Episode Transcript
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Speaker 1 (00:00):
We are back here on another episode of Fast Casual Nation,
the podcast that started it all. Today is a very
specially because we have a returning guest from one of
our previous episodes that we did on The Masterminds and
he did such a great job we had to have
him back. Joining me, of course, is miss Shrif Candler.
So how are you?
Speaker 2 (00:20):
I'm great, how are you?
Speaker 1 (00:22):
We're good? Football season is kicking off this week, and
I know that's a big thing for you guys. They're
in Kansas City. You know, we play in.
Speaker 2 (00:30):
Brazil on Friday night, so we're ready.
Speaker 1 (00:33):
I saw that they were on the Power rankings at
number two or something like that, and I follow some
of the really unusual sports channels on YouTube and they
are not fans.
Speaker 2 (00:46):
Of the the Chiefs, the.
Speaker 1 (00:48):
Kansas City Chiefs. I did not realize they had so many.
Speaker 3 (00:52):
It's alone at the top, and I'm okay with it.
You know, everybody hates the winner, so well you all
take that number two spot. We're good at an under
dog too, so.
Speaker 1 (01:01):
Let's go for it. Uh Well, speaking of number one,
we have to talk about the Fast Casual Top one
hundred winner hitting some news this week, and that is
signing one hundred and eighty unit European deal. What are
they going to do so Hot Chicken in Europe?
Speaker 2 (01:18):
Yeah, I mean I think it's a it's a great idea.
Speaker 1 (01:22):
Why not, it's a great idea any of.
Speaker 2 (01:25):
Them, you know, with one franchise e.
Speaker 1 (01:28):
So here we go that brand Portugal, Spain, Germany, Poland, Hungary,
the Czech Republic, basically everywhere.
Speaker 2 (01:37):
Turkey, yes, with the Azuri group out of so there.
Speaker 3 (01:43):
You know, I'm not surprised this brand is, you know,
for only being a relatince twenty eighteen is yeah.
Speaker 1 (01:48):
Yeah, Well it's interesting because this will essentially would become
Dave's Hot Chicken Europe.
Speaker 2 (01:57):
Yep.
Speaker 1 (01:57):
I mean it looks like it's one one company.
Speaker 3 (02:00):
We do have a couple and they do have a
couple in London in a London area already.
Speaker 2 (02:05):
But this is the next big one.
Speaker 1 (02:08):
Hey, we're going to be talking to Patrick for today,
who is the CEO of Lime Fresh and Lime Fresh
is a South Florida brand that has evolved over time.
I remember the original founder, John Counkele. You know the
history was they sold it I think it was to
(02:30):
Ruby Tuesdays and you know there was a whole process
of what it went through, and then now we're going
to get in and kind of see the updated version
of that. Before we jump onto that, I want to
also kind of hit on this topic, and that is that,
of course, Chipotle is now offering my favorite, which is
back again, Carneisaida.
Speaker 2 (02:49):
Fourth year in a row, back the most googled restaurant
item they've ever had, apparently, so they're back.
Speaker 1 (02:55):
That's my favorite dish. That's the only reason I go
to Chipotle now is when carneasada comes back. Yeah, and
I have something.
Speaker 2 (03:03):
I have teenagers and we don't have a Mexican line,
so it.
Speaker 1 (03:07):
Is hey, listen from the man who wrote the Chipotle
effect to basically defect away from Chipoli. I no longer
go there because the product has really fallen. Wow, I'm sorry,
it just has. It's just not that great anymore.
Speaker 2 (03:23):
And I never put enough meat in it. I have
to order double meat.
Speaker 1 (03:26):
That was the beginning. That was the beginning. Is when
they started pulling back on ingredients, and then they did
a double take and said, oh, just kidding, guys, we
didn't mean to piss you off.
Speaker 2 (03:35):
But I don't think they ever gave me back all
the meat that I'm used to.
Speaker 3 (03:43):
Go there, the twelve year boy inside is like wanting
to come out.
Speaker 4 (03:48):
I love it.
Speaker 1 (04:03):
This episode is brought to you by Philadelphia Cream Cheese.
Chefs take the heat all day, every day. Performing under
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Phillies creamy texture holds up every time, less cracking, more binding.
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(04:24):
deserve the original. Let's introduce and bring in mister Patrick
for coming in from Lime Fresh. How are you Patrick?
Speaker 4 (04:34):
I'm doing great, Paul, how are you both doing today?
Speaker 1 (04:37):
Great to see you again. Thanks for coming in on
short notice. We had a guest move around, so Patrick said, Hey,
no worries, man, I got you.
Speaker 4 (04:45):
Happy to do it, Happy to do it.
Speaker 1 (04:46):
Let's learn a little bit about where Lime Fresh is today.
Tell us a little about what you guys are up to.
Speaker 4 (04:52):
Well. Thanks. Since we've spoken last, I told the story
of us kind of renovating the brand. In the Menui,
over thirty percent of new menu items landed on our
menu in March April. We've enjoyed some good press. We've
got some new exciting energy and starting a new franchising
(05:12):
sales program. Have got some very good discussions happening this
and next month with a couple groups coming back to
the brand and Paul, if you remember, one of the
things I wanted from this project was to not only
reinvigorate a twenty one year old brand, but to help
lead the team along the way to say, one more
dollar and one what I call Lazarus guests back from
(05:34):
the debt. We're coming back to enjoy some flavors, some
internationality of Miami nes now moving into Mexican sirt and
certainly in the rappers, but bringing some more bold and
continued fresh flavors. So that's been the mission for us
to navigate over the summer and it's gone very well.
I'm very proud of the team.
Speaker 2 (05:55):
The pizza looks pretty cool that you hadn't done that before.
Speaker 4 (05:58):
That's a brand new net category for us. We had
our suspicions. We'll doing some research on the third party
delivery sites. In partnership with the Panthers. It was a
fun angle for us to take, as well as our
Hot Sauce collaboration. Taberniro fantastic brand. If you haven't talked
with them, they're growing like weeds as well be doing
a little that hot Honey chicken collapse right that at
(06:19):
the top. You know, you guys talked about days hot
Chicken and this is sort of our foray into this.
It's an lto it goes away at the end of
this month, but I have a feeling it's going to
come back next year in any way.
Speaker 3 (06:31):
Well, it's smart with all of the gen z trends
that we have been seeing with the different condiments in
the hot sauce and the hot honey.
Speaker 2 (06:38):
So you're right on trend as usual. I'm not surprised,
thank you.
Speaker 1 (06:42):
Well, that's the way that that's you got to stay
in front of these other these other Freshmax concepts. And
if you look at Chipotle, which of course has had
some missteps, we've seen problems, you know, within other brands
within this category. Obviously Kido on another one that kind
of holds its own. But when you look at do
(07:04):
you feel like you guys compete against the fresh mech
space or are you bringing in customers from other fast
casual and QSR sectors? How do you break down your DMA.
Speaker 4 (07:14):
Fresh is a part of the brand's name and that
is a part of our that's adherent to the brand's DNA,
and so we'll always index on that story. I think
customer is always going to be interested in that health journey.
And as other competitors in the space have grown, maybe
at a rate that's kind of compromised some of that
fresh it's not going to be something that will be
(07:36):
guilty while at least while I'm driving the ship right
now fall all right.
Speaker 1 (07:41):
So that's good because I think the key here is,
you know, trying to get in your own lane, find
out what works for each brand. That's something that a
lot of operators, I think sometimes they you know, they
get caught up in trying to, you know, follow what
the Joneses are doing, and they forget that they're the
reason the customers come and usually they have a uniqueness
(08:02):
around that. So I think that's such a huge issue
with what's going on in the space right now. When
you look at authentic Mexican food versus tex Mex Listen,
tex Mex to me has its own little spin. What
would you call your your menu right now? What would
(08:22):
you say it is.
Speaker 4 (08:23):
Mexican inspired dishes? Right So that that's where the inspiration
of the the I guess the iterations come from. But
it's a Miami vibe, Paul, It's tier one. Miami is
certainly a Tier one city. With what's happened over the
past five years a way to growth, we've seen international
flavors come into the city in a way that I
(08:44):
don't think we'll ever want to be any too, player
saying well, we now have to have a curry taco
or we have to have some kind of a sort
of other influence. But with the internationality Miami, I think
now getting some different eyeballs across the country. I know
part of our storytelling is we're evangelizing what Miami is
and attracting new multi unit business owners to the brand
(09:07):
for franchising. Everyone wants to play in Miami. Everybody wants
to be in Miami, and so we index on that
vibe and still put things of tortillas that that's going
well for us at this point.
Speaker 1 (09:18):
Now you guys have a South Florida menu and a
Orlando menu. Is that right?
Speaker 4 (09:23):
I'm glad you asked. As the month, there'll be only
one menu that'll that will be unification at the end,
and you walk into one of our South Florida stores
or Orlando stores currently you'll be able to eat the
incredible same carnea sada case to be our conne asada
burrito that are award winning in the room.
Speaker 2 (09:41):
That is not lt O. Right, it's always on the menu.
Speaker 4 (09:43):
Yes, ma'am, you get it right, Always on, always comes.
Speaker 1 (09:45):
Always on the menu at Lime Fresh still one of
my best places to go. We have a couple near
us here in South Florida.
Speaker 2 (09:52):
So how many locations do you guys have? Now?
Speaker 4 (09:55):
We have ten in the system, one non traditional at
the Florida Panthers, a a kids session at that serves
sort of a curated version of the best and writers
try as we might to get people to order order
anything other than the na shows and the og tacos.
That's right down the middle. And so yeah, exactly, although
(10:16):
I will give you a sneak preview the Panthers team
that with my ops people last week. We've got too
only in concession operations at the Panthers. L t O
is going to launch on October the seventh.
Speaker 1 (10:29):
So with that success, I mean, Dolphins Stadium has a
lot of concepts in there. What's what's the deal here?
Speaker 4 (10:36):
You know they called last year we picked the Panthers
and I'm a brilliant at the base.
Speaker 1 (10:41):
But yeah, hockey Stanley Cup winner. I mean, the Dolphins
are not going to beat the Chiefs this year.
Speaker 4 (10:48):
Little bird told me that you are correct. Sorry you're
in Kansas City. Uh. We love that growth, non traditional
growth is a part of our strategy and so don't
be surprised if you see something next year potentially. Yeah.
Speaker 1 (11:03):
Well, you know, I go to the Dolphins games, you know,
mostly out of condolences to the team.
Speaker 4 (11:10):
Uh.
Speaker 2 (11:11):
You want to support your team even when they're.
Speaker 4 (11:12):
Like I do. I do.
Speaker 1 (11:13):
But even though this year, I'm very very jazzed about
Tampa Bay. Okay, so Baker Mayfield one of my you know,
Alma mater guys. So I'm very happy about that. We'll
see if Tampa Bay can hold their own in the NFC.
I don't know, maybe, But how has that been though,
being connected to a major sports franchise like the Panthers,
(11:35):
which have really absolutely taken the hockey industry, at hockey
business and the hockey leagues by storm. I mean, everybody's
a Panther fan now. It feels like no matter where
I go, I see Panther fans all the time.
Speaker 4 (11:50):
You know, it's the it's the lime, freshest first collaboration
with any major sports organization. Last year, we learned a
lot about how to go to work, what really works
in store for you, knock on sales or some other excitement.
We renovated the program completely with the Panthers last month.
So this year's offering is informed by the data that
(12:12):
either was good or was not a good success. And
I'll say this to the Panthers, they are an absolutely
outstanding business for sports organization. They get it, they go
to work alongside of you, and that's been one of
the brighter spots. Then while our first year was let's
just say a little underwhelming from our perspective, they've gone
to work on retooling for us and hats to them
(12:33):
and proud to come out of the gate this season
with a lot stronger offer.
Speaker 2 (12:37):
We're learning to write what's different.
Speaker 3 (12:41):
Is the menu different or the way the customers are
getting the food or the back of house what's different?
Speaker 4 (12:48):
Well, I mentioned the concession that's going to have a
couple of special lto items In terms of the offer.
In leveraging the Panther Nation as they call them, we're
going to be doing some digital digital digital offers that
are only available for the livery third party. In addition
to that, Territory Thursdays, that's our big day, you know,
Taco Tuesday, you can have it. Territory Thursdays. Come in
(13:09):
and we're going to be putting a significant portion of
our menu on Bogo. All you got to say is
gokats and you're then you're able to get to that
secret panther menu that we're going to be doing.
Speaker 1 (13:18):
Secret Panther men. Oh, these guys are going to love this, hope. Yeah,
South Florida is going to be all over it. Let's
talk about franchising real quick. You guys, of course now
have a pretty significant program rolling uh and this new
reimagine Lime two point zero. How are you guys selling this?
(13:40):
You know now that there's some pretty heavy competition in
the franchising space, especially with Chicken being one of the
top franchise systems out there that I've seen. I was
looking at some of the IFA data and of course
all the Chicken guys are killing it. How do you
guys compete?
Speaker 4 (13:57):
We are in the taco business, and like Pizza said, Chicken,
we feel that there's wallets share enough, uh, I guess
what I need to say is how we compete is
part of the history of the brand. It's got staying
in sticky power Chicken and Hot Chicken. Certainly that's a
story to tell and some of the some of the
opportunity as Chicken kind of washes it through the stained
power of the wallet. But I think there's some thickness
(14:20):
to the tacos and burritos segment and to be in
that that that playground, so to speak, is still bringing
the right type of operators who look at this as
either they don't have a text mex Mexican segments to
you know, their family dying augmentation. They're curious to see
how the Hot Chicken plays, and it is a very
exciting element. But as I as I say when I
(14:40):
get asked that question, we've got great Chicken too. We can,
we can, we can do all of those fun things
and also give you a burrito to go.
Speaker 1 (14:47):
Yeah, for sure, Patrick, do you think we're going to
see you know, fast casuals finally making their way into
these second tier markets, because that's a problem right now.
You either or have over population of fast casual too
much choice in really prime markets with prime real estate.
(15:08):
But you get into these second tier markets which are
in many cases are being won over by mostly QSR.
Right now, what do you think the opportunity looks like there?
Speaker 4 (15:20):
I'm an old real estate guy, and so I think
you have to link the two with a discussion around
commercially available second gen space as probably being the best
value proposition to getting second at second or tertiary tier
markets excited or other way around. Brands excited about that.
The varioustry primary are just financial and so I think
(15:43):
that's how I think about it, going after smart tier
two cities that have maybe some fallout and get really selective.
Whereas before Paul, I'd go in and say this territory
and albeit secondary can hold you know, eight of these
units over the period of five years. Now three of
those over those three units over the same period of
(16:04):
time to be a bit more selected.
Speaker 2 (16:07):
Are you guys exploring some of those other second tier cities.
Speaker 4 (16:10):
At this time? Really our franchise, the mumbos that are
coming to us that are have exposure to secondary cities
are a part of the conversation. We primarily are focused
on our Orlando growth strategy, and thankfully Orlando is still
very much a primary primary market.
Speaker 1 (16:26):
So okay, let's talk about Orlando for a second. That's
as far as geographically, it's a very large metro area.
So you've got everything on the south side down by Disney,
then you go up north. There's quite a bit on
the business side. How do you select what is the
best thing? I mean, if you look at South Florida,
you know, you've got two lime freshes that are in
(16:48):
Broward County that don't necessarily compete with each other. They're
almost two different areas, but they're within you know, striking
distance of each other. So you get brand affinity. You know,
people kind of know in Broward County line fresh Pemberg Gardens,
line fresh Over off of five ninety five. So is
that how you're going to attack Orlando? As something similar?
Speaker 4 (17:10):
Twenty years ago we would buy groceries. You know, you
go to the public shopping center as you look at
the availability of the growth in that given area and
then ask yourself, does this feel like a restaurant row
or a secondary version of that. Thankfully, with massive global information,
with great partners that we work with, we've got just
almost too much data. As I think about the growth
(17:32):
borders in Orlando, cannibalization is a is a big challenge
and with the amount of traveler you know that happens
between people that may live in Lake Mary which is
north in Orlando, and those people that may work down
in Lake Nona, which is where a company store is.
There are much better ways to make that cross shopper
traffic decision now. So I think Orlando is probably a
(17:55):
four to five store market for Line Fresh. There's something
about the sky I'm okay with that might be a
little bit of a maybe when the novel a nuances answered,
but fear of missing out trying to be a little
bit special everyner.
Speaker 1 (18:12):
Well, I mean there's been some brands that have been
very good at that and very successful that kind of
originally launched. You know, if you even look back at Chipotle,
they were very selective on markets in the very beginning
on their growth cycle. You know, then you look at
chrispy Kreme. There's a lot of brands that have kind
of gone that route that originally we're we're looking at
(18:33):
more scarcity over trying to blanket, you know, a particular area.
Let's get into gen Z. I know Chera's got some
questions around that that we need to dive into because
this is a big sector for fast casual.
Speaker 2 (18:47):
Yeah. Absolutely. I mean we've been covering that, you know,
all year in the last couple of years, about how
it used to be millennials, but now everybody's having to
go after the gen z sector. So what are you
guys doing to get those to get the kiddos.
Speaker 4 (18:58):
In, you meet them on the digital devices that happen
to be on their hands. Right, We're probably not doing
anything that any any boardroom's not already discussing the I
think part of the challenge is also, you know, when
Chick fil A and the Dave's Hot Chicken is where
and where the kids are growing up with their experiences.
(19:18):
That makes the decision now for moms and dads, right,
it's wherever the kids want to go to. And so
we're also being thoughtful about a price point it might
be sensitive for mom and dad. Doing some new work
with Bogos online and doing some early data testing to
make sure that you know, yes, you can go get
a Bogo carne side of burrito on Uber and DoorDash
right now, but in a way that I think is
(19:39):
balancing the needs for mom and dad's perse or wallet
rather with the kids credibility. I don't know that that's
a perfect answer, Therah, but it's sort of how you
think about that.
Speaker 3 (19:50):
Do you have like any kind of kids program or
teenage like kids Mills or anything like that.
Speaker 4 (19:55):
We do. We do offer a long, long offered a
kid's value meal that's on our menu. But moving moving
in Orlando first, it's our test market, it's my company stores.
We've gone forward with Monday Nights kid NEETs, Kids to
Eat Free, and we pair that with the Spirit Night
as we've gone back to school. That seems to kind
of split that mom and dad awareness with the kids
needing someplace to eat after football, soccer or whatever have you.
(20:17):
So that that's been that'll be a pilot that concludes
in September, and we're going to roll that out for
next year as well. Good. Yeah, you know, it's interesting.
We are evaluating a couple of different players in the
app space. It has been a learning curve for us
with our current provider. I won't pay names, but we're
excited because one of the things that we've not as
(20:40):
a brand done shocker spoiler, is loyalty. We've not done
loyalty well at all. And so this is going to
be a big season for me into age one of
next year as we get that loyalty component banked loyalty
like you know you would see a Starbucks, Chipolte or
Chick fil A do in exchange for values. So the
exciting part is that not having done loyalty before in
(21:01):
the past, really baking that discussion into the players. We're
evaluating to make sure that surprise and the light are
a part of that that in store conversion beyond just birthdays, right,
I think Paul, that was what's last time, So that'll
be something. But hopefully the next time we reconnect in
six maybe nine months, I'll have some storytelling about But
(21:22):
that to me is what what line fresh we're really
focusing on in season two, And I can talk a
bit more about that, but I want to make sure I.
Speaker 2 (21:30):
Answered are you guys?
Speaker 3 (21:32):
I know a lot of restaurants are trying to look
into their loyalty platforms to find ways that aren't just
giving people free stuff. I mean, how are you are
you looking at that as well?
Speaker 4 (21:42):
Absolutely? What's not I think gone? Well, it is just
that Discountany I know have lovian moments and that's very
much kind of the if you can do something more
than discounts, then you've got them right. And if you
can provide a nastier as secret that no one else
knows about you, you get to get similar to the
special discussion with your customer. Now, if you can take
(22:04):
A and B together and then actually pull them into
a private events VIP something that's going to be a
closed down at one of our restaurants, call from where
you are and saying, sorry, we're closed for a loyalty
event this evening. Right, it's not novel, but it's a
way that we're going to end up having the conversation.
And I think the way that matters.
Speaker 1 (22:23):
The idea that you guys did with Tabernaro, you know
and tying in you know, products like that, because we're
starting to see more, you know, these artisanal brands that
are integrating into fast casual as opposed to traditional food
service brands. You know that we see through you know,
(22:45):
typical distribution that are starting to show up. We've seen
it in craft beer, I've seen it in some of
the custom suites and desserts now going into fast casual,
they're starting to go that direction. And now you guys
doing it with you know, from a flavor profile angle.
Is this something that you are looking for more artisanal
(23:06):
approach to try to integrate menu uniqueness. What's the strategy there?
Speaker 4 (23:11):
I think you nailed in Paul. I think brand Times
Lime Fresh. Right, this happens to be tab Niro Times
Lime Fresh opens a world of flavor in a way
that we can really you know, we're not a hot
sauce company like a Tino one of flatsmoan be where
that's right opposition. We can play with heat and spice
and in a nationality. They're a great partner for us
because next year at eight well, we're going to be
(23:32):
going through sort of a if you can imagine a
world where the flavors will continue to power by not
just hot sauce, but sauces. How can tab Niro help
us augment that? At Jeff Tracy and Gabby over It
at Tabonio have done a great job leaning into Lime
Fresh that flavor profile in those customers to really augment it.
(23:53):
We're having a lot of fun and we're just getting
started with them. It's taken a year to get this
off the ground. But an example of how a brand
like wine doesn't have to work hard in a test
kitchen for six months and get it wrong. We can
grab a brand and have some fun.
Speaker 1 (24:07):
Where to go. Yeah, well, and see, this is something.
Speaker 3 (24:11):
I was gonna say something different, like I hear you know,
Mike's Hot honey, everybody's putting that in.
Speaker 2 (24:15):
But this is the first time I've heard a restaurant
working with this brand. So that's interesting.
Speaker 1 (24:18):
Yeah. Well, and my point is is when you look
at gen Z, these direct to consumer brands have really
picked up a lot, you know, getting away from the
traditional products and services that you typically find in grocery
you typically find and distribution. Now we're starting to see
a lot of these artisanal brands. It first started in coffee,
(24:40):
then it kind of expanded into beer, and now we're
starting to see it in other areas, even in the
you know, the health food space. I'm invested in a
small company that well they're no longer small now because
they're distributing in old foods in all kinds of places.
But they started as a very small company with just
a couple of people that were building a very artisanal product,
(25:01):
and you know, these are kind of growing. This is
interesting to me is that fast casual could really kind
of tap into this share. Have you seen any other
brands do this?
Speaker 2 (25:10):
I can't think of any off the top of my
head other than those brains that I mentioned with, like
Mike's Hot Honey, but and see.
Speaker 1 (25:15):
Mike's not Honey has been around a while, but I
met him at especially food show in New York one year.
It was several years ago. It's it's a great product.
I buy it, you know, So it's fantastic. I love
the chili peppers in honey and which is kind of unique.
But I have not seen this kind of brand connection
into these very artisanal which Man, this is so so
(25:38):
dialed into what gen Z is looking for because they
don't want Tabasco or even chilula or you know, the
typical stuff that everybody else is using, which I think
is cool. We got to talk about the idea of
third party delivery convenience and what it means to fast
casual right now, because there is a huge struggle between
(26:02):
the three categories. When you look at three PD, you've
got delivery, you've got pickup, and you have dine in.
How do you guys balance that's what's.
Speaker 4 (26:13):
Your or mix is still very much in the mid
thirties for third party, I think we play right down.
Speaker 1 (26:19):
On delivery or for pickup for how much is pickup?
Speaker 4 (26:24):
Pickup is going to end up being pubably twelve percent
of that We've watched that a little bit, which is
which I think might end up being the convenience component,
and then this is really expensive, I can I'm going
to drive by the red front anyway. Site mentality, that
number has gotten a little bit stronger over the summer.
We'll see in the fall if that kind of contracts again,
(26:45):
something probably having to do with the economy, but we're
still very much in the in the mid thirties mix
in terms of off premise.
Speaker 1 (26:51):
Yeah, does dine in because well you're still talking about
what sixty plus percent dine in?
Speaker 4 (26:58):
Right yes? Yes?
Speaker 1 (27:00):
So does it change your plan for your future store format?
Right now? What's the model?
Speaker 4 (27:07):
I'm really excited to talk about what is our second
phase of focus on returning line fresh back to hospitality.
All we spoke some time ago. I mentioned about lying
becoming more than just a place to get food where
you could be guilty of living intentional moments exceptionally a
little cheesy, but it really indexes on phase two of
(27:30):
what the renovation of the brand will will end up
encompassing in our stores when we have dynam Prior to COVID,
we had a role that was either a salary or
an hourly individual called the ambassador. The mime ambassador was
the host of the party. They were there to make sure, Paul,
when you came into your location.
Speaker 1 (27:48):
I know them well, you know them right, they do
a great job.
Speaker 4 (27:52):
Yeah, they do a good job. Well. That went away
with COVID. We understand the reasons why economically that made sense.
But as we've started to see some of these people
come back in for dine in or for pick up,
we're reintroducing the role of a mess to make sure
it's sortain that our four walls feel like a party,
for sure, but that we go in index on. If
(28:13):
we're going to be guilty of one thing, it's going
to be that hospitality cart. If we're going to give
those feels back to the customer. I don't know, maybe
gen Z has never had a hospitality.
Speaker 1 (28:25):
I was going to say, I don't think they've ever
experienced that, And I can tell you right now, of
all the fast casual brands, that was one of the
unique things that Lime always had to me. In fact,
my family even always wreckon. You would talk about that,
is that is that the GM, you know, because they
would think that it's the GM, And I'm like, no,
(28:46):
that's like their brand expert that walks around and make
sure everybody knows about the menu and do we get
everything right? And you know, all those things that it's
called hospitality, they don't. They can barely recognize it anymore.
Speaker 4 (28:59):
It's one of those things when you see it, instantaneously
recognize it.
Speaker 5 (29:04):
You know.
Speaker 4 (29:04):
I don't need to tell it to you guys what
that looks like. But to me, if we have to
have the story. It's one thing to be guilty of
selling a franchise and tacos, But if we have a
programmatic approach on how you're supposed to feel when you
leave the store, third party delivery driver, you should still
feel better when you came to us, Right, So that
space too as a customer too.
Speaker 2 (29:27):
That's great for the dine in strategy.
Speaker 3 (29:30):
I know that you guys offering now you're offering craft cocktails.
I mean that's kind of a newer strategy, right. It's
not you guys didn't launch with that. It's just in
the last few years since around COVID.
Speaker 4 (29:40):
That's correct, right, Our Line Fresh two point zero as
the model at the open kind of referenced, will be
the growth vehicle going forward. Line Fresh is growth continues
on having a full bar mixed to it, but to
be very clear, it's not a two thousand square foot
bar component. It's a very small curated foot front of
(30:00):
media five hundred square feet and that'll end up being
a part of value proposition going forward. Currently, out of
the two stores that have the two point eight model,
it drives more than thirty percent of our sales. Wow,
significant contributor.
Speaker 1 (30:17):
Yeah, well, you know, there there's been a lot of
brands that have tried this, Some have failed and some succeed,
And I think it depends on the brand itself, the
demo that they're trying to attach to, and also in
some cases even the real estate. So the mixes is
very important, you know, to be able to get to that,
(30:39):
which is good because thirty percent, I mean, that's that's
one thing, even though alcohol sales have been declining, you
know for most brands. So was that something that you
guys decided to do years ago or was this how
long ago has it been since you put that in.
Speaker 4 (30:55):
It's been four and a half years now, and you know,
we kind of evaluated the need for the balance. We
do offer mocktails. I will tell you that although the
mocktails are fresh marated every single day, we don't sell
improving at all into the customers being written about, which
is choosing something other than alcohol. And so I think
we're a little bit of a maybe a uh interesting data,
(31:18):
but that that is the model that's to continue to
good well.
Speaker 1 (31:22):
I think also your your brand Mexican just kind of
into margarita and and beer.
Speaker 4 (31:29):
Right, that's it.
Speaker 1 (31:30):
There's just a good match. He almost you know people
are going to do that anyway, just because it's it's
the perfect you know, accouterment of.
Speaker 2 (31:37):
Are you guys doing like the to go Margarita's during COVID?
Speaker 4 (31:41):
We are, we are, We still are. Yes, it's not
a huge part of our our off premise, But you
guys nailed on what I was going to say that
the margaritas. We have four star players that basically emerges
the category killers. They are all individually very delicious. We've
got some great spirit partnerships. But yeah, try as we might,
it's cold beer and Margarita's all day for us. Yeah,
(32:03):
I love it.
Speaker 1 (32:04):
Last point I want to get at Patrick, and that
is recession proofing your restaurant. And this is getting into
problems that we're seeing in the market right now. A
lot of people starting to shift their dining habits to
where they're ordering. I don't know if there's a term
for this share or not, but where they order part
of the meal and then they add something from home.
Speaker 2 (32:24):
What is that they call snacking or like trading up
trading down? You know, I'm yeah, I'm not sure there's anthing.
Speaker 1 (32:31):
For instance. You know sometimes if I order some of
the meal from one place and then I might make
the guacamole at home, yeah, instead of getting outside.
Speaker 2 (32:40):
Yeah, maybe you order the chips and caesone the make
the beef at home.
Speaker 1 (32:44):
Well, I don't know about that. But when you look
at that recession proofing a brand like Lime, what kind
of things are you guys trying to do to kind
of protect against a possible downturn in the market.
Speaker 4 (33:01):
Well, we're indexed on Florida with our real estate and portfolios.
I think one of the things that we're watching and
evaluating is a question that I can't right now answer Paul,
But is the influence of the international the internationality or
what line in Orlando and Miami used to be snowboards
(33:22):
coming from across many borders? Right? This is going to
be a very telling return to season, if you will,
for us, and I really have the data that would
support any reason for me to be like so very
concerned at this point other than I think this notion
that you're on about look at this at home. I
do that because I have a daughter who's allergic to
(33:44):
certain things, so we'll bring in out of home food
to a restaurant for a very different reason, hacking, hacking,
I think the discount mentality. We have a strong Bogo,
but we don't offer on third party, so we've used
that as sort of an a D test. Uh is
it economic? Is it people split sharing? Is its plates?
(34:04):
I wish I had a better, better answer for you,
because it's a great question. But maybe get me through
February of next year and I can say, hey, this
is what we sall comparatively and we want.
Speaker 1 (34:15):
Yeah, well, your your menu is shareable, very shareable. The Fajidas,
the case of das. A lot of times you know
when you're ordering a lot of times it's like for
the table or at least the way that I see
people use line, you don't get those individual It's not
like Chipotle where you get a bowl that's for a person,
you know, exactly builing a fajita thing to the table
(34:38):
and then they get you know, six extra tortillas, you know,
and it's it's like for four people.
Speaker 4 (34:45):
It's terarrible, you know, not shows the step that we
use is probably exactly. Yeah, your notion about phita is good.
You know that does seem to be crowd pleasers, table
time pleasers, so you know they think that there's You're right,
I think there's a here part of probably everybody's menu
line fresh is no exception, right or a share charitable.
Speaker 1 (35:05):
Well that might be to your advantage.
Speaker 4 (35:07):
Yeah, yeah, agree.
Speaker 2 (35:09):
You want to say, are you guys seeing an increase
in catering? Are you pushing that more than ever?
Speaker 4 (35:14):
Oh? Gosh, who is it? Right? I mean that has
been been the dark horse, so to speak, from five
years ago. And yes, I although I have only two
company stores, I employ two full time catering indevent salespeople,
one works out of one and the other and that
that is a huge windfall. And I'll say it to
you plainly, when we don't see the catering sales, it's
(35:35):
a very difficult crime cost. So it does that contribution.
We've thought about some of the recent news around the
shareables and the taco kits or real replacements. We've always
had that in the mix, and that's going to be
very telling as we kind of get back to football
right to see if somehow those are now moving in
a different way whereas last year they were. So yeah,
(35:57):
we're I'm happy to share the data that this is
a tough business and other people learn.
Speaker 5 (36:01):
Yeah, I think that is super smart what you said
about having specific sales people for catering, because I think
more restaurants now, especially in the fast casual industry, are
finally seeing like how much money there is to be
made on catering if you invest that person, that the.
Speaker 1 (36:17):
Person you know, if you have a true catering manager,
you know that's out there, actually out there working the business,
especially in some of the locations that are very dense,
you know, from even not only just office but a
lot of the professional centers that I think a lot
of catering has been targeting for quite some time. But
it's also finding the right people who are managing the
(36:39):
catering inside the businesses.
Speaker 4 (36:42):
Well, that is that is a good point.
Speaker 1 (36:44):
That's the magic.
Speaker 4 (36:45):
That's a rare gift to to find somebody into the
sales managers operationally, and sometimes that could be oil of water.
We navigated that for sure.
Speaker 1 (36:55):
Patrick. We're going to get you back on. We're going
to talk about growth in the future of I want
to see how this two point zero thing works out
for you. Guys, branchise more unit opening. What are you
planning for the next let's just say two years. How
many units do you think you'd see in two years.
Speaker 4 (37:12):
We're targeting fifty units committed for probably twenty twenty to
twenty five open one. Oh my god, nice, that's a lot,
it is, it is.
Speaker 1 (37:23):
Well, it's a good thing. You don't have any hair
to lose. But I would be losing my hair, my.
Speaker 4 (37:31):
Hair, my last text, I would lose my hair on
that one.
Speaker 1 (37:35):
If I'm going to open twenty units in two years and.
Speaker 4 (37:37):
Years, fair enough, fair enough. I always have by the time,
and this has been a great conversation. I always learned something.
Speaker 1 (37:44):
From Yes, thank you so much for coming in.
Speaker 4 (37:46):
We appreciate it anytime.
Speaker 1 (37:48):
You bet, all right, So we're gonna get Patrick out
of here. What a great another great fast casual concept
that we continue to uncover here on the show. If
you guys have a fast casual concept that you think
needs its day in the sun, send a note to Shara.
What's your email?
Speaker 3 (38:07):
SHERA share A ce so C h E R R
y HC at Networldmediagroup dot com at.
Speaker 1 (38:14):
World Media Group dot com. We'll leave a link down
in the in the show notes for you guys as well,
so you can reach her, because that is something that
we like to do, and that is kind of discover
you know, this next generation, next class of fast casual
brands that are coming back now. There are some good
ones like Line that are kind of making a resurgence.
Speaker 2 (38:34):
So we always love to please.
Speaker 3 (38:36):
Another book idea. The Chipotle effect was a while ago,
so what's going to be the.
Speaker 1 (38:40):
Next have some but it's unfortunately not in restaurant, it's
mostly in the text in the tech sector. Boo. Well,
there's just a lot of you know, there's a lot
of growth over there. Hey, listen, you guys, make sure
and subscribe to the show right now. Pause what you're doing.
I know you're probably chomping on some popcorn or Jeff Alexander,
(39:00):
if you're watching right now, stop eating those bows and
hit subscriber. And I know he watches all the time
because he raises me about it. Hey, who's this guy?
What's this?
Speaker 2 (39:12):
What do you?
Speaker 1 (39:12):
What are you and Sharon doing about that?
Speaker 2 (39:14):
Yeah, he wants to be on again. Probably it's been
a minute.
Speaker 1 (39:17):
I think he might be, you know, trying buy for
another spot at the at.
Speaker 2 (39:20):
The table or at the top one hundred, you know.
Speaker 1 (39:24):
Yeah, Okay, there's always something, there's an agenda. I don't
like agendas anyway, Chera. We'll catch you next week right here,
on another episode of Fast Casual Nation. Take care