X

Anyone have good suggestions of pages to follow that cover applying AI to traditional industries via a private equity like investment structure? Think Long Lake, Aladaron, etc… but on a smaller / LMM scale

Anyone on here have a view on the eventual effects GLP-1s will have on the restaurant industry? Specifically QSRs. I strongly believe that folks will still go out for more experiential, upscale restaurant experiences as it is more socially driven, but I don't see how QSRs don't get heavily impacted... If 50% of the US population eventually ends up on these drugs, which I don't think is a crazy assumption given the science and delivery methods are only improving (pill form available now), and that group of people eats 30% less, and becomes more selective and intentional about what they are eating (higher protein, healthier meal choices) that will directly impact spending at QSRs to the tune of close to 10% annually (my estimation)... how do these legacy concepts adjust to meet the changing preferences of consumers? Just trying to start a conversation... this is something I'm heavily considering as I'm looking for new businesses / multi-site brands to acquire.

Does anyone know any cost effective interior designers for restaurant spaces? About to launch a second concept, adjacent to the concept I already own, that’s a bit more upscale and generally appealing to a wider audience. Excited!

Found a new industry, it’s predominantly retail but has some wholesale/distribution, that I’m very interested in entering via an acquisition (platform) and then pursuing a rollup. However, because of the nature of the industry, the mom and pop owners are likely especially averse to selling to people who aren’t from the industry or who they perceive aren’t passionate about the space (or who they perceive to be a ‘suit’). Has anyone ever navigated these types of seller dynamics? I may be over thinking it, I’m a pretty normal guy (not a suit).

Why is there so much hating on private equity in the 'boring business' community on X? It seems to me that hating on PE funds is an inadvertent way to brag about oneself. Talking about how stupid they are, is a backward way of bragging about how smart you are. Maybe my view is a bit skewed, I worked at a $50bn+ AUM fund, but many of the PE shops I've interacted with are incredibly sophisticated and provide a ton of value to their LPs and portfolio companies -- I saw this firsthand. I know thousands of smaller, less sophisticated PE firms have popped up over the years, and maybe these are the firms people are hating on. Either way, I just find the fetishization of hating on PE firms a bit weird. Just focus on your business. I see folks like @BigJohn043 fighting the good fight to defend the industry, but people will keep hating.

For all the franchise experts out there, what's the current status of Carvel? How could a brand like that, that once dominated the dessert category, seemingly have died off so hard. I have a few carvel locations by my house, and they all look completely run down. @TheFranDawg @FranchiseMnA

I've met many people who got into a franchise brand with the sole objective of 'selling to PE'. Not only do I find that extremely cringe, but that reason alone will not be enough motivation to carry you through the tough moments you'll encounter during SMB owernship... To make things worse, I've encountered franchise sales folks at some brands who perpetuate this narrative as well. Framing their brand and an eventual exit to PE as an 'easy' path to generational wealth.

In Mexico on business, and delta lost my luggage. The hotel I’m staying at kindly provided me with clothes to wear. However, the clothes just happened to be the uniform their employees wear 😂 So I’m going to all my meetings dressed like a hotel employee. Kinda badass actually, I like it better than a sport coat

Taking big swings in Q3 to transform my chain of branded bars into a full-scale hospitality & entertainment ecosystem. At the core: our vibrant bars. Surrounding them, we're building: - Media & podcasts to amplify our reach and influence - Food trucks for a mobile taste of our brand - Live event production: concerts, festivals, comedy shows - A clothing line & merch store - Strategic brand partnerships It’s all tied together with a loyalty program: customers earn perks like VIP event access, exclusive merch, priority reservations at our bars, and access to perks from our brand partner deals, making our bars the place to be. This is a massive undertaking requiring serious investment, but I’m swinging big. Why not?

Random thought as I polish off my burger at this hotel restaurant in Atlanta: Why doesn’t a searcher or SMB bro buy a moderately sized general contracting platform and then rollup service providers like HVAC, plumbing, roofing, etc.? The GC could essentially serve as a lead funnel for the underlying service businesses. This strategy also helps the underlying service providers gain wallet share overtime as the GC will direct more of their leads to them as they build/ scale capacity (and away from their other subs).

How long until a LMM SMB bro launches a small SPAC to pursue a rollup or holdco comprised of small businesses? Could be interesting if it’s the right team. Think of what Brad Jacob’s has done, but even more appealing economics given the multiple arbitrage, high cash flow yields, etc. that small business rollups create. Depending on the quantum of equity, they could likely get attractive debt packages from banks or lines of credit to fund debt portions of their acquisitions

As weird as it may sound, being in Investment Banking and Private Equity for the majority of my career (although it's still a young career 😂) instilled in me this perpetual sense of anxiety that got worse when I was not at my desk, and in front of my computer, at all times -- even late-night hours. I was so worried that I would miss an email, be perceived to be lazy or unproductive, or somehow miss an assignment. Although I'm still working on shaking this, it's so fulfilling to know that these days I can have the most impact and be the most productive when I'm NOT at my desk but 'in the field'! This is one of the most underrated aspects of SMB ownership that even I didn't anticipate.

I have to say, the drama and gossip that I hear about owning a nightlife chain is top notch... Stay tuned for the reality show... just heard about a brawl that occurred at one of our locations last night between two groups of lesbian social media influencers over their affiliation with rival LGBTQ groups.😂

I'm beginning to look for my next opportunity as I have an operating partner running my bar chain as CEO. I've spent the last few months trying to identify a franchise system that can support a roll-up. I've found a promising candidate - see below for more details: The franchise system I'm looking into is ripe for consolidation because of (1) hyper fragmentation as 70% of franchisees own 5 units or fewer (more exaggerated in certain states which is great) and (2) commitment from the franchisor to re-franchise ~150 corporate stores and they've expressed the desire to attract sophisticated investor groups to acquire units. This industry has relatively low capital requirements as well, with startup costs ranging from $150 - $300k, so it provides an attractive cash flow yield and reinvestment opportunity. All that being said, I have some structural concerns about the industry and business model. Main concern: The brand positions itself as a low-cost provider in a space that's facing rapidly rising labor costs, and they are cash pay (don't accept insurance payors). These are negative dynamics because (1) they may have structurally limited their pricing power and (2) cash pay in this industry may limit resilience during periods of economic distress. I need to speak to current and former franchisees, and some industry experts, to pick their brain on the above dynamics. I also need to figure out how to weight the quality of the business vs. the ability to roll up units quickly in my decision-making process. Rollups have worked in European Wax Center, Massage Env, Med Spas and other brands that may face similar dynamics (to varying degrees), so I just need to do some more digging on this.

Anyone have a good recommendation on how to get in touch with a franchisor to ask if they would support a roll up in their concept? I found an attractive system that’s hyper fragmented but I can’t figure out it’s that’s by decision or not… it likely is but still would like to check

I decided to sue the individual who sold me my company. Luckily, I assumed he was lying about everything during due diligence so I incorporated that into my underwrite. But he has lied about very very material things (he has earned himself the reputation amongst his staff and vendors as a slime ball too). I’ve been on a roll with lawsuits, so figure I’d toss him in the mix too. I have no patience for fraud, scams or shady business dealings. Unfortunately for him, he fucked with the wrong guy…

I was just approached by someone who wants to purchase a stake in my business. They have tons of experience in the space and celebrity relationships that can help drive traffic to our bars. I’m conflicted because I just bought the company 5 months ago and feel like there’s so much more value I can add before diluting myself… but this could also be a turbo charger to drive the biz forward