The Main Course

On this episode of The Main Course, Host Barbara Castiglia talked with Alan Rosen, Owner, Junior’s Cheesecake, the New York heritage brand since its opening on election day in 1950. Junior’s Cheesecake is a third-generation, small-business, and Brooklyn landmark. While best known for its light and super-creamy cheesecake, Junior’s also offers a full “diner-style” menu inclusive of sandwiches, soups, salads, steaks, seafood dishes–all with a side order of nostalgia and comfort. Castiglia and Rosen talked about Junior’s, surviving COVID-19 and his plans for the brand and restaurant moving forward.

“We have everything from matzo ball soup and corned beef and pastrami and brisket and roast turkey, to barbeque ribs and chicken." -Alan Rosen

Rosen is the third generation to own Junior’s, with the restaurant opened by his grandfather, father, and uncle. While their goal was to have moderately priced comfort food, they also wanted to have the best cheesecake. They put in a lot of research to make it happen, going to different restaurants to taste test. The original owners then went into their kitchen to make it happen. But, they also serve comfort food dishes.

“We have everything from matzo ball soup and corned beef and pastrami and brisket and roast turkey, to barbeque ribs and chicken,” Rosen said. “You can get a piece of broiled salmon if you’d like. You can get chicken parmesan at dinner.”

For Rosen, he can always go for a Reuben, with the combination of grilled cheese, corned beef, and grilled sauerkraut. He also goes for matzo ball soup quite often. He also likes a simple turkey sandwich on rye with lettuce, tomato, and homemade Russian dressing.

The COVID-19 pandemic hit Junior’s just like all other restaurants. Rosen was in Brooklyn when the news of the closures hit. They went into triage mode, emptying all refrigerators, cutting down all the meat to consumer size, and allowing their employees to get a bag of items.

While the pandemic forced them to do takeout and bakery, overall, the restaurant hasn’t changed in almost 71 years.

There’s never been more demand for on-the-go and delivery options for restaurant customers – and that’s led to a race for optimal solutions among establishments looking to keep pace.

One of the premier solutions for meeting these growing expectations is the ghost kitchen, which empowers establishments to cook orders specifically for to-go and delivery guests. These kitchens don’t serve a traditional, physical dining space, but are solely dedicated to the need of customers ordering either themselves or through the variety of food delivery apps available today.

“Ghost kitchens provide an opportunity to really expand a brand or get a product in front of customers that they otherwise couldn’t because of lower resources." -Brett Buterick

On this episode of MarketScale’s The Main Course, host and industry expert Barbara Castiglia was joined by Brett Buterick, Esq., to highlight the legal and regulatory environment surrounding these ghost kitchens.

“Ghost kitchens provide an opportunity to really expand a brand or get a product in front of customers that they otherwise couldn’t because of lower resources,” Buterick said. However, the concept is so popular that even big brands are getting into the virtual kitchen model.

Buterick sees the idea taking off because of the impact of technology. First is the acceptance and use of third-party delivery apps like GrubHub and Uber Eats and second is the increase in social media marketing that allows brands to develop an online following.

From a legal perspective, starting a ghost kitchen begins with entity formation before finding a space to operate and eventually moving onto selling products and services. While creating the business through an LLC is fairly straightforward, finding just the right space can be challenging but is essential to creating a sustainable business.

Buterick describes three models for working out of a space. “One would be the classic model of a shared space with a pop-up in another business’s environment. The second would be operating out of a true commercial kitchen or a commissary. The third possibility is a turnkey solution that’s going to look like a combo kitchen. Things where you can actually put your brand into another system.” He said.

How does a new brand enter this growing sector of the restaurant industry? Buterick has all the insights and details on what it takes to successfully launch a ghost kitchen business.

On this episode of The Main Course, Host Barbara Castiglia talked with Ross Franklin, the Founder and CEO of Pure Green, an omnichannel business that is one of the fastest-growing, cold-pressed juice companies and juice bar franchises in the United States. They talked about Pure Green, making a franchise health brand scalable, and how the pandemic made people focus more on health.

While Pure Green offers franchises, they also have corporately owned locations. They have a wholesale division that works with over 40 professional sports teams and high-end hotels and thousands of accounts across the US. In addition to a direct-to-consumer division where they sell their cold-pressed juices online, Pure Green plans to open 400 Pure Green franchise locations in the coming years.

They weren't always an omnichannel business, starting in 2014 as a brick-and-mortar store.

Their core products are hand-crafted and made-to-order superfood smoothies, acai bowls, and pitaya bowls, and cold-pressed juice and shots. The hydraulic cold press helps retain all the vitamins, minerals, and live enzymes from the fresh fruits and vegetables. There are up to five pounds of fresh fruits and vegetables in a 16-ounce bottle. They quickly found out that people loved their juices, and as their popularity grew, they expanded their business to meet the consumer's demands.

"As our business started to grow and scale, and our cold-pressed juice and shots became really a trend, and we developed a very loyal customer base, we started the wholesale business in 2016," Franklin said.

Right before the pandemic, they knew they needed to grow even more. They didn't want to take any venture capital money, instead focusing on equity crowdfunding where their customers can pitch in capital to grow the business. In 2015, the Securities and Exchange Commission adopted a rule that allowed unaccredited investors to invest in companies via crowdfunding.

This allowed Pure Green to start their campaign via Republic.co.

Listen to hear more about how Pure Green Crowdfunded Campaign during a pandemic.

Established in 1998, Cheba Hut is the first marijuana-themed sandwich “joint” that provides customers with made-to-order food in an eclectic fast-casual environment. Seth Larsen, Chief Relationship Officer of Cheba Hut joined host Barbara Castiglia for an in-depth conversation about the Cheba Hut experience, their franchise operations, the impact of the pandemic, and how marijuana legalization is changing the company’s plans for growth.

With a focus on fresh food and incredible service, Cheba Hut has thirty-five locations across twelve states. Larsen points to a ‘green wave’ during the last twenty years that has made marijuana and marijuana culture more palatable to consumers. While there has been some pushback on the theme over the years, Larsen notes the company’s successes with converting customers who might be uncomfortable initially.

Larsen started with the company as a franchisee and sees the company’s commitment to food quality as one of the main attractions of the brand. “At the end of the day, we’re all foodies. We’ve never gone backward on quality, only forwards even if it meant more money,” Larsen said.

When it comes to finding the right franchisees and expanding their locations, Cheba Hut focuses on values. “We really put our franchisees up to our core values. We have the hustle, show respect, own it, pay it forward, and keep it real. Nice and simple,” Larsen said. “That’s made it really easy for us to identify who’s going to be a good fit.”

The restaurant industry took a significant hit over the past year, perhaps more than any other industry. Despite record takeout numbers, 1 in 6 restaurants closed permanently or long-term during 2020, according to a survey from the National Restaurant Association, which equals about 100,000 restaurants.

But, this year aside, restaurants have always faced challenges. So, what can a restaurant do to survive in a crowded marketplace?

On this episode of The Main Course, Host Barbara Castiglia talked with Izzy Kharasch, the Restaurant Coach, Chef, and owner of Hospitality Works. They spoke of Izzy’s career, what is a restaurant coach, common mistakes restaurants make, and the key challenges facing restaurants during and post-COVID.

For Izzy, career choice has never been a question. He started in high school and has never been passionate about anything else, Izzy said. He served as a food inspector in the U.S. Army before going to chef school. He has served as the Executive Chef at Harvard University, and in 1987 he founded Hospitality Works, helping several Chicago restaurants turn around their fortune. With his experience, he can help out all aspects of an organization, from the front to the back, letting them know what will work and what will not.

“One of the things that really makes me, my company, different from other consulting companies is that not only did I go to chef school … I have a lot of back-of-the-house experience, and then later I transitioned to front-of-the-house, and operations and development and training. Now, when I work with clients, I can work with them on the front-end and the back-end.”

Listen to learn more about Izzy’s career and his advice for restaurants as they recover from the COVID-19 Pandemic.

The Melting Pot fondue restaurants are an experiential concept that’s “as much about what’s going on around that fondue pot as it is what’s going on inside the fondue pot,” according to Bob Johnston, Chairman of the Board of Directors for Front Burner. Johnston joined host Barbara Castiglia to discuss the story of The Melting Pot, where Front Burner is headed in the future, and what larger industry trends are on the horizon.

Johnston began his journey with The Melting Pot as a dishwasher and has stayed connected to the brand since. After starting in the “heart of the house,” Johnston moved into customer service and was inspired by the joy restaurants brought to their guests. His older brothers were among the first franchisees for The Melting Pot and their love for the brand and concept led to them buying the company and using franchising to expand into other markets.

Franchising brings quality control questions to the business and that means having the right partner. Johnston looks for partners that aren’t risk-averse but are also sensible enough to use the systems already in place. Franchisees need to be committed to maintaining quality control, but perhaps most importantly they need to have a passion for the smiles they bring to guests. Johnston's commitment to creating a unique experience for guests is an essential part of the success of The Melting Pot.

Food lockers for modular marketplaces were already becoming popular before the pandemic accelerated adoption of the concept and technology. To discuss this emerging sector of the food and beverage industry, Barbara Castiglia welcomed Christine Marcus, founder, and CEO of Alchemista. As a premium curator of food, beverage, and lifestyle brands, Alchemista offers on-demand modular marketplaces for everything from temperature-controlled chef-prepared meals to unique sundries and snacks in residential buildings and offices.

“We wanted to change the paradigm of what accessibility means from hours to seconds" - Christine Marcus

According to Marcus, the move to modular marketplaces isn’t just a trend brought on by the pandemic, but a key part of the future of the food service industry. Customers are looking for short wait times and accessibility in the most efficient way possible. “We wanted to change the paradigm of what accessibility means from hours to seconds,” Marcus said. This is a game changer in terms of convenience. This approach to on-time food service is also more sustainable as it reduces packaging and the number of deliveries typically associated with prepared meals.

Alchemista deploys its modular marketplaces in universities, commercial buildings, and luxury high-rises, bringing bespoke meals from their own kitchens and high-end restaurant partners. Marcus sees an amenity race happening in the residential apartment sector and building managers and real estate developers are Alchemist's primary customers as they look for innovative ways to stand apart from the competition.  “This is the new up and coming must-have amenity that basically puts a marketplace at the fingertips of their residents,” Marcus said.

On this episode of The Main Course, Host Barbara Castiglia talked with James Walker, Senior Vice President, Restaurants for Nathan’s Famous. The duo dug into one of the most well-known brands, worldwide expansion, and innovation, especially during COVID.

Walker is a top restaurant industry expert specializing in rebranding and repositioning iconic American comfort food brands. He is an industry-leading authority in restaurant technology and delivery channels, specializing in mergers and acquisitions, domestic and international operations, franchising, and new product development. His career launched in the early 1990s on the culinary side, working in fine dining restaurants.

“What initially attracted me to the hospitality industry is a passion for food,” Walker said. “One of the things I’ve said, if there was a James Walker quote, ‘Food is the only art form you experience with all your senses, and you must experience to live.’”

His time spent in the back of the house and kitchens transitioned over the years to the service side of the business. This is something that he brings a passion for at Nathan’s. When he got the call to work for them, the thing he was most excited about was the brand itself. He loves the food, the locations, and the way the company works. But that’s not all.

“Yes, the possibility of discounted hotdogs was probably one of those things that got me excited,” Walker said cheekily. “But, it was a brand I could see myself really being a passionate brand evangelist.”

The company continues to grow worldwide, and he shares more on this episode.

The pandemic has turned many industries upside down, including the restaurant sector. While farsighted restaurants had digital plans on their future roadmaps before COVID-19 struck, lockdown was a gamechanger. Square, which builds business tools to help sellers of all sizes start, grow, and run their operations, has been instrumental in helping restaurants make the necessary pivot to eCommerce solutions.

Barbara Castiglia, Host of The Main Course, was joined by David Rusenko, Head of eCommerce for Square, to talk about the increasing importance of eCommerce in the restaurant world, in no small part due to the coronavirus. “In many ways, the pandemic brought us further into the future, faster,” said Rusenko. When San Francisco issued its first shelter in place mandate, Square was quick to help businesses pivot and rewrite their roadmaps. Rusenko said that within 48 hours, restaurants were able to offer curbside delivery, and within a week, delivery functionality.

Square instituted a full online platform that allows restaurants to have a direct channel to accept orders and transactions online, without paying commissions on the third-party marketplace. It also created a self-serve QR-ordering system that allows customers to split tabs, order their meals, and perhaps another cocktail, all from their phones. In short, these platforms ramped up restaurants’ overall efficiency while attracting customers, creating new experiences, and growing businesses. “The steady drumbeat of the restaurant industry was that they needed to adapt,” he said. “The industry was faced with a dire situation. We wanted to be there and support them as quickly as possible."

Food quality and customer experience are fundamental to the restaurant business and are often the result of a dedicated team that puts customers first and invests in technologies and procedures that are focused on the whole customer journey.

On this episode of The Main Course, host Barbara Castiglia talked with Tony Darden, President of MOOYAH Burgers, Fries & Shakes. MOOYAH is a fast-casual restaurant chain with over a hundred locations. With a focus on fresh food — from never-frozen beef to buns baked in-house — MOOYAH continues to expand locations and is always striving to create the best customer experience.

“We’ve got to make a great impression on our guests,” Dared said. “We have things we call wow moments.” Customers are greeted by smiling faces and a welcoming dining room with attentive and cheerful team members. The goal is a frictionless and convenient experience for customers that involves everything from an app for ordering and display screens in the kitchen that makes the process seamless.

Darden has 25 years of experience in the restaurant business and knows how important company culture is to the success of the brand. He began as a server and loved the sense of community and teamwork he found in food service. Now as president of MOOYAH he is putting his experience to work in creating what he calls a “ridiculicious” customer experience.