Latest / The Inspired Stories Podcast / Turning Mistakes into Opportunities: Jeff Martin's Unconventional Path to Restaurant Success | Restaurants & Franchises Series
Transcript
- 0:04Welcome to another edition of Inspired Stories, where leaders
- 0:07share their experiences so we can learn from their successes,
- 0:10how they've overcome adversity, and explore current challenges
- 0:13they're facing. Welcome to another edition of
- 0:19the Inspired Stories podcast where leaders share their
- 0:22experiences so we can learn from their successes and be inspired
- 0:25by how they've overcome adversity.
- 0:27My name is Anthony Kotaspoti and today's guest is Jeff Martin,
- 0:31owner and founder of FN Egg, a craft breakfast sandwich
- 0:35concept. He previously built the largest
- 0:38cupcake company in the US. He built small cakes to over 200
- 0:42franchisees. He was featured on the Food
- 0:45Network several times as well as the hit daytime talk show The
- 0:49View. He sold small cakes to a private
- 0:52equity firm in 2021 and put all his passion into F An Egg, which
- 0:56is just started franchising and growing throughout the USA where
- 1:00they already have 12 locations and at least 30 more that are
- 1:04opening very soon. Before we get into all the good
- 1:06stuff, today's episode is brought to you by my company,
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- 1:18One recent client was able to add over $900 per employee per
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- 1:24proprietary programs. Results vary for each company
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- 1:30To find out if your company qualifies, contact us today at
- 1:32AD back benefitsagency.com. Now back to our guest today, the
- 1:37CEO and Founder of F and AG. Jeff, I appreciate you making
- 1:40the time to Share your story today.
- 1:42Hey, thanks for having me on. I appreciate it.
- 1:44OK, Jeff, let's start with small cakes.
- 1:47What gave you the idea to start a company that focuses
- 1:51specifically on making cupcakes? I did not want to work for the
- 1:54man anymore. Pretty much that was it.
- 1:56I'd wanted to work, you know, I, I was a chef in some high end
- 1:59restaurants and, you know, the idea of just working late nights
- 2:03and working for someone else, it just really, it really wasn't
- 2:07what I wanted to do, you know? And I was visiting a friend out
- 2:11in California and I saw this place that was just selling just
- 2:15cupcakes. And I was like, this is the
- 2:16dumbest thing I've ever heard of.
- 2:18But there was a line out the door and I was like, OK, wait a
- 2:20minute, how, how do I get into this?
- 2:22You know, and, and that's really where it came from.
- 2:25I was like, you know, I really want to do this.
- 2:27Cupcakes seem easy. I have no baking experience at
- 2:29all, no money at all. But I wanted to try to do
- 2:34something different. I was living in Kansas City at
- 2:37the time, and there was nothing like this going on.
- 2:41And that's kind of how the the thought started.
- 2:44I flew back home and that was the that was the whole thought.
- 2:46The entire way is like, how do I bring cupcakes to a place that,
- 2:50you know, doesn't have anything like what I saw in California
- 2:53so. So there were a couple of big
- 2:56chasms to to crossover here, right?
- 2:59Because you had experience as a chef, but you were making food
- 3:03you weren't baking. And maybe to the uninitiated,
- 3:06seems like those are highly related.
- 3:07It's stuff in the kitchen, right?
- 3:09But this is a a new set of skills.
- 3:11Totally. And And so it's, yeah, it's not
- 3:13like cooking. I mean, bacon is like science
- 3:15and in theory, bacon is a science.
- 3:16So, you know, in cooking, you can add a little bit of this,
- 3:20add a little bit of that and you can enhance it on the fly, right
- 3:23when baking. It's a very exact science.
- 3:26There's no, there's, there's not a lot of, you know, wiggle room
- 3:30to get things wrong. And I learned that along the
- 3:32way. And, and then finally created,
- 3:34you know, a great product that, that that people love.
- 3:37So. So not only did you have to sort
- 3:40of cross this gap of the, the, the knowledge of how to do it,
- 3:46but you had to find the money, you had to come up with the
- 3:48money. We weren't sitting on a trust
- 3:50fund, were you? Exactly.
- 3:51Yeah. So that was the biggest thing,
- 3:53right? And I think that's a that's a
- 3:55big thing with people today, you know, that they get scared about
- 3:58trying to start something. It always goes back to money,
- 4:01right, Which is the biggest part.
- 4:02But you've got to figure out a way to to to try to make it
- 4:07work. So you know, what I did was, you
- 4:10know, I had about $5000, right? And that's not enough money to
- 4:14to start a small business not even 15 years ago.
- 4:16But being creative, you know, I found a small little coffee shop
- 4:23that went out of business behind a Mexican restaurant, right?
- 4:26Horrible location. And they always tell you when
- 4:28you open a business, location, location, location.
- 4:30Well, this was a horrible location, but the guts were
- 4:33done, right? So it was a small little coffee
- 4:35shop. I had some friends help throw
- 4:38some paint on the wall. But then the other part was
- 4:42equipment. So in the early days, I would
- 4:45bake everything at home in the middle of the night, transport
- 4:50it to the store, and then work the store until I sold out, you
- 4:56know? And so the $5000 a lot of people
- 4:58goes. What'd you do with the $5000?
- 5:00Well, it was either buy an oven or get a sign to go in the
- 5:03building. And so I was like, OK, let's get
- 5:06a sign because I can bake at home, you know.
- 5:09Now, little did I know bacon in a little oven at home is a lot
- 5:12different than bacon in a commercial oven, right?
- 5:14But it was a lot of late night, early mornings.
- 5:19Well, anyways, so we, we got the sign, right.
- 5:21We put the sign up on this horrible location behind this
- 5:23Mexican restaurant. And then for the first probably
- 5:26two months, three months, I would bake at home, middle of
- 5:29the night, work the store and then do it all over the next
- 5:32day. That sounds exhausting, but
- 5:34probably exhilarating as you're starting to create your own
- 5:37thing for the first time. A couple couple of things.
- 5:40I went on unpacked there. First of all, how was it that
- 5:43you learned how to bake? Were you just, were you looking
- 5:45on the side of a box? Were you going online?
- 5:48Did you find some mentors that helped?
- 5:50No, almost. It was all just on the back of a
- 5:54it was, it was either online and then on the back of a box is
- 5:57seeing what other people did and trying to figure out how to make
- 6:01it, you know, mine, you know, we first started small cakes.
- 6:05We only had about six different flavors right as we grew to the
- 6:10big company we were when we sold, we had over 250 flavors.
- 6:15So but in the beginnings it was all like, OK, so how do you get
- 6:18this thing to proof? How do you get in the pop?
- 6:21How do you ice it? And then how do you sell it?
- 6:23You know, and so, yeah, it was a lot of trial and error, you
- 6:27know, but again, we only had those six flavors.
- 6:28And then as we started growing and we started listening to, you
- 6:32know, customers and stuff and, and, and different flavors and
- 6:36really putting our own spin on it, it just grew into something,
- 6:39you know, a lot bigger than what you know, I expected so.
- 6:42What was that first day like when you opened your doors?
- 6:46It was terrifying because I had these six flavors and I probably
- 6:50only made I think about 50 cupcakes, right?
- 6:52And I thought, Oh my God, that's a lot of cupcakes, 50 cupcakes.
- 6:57The first two people who walked through our door and think about
- 6:59it, a small business, you have no money at this point in time,
- 7:03right? And so the first two people that
- 7:05walked in, they said, hey, this is so cute, but this is never
- 7:10going to work. And then they walked out.
- 7:11They didn't even buy anything, you know, So that was, you know.
- 7:16The first two people who walked. In.
- 7:18Turned around and walked out. They said it was so cute,
- 7:20though, but no one's going to pay $3.75 for a cupcake.
- 7:23And then they walked out, right? But within like probably an
- 7:28hour, those fifty cupcakes were gone.
- 7:30I had to close shop, drive back home, make more cupcakes every
- 7:35day. You know, the next day I may
- 7:38like maybe 75. The next day it was 100.
- 7:40We kept selling out every day until we got to a point was
- 7:45like, OK, wait a minute, we really need to get an oven in
- 7:47this store, right? But it was, you know, it was, it
- 7:51was, it was hard in the beginning because you had a lot
- 7:53of naysayers. I mean, and, and back, you know,
- 7:5515 years ago, no one knew, no one's going to, you know, no one
- 7:57thought someone would pay 375 for a cupcake, right?
- 8:02And, and then that became the average and that became everyone
- 8:05started doing it, you know, but a lot of people were very
- 8:09naysayers, you know, especially those first two ladies that came
- 8:11in, they're like, Oh my God, this place is so cute.
- 8:12It's pink, It's, it's great, but you're not going to make it.
- 8:15You know, even my landlord who, that, that horrible location, he
- 8:20goes, hey, I'm not going to put you on a lease because you're
- 8:23probably going to go out of business within a month because
- 8:25no one's going to pay $3 for a cupcake.
- 8:28So after the first couple months, he goes, OK, now time to
- 8:31put you on a lease. But you know, that was like a
- 8:34hurdle to get over. And that's hard for some people
- 8:35to kind of think about And but you got to have passion and
- 8:40faith in what you're doing. And I thought, you know, if I
- 8:43can get this to work and I don't and and I don't have to work for
- 8:45anyone, this is great. So what was it about the
- 8:51cupcakes that had people wanting to pay almost $4.00 for them?
- 8:56Was it the presentation? Is it the taste?
- 8:59Is it? What's that?
- 9:03Sorry. Yeah, I think we have a little
- 9:07Internet hiccup. I don't know if if you've got
- 9:09any other apps open. Yep, sorry I got to know.
- 9:13If there's any other apps open on your computer, maybe shut
- 9:16them down just so we're not sharing any bandwidth there.
- 9:20OK. Yeah, I think we're good.
- 9:24OK. So, so tell me Jeff, what was it
- 9:27about these cupcakes that had people in the Midwest wanting to
- 9:31pay $4.00 a piece for them? Is it the flavor?
- 9:34Was it the presentation? Was it the cute pink walls that
- 9:36you had? Yeah.
- 9:37So, so, you know, think about it.
- 9:39Back in the day, you, you would only get bakery goods at your
- 9:42grocery store, right? So we branded it as we're not
- 9:44your grocery store cupcake, right?
- 9:47So they were bigger, they had more frosting.
- 9:49They were packaged in a pink box and it appealed to a lot of
- 9:54people. You could use it for a gift.
- 9:55So a lot of, you know, women especially would use it for
- 10:00gifts, right? So it became a big gift giving
- 10:05treat, but a lot different, right?
- 10:08So hey, I got my cupcake from small cakes, not from the local
- 10:12grocery store, right? They were most people who were
- 10:17buying them. Were they buying like one?
- 10:18Were they buying 3 or 6 or 12? Yeah, so it was crazy.
- 10:23I I thought, you know, in the beginning people just buy one.
- 10:25Well, dozens, you know, people were buying dozens at a time.
- 10:28And then once you taste it, you know, the, the quality was
- 10:30great. You know, I created something
- 10:31that was really flavorful and good, but it, but it really
- 10:35transpired to people, they wanted a whole box of these,
- 10:38these cute little cakes that, that, that they, that they
- 10:42didn't get from the grocery store.
- 10:45And that's what that's what started out.
- 10:46You know, that's how we got so popular.
- 10:48And then we got so busy. We opened up a second location
- 10:52in Kansas City and it, it turned out to be busier, obviously,
- 10:54because it was a better location than our, you know, first
- 10:57location, but then it got busier.
- 10:59So we were just baking cupcakes. It seemed like every hour on the
- 11:04day, but people in really enjoyed it.
- 11:08They wanted that little pink box of joy.
- 11:11Kids loved it, women loved it. They took it home to their
- 11:14husbands. The husbands would eat it out of
- 11:15the pink box and they would love it.
- 11:17It just became like a, it became a crazy thing at the time.
- 11:21And so how many corporate stores did you get to before you're
- 11:24like, yeah, we should really franchise this concept?
- 11:27Yeah. So we got to about 5 stores in
- 11:29Kansas City, right? And, and again, in the
- 11:32beginning, it was always, I just don't want to work for someone
- 11:34else, you know, And then as we started, you know, I would, I
- 11:37would travel around and taste cupcakes from some of the, these
- 11:40little places and they just weren't as good.
- 11:43And I was like, how do we grow this thing?
- 11:45How do we get to another city? And I had no idea how to
- 11:47franchise at all, right? It was just an idea of, of, of I
- 11:51saw these other places that would franchise and I was like,
- 11:53how do you do this? And so we learned how to
- 11:56franchise by ourselves. You know, it was OK, get a
- 12:01lawyer, get, get these franchising papers, do this.
- 12:04But it was all trial and error, right?
- 12:06It was all like, OK, well, if we get all this work, how do we get
- 12:08people to to try the product? Well, at the same time, I
- 12:12started getting phone calls from.
- 12:16So I was at the store one day. This is a great story.
- 12:18And this, this the phone rang and I was very busy.
- 12:20I was the only employee for a very long time, it seemed.
- 12:23And they call and say, hey, we're getting ready to start a
- 12:26new TV show. We want you to come to LA and
- 12:29film. And I hung up on them.
- 12:30I didn't want to hear anymore because I was trying to sell
- 12:32these cupcakes, right? Call back and say, hey, you
- 12:36know, we really, we're starting a new TV show.
- 12:38It's about cupcakes and go, hey, I'm very busy.
- 12:40I don't have time for this. Hung up again, right?
- 12:42But thank God, the third time they called and said, hey, don't
- 12:45hang up. We've got this new show called
- 12:48Cupcake Wars. And we're going to pit people
- 12:50against each other. And if you win, you, you get
- 12:52$10,000. So I was like, oh, my God.
- 12:54OK, wait a minute. Let me take this phone call.
- 12:56You know, so they, you know, they're telling me, hey, you got
- 12:58to come to LA. You got to, you know, film this
- 13:01show called Cupcake Wars. So I did.
- 13:04And so I was like, OK, this is great.
- 13:07So I fly to LA Cupcake Wars. They pit these four bakers
- 13:12against each other. You get eliminated each round.
- 13:15And if you win, you get $10,000. Well, I was so nervous, right?
- 13:19Because I've never done anything like this.
- 13:21And I'm still thinking about the stores at home that I need to be
- 13:24running because, you know, I mean, that's that's how I'm
- 13:27making my money right now. So get on the show.
- 13:30And the first, you know, they give you these crazy ingredients
- 13:33to use. And I said, Jeff, you know, we
- 13:35need to make you a pump. You need to make a pumpkin
- 13:37cupcake and use this cardamom, you know, seed.
- 13:42I had no idea what a cardamom anything went right.
- 13:44Again, not a Baker, right? So.
- 13:48You're really a fish out of water here, huh?
- 13:501000% I had all these other people around me.
- 13:52They were bakers and they like were doing and they lived in LA
- 13:55and it was like, Oh my God, you know, so, so I'm, I'm nervous.
- 14:01I'm making the cupcake. I finished the cupcake.
- 14:04I go with this Cartaman seed. I'm just going to put in some
- 14:05buttercream and you're like, I don't know, right.
- 14:08So when I make the cupcake, as I'm presented to the judge, I
- 14:13realized I didn't put the pumpkin in the cupcake.
- 14:18I had to use the ingredients they gave me and I forgot to use
- 14:20the pumpkin. So I really just made a white
- 14:22cupcake with this cardamom. So, so the judges tasted and I'm
- 14:28thinking to myself, Oh my God. And so they say before I can
- 14:30tell them about the pumpkin, they go, Jeff, this is the
- 14:32greatest cupcake we've ever had on this show.
- 14:36And so I had a a moment to where I go, OK, you got to tell them
- 14:40that you didn't use the ingredients.
- 14:42Or do you lie and just just, you know, see if you can get to the
- 14:46next round? And so in the moment I, I told
- 14:50him I said, hey, I didn't use the pumpkin for the cupcake, you
- 14:53know, and they were so devastated.
- 14:55And they were like, well, you didn't use the ingredients.
- 14:58You didn't, you know, follow the rules.
- 14:59So you're voted off, right? After telling you that you just
- 15:03made the greatest cupcake that. They've ever had on this show
- 15:05yes yes so flew back in Kansas City and I was thinking Oh my
- 15:10God, I'm a look like an idiot on TV right This is horrible.
- 15:14What turned out to be the greatest thing, because what
- 15:17happened was two things. We, we, I'm a I'm a big
- 15:20jokester, right? I think, I think if you make a
- 15:22mistake, you make fun of it and you and you find, you try to
- 15:24find the best in everything, right?
- 15:26So what we did was we made T-shirts that said I forgot the
- 15:29pumpkin. We took out a billboard that
- 15:31said I forgot the pumpkin. I.
- 15:32Love it. Right.
- 15:33So, so I thought that was genius.
- 15:37Well, that was the 2nd that was that was great and it really
- 15:40helped. But when the show aired, it was
- 15:42all about people sitting in front of their televisions with
- 15:45kids going, Oh my gosh, look, you told the truth.
- 15:48It was the right thing to do. And then that alone took us to
- 15:54not even another step. It was like three or four more
- 15:56steps where we we just got to super fast, right?
- 16:01So it was the guy who forgot the pumpkin, the guy who told the
- 16:04truth, who didn't care about the money.
- 16:07And it just blew up. I love this story on so many
- 16:11levels. Right?
- 16:12It's such a. Yeah, so then people started
- 16:16coming from all over, right? I want to meet the guy who
- 16:19forgot the pumpkin. I want to meet the guy who told
- 16:21the truth. My kid.
- 16:23I had church people calling me going, oh, my God, you did the
- 16:25right thing. And again, all I wanted to do
- 16:28was like, I really wanted that $10,000.
- 16:30But it was the greatest thing that could have ever happened.
- 16:35And again, making fun of it, we sold tons of T-shirts.
- 16:38I said I forgot the pumpkin. I shipped them all over the
- 16:40United States. Well, then Cupcake Wars called
- 16:43again. They said, hey, Season 2, people
- 16:46want to see you on it again because, you know, you had the
- 16:48best cupcake. Can you come out for Season 2?
- 16:51Absolutely. You know, And this time I was
- 16:53like, OK, I'm going to win this. I mean, like, why not?
- 16:56I've made the best cupcake. So again, we get there.
- 17:00And then in the heat of the moment and everything's fast in
- 17:04LA, you got cameras in your face.
- 17:05You got, you know, people yelling, producers yelling to do
- 17:08things. And I ran into a table, the
- 17:16cupcakes flew up in the air and I got voted off again, first,
- 17:20right? But again, people love the like,
- 17:24Jeff, you just make this look so bad but so good.
- 17:28And then again, more people, right?
- 17:30And at the same time, we're trying to franchise this thing.
- 17:33And so then people are like, I want to take this cupcake that's
- 17:36been on TV. This guy seems like really cool.
- 17:42Then we started selling some franchises, right?
- 17:44And then it started, you know, we'd open one.
- 17:47And I've always said product sells itself, right?
- 17:49You can have these pretty places and, and, and people put
- 17:52hundreds of millions of dollars into restaurants, right?
- 17:55It's all about the product, right?
- 17:56And so I've always said these cupcakes are so great.
- 17:58Maybe our stores weren't as sexy as some others because again, my
- 18:01first store was in the back of a Mexican restaurant, right?
- 18:04But you know, once people tried the product, someone else would
- 18:09want to come in and open a store.
- 18:10And then it just started spreading like wildfire.
- 18:15And then I got on Cupcake Wars a third time and I set the kitchen
- 18:17on fire. So at that point in time, it was
- 18:19like, just get this guy on here to get him to do something funny
- 18:23because obviously he doesn't want to win, but I did.
- 18:26But it was always something, you know, It was always.
- 18:28How did you set the kitchen on fire?
- 18:30You know, I forgot about a pot on the on the counter.
- 18:33I go to pull the cupcakes out. I come back and like the, the,
- 18:37the, the sauce I'm making is on fire.
- 18:39And it was just bad and it but, but again, you know, they, I, I,
- 18:44I have someone said this a long time ago.
- 18:46It was always good for ratings because whenever I was on there,
- 18:48it's, it was an hour long show and I always got about 35 to 38
- 18:53minutes worth of being on the show.
- 18:56And I was the first one kicked off every time.
- 19:00No, Jeffrey, are you the kind of guy where you're the life of
- 19:02every party? Like, are you the center of
- 19:04attention? Typically, yeah, I have to be
- 19:06the center of attention too. So yeah, I am.
- 19:09Yeah. And are you also the kind of
- 19:11person where maybe you're a little like ADHD, like brain
- 19:14sort of zip, zip, zip? Or was it like the pressure of
- 19:16the camera and the lights that really sort of like had you a
- 19:19little unnerved? No, no, everything.
- 19:22I've got 20 other things going on, right?
- 19:23You know, a lot of people say I'm just, I, I'm, I'm never
- 19:27satisfied because I have all this other stuff going on.
- 19:30So I have this one great thing, this cupcakes, we're selling it.
- 19:33But then I'm thinking, OK, how do we, how do we grow this
- 19:35thing? How do we add more product?
- 19:36I mean, I'm always thinking six months to a year ahead, you
- 19:41know, and, and I tell people, I think a lot of CE OS
- 19:43entrepreneurs do that, you know, they don't think about the next
- 19:46day. They're thinking the next six
- 19:48months to a year, where are we going to be or what, what, what
- 19:51product do I have to have or whatever?
- 19:54But as all this is going on, we're we're growing franchises.
- 19:57I mean, we're, we're, you know, one store opened another store
- 20:00and then it's just like people are calling it again.
- 20:03I don't know how, how long or how far I can take this thing.
- 20:06I don't know if this cupcake thing's going to end tomorrow,
- 20:08right. So I'm the guy who's taking the
- 20:10sales calls. I'm still baking cupcakes.
- 20:13I'm still training stores before I hire anyone.
- 20:16You know, I mean, I'm trying to do everything my, myself and but
- 20:20it was good. It was a it was a crazy learning
- 20:22curve. I think we got to about 30
- 20:25stores in the US and and this is a a great story because this was
- 20:28my ten year. It was 10 years.
- 20:30Couple days ago I got a call from a guy in Dubai who wanted
- 20:34to open up a small cakes in Dubai.
- 20:36I never even heard of Dubai, right.
- 20:38I mean, it wasn't Dubai like it is now, you know, and so he
- 20:43flies, he flies me out to Dubai. And so it was 10 years ago, we
- 20:48had our first Dubai store open and I thought, Oh my gosh, we're
- 20:53going out to the desert. And you know, I mean, again,
- 20:55it's not ten years ago, Dubai wasn't what it is now, but it
- 20:59was crazy that someone wanted to open a small cakes in Dubai.
- 21:05It was unbelievable, right? So it really, it really helped
- 21:09me grow not only, you know, here locally, but internationally we
- 21:12grew. I mean, I was even shipping, I
- 21:14forgot pumpkin cupcakes or pumpkin shirts to, you know,
- 21:18over in, in Europe, in the Middle East.
- 21:21I mean, it was crazy. So, yeah, I want to rewind a
- 21:23little bit and just sort of like highlight like what what a great
- 21:27series of stories that was. I mean, as you pointed out very
- 21:31astutely, like it was so awesome how you put what was right in
- 21:36front of what you've really wanted in that moment, right?
- 21:40You're like, OK, I really need that $10,000 for my young
- 21:45business that's really trying to get off the ground.
- 21:47I didn't follow the rules. I'm going to feel bad.
- 21:50I'm going to feel terrible if I don't do the right thing here.
- 21:53So I'm going to speak up. I'm going to say something and
- 21:56and you kind of leave feeling a little bit deflated.
- 21:57But as you're heading back, you're like, you know what?
- 21:59I am just going to embrace the mistake.
- 22:02I'm just going to love who I am and love what happened.
- 22:05And and I'm going to highlight it.
- 22:06I'm not going to stick my head in the sand.
- 22:07I'm not going to hide from it. And it's like, Yep, that was me
- 22:09forgot the pumpkin. And and then those two things
- 22:13that the honesty and the sort of, you know, just laughing at
- 22:16yourself really help this to blow up, right.
- 22:19I mean, it really started the the snowball down the hill in a
- 22:23way that I don't know if you could have bought that kind of
- 22:26publicity any other way. I know, right?
- 22:28I mean, it just, it was just a, it was a perfect storm in a way.
- 22:31People always say that it was like lightning in a bottle.
- 22:34And you can either catch it and run with it or let it go.
- 22:37And I mean, I think we, we caught it and we, we tucked it
- 22:40and we ran as far as we could with it.
- 22:43And again, I never knew. I thought this cupcake thing,
- 22:46you know, people always say, you always said it could end
- 22:48tomorrow, it could end tomorrow. And then, you know, 15 years, it
- 22:52was still going strong, you know.
- 22:54And So what was behind the decision to sell?
- 22:57So you know it was. You got up to 200 franchisees.
- 23:02How many locations was that? So, yeah, so that was, that was
- 23:07around 220 locations, right, International as well.
- 23:12And it just got to, I mean, again, I was doing other things
- 23:14as well. I was always thinking of other
- 23:16concepts to start. Even when we were doing this
- 23:19small case, I always started other concepts too, right?
- 23:23Started some coffee shops, you know, just little things that
- 23:26were popular at the time. Just trying to get on the next
- 23:29wave of how the food industry was changing.
- 23:32But then 15, you know, in 2021, it just felt right because in
- 23:372020 I started F and egg, which we'll get into, but I really had
- 23:42a passion for that, right? I really saw the food industry
- 23:46changing after 2020 and where breakfast was going and it just
- 23:52felt right. And, and again, 15 years, I
- 23:54mean, I felt that I did as much as I could do at the time, you
- 23:58know, and it was just time to move on.
- 24:01And it was just an opportunity that came.
- 24:02We didn't go out looking for it. It was it was an opportunity
- 24:05that came to us and we were just like, you know, let's just do
- 24:07it. I have two kids now that are,
- 24:09that are 16 and 15. So they're getting, you know, up
- 24:13to that age where they'll be leaving and going somewhere.
- 24:15And so it was just like, you know, let's do this, Let's enjoy
- 24:20my time with them. And, and, and put everything
- 24:23into F and egg. And again, when we sold, people
- 24:26say you took like 3 days off and then you jump right into growing
- 24:29F and egg. I'm like, I know I can't stop.
- 24:31I mean, like this is going to be big too, I think.
- 24:34So that's kind of how the the sale went.
- 24:37So what was what were the changes that you saw coming in
- 24:40the food space that had you kind of interested in breakfast?
- 24:44Yeah. So, you know, not only did
- 24:47marketing change, right. So 15 years ago it was like, you
- 24:50know, TV, it was magazine ads. That's how you marketed your
- 24:53business. Well, now marketing is all
- 24:56social media, you know, and then after 2020, we saw these big
- 25:01restaurants, not not naked. So everything was going to a
- 25:03smaller type of a smaller type of box type of restaurant and
- 25:09then third party, right? I mean, everything, everyone's
- 25:11ordering food online now and then the breakfast segment.
- 25:15No one really did, no everyone. It's almost like grandpa's,
- 25:19right? I mean like the breakfast place
- 25:20you go in, you get your, you get your side of eggs, you get your
- 25:23grits, you get your two hard pieces of bacon.
- 25:25No one was trying to do anything and scale it with like a
- 25:29breakfast sandwich, you know, and what we saw was a breakfast
- 25:33sandwich instead of like getting something from like McDonald's
- 25:36that was like not great quality. We really want to do something
- 25:39quality that you could grab on the go.
- 25:43And again, it was all take, you know, take to go and 3rd party.
- 25:48And that's where I really saw it going.
- 25:49And if you see that a lot of these companies are building
- 25:52smaller models, you know, they're doing a lot of like
- 25:57third party, you know, some just kiosk only.
- 26:00I mean, people just aren't eating in stores like they used
- 26:02to. So, you know, we saw that's
- 26:04where that was going and we really wanted to jump on the
- 26:06breakfast market of it because no one in the breakfast market
- 26:09was doing anything like it. And did you see this change
- 26:12coming? Was this prior to COVID?
- 26:14Was this during COVID that you saw the shift?
- 26:17Happening, yeah. I think it was before COVID, but
- 26:20then COVID accelerated everything, right?
- 26:24You you had big, you know, you had these other fast food
- 26:26companies who were experimenting with kiosk, experimenting with
- 26:30just third party, but it was. When you say kiosk, you mean a
- 26:33kiosk ordering station? Yeah, yeah.
- 26:35Right. So, so they were just in it all
- 26:38it was was an experience or, or experiment.
- 26:41But then when COVID happened, it all accelerated everything,
- 26:44right? So like in our stores now
- 26:46they're kiosk based, right? So you come in, you order from
- 26:49the kiosk and it's just that we saw that's where that was going.
- 26:55And and we, I wanted to implement it right away because
- 26:58I mean, in, in theory, that's the future of, of, of
- 27:00restaurants, right? So, yeah, so I saw that before
- 27:052020, but then 2020 just accelerated I think for
- 27:08everyone. Tell me about the name FN Egg.
- 27:12FN egg. You know a lot of people go.
- 27:15Do you just like the word effin? Do you say effin a lot?
- 27:19You know, and and if you talk to a lot of my friends, I do.
- 27:23I mean like, I just love the name.
- 27:24I mean you'll you'll catch me. I'm like what the F you know,
- 27:27and like effing this and it's just funny, right?
- 27:30Some people will take a little offense to it, but it but it's
- 27:33not the word you think it is. It's a funny meaning of effing
- 27:36and you and you know, you can, you can.
- 27:39I think it's hilarious, right? I think it shows that the brand
- 27:43has got a little edge, a little personality to.
- 27:45It I know so it's funny because small cakes are so family driven
- 27:48and so like Foo Foo and pink and F and egg is kind of like the
- 27:52the step sister, the step brother who's bad or something,
- 27:56you know, but I I love the name. I think it's funny.
- 27:58A lot of people love the branding, right?
- 28:02We, you know, the big thing on our social media is like, you
- 28:05know, the F you of the day is it could be I spilt my coffee on my
- 28:09paper or the F you of the day as you know, someone came in and
- 28:12and, you know, threw their sandwich at us.
- 28:15I mean, it's just funny stuff that you can make into anything
- 28:17but, but the name is very once the sign goes up, a lot of
- 28:20people have a lot of interest. It's brilliant marketing if you
- 28:24ask me, you know, And I look at some of the menu item names and
- 28:27it looks like you're having some fun there too.
- 28:29You've got chronic brisket tacos.
- 28:32You encourage customers to roll their burrito into a fat one or
- 28:36make it into a bowl. You know, kind of.
- 28:38If you know, you know. If you know, you know, you know,
- 28:40and so our, even our coffee is, you know, we, we do a potheads
- 28:44welcome, which is a coffee pot, but potheads welcome.
- 28:46We, you know, we, we roast our own beans and stuff.
- 28:49And I've got this whole thing like our beans are great.
- 28:51But what people really want is a potheads T-shirt, you know,
- 28:54because they love it. But it's, it's a coffee pot.
- 28:56But we try to make we try to make it fun, right, Because it
- 28:59is a fast casual higher end breakfast sandwich.
- 29:04I mean, our breakfast sandwich is about, you know, 10 bucks,
- 29:06for example. And it but it's thick cut bacon.
- 29:09It's a great, you know, quality egg.
- 29:11It's a brioche bun. But but we want to have fun with
- 29:16it. But at the same time, it's a
- 29:16quality product that you're getting.
- 29:19And again, going back to, I think people, you can build
- 29:23these pretty places, but it's all about the quality of the
- 29:25product, right? And so the quality of the
- 29:27product is, is amazing and, and, and then you know, you have fun
- 29:30with all the, all the branding. And so is it breakfast?
- 29:34It's breakfast food only, but is it breakfast time only?
- 29:37Do you serve lunch? Do you serve later in the day?
- 29:39Yeah, we, we go a little bit later.
- 29:40So we go to around 7:00 to 4:00, right.
- 29:42So there's a little bit lunch. So we do have some lunch items
- 29:44as well. And again, you know, and I
- 29:47learned this with small cakes as well.
- 29:49The more you grow and the more you let new owners come in,
- 29:52franchisees, right? Everyone's got an idea.
- 29:55And so you got to kind of listen, right?
- 29:57You don't take every idea, but you listen.
- 29:59So yeah, so you know, we've expanded our lunch menu a little
- 30:02bit, but again, the the majority of what we do is all breakfast
- 30:06based. And, and again, you know, our
- 30:09burritos, they're big or huge or fat, you know, it's the same
- 30:13customer that eats at Chipotle, right?
- 30:15So it's a younger gener, a younger demographic of people.
- 30:22And, and we just try to, you know, we just try to make, you
- 30:24know, it's a great product, So and it appeals to a lot of
- 30:26people though, so. And so we've got 12 locations
- 30:30open now and 30 more coming. What's the geography?
- 30:35Where can people find these right now?
- 30:37Yeah. So right now, primarily in the
- 30:39South and then the farthest W we're going is right now is in
- 30:43Phoenix, but mostly in Texas, Georgia, New Jersey, New York.
- 30:49So up that way, which works really well because again,
- 30:51you're fast-paced, grab a sandwich on the go.
- 30:56You know, we're working out really well in college towns.
- 30:58College kids love it. They love the branding, they
- 31:01love the product, but you know, they definitely want a potheads
- 31:04T-shirt and stuff. But but yeah, it's, it's really
- 31:07all over the place right now. And but then as we grow, you'll
- 31:10see more in the Midwest coming a lot more in Texas.
- 31:13So we're really excited about about this because we're really
- 31:18the only one that's really accelerated the breakfast
- 31:20sandwich market right now. And, and I think we can do a lot
- 31:24more and grow a lot more once people, once we open up these
- 31:26stores and people taste it. And, and even the buy into our
- 31:29product or the buy into the franchises is really, I hate the
- 31:34word cheap, but cheaper than like building a big restaurant.
- 31:36You know, you can get in for this thing for AT200K or less,
- 31:39which is unheard of in the restaurant industry, right?
- 31:41I mean, and again, we always look for second generation
- 31:44locations to help people out with, with, you know, putting
- 31:47that money into it. But you know, we're we're a lot
- 31:50different than other places. But again, the product sells
- 31:54itself. It's a great product.
- 31:55What are some of the other advantages to this franchise
- 31:57concept? If there are people looking at
- 32:00AI want a franchise, I want to, you know, I want to grow what
- 32:02I'm doing. What are some benefits of this
- 32:04over other opportunities? So one thing I hated about
- 32:07franchises is that they take so much money from people, right?
- 32:11So people put their whole life savings into this and they want
- 32:14it to work and their goal is to make money, right?
- 32:17So what I did different even with small cakes and I do the
- 32:20same thing with F and egg is, is we don't take a lot of money
- 32:23from our owners, right? So what that means is in a
- 32:26normal franchise, they would a franchise or a royalty fee would
- 32:28be anywhere from 6 to 12%, right?
- 32:31So what we do is we only take 3%.
- 32:34I think that's more than enough, especially with marketing these
- 32:37days, a lot of people, they take this marketing fee.
- 32:39Well, marketing these days is all social media, right?
- 32:42So these local stores can do it on their own.
- 32:44So, you know, we take a 3% flat fee each month and that's it,
- 32:48you know, and a lot of these other places, again, 6 to 12%,
- 32:53we let people kind of design their own store.
- 32:55Now you have to use our like ethnic colors and branding
- 32:58because it's cool and fun. But as far as as far as store
- 33:01design, we want you to be really connected to your community,
- 33:05right? So in California we can see like
- 33:09the they could be, you know, surfboards or something cool
- 33:12there in New York. It's very New York ish.
- 33:13It's very like fast pace on the go.
- 33:16They're small in our college towns.
- 33:18There's college stuff all over, you know, the, the store.
- 33:23So I think people like that too. They, they can put their own
- 33:26twist on it, even though it's a, you know, franchise.
- 33:29So I think a lot of people like that and it appeals to them.
- 33:32They have a lot more flexibility.
- 33:35I'm going to put in a plug. I live in a pretty great college
- 33:37town myself. Columbus, OH.
- 33:39Is there anything coming to this area?
- 33:41Not yet, but let me tell you that would be awesome though I I
- 33:44know Columbus very well. Yeah, you spent some time here.
- 33:47Yes, yes, yes. So the geographies that you're
- 33:51talking about, you're, you're kind of spreading out.
- 33:53Yeah, you, you're in the South. You're going as far West as
- 33:56Phoenix. I'm curious, is there anything
- 33:58about the supply chain of the food items and the ingredients
- 34:02that's been challenging for you to figure out?
- 34:04Or is that pretty easy and standard to find?
- 34:08It is, yeah. So, yeah, we, we, yeah.
- 34:09So it's very, it's easy now, right.
- 34:11So I think in 2020-2021, you know, it was a little difficult,
- 34:15but it's, it's easy now. You know, you, you, we have
- 34:19partnerships with national suppliers.
- 34:22So it's, it's easy now. Yeah, yeah.
- 34:26And I want to talk about, you know, this is kind of your
- 34:29second go round you, you did it at scale with small cakes and
- 34:33and now you're able to take a lot of the lessons that you
- 34:35learn from that and apply it to F and egg.
- 34:38But you know, I'm curious. I always love to hear from
- 34:41business leaders who were able to make the transition from
- 34:44small startup to scale because it's it's a different set of
- 34:50skills that's required to get something small and new figured
- 34:55out and off the ground versus, OK, we've got it working now I
- 34:59need to focus more on the systems.
- 35:01I need to put the right people and the right structure in
- 35:04place. Talk to me about how you made
- 35:06that transition and what was helpful to you and what what is
- 35:09typically a difficult learning curve.
- 35:11Yeah. So that was very difficult for
- 35:13me because I'm a control freak too, right?
- 35:17So it was like, Oh my God. So I started the small cakes.
- 35:20I did everything. So it was very hard for me to
- 35:24take a step back and let someone else, you know, control recipes
- 35:28or test recipes. And it, it, it took a lot.
- 35:33It took a long time actually for me.
- 35:35But what I learned was, you know, it's good to hire the
- 35:37right people, right, And to get a good circle of people and to
- 35:42build that team. And when I sold small cakes, I,
- 35:45I, it was a small circle of people, but it was a great, it
- 35:50was a great quality of people that was around me.
- 35:52That was that, that saw my vision, that could help me grow.
- 35:57And and so as I started F and AI put, I put that, I put that what
- 36:03I learned there and in place right away, right, because I
- 36:06think that could help us grow quicker by by having all these
- 36:10people in place in the beginning to grow, right?
- 36:14To give that support to franchisees right away.
- 36:16When when I started small cakes, I was doing, you know, 40
- 36:19different things. So to get a question answered
- 36:21from a franchise took a little longer than expected, right?
- 36:24And so, you know, putting that putting the people in place to
- 36:28help grow what was very important.
- 36:31And then beginning couldn't do that, right?
- 36:32We didn't have the money to do that beginning.
- 36:34Well, you know, now we're starting this new one is, is
- 36:36just getting the right people around you, the right team to,
- 36:39to help grow. As you were learning those new
- 36:42squid skills and trying to acquire, you know, this new
- 36:45knowledge, were there particular mentors or coaches that were
- 36:49helpful to you and making that transition?
- 36:52You know, I just always love, you know, restaurant people,
- 36:58right? I love reading articles about
- 37:01different types of concepts that were coming from different
- 37:04people. It wasn't anyone in particular,
- 37:06but it was, it was always, you know, what's the next best
- 37:09thing? What, what are these other
- 37:10bigger guys than me doing? Where are they opening up?
- 37:15It was always about staying in the the conversation of the
- 37:18business and seeing what other people in the industry was doing
- 37:21so. Anybody in particular that you
- 37:24drew inspiration from? You know, I always wanted, there
- 37:27was a, there was a cupcake company called Sprinkles, right?
- 37:30And I always just wanted to beat them because everyone was there.
- 37:33They had their they had their cupcakes and celebrities hands
- 37:35and I was like, OK, you know what?
- 37:37My goal is to beat you now. So it was always about
- 37:39competition. You know, it's always about.
- 37:41Competition. That's what fuels.
- 37:42You. That's what fuels me, yes.
- 37:45What are some fun things that you've done for new store
- 37:47openings to help get the word out?
- 37:51So, yeah, so I mean, in the beginning it was, you know, it
- 37:54was funny in the beginning, it was always about me being there,
- 37:59right? So the guy who dropped, who
- 38:01forgot the pumpkin or dropped the cupcakes, he was there
- 38:04taking pictures. And then as we grew, it's it's
- 38:07always just about, you know, doing things in the community to
- 38:10get the community out there, right, Giving back to that
- 38:13community wherever you're at. And we, we did things a whole
- 38:17lot of different ways. You know, Small cakes was all
- 38:19about family. So it was all about family fun.
- 38:22What can you do for families? And then as of F and Egg, we
- 38:25really just do, we really just push our branding and, and, and
- 38:30things like that when we when we open.
- 38:33You know, I've seen some pretty significant price swings in eggs
- 38:37over the past couple of years. How does that impact your
- 38:41business? So, yeah, so you know, I think a
- 38:44lot of people think when you order a lot of eggs like we do,
- 38:48it doesn't affect it a lot, right, Because we order in
- 38:50bigger quantity. So it's not like when we go to
- 38:52the grocery store here, because every time I go to the grocery,
- 38:54I'm like, Oh my God, these eggs and milk, this is crazy, right?
- 38:57When we order larger quantities of, it's a little different.
- 39:00But I do get that question a lot.
- 39:01And so, yeah, I mean, like I said, our breakfast sandwich is
- 39:04a little pricier than, you know, if you went to a McDonald's or a
- 39:08Chick-fil-A, right? But I think those prices are
- 39:11set. So unless something not going to
- 39:14look crazy happens, we buy in such bulk that it really doesn't
- 39:18affect us that much. You're mostly protected from
- 39:21that. We are.
- 39:22Yeah, yeah, yeah. Right.
- 39:25You know, I think a lot of people look at somebody like
- 39:29you, that success that you've had, the exposure that you had
- 39:33the, the, the media exposure that you you've benefited from.
- 39:36And they think, man, this is a guy that just everything comes
- 39:40easy to him. And, you know, he's a pillar.
- 39:43Nothing knocks him down like he rolls with the punches.
- 39:45Like, man, I, yeah, I could only be so lucky to be a guy like
- 39:48that. But what they don't realize is
- 39:50that behind the scenes, there's a lot of struggle, there's a lot
- 39:52of strife, there's a lot of sleepless nights.
- 39:54I I'm curious to hear maybe a specific story about something
- 39:58challenging that you've gone through and some lessons that
- 40:01you learned coming out the other side of it.
- 40:04Yeah, yeah, you're right. A lot of people were like, Oh my
- 40:07God, you just hit the lightning in the bottle, which we did,
- 40:10right. But it took a long time to get
- 40:12there, you know, And, you know, I grew up the way I grew up was
- 40:18in a very, you know, lower middle class type of area.
- 40:23And it's, it's funny. The goal was when you grow up
- 40:27that way, it was like just go get a job, you know.
- 40:30And so there was not something I wanted to do.
- 40:33I wanted to do something more. I didn't know what it was at the
- 40:35time, but, you know, wanted to do something more.
- 40:38So again, I go back to this word that a lot of people, this is
- 40:42Jeff, you're never satisfied. Well, it's because, you know, I
- 40:44want more. I want to do more.
- 40:47So there's been a lot of times where, you know, it's gotten a
- 40:50lot of dark because, you know, in today's society just need
- 40:54money to do everything. And then back then it was like,
- 40:56well, you got to have money to, to open a small business And,
- 41:00and we, we, you know, I would go to banks and try to get a loan
- 41:03again, didn't have anything to get along with at the time that
- 41:05you think about it. But you, when you get turned
- 41:07down that much, it does get dark because you're like, you know,
- 41:12and my is, my, is, is it all just, is it all about just going
- 41:16to get a job and being done? And, you know, so I think it got
- 41:20dark at times when I got turned down so much from, you know,
- 41:24banks, Oregon, people in my life that wouldn't see the vision,
- 41:27you know? And so that's hard to do and
- 41:32that's hard for people. And I can see that's where a lot
- 41:35of people quit sometimes. But you just got to keep going,
- 41:39right? I mean, and that's what I had to
- 41:40do was keep going even though everyone said no, I couldn't get
- 41:43any money. So the solution was to do what
- 41:47we did, right? Bake it home, buy a sign, grow
- 41:49from there, you know, and we put every single dollar we made back
- 41:53into the business for the first probably three to four years of
- 41:56just growing, you know. Was there any point in those
- 42:01first few years where you thought about just throwing in
- 42:03the towel like, this is too hard, This, this, this is not
- 42:06worth it. Not about throwing in the towel,
- 42:08but it was all about OK, I hope I make just enough money on this
- 42:11one store so I don't have to go work for someone else, you know,
- 42:15and that that's a little that's dark too.
- 42:16Going home, going OK. I mean, I think I made enough
- 42:18money. You know, I think we did OK this
- 42:20time, but just don't quit. And then, you know, but but I
- 42:25think I'm always all over the place.
- 42:27It was always, I mean, the one store was great.
- 42:29But I think once I started seeing the vision of this, it
- 42:33was always OK. Wait a minute, how about two
- 42:35stores? And if we got three stores, then
- 42:37I know I wouldn't have to work for someone else.
- 42:40And then it grew into what it grew into.
- 42:42But but yeah, you know, I think I think a lot of naysayers in
- 42:47the nose, it can hold a lot of people down.
- 42:48And you just got to kind of, you know, in the in the beginning,
- 42:52it's funny, when Facebook kind of started, when we kind of got
- 42:56going, I would read these comments, right?
- 42:59And the people around me goes, Hey, stop reading the comments.
- 43:02You know, you got a great thing, right?
- 43:04And I think that's harder for today's society right now with
- 43:08everything TikTok, Instagram and Facebook, right?
- 43:12You, you can't buy into the comments, right?
- 43:16I tell my kids this all the time.
- 43:17I mean, I don't, I don't even read the comments, you know, but
- 43:21that's hard for a lot of people to do, I think.
- 43:24But that that was a dark moment too, because I would read and
- 43:26go, I try my best to make everyone happy and I would go
- 43:29through everything I would do to really go beyond making a
- 43:33customer happy or whatever, right?
- 43:36And and that they at the end it was like, OK, you can't make
- 43:40everyone happy. You know, you got a great
- 43:41product, move on. And so now I don't read
- 43:45comments. I hadn't read comments in 10
- 43:47years probably. It's better for your sanity.
- 43:49You know, I've, I've always noticed it is way easier to hate
- 43:53than it is to create. And you could have something
- 43:56that is as fantastic as handing out free money to people and you
- 44:00are going to find somebody that's going to complain about
- 44:02it. Right 1000 percent 1000.
- 44:05I think, I think what's interesting is, you know, in
- 44:09those early days when it was really hard, the fuel for your
- 44:12fire, the motivation that really kept you going was this.
- 44:15I do not want to work for somebody else.
- 44:17I want to be my own guy. I want to be my own boss.
- 44:20And that's what got you through the first few stores.
- 44:22And then once you got some momentum going, tell me, tell me
- 44:25if I'm hearing this correctly. But it seems like now that fuel
- 44:29sort of transitioned into a competitive spirit, like I want
- 44:33to beat the other guys. I want to come out on top.
- 44:35I, you know, I, I really want to, to beat the other guys
- 44:37across town. It is and and that's what it
- 44:40was. It was once we got to that point
- 44:42and and I didn't know what an entrepreneur was at the time,
- 44:44right? But it was being competitive and
- 44:46being the best at what I want, what I whatever I was doing
- 44:49right. And so it, it wasn't even about
- 44:52the money at that time too, because we were very fortunate
- 44:54and we were selling these franchises, but it was all about
- 44:58how do you open more stores than someone else?
- 44:59How do we get to this point? How do we get to the state of
- 45:01Texas? How do we get the state of it
- 45:02was all about that, you know, which I think was really great
- 45:05when you can the money was going to come, right?
- 45:09But it was all about, you know, making the best product and
- 45:12growing it. And I think when people can do
- 45:13that and not worry about the money part, you know, things can
- 45:16really change really fast for people, you know.
- 45:19So this next one, Jeff is kind of a two-part question.
- 45:21You know, as as business leaders we got to keep an eye on the
- 45:24bottom line all the time, right? And you, you do that in two
- 45:27ways. You're looking to drive new
- 45:28sales and and you're looking for ways to to reduce expenses.
- 45:31So I want you to think about both of those levers there and
- 45:34maybe some creative ideas that you've tried that we haven't
- 45:37already heard on the sales side for for boosting sales and then
- 45:40also on the expense side, maybe a creative lever that you found
- 45:43to pull for that. Yeah, so, so talking about not
- 45:47reading comments, but getting customers suggestions, you know,
- 45:54when we first started out F&X for example, you know, a
- 45:56breakfast and like I said, a breakfast and was like 10 bucks,
- 45:58you know, and people would always say, well, I can go to
- 45:59McDonald's and get like a sandwich and coke and hash
- 46:03Browns for X. So, but you know, we, I was
- 46:08always like, OK, well, we could spend a little more money and
- 46:10offering a meal deal, right? And will that boost our will
- 46:14that help ourselves? And it's hard to get franchisees
- 46:17to buy on to, to say, hey, we're going to give away some product
- 46:23and not give away, right? You know, you're going to give
- 46:24away a little bit more, but I promise we're going to sell
- 46:28more, you know, and so that's a great example.
- 46:30That's something we just implemented several weeks ago, a
- 46:34month ago, like a meal deal, right?
- 46:38And that we gave a little bit more, we spent a little bit
- 46:41more, but our sales have actually taken off on things
- 46:45that we offer meal deals for now.
- 46:48So that can you. Share some numbers like maybe it
- 46:51cost. An extra so for example.
- 46:53Giveaway, but sales went up 20. Percent, yeah.
- 46:54So let's say, you know, in a month we would we call the OG
- 46:59our bacon, egg and cheese, our most popular one, right?
- 47:01We would sell maybe 800 sandwiches a month, right, in
- 47:05this one specific location since we've done the meal deal that
- 47:10now has went up to about 1400 sandwiches because people think
- 47:15they're getting a value and value is so important right now
- 47:18where we are and in the world, right?
- 47:20And it didn't cost us that much to add coffee, some hash Browns.
- 47:26And what we saw was that almost doubled ourselves in a month for
- 47:30one sandwich, right? And it took some trial and
- 47:34error. It took, you know, show us on
- 47:35the corporate side, boss, that it's going to work and then
- 47:38we'll implement it in our stores.
- 47:39And it did. I mean it, it took off because
- 47:42people were like, OK, even though they spent a little bit
- 47:45extra because they were getting extra, they thought they were
- 47:49getting and they are, but they thought they were getting a
- 47:51deal, you know, And that totally worked just by giving away just
- 47:55a little bit. And how did you promote that?
- 47:57Just like a sign in the store, like change the menu.
- 48:00Signs, but social media, right? I mean, we posted and posted and
- 48:04I mean we just crammed it down social media's throat, right?
- 48:08Tik toked it, I danced about it, we Instagrammed it.
- 48:13You set something on fire. I, I mean, I should, right.
- 48:15I mean, I did everything I could to say, hey, you're going to get
- 48:19some hash Browns and a cup of coffee.
- 48:20All you got to do is, you know, spend two more dollars and, and
- 48:23it worked. You know, I mean, that's where
- 48:24people go to now they, they don't even go to the, you know,
- 48:27like on our kiosk, right? We have a sandwich section, then
- 48:30we have our meal section, middle sections where everyone goes now
- 48:34and it's good for us because it's an extra like two or three
- 48:37dollars per per order, but it's good for the customer as well,
- 48:41right? They get a little bit extra, a
- 48:42little bit more value, a little bit more food.
- 48:45So it worked well off each other.
- 48:46So now and so you know we did it with just sandwiches now we
- 48:48offer with our burritos and our tacos now so.
- 48:53So I love that that's the lever where your your boost in sales.
- 48:56Is there a creative lever that you found to reduce expenses in
- 48:59any way? We're still working on that one.
- 49:03You know, we, you know, I mean, we don't have a ton of, again,
- 49:07our stores are very small, right?
- 49:09So our, an average store size is about 600 to 900 square feet.
- 49:15So we don't have a ton of things going on.
- 49:17We have the kiosk, which labor's, you know, labor I guess
- 49:20is our big biggest expense right now.
- 49:23But again, we have our kiosk that takes away from that
- 49:26person, you know, running a register and that's all they're
- 49:28doing. And then just finding ways to
- 49:31reuse. You know, a lot of our menu
- 49:33items we put in in, in a bunch, you know, we, we, we utilize
- 49:38right. So not only does our Turkey
- 49:40sausage go in one item, it goes in maybe five or six items.
- 49:43So we really try to do that as well.
- 49:45So we don't just have one standing product for one, you
- 49:49know, sandwich and that's all we use it for.
- 49:51So there could be waste there. So besides that, that's that's
- 49:54kind of what we're doing, just watching waste trying to utilize
- 49:57all of our products in the different things.
- 49:58Sounds like we've got a lot of efficiencies built in already.
- 50:01Yeah, Yeah, we do. And then again, that was trial
- 50:03and error from small cakes, right?
- 50:05And then we brought in here and said, OK, we're dealing with a
- 50:08little more expensive food now. How do we try to not not have a
- 50:12ton of waste? You know, restaurants have tons
- 50:13of waste, right? So we try to, you know,
- 50:15capitalize on not doing that. So you mentioned labor being
- 50:19your biggest expense right now, you know, coming out of COVID,
- 50:22super competitive job market, hard to find people, hard to
- 50:26keep good people. I'm curious if you've found, if
- 50:30you've tried and found anything that has worked for retaining
- 50:33and recruiting good folks. So I've always been a believer
- 50:37even when we even when we couldn't, but paying people
- 50:43well, not overpaying, but paying people well, right?
- 50:46And then I think if you know, I mean, if you think about the
- 50:48average employee, they come to work to make money, right?
- 50:51I mean that that's it. But also pay them a better than
- 50:56decent wage and then a good environment.
- 50:59And everyone says that. And what I mean by that is like,
- 51:03you know, you hire people who can do the job and they don't
- 51:06need to be managed, right? And they have that flexibility
- 51:09to make decisions, right? So, you know, whatever decision
- 51:13that I can't make at the time, if I'm not there or, you know,
- 51:15whatever that they feel that they can make that decision,
- 51:19they feel like they're a part of the team, you know, and I've
- 51:22always been that person and I've always, knock on wood, have had
- 51:25have I've had great people that work for me that's been around
- 51:29me. And the great thing about F and
- 51:31Egg is we're open for the morning, right?
- 51:33So a lot of our people have, you know, kids or things to do at
- 51:37night. So they have that night time, so
- 51:40they're not stuck at a restaurant 1516 hours a day.
- 51:44But, but it's, I, you know, again, I, I really think it's
- 51:46just taking care of people. I'm, I'm very passionate about
- 51:49that, taking care of people, paying them what they're worth,
- 51:52but giving them the opportunity to, to be a, not a manager, but
- 51:56to be that person who can make decisions, you know, and being
- 51:59so they feel like they're a part of the team.
- 52:02I love that. Yeah.
- 52:04I'm curious, what's something, Jeff, that you wish you could
- 52:05teach a younger version of yourself?
- 52:08How to be patient. Jeez, I was not patient back in
- 52:12the day. Let me tell you, I wanted
- 52:13everything now, now, now. Nothing was good enough.
- 52:15I mean, not no matter no matter what, you know, and but being
- 52:20patient would have, would have helped me with a lot of things.
- 52:23So I'm very patient these days. The people who had who've known
- 52:26me for a while, go wow, you have changed.
- 52:29You really simmer down, huh? I really simmer down.
- 52:32Yes, yes. So.
- 52:34Jeff, what's a fun fact that most people wouldn't know about
- 52:36you? So a fun fact was, you know how
- 52:41I've used that word never satisfied.
- 52:43Not long ago I started AI wouldn't say a clothing brand,
- 52:47but I, I, I started a clothing brand that said never satisfied,
- 52:51right? And so I, I wear hoodies, my
- 52:56T-shirts all the time. And people are like, what does
- 52:58that mean? I'm like, well, let me tell you
- 52:59the story, right? It's about a guy who was never
- 53:02satisfied. He started a cupcake company and
- 53:04then grew. And so I think that's funny when
- 53:07people see and they go, Oh my God, I love that hoodie.
- 53:08Where'd I get them? Like, well, I actually make
- 53:10them, you know, so not only I'm in the restaurant business, I, I
- 53:13have a, you know, a little never satisfied clothing brand too.
- 53:16And so people would know that. And and so this is like T-shirt
- 53:20hoodies. T-shirts and hoodies, yeah, just
- 53:22T-shirts and hoodies. Got some ball caps.
- 53:25But, but you know, the more I wear it and the more I see young
- 53:27people, it really resonates with them because you know, where
- 53:33we're at and today, I mean, a lot of these young entrepreneurs
- 53:36that I run into, they get it right.
- 53:38They want more. And, and the never satisfied
- 53:42thing, you know how funny it is or how how you take it, it's
- 53:45really resonates to entrepreneurs who go, OK, I want
- 53:48to start with one store, but I really want 200 locations or I
- 53:51really want to grow my brand into this or, and, and, and my
- 53:55story is, is that story alone? I mean, that is the story of of
- 54:00how it started. Well, and you've got some merch
- 54:03background, I mean, from the cupcake days, you know, you're
- 54:06capitalizing on it with these, these funny T-shirts.
- 54:09And yeah, so it, it's sort of a, a natural, natural progression
- 54:13for you. So Jeff, I just have one more
- 54:16question for you. But before I ask it, I want to
- 54:17do 2 things. First, if you're listening today
- 54:20and you like today's content, please hit the like, subscribe
- 54:23or share button on your favorite podcast app.
- 54:26I also want to tell people, Jeff, the best way to get in
- 54:29touch with you. What is that?
- 54:31Yeah, so you know, straight to my, my e-mail, my personal
- 54:34emails on our website fandegg.com comes directly to me
- 54:39and. And effing for people who are
- 54:40listening and and not watching the visual, it's EFFIN e.g.
- 54:45G so F and egg. So sorry.
- 54:48Go ahead your your e-mail address again.
- 54:50Yeah, fandegg.com, you go straight there.
- 54:51My personal emails, my name is jeff.martin10@me.com.
- 54:55I get all the emails, I respond to them so.
- 55:00OK. So last question for you, Jeff,
- 55:01I'm curious, where do you see your industry and maybe your
- 55:05business in particular evolving in the next five years?
- 55:08What do you think the big changes that are coming into
- 55:10this space? I think the food industry is
- 55:12changing so fast right now. You see brands like Chick-fil-A
- 55:17who are doing, you know, just stand alone stores of walk up to
- 55:21the window and grab it or, or it's all just to go.
- 55:24So the industry alone is, is changing to that delivery grab
- 55:30and go. And I think we're, you know,
- 55:33we're like I said, we're one of the first ones in the breakfast
- 55:36industry to try it that way with breakfast sandwiches.
- 55:38So you know, I think and I and I hope and knock on wood, but I
- 55:41foresee, you know, F and egg growing, you know, like I said,
- 55:44we got 30 more stores opening soon.
- 55:46I see us growing a lot faster, you know, the next couple years
- 55:50to get to that over 100 to 150 units and, and, and hopefully,
- 55:54you know, two to three years, I think that's feasible.
- 55:58I think when you have people in an economy that want to invest
- 56:01in themselves and what can I open?
- 56:05And again, F&X got a really great model, an inexpensive
- 56:09model compared to most. If people want to get into the
- 56:11food industry, it's a great, it's a great place to get into.
- 56:14And, and they can not only make money, but you know, have an
- 56:17outside life too. And I think that's important for
- 56:19people right now is they do, they want to do more outside of
- 56:21life, but yet they want to, they need to make the money, right?
- 56:25And F&X is a perfect, perfect concept for that.
- 56:28Are there specific locations, geographies that you're looking
- 56:31for, new franchise opportunities?
- 56:34You know, we're wide open right now.
- 56:35I mean, you know. Lots of opportunity exists.
- 56:39Yeah, yeah. And so the great thing about
- 56:40coming into our company right now is we're still really small,
- 56:44you know, and so the great getting in the ground floor
- 56:46opportunity, there's a lot of locations out there that are
- 56:49still open, great location, so. Jeff, I want to be the first one
- 56:54to thank you for sharing both your time and your story with us
- 56:57today. I I really appreciate it.
- 56:59I appreciate you having me on, this was fun.
- 57:00Thanks a lot. Absolutely, folks.
- 57:02That's a wrap on another episode of the Inspired Stories podcast.
- 57:06Thanks for learning with us today.