amount of franchisees that havewanted to join in.
Here's the thing I knew thatthis was super franchisable and
I could have franchisedliterally seven, eight years ago
, but I just knew we weren'tquite ready for it.
(18:31):
We needed the systems in place,we needed the training and I
really wanted to protect itbecause I knew how special it
was.
Everybody's business is specialbut one of my business partners
years ago said do you realize?
You caught lightning in abottle, like that's how special
this is, and so I wanted toprotect it.
And franchising if you're notready can sometimes ruin that.
So I waited and waited until webuilt the systems in place and
(18:51):
had the team in place, becauseyou have to have the team to
support it.
And so we were finally ready,turned it on 15 months ago, as
you're aware, and we sold 500units already and that's pretty
incredible.
But now to see it actuallyhappening, to be at these
franchisee store openings.
I was just in Wichita, kansas,and they opened their first
location there and to see thesefranchisees which are our
(19:17):
partners, they are my partners,they've invested in this brand
with me and I'm so grateful.
But to see their eyes light upand go.
It actually works.
Like the cars come, you buildit and they will come.
And like we served almost athousand cars on Saturday and so
that was pretty incredible tosee.
And to build out our team.
Like we just hired somebodyfrom Dutch Bros and he's going
to come on as our CDO, and soit's incredible the talent that
(19:41):
we're attracting and to see ourteam build, our corporate team
build, so that we can supportall of these amazing locations.
We're going to grow corporatelyas well.
But, yeah, it's the fever pitchthat I've never seen and we've
had some crazy growth modes.
But to see us at 70 plus stores, I see in the future five years
.
To answer your question, I'vealways thought that Swig should
(20:05):
be and deserves to be everywhere.
I really do.
If Starbucks can be everywhere,swig can be everywhere.
It's really that simple.
But I also think everycommunity deserves to have a
Swig.
They need their happiness inthe cup, they need their best
part of their day.
So I see, in five years, thisbeing worldwide and that to me,
I'm like I can't believe I'msaying those words, but it's a
(20:25):
very real, it's very real.
It's a good reality.
Because of just the eyes on it,people now get it.
You know, the margins are great, the profit's great, these
franchisees will be able to makemoney Like.
It's a good investment becausewe've done it slow and steady.
I started 14 and a half yearsago but it's been slow and
(20:45):
steady building that base andit's always been that way.
The first year was three yearsbefore I opened up store number
two, just trying to figure outwho we are and building out the
team.
So I see, I see Swigs dottingthe United States for sure,
which is crazy to me, but notcrazy Cool.
And then the world, which isastounding.
Brian Sheehan (21:03):
I know when we first started talking with some
people on your team who are veryexceptional and there was a
question internally about howwell it could do in other parts
of the country, how weatherdependent it was, when did you
know that SWIG could besuccessful pretty much anywhere?
Nicole Tanner (21:25):
You know it was there's two things to that.
So opened up two locations inSouthern Utah there's two things
to that.
So opened up two locations inSouthern Utah so just in those
three years time and I thought,okay, let's see if it will exist
in a cold climate.
So up in Northern Utah, whereit snows, you know, and it's
cold four or five months out ofthe year, like, can it exist in
a cold climate?
Will they still drink an icybeverage?
(21:45):
And we opened up in Provo, utah, right across from Cougar
Stadium, byu, and within like aweek I was like and yes, it
works.
And I was like, okay, becausethey were super busy.
And so then we really startedexpanding into northern Utah.
So that was the first like okay, will that work in this climate
?
And then we had to proveourselves outside of our
(22:05):
heritage market, which was Idaho, utah, arizona, and just
because everybody kind oftravels in between there and
we're like I knew it could, butwe had to prove it.
I mean, coke and Pepsi arebillion dollar companies for a
reason, and it's not because ofUtah or Swig, it is because
people drink soda everywhere.
So we went to Oklahoma firstbecause, again, coke and Pepsi
(22:27):
are great partners.
They gave us the data of sodaconsumption and we're more than
just soda, and you know that.
Like, we have sparkling water,water, energy drinks.
If people say I've never beento Swig because I don't drink
soda, I'm like, well, you'remissing out, because we have so
many amazing refreshers,revivers, that aren't soda.
So please come, if you thinkwe're just soda, we're
absolutely not.
(22:47):
Come and get something that'scompletely sugar-free and
water-based and you'll love it.
You'll feel special.
So we went to Oklahoma.
First, we have six locations inOklahoma City, doing super well.
Dallas, second 10 locations inDallas, kickin' butt there.
We have four locations inHouston.
Texas will be the new Utah forSwig.
(23:09):
Mark my word.
Like, we'll have that many inTexas.
So we proved it there as well.
Like, willa exists out of this,you know, the Rocky Mountain
front.
And again, same type of thingwhere it's like, within a couple
of weeks, like, and yes, weserved over a thousand cars day
one, opening day of our firststore in Texas, boom, done so,
(23:29):
it worked.
So those were the two thingsWill it work in a cold climate
and will it work outside of ourheritage market?
And, yes, it did so.
Then we were hitting the groundrunning of like okay, who would
like to join us in this amazingrace, or whatever you want to
call it journey?
Brian Sheehan (23:42):
and that's a real hurdle for you, knowing if we
can serve a thousand cars perday at our new location, we're
good to go here yeah, those areour grand openings.
Nicole Tanner (23:52):
we everything's free, so that's how we pull them
in.
I was like hey, come try us.
Once you try us, you will loveus.
So we do three free days forabout eight hours, from 11 to 7,
and we just did that in wichita, and our goal is like we want
you to try us.
We know that we're new, youknow we want to earn your trust
in your business, so they cometry us.
Anybody who dares to get inthat line, which is sometimes 50
(24:15):
, 60, 70 cars deep, all for afree you know, 24 ounce drink.
They do it, though, becausethey feel cool and special and
it's fun.
It's like a Disneyland ride.
I'm like get in your car, let'sgo for a ride, and we usually
can get them in and out withinlike 15, 20 minutes, because
we're that smooth now on it.
So, yeah, that's our grandopening days.
Those are free days, but, ingeneral, we have some locations
(24:36):
that are our top locations thatwill do that same volume in a
day.
Brian Sheehan (24:40):
That's really exciting.
Yeah, it's just such anincredible story.
I really appreciate you takingthe time with me today.
I guess maybe I'll ask onefinal question here.
You're thinking about how youknow from that first unit you
were in there every day, all day, had a small team of people,
and maybe no one has a betterhandle on, kind of, where things
(25:04):
are going in the future.
I'm curious about how the modelmight evolve for you.
Are you using AI?
Are you interested in robotics?
Kind of talk about what'shappening inside a SWIG location
and how that might change overtime going forward.
Nicole Tanner (25:23):
Yeah, obviously know, obviously technology is
ever evolving and there's somereally cool things out there.
Anything that we bring on, likeI said, anything that comes on
the menu, has to fit those threecategories.
So, um, like, if we bring on afood item that takes longer than
a minute to prep, we won'tbring it on because that slows
down our line.
But if we bring anything onthat takes away from that
(25:44):
personalization and thatdrive-through, we won't bring it
on either.
But inside we have totallylooked at robotics and you know,
from measuring the amount ofpumps that go into its drink and
then even putting it, you knowalong that that soda machine, uh
, that could totally speed upthe line actually and make it
even better and create a moresuperior product, because, again
(26:06):
, it was that superior productand a fast moving, friendly line
that built us.
So if it could speed us up evenmore and make it even more
superior, like product that youknow you're going to get every
single time super consistent,that would be amazing and that
would save on labor.
You still need a team inside tomake sure that that works, but
there's a lot that is verypositive about some of that
(26:27):
technology robotics, especiallyin a SWIG.
So we're definitely yeah, we'redefinitely looking into it and
seeing if it's a possibility forSWIG.
I would love to not ever takeaway from taking orders person
to person.
I would.
I want people to be seen andvalued, and so I would.
That's the part that I don'twant to sacrifice on.
(26:47):
So someone at the windowhanding you your drink and
someone taking your order isvery important to me.
I think we've got to stay trueto.
We're in it because of thepeople we have a business,
because of our customers, solet's make sure we see them as
amazing people in our drive-thru.
Brian Sheehan (27:02):
It seems like such a core part of who you are,
what Swig is.
It's important to never losethat element.
Nicole Tanner (27:10):
Right, yeah, and there's going to be pressure to
go, hey, but you'll save on thisand this and this, yeah, but
then we we might, you know, losesales because we just don't
have that interaction.
So it's very intentional.
I'm very intentional on thepartners I bring on and also
just where we go and what webring on our menu.
(27:30):
I'm protective of this business, for good reason, and my role
is very different as founder.
Now I don't have even a quarterof the hats I used to wear in
my head, and that's nice.
And I'm not getting any youngerand I have a growing family and
I love being a grandma.
So, um, my role is verydifferent, but I love what I do.
(27:50):
I love seeing our teams grow.
I'm like a culture you know,enthusiast, and so I can walk
into a location.
I can tell pretty quickly ifthere's something kind of off.
So I take that to the districtmanager and say, hey, something
feels off.
You want to go in there, but Ilove to be in the stores.
You'll oftentimes catch me inthe stores making drinks,
talking to the team.
I'd rather do that any day thango into an office.
Brian Sheehan (28:11):
So yeah, there's nothing that can really replace
that time in a store to help youfeel connected to the business.
Nicole Tanner (28:20):
That's how you know how you're doing.
If you're not connected in thatstore, you know in the trenches
.
You don't know how you're doing.
So we have a new director ofoperations that's been with us
for almost a year and he's beenphenomenal at that.
You'll see him in the stores,not in the office.
That's how you know yourbusiness.
(28:41):
What it's doing is when you'rein the stores with the team in
the trenches, and I'm going toget there and make drinks
alongside you and take ordersand do whatever is needed,
because I'm grateful for youthat you're showing up every day
and doing all the heart.
Brian Sheehan (28:49):
So and that, in a nutshell, is why Swig is so
successful your willingness toget in there and continue to be
on the front line and supportyour team and interact with
customers face to face.
Nicole Tanner (29:03):
I love my customers and my team.
I don't have a business or abrand without them.
They it takes.
It takes an army to do whatwe're going to do and to see our
team even growing even more solike really quickly lately,
because we see this growthcoming.
So we're prepping for it isreally cool and people want to
be a part of it, and how cool isthat?
I mean you go back to how itall started and you just go
(29:23):
amazing, a part of it.
And how cool is that.
I mean you go back to how itall started and you just go
amazing.
I'm very blessed, brian, I'm soblessed.
Brian Sheehan (29:31):
Yeah, and I'll start it with, just like a love
of a Diet Coke with lime.
Who would have thought you are?
Nicole, it was great speakingwith you today.
Thank you for joining me onRetail Intel.
Be on the lookout for new Swiglocations opening near you and
be sure to check them out onInstagram at Swig Drinks.
Whether you are an aspiringreal estate mogul, a seasoned
pro or simply curious about theplaces where we shop, dine, play
(29:52):
and work, this podcast is yourall-access pass to the world of
commercial real estate.
Connect with me on LinkedIn andif you're interested in being a
part of the Retail IntelPodcast, please send a message
to nationalaccounts atphillipsedisoncom.
If you want to hear more aboutnew and expanding brands like
Swig, keep tuning in to RetailIntel and please subscribe,
(30:14):
follow, like and repost.
Talk to you next time.
Welcome to Retail Intel, the podcast where we
dive deep into the dynamic worldof commercial real estate.
I'm your host, Brian Sheehan,and I'm thrilled to be your
guide on this journey throughthe bustling streets of retail,
the aisles of shopping centersand the world of commercial
property investment.
With me today is Nicole Tanner,founder of Swig.
(00:27):
If you're not familiar withSwig, it is a drive-through soda
fountain chain that was foundedin 2010 in this home of dirty
soda.
Swig has reimagined the sodafountain for the modern age and
is expanding rapidly across thecountry.
I'm excited to learn more,Nicole, welcome.
Nicole Tanner (00:46):
Thank you so much , Brian, for having me.
It's a privilege to be on yourshow.
Brian Sheehan (00:50):
Before we get started, can we talk about your
background, what you were doingprior to founding SWIG?
Nicole Tanner (00:56):
Yeah, I'm a mom of five beautiful children and
now five grandbabies,grandchildren.
But back in the day before Istarted Swig, I had my
associate's degree in reallysecretarial and I had just a
good basic job with that and gotmarried and started having
babies and worked up until mysecond baby and then stayed home
(01:17):
with my kids and I would go toSonic all the time for my drink
fix, which was a Diet Coke withlime.
I loved the pebble ice, I lovedthe foam cup and even their
straw was a little bit biggerthan other locations.
So you could get a really goodswig if you will through it.
But a lot of times in myexperience, whether at Sonic or
(01:39):
other, like a gas station, thatwas my other option.
Or, yeah, I guess you could goto McDonald's they have a good
beverage as well soda but it wasgetting all my kids unbuckled
out of the car walking into agas station, which is dangerous
with littles because they'regoing to grab all the treats
they can.
So it was like I think there'sa better way to be getting my
drink fixed, and oftentimes atSonic.
(02:01):
And listen, I love Sonic, but Ijust saw that there were some,
some things missing and that waslike that customer interaction
of like I see you as a person.
I'm grateful that you'rechoosing to come here on a
regular basis, like knowing myname, knowing my drink, like I
know that I craved to be treatedlike that and I think everybody
kind of wants that to be madeto feel known, and I just felt
(02:22):
like that was missing in myexperience there and other
places.
And sometimes the wait was long, like they're cooking and
prepping food and so I just wascoming for my diet Coke fix, but
oftentimes I'd be waiting, youknow, like 10, 15 minutes for
just my drink.
I'm like I'm a busy mom, like Igotta get going, I've got kids
to pick up from school andwhatever soccer practice, and so
there was just kind of thatneed of like I think there's a
(02:44):
better way to provide peoplelike me their drink fix, and I
knew that there had to be otherpeople like me that wanted it.
I sat outside of a gas stationand watched how many people
walked out with just fountaindrinks and it was astounding in
like a couple hours time.
So I'm like, okay, there's theneed If they could stay in their
car and just get that beverageand get it fast and get it with
(03:07):
a smile and hey, I see you, Iknow you even better.
So we take your order person toperson, like Chick-fil-A.
Like we don't take it on asquawk box ever.
It is out in front with an iPad, person to person.
And we do that veryintentionally so that we can see
people where they are at inlife.
Like you're going through ahard time, we always ask how
your day's going.
We call them by name if we knowthem and a lot of our regulars
(03:28):
we do know their name, we knowtheir drink and I really feel
like competitors out there aregoing to do exactly what we do.
But for us, we are more thanthat drink.
Actually, we are about beingthe best part of people's day,
even with just a drink, but it'sbecause of how they feel when
they come through thatdrive-through line.
So that's how it started.
Brian Sheehan (03:47):
I just thought I would appreciate something like
that and, yeah, just starteddown that path it's incredible
there's so many lessons in therefor today's restaurant
multi-unit operators and justsomething as simple as trying to
remember customer's name andusing it and having that
in-person interaction.
Nicole Tanner (04:08):
Yeah.
Brian Sheehan (04:09):
And that was a real driving force for you
behind the creation of thisincredible brand.
Nicole Tanner (04:13):
Yeah, absolutely, that was a big part of it.
Those three things so makecustomers feel known like
amazing customer service, a fastline and a superior product.
Those three things are whathave built us.
So anything that we bring onthe menu or any place that we go
, we just make sure that webring those three core values
with us.
Brian Sheehan (04:31):
You had this experience and something was
gnawing at you, I guess.
Right, Talk about how youdecided to then take the leap to
start Swig.
Nicole Tanner (04:43):
Yeah.
So I found an old buildingright by used to be Dixie
College here in St George.
It's now Utah Tech.
Literally it was a standalonebuilding.
It had been a skate ramp parkat some point in time, with
ramps up the side of it.
It had been a U-Haul rentalplace.
It had been through many ownersand it was vacant at the time.
But I could see the vision.
There was a huge parking lotand then this little 700 square
(05:07):
foot building in the middle ofthe parking lot so I can
envision cars wrapping around itgetting their drink.
It was an older gentleman herein St George who has since
passed, but he's like 85 yearsold and I think he looked at me
like I was crazy, like you'regoing to make money off of just
selling fountain drinks, likehow.
But he gave me like the lowestrent we had for years.
(05:29):
It was $500 for that lease,like so cheap.
But he's just like I want togive you a shot and honestly,
that low rent was probably a bigpart of why we were able to
survive.
But then you know, the firstyear or so you don't pay
yourself unless you have moneyto pay yourself, and so I think
that's what helped us to, tocontinue down the path of
(05:50):
surviving, building your ownbusiness.
It's.
It's such a risk because you'reyour marketing team, you are
your HR team, your developmentteam, you're the manager.
You know you're, you'reeverything.
But I think, because I waseverything and doing all of that
, it was very rooted and very Iknew what was going on.
In that one location, the teamfelt like family and um.
(06:13):
So we established that reallystrong culture, which is still
who we are.
We are a family here at Swig.
Our teams we call them teammembers, not employees we go to
the finish line arm in arm.
So I think that really is whatbuilt us.
I was a busy mom of five, so wewere going everywhere, but the
team, we rallied behind eachother and, day in and day out,
(06:35):
served those drinks to ourcustomers and really just trying
to get to know our customers.
I think people looked at Swigback then of like what are they
doing?
That is like who makes moneyoff of selling fountain drinks,
but now they're like.
I think people looked at Swigback then of like what are they
doing?
That is, that is like who makesmoney off of selling fountain
drinks, but now they're likedang.
I should have thought of thatyou know, but I think people are
like, okay, let's go supportthem.
This was 2010, we just beenthrough 2007-2008 the crash, and
(06:59):
so people still wanted to dosomething for themselves.
They probably weren't going outto dinner as much, but they
wanted to to do something forthemselves.
They probably weren't going outto dinner as much, but they
wanted to go do something forthemselves, and whether that was
a $3 drink, that was somethingfor them.
And so I really think it was.
People thought, you know, crazyto open up a new business right
after a recession.
I honestly think it was a greattime because of the cost of
(07:21):
what we sold and because peoplewere made to feel special.
People were losing their homes,they were losing their jobs and
we saw them.
Where were they at?
We met them, you know, in theircar and saw them as a person
going through hard times, andthen we saw them a great drink
afterwards.
Brian Sheehan (07:37):
So it was something they really needed and
it was the right price.
You're delivering it in theright way at the right time.
Nicole Tanner (07:44):
I'll tell you a quick story.
So we sold drinks for a dollarfor the first two months, just
to get people in.
Just any size a dollar and justmarketing.
Right, just come, try us.
And within the first monththere was a gentleman sitting
out on front of our front porchat the original Swig, and Pepsi
wouldn't come in, by the way,because we had Coke in there,
because of course I need a Cokemachine.
Pepsi was like, oh, you'reeither Coke or you're Pepsi,
(08:05):
right.
And I was like, well, we needPepsi because we love our
Mountain Dew drinker and Pepsidrinkers.
But they were like, no, sorry,we just don't do that.
So I'm like, well, time'sticking, money's going down the
drain.
I just opened the doors with noPepsi machine and was serving
Pepsi and Mountain Dew out twoliter bottles because I had to.
And within the first couple ofweeks month there's a gentleman
(08:25):
sitting out in front of the onthe patio and I opened the
window and said, hey, how is?
How's your?
Your Pepsi or Mountain Dew?
I can't remember which one andhe's like this is the best Pepsi
I've ever had.
He had no idea how it waspoured or how it was, how it was
prepared.
It was how he received it andhow he felt sitting there on the
chair relaxing with his Pepsi.
(08:45):
So it was just it's how youmake people feel when you serve
something to them.
And yeah, it was pretty cool tosee that he already felt that
within the first month Pepsi,you know, wised up and they came
in like a month and a halflater and so then we had Pepsi
and Coke in the store.
Now we have it everywhere.
Brian Sheehan (09:10):
And I think we kind of created a market where
that does exist now incompetitors, like what we're
doing, how you feel, reallyimpacts the flavor of whatever
it is that you're consumingTotally.
Nicole Tanner (09:14):
It's how you feel in that moment.
Yeah, and you remember it right.
It's that nostalgia of like, ohyeah, and you know, st George
is a vacation destinationbecause we're warm and, you know
, in the desert, and so a lot ofpeople were traveling through
and so we became theirdestination spot.
We were the place they had tohit when they were on vacation
or traveling through or whatever.
And I really think that was abig part to the success of Swig
(09:36):
is we were in a vacation, youknow destination, and so we
became that nostalgia of like,hey, when you're in St George,
make sure you get your swig.
And we became the place to hit.
Brian Sheehan (09:46):
That's so important.
I think about the trips we'vebeen able to take as a family,
and you do.
You create these memoriesaround a shared meal or, in this
case, a drink beverage.
I guess I'm also thinking too,that there's a nostalgia for a
soda fountain, but there's somany people alive today that had
(10:06):
no experience of a sodafountain.
I mean, I'm old enough toremember going there with
grandparents and getting a sodaand thinking it was a very
special experience.
But now you're in a position tocreate that same dynamic
through Swig.
Nicole Tanner (10:24):
And a drive-thru and a car, yeah yeah.
Instead of walking up to theold soda fountain, you know, at
the drugstore or whatever,whatever we had back in the day,
this is in your car in the airconditioned of your car and it's
convenient, but you still feelthat connection and that value.
Brian Sheehan (10:40):
You know clearly, nicole, you have a passion for
this business.
I guess I'm curious what is itthat you love most about
operating a drive-thru?
Nicole Tanner (10:49):
I think everybody , every person on this planet,
has something they are goingthrough Everyone.
You may not see it, you know,you may not know it, but I love
that.
I get to be and SWIG gets to be, and we get to be the best part
of people's day and I tell ourteam show up for that customer
every time if you can, becauseyou don't know what they're
(11:11):
going through.
So treat every customer likethey're your favorite customer.
So for me it is helping liftthe load of anybody.
And it sounds so silly likeit's through a drink, but again,
it's not just a drink.
It is about how you feel inthat drive-through line and
making them feel special.
So, lifting a load, we have ourgivebacks, our save the cups.
(11:31):
We can talk about that later,but it's our charity for women
fighting breast cancer.
I'm a breast cancer survivorand so we give back to women
fighting breast cancer.
But we want to be a part ofeach community and so we give to
women in those communities.
We pay for their medical billsas they fight breast cancer.
So it's being a part of thecommunity.
Lifting a load, whether it's adrink, whatever, it is just
(11:54):
making it a fun family outing,like let's go to Swig and you
get that family bonding time.
So that's the big part for me.
The second part is growingleaders.
You know, we hire, we start.
Usually they're usually 16 yearolds, it's their first job and
we teach them leadership skills.
We teach them.
Nowadays it's kind of hard forteenagers to talk to adults or
to talk to people in general,you know.
(12:15):
So we're teaching themleadership skills and getting
outside of their, you know,comfort zone, and so it's
growing leaders.
I now say many times when I'mtalking to people sharing the
story is that we are aleadership company.
Now that happens to sell agreat beverage because we have
over 1,500 team members.
We have leaders who've startedat 16, and now our district
(12:39):
managers or area directors ortraining managers, or literally
the sky's the limit.
Especially right now, as we'regrowing, there is so much
opportunity for our amazing team, and so it's just it's really
cool to see where it's at and tobe able to grow leaders and
then lift the load for ourcustomers through the drive-thru
.
Brian Sheehan (12:58):
I can understand how that would be really
personally rewarding.
When you started the business,was that part of the vision that
you had in mind, or you justopened the one and kind of hope
and see where it goes from there?
Nicole Tanner (13:12):
Yeah.
So the vision for the people,the customers, was definitely
there.
I didn't know that thisbusiness was going to scale like
it did and then I would havethis many team members.
But I love people, like Ireally do, like I just love
people.
And so I felt that right awaywithin the first swig of like oh
(13:32):
, these are like my kids.
You know the first, I had 15employees when we started team
members and two of them were myown kids, so they were 14 and 16
, but they felt all like theywere my kids and then just see
them, you know, grow up and todo other things.
But like we've had some peoplemeet and get married because
they met each other at swig.
Like we've had some people meetand get married because they
(13:52):
met each other at Swig and we'vehad like long lasting, deep
friendships built because theyworked at Swig.
Like it's pretty incredible tosee how it's just from one
little idea just expanded intofriendships and marriages and
like literally just connection.
I guess that's what I'm sayingis it's that connection and I
hope that it would be that.
(14:13):
So, yeah, connection throughthe drive-thru and in the store.
Brian Sheehan (14:16):
I think about you as an inventor of a category.
I mean Sonic, as he's mentioned, has been around for a while,
been familiar, gone throughdrive-thrus for food, what feels
like my whole life.
But there's something reallyunique about Swig, and I don't
think it's just the maybelimited menu or focus on a
(14:38):
specific product, but I guessI'm curious how you think about
that.
And then also, since yourcreation it seems like, and
really especially so since COVID, there's been this explosion of
growth in kind of thedrive-through only the limited
menu use category and I guessI'm curious how you think about
(15:00):
that.
Nicole Tanner (15:01):
Yeah, I mean, here's the thing we were always
built on a drive-through, right,as you heard the story now,
like that's how it was.
So we had been in operation 10years when 2020 hit and we
already were so well equippedfor what came we had all of our
locations were drive-thrus.
We just partnered with SavoryFund and invested in technology
(15:21):
and just systems inside thestore so we were able to handle
what was coming down thepipeline from the CDC of like,
okay, now you need to wash yourhands this many times, and now
you need gloves, and now youneed masks.
You couldn't find masksanywhere and we had one of the
team at Savory sew 500 masks forall of our team members.
So that is kind of who we were.
(15:42):
But, yeah, I feel like duringCOVID, everybody's like, oh,
drive-thrus, okay, let's nowinvest in drive-thrus.
And so end caps all of a suddencame like very scarce in 2021,
22.
Yeah, it was just hard to findwords before we were able to.
It was for the picking Like youcould find them pretty easy.
But after COVID, we all learnedthat the essentialism of a
(16:05):
drive-thru and how amazing itcan be still and you can connect
through a drive-thru but stillget your product, your food,
whatever it is.
So, yeah, it really has kind ofskyrocketed us out.
That's where we were and weprepped for just growth.
And then COVID hit and weopened still probably six
locations in 2020, because wewere just prepped and ready.
(16:26):
But everybody now sawdrive-thrus as like valued right
.
And then Swig is like oh and sodefinitely more attention on
Swig post 2020, because we'dalready built a strong base.
We'd already had we had, Ithink, 22 locations at least,
and so we were already growing.
And so then people realizedwait, what is this Swig thing?
(16:48):
And then we got recognized forDirty Soda.
And so then people realize wait, what is this Swig thing?
And then we got recognized forDirty Soda.
We were on TikTok.
Olivia Rodrigo posted on herInstagram page in 2021, I think
2022.
I don't know 2021.
And she'd gone to one of ourSwigs in Salt Lake City.
She loves Swig, and so shetalked about Dirty Soda.
(17:09):
And then everybody startedtrying to make D soda at home
and went viral on TikTok.
We've been serving dirty sodasince 2010.
The Today Show called me andwanted to know about dirty soda
and Al Roker was drinking theirversion of a dirty soda on the
Today Show.
So, yeah, after 2020,definitely more eyes were on
(17:30):
Swig and what is this dirty soda?
What are these drive-throughsoda chains, going on, and it
definitely brought a lot of eyesto what we were doing.
Brian Sheehan (17:39):
So you've continued to grow since then.
It's really exciting to get tobe a part of that.
We've done a few deals withSwig.
We're hopefully going to domany more in the future.
We just love it.
It's such a great fit forGrocery Anchored Shopping Center
and I guess I'm curious asfounder and your description of
(18:02):
your role now in the companywhere do you want to see Swig be
in five years, 10 years?
What do you see in the futurefor Swig in five?
Nicole Tanner (18:10):
years, 10 years.
What do you see in the futurefor Swig?
You know, brian, it's really anincredible, surreal anytime I
look at where we are right now.
The last year has been prettyunreal as far as, like, the
amount of franchisees that havewanted to join in.
Here's the thing I knew thatthis was super franchisable and
I could have franchisedliterally seven, eight years ago
, but I just knew we weren'tquite ready for it.
(18:31):
We needed the systems in place,we needed the training and I
really wanted to protect itbecause I knew how special it
was.
Everybody's business is specialbut one of my business partners
years ago said do you realize?
You caught lightning in abottle, like that's how special
this is, and so I wanted toprotect it.
And franchising if you're notready can sometimes ruin that.
So I waited and waited until webuilt the systems in place and
(18:51):
had the team in place, becauseyou have to have the team to
support it.
And so we were finally ready,turned it on 15 months ago, as
you're aware, and we sold 500units already and that's pretty
incredible.
But now to see it actuallyhappening, to be at these
franchisee store openings.
I was just in Wichita, kansas,and they opened their first
location there and to see thesefranchisees which are our
(19:17):
partners, they are my partners,they've invested in this brand
with me and I'm so grateful.
But to see their eyes light upand go.
It actually works.
Like the cars come, you buildit and they will come.
And like we served almost athousand cars on Saturday and so
that was pretty incredible tosee.
And to build out our team.
Like we just hired somebodyfrom Dutch Bros and he's going
to come on as our CDO, and soit's incredible the talent that
(19:41):
we're attracting and to see ourteam build, our corporate team
build, so that we can supportall of these amazing locations.
We're going to grow corporatelyas well.
But, yeah, it's the fever pitchthat I've never seen and we've
had some crazy growth modes.
But to see us at 70 plus stores, I see in the future five years
.
To answer your question, I'vealways thought that Swig should
(20:05):
be and deserves to be everywhere.
I really do.
If Starbucks can be everywhere,swig can be everywhere.
It's really that simple.
But I also think everycommunity deserves to have a
Swig.
They need their happiness inthe cup, they need their best
part of their day.
So I see, in five years, thisbeing worldwide and that to me,
I'm like I can't believe I'msaying those words, but it's a
(20:25):
very real, it's very real.
It's a good reality.
Because of just the eyes on it,people now get it.
You know, the margins are great, the profit's great, these
franchisees will be able to makemoney Like.
It's a good investment becausewe've done it slow and steady.
I started 14 and a half yearsago but it's been slow and
(20:45):
steady building that base andit's always been that way.
The first year was three yearsbefore I opened up store number
two, just trying to figure outwho we are and building out the
team.
So I see, I see Swigs dottingthe United States for sure,
which is crazy to me, but notcrazy Cool.
And then the world, which isastounding.
Brian Sheehan (21:03):
I know when we first started talking with some
people on your team who are veryexceptional and there was a
question internally about howwell it could do in other parts
of the country, how weatherdependent it was, when did you
know that SWIG could besuccessful pretty much anywhere?
Nicole Tanner (21:25):
You know it was there's two things to that.
So opened up two locations inSouthern Utah there's two things
to that.
So opened up two locations inSouthern Utah so just in those
three years time and I thought,okay, let's see if it will exist
in a cold climate.
So up in Northern Utah, whereit snows, you know, and it's
cold four or five months out ofthe year, like, can it exist in
a cold climate?
Will they still drink an icybeverage?
(21:45):
And we opened up in Provo, utah, right across from Cougar
Stadium, byu, and within like aweek I was like and yes, it
works.
And I was like, okay, becausethey were super busy.
And so then we really startedexpanding into northern Utah.
So that was the first like okay, will that work in this climate
?
And then we had to proveourselves outside of our
(22:05):
heritage market, which was Idaho, utah, arizona, and just
because everybody kind oftravels in between there and
we're like I knew it could, butwe had to prove it.
I mean, coke and Pepsi arebillion dollar companies for a
reason, and it's not because ofUtah or Swig, it is because
people drink soda everywhere.
So we went to Oklahoma firstbecause, again, coke and Pepsi
(22:27):
are great partners.
They gave us the data of sodaconsumption and we're more than
just soda, and you know that.
Like, we have sparkling water,water, energy drinks.
If people say I've never beento Swig because I don't drink
soda, I'm like, well, you'remissing out, because we have so
many amazing refreshers,revivers, that aren't soda.
So please come, if you thinkwe're just soda, we're
absolutely not.
(22:47):
Come and get something that'scompletely sugar-free and
water-based and you'll love it.
You'll feel special.
So we went to Oklahoma.
First, we have six locations inOklahoma City, doing super well.
Dallas, second 10 locations inDallas, kickin' butt there.
We have four locations inHouston.
Texas will be the new Utah forSwig.
(23:09):
Mark my word.
Like, we'll have that many inTexas.
So we proved it there as well.
Like, willa exists out of this,you know, the Rocky Mountain
front.
And again, same type of thingwhere it's like, within a couple
of weeks, like, and yes, weserved over a thousand cars day
one, opening day of our firststore in Texas, boom, done so,
(23:29):
it worked.
So those were the two thingsWill it work in a cold climate
and will it work outside of ourheritage market?
And, yes, it did so.
Then we were hitting the groundrunning of like okay, who would
like to join us in this amazingrace, or whatever you want to
call it journey?
Brian Sheehan (23:42):
and that's a real hurdle for you, knowing if we
can serve a thousand cars perday at our new location, we're
good to go here yeah, those areour grand openings.
Nicole Tanner (23:52):
we everything's free, so that's how we pull them
in.
I was like hey, come try us.
Once you try us, you will loveus.
So we do three free days forabout eight hours, from 11 to 7,
and we just did that in wichita, and our goal is like we want
you to try us.
We know that we're new, youknow we want to earn your trust
in your business, so they cometry us.
Anybody who dares to get inthat line, which is sometimes 50
(24:15):
, 60, 70 cars deep, all for afree you know, 24 ounce drink.
They do it, though, becausethey feel cool and special and
it's fun.
It's like a Disneyland ride.
I'm like get in your car, let'sgo for a ride, and we usually
can get them in and out withinlike 15, 20 minutes, because
we're that smooth now on it.
So, yeah, that's our grandopening days.
Those are free days, but, ingeneral, we have some locations
(24:36):
that are our top locations thatwill do that same volume in a
day.
Brian Sheehan (24:40):
That's really exciting.
Yeah, it's just such anincredible story.
I really appreciate you takingthe time with me today.
I guess maybe I'll ask onefinal question here.
You're thinking about how youknow from that first unit you
were in there every day, all day, had a small team of people,
and maybe no one has a betterhandle on, kind of, where things
(25:04):
are going in the future.
I'm curious about how the modelmight evolve for you.
Are you using AI?
Are you interested in robotics?
Kind of talk about what'shappening inside a SWIG location
and how that might change overtime going forward.
Nicole Tanner (25:23):
Yeah, obviously know, obviously technology is
ever evolving and there's somereally cool things out there.
Anything that we bring on, likeI said, anything that comes on
the menu, has to fit those threecategories.
So, um, like, if we bring on afood item that takes longer than
a minute to prep, we won'tbring it on because that slows
down our line.
But if we bring anything onthat takes away from that
(25:44):
personalization and thatdrive-through, we won't bring it
on either.
But inside we have totallylooked at robotics and you know,
from measuring the amount ofpumps that go into its drink and
then even putting it, you knowalong that that soda machine, uh
, that could totally speed upthe line actually and make it
even better and create a moresuperior product, because, again
(26:06):
, it was that superior productand a fast moving, friendly line
that built us.
So if it could speed us up evenmore and make it even more
superior, like product that youknow you're going to get every
single time super consistent,that would be amazing and that
would save on labor.
You still need a team inside tomake sure that that works, but
there's a lot that is verypositive about some of that
(26:27):
technology robotics, especiallyin a SWIG.
So we're definitely yeah, we'redefinitely looking into it and
seeing if it's a possibility forSWIG.
I would love to not ever takeaway from taking orders person
to person.
I would.
I want people to be seen andvalued, and so I would.
That's the part that I don'twant to sacrifice on.
(26:47):
So someone at the windowhanding you your drink and
someone taking your order isvery important to me.
I think we've got to stay trueto.
We're in it because of thepeople we have a business,
because of our customers, solet's make sure we see them as
amazing people in our drive-thru.
Brian Sheehan (27:02):
It seems like such a core part of who you are,
what Swig is.
It's important to never losethat element.
Nicole Tanner (27:10):
Right, yeah, and there's going to be pressure to
go, hey, but you'll save on thisand this and this, yeah, but
then we we might, you know, losesales because we just don't
have that interaction.
So it's very intentional.
I'm very intentional on thepartners I bring on and also
just where we go and what webring on our menu.
(27:30):
I'm protective of this business, for good reason, and my role
is very different as founder.
Now I don't have even a quarterof the hats I used to wear in
my head, and that's nice.
And I'm not getting any youngerand I have a growing family and
I love being a grandma.
So, um, my role is verydifferent, but I love what I do.
(27:50):
I love seeing our teams grow.
I'm like a culture you know,enthusiast, and so I can walk
into a location.
I can tell pretty quickly ifthere's something kind of off.
So I take that to the districtmanager and say, hey, something
feels off.
You want to go in there, but Ilove to be in the stores.
You'll oftentimes catch me inthe stores making drinks,
talking to the team.
I'd rather do that any day thango into an office.
Brian Sheehan (28:11):
So yeah, there's nothing that can really replace
that time in a store to help youfeel connected to the business.
Nicole Tanner (28:20):
That's how you know how you're doing.
If you're not connected in thatstore, you know in the trenches
.
You don't know how you're doing.
So we have a new director ofoperations that's been with us
for almost a year and he's beenphenomenal at that.
You'll see him in the stores,not in the office.
That's how you know yourbusiness.
(28:41):
What it's doing is when you'rein the stores with the team in
the trenches, and I'm going toget there and make drinks
alongside you and take ordersand do whatever is needed,
because I'm grateful for youthat you're showing up every day
and doing all the heart.
Brian Sheehan (28:49):
So and that, in a nutshell, is why Swig is so
successful your willingness toget in there and continue to be
on the front line and supportyour team and interact with
customers face to face.
Nicole Tanner (29:03):
I love my customers and my team.
I don't have a business or abrand without them.
They it takes.
It takes an army to do whatwe're going to do and to see our
team even growing even more solike really quickly lately,
because we see this growthcoming.
So we're prepping for it isreally cool and people want to
be a part of it, and how cool isthat?
I mean you go back to how itall started and you just go
(29:23):
amazing, a part of it.
And how cool is that.
I mean you go back to how itall started and you just go
amazing.
I'm very blessed, brian, I'm soblessed.
Brian Sheehan (29:31):
Yeah, and I'll start it with, just like a love
of a Diet Coke with lime.
Who would have thought you are?
Nicole, it was great speakingwith you today.
Thank you for joining me onRetail Intel.
Be on the lookout for new Swiglocations opening near you and
be sure to check them out onInstagram at Swig Drinks.
Whether you are an aspiringreal estate mogul, a seasoned
pro or simply curious about theplaces where we shop, dine, play
(29:52):
and work, this podcast is yourall-access pass to the world of
commercial real estate.
Connect with me on LinkedIn andif you're interested in being a
part of the Retail IntelPodcast, please send a message
to nationalaccounts atphillipsedisoncom.
If you want to hear more aboutnew and expanding brands like
Swig, keep tuning in to RetailIntel and please subscribe,
(30:14):
follow, like and repost.
Talk to you next time.
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