Latest / The Inspired Stories Podcast / Building a Casual Mediterranean Empire: Pita Mediterranean Street Food's Journey to 30+ Locations | 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
- 0:18the Inspired Stories podcast, where leaders share their
- 0:21experiences so we can learn from their successes and be inspired
- 0:24how they've overcome adversity. My name is Anthony Codispotti
- 0:28and today's guest is Noir Rabbi, founder of Pita Mediterranean
- 0:32Street Food, a fast casual destination for fresh, delicious
- 0:36and affordable Mediterranean cuisine.
- 0:38You'll find all kinds of beautiful and flavorful foods
- 0:42such as traditional and chicken, yuros, St.
- 0:45Pitas Mesa spreads, rice bowls, salads, and desserts.
- 0:49Founded in 2016, they already have over 30 locations in metro
- 0:54Atlanta and the Southeast United States.
- 0:56No word draws upon his 22 years of restaurant expertise as he
- 1:00aims to recreate his childhood experience of his mom's kitchen.
- 1:04Colorful foods, delicious aromas with family and friends gathered
- 1:08for a meal. They are a fresh to order
- 1:10concept that does all their food 100%.
- 1:13Hello, and before we get into all that good stuff, today's
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- 1:45Now back to our guest today, the CEO of PETA Mediterranean Street
- 1:49Food nor. I appreciate you making the time
- 1:52to Share your story today. Anthony, thank you for having
- 1:55me. I'm excited about the broadcast.
- 1:58All right, so Newark, before you started PETA Mediterranean
- 2:02Street Food, you had worked in restaurants for years, including
- 2:06another concept that you started called the Beirut.
- 2:09Talk to me about how those early restaurant experiences LED you
- 2:13to starting the Beirut. Absolutely.
- 2:16So when I first moved to this country when I was 10 years old,
- 2:21I quickly started in the restaurant industry as a Buster
- 2:26went into the dish pit, which is we call the dish area in the
- 2:30restaurant business, and then continued my my growth into the
- 2:35into prepping and into the kitchen.
- 2:38So for many years that is, that's all I did and that's all
- 2:41I learned is the back of house and I became very familiar with
- 2:45it. And I took that on to manage a
- 2:48couple different small concepts in the Ohio area.
- 2:54And so we, we transitioned down to Georgia to open our first
- 2:58restaurant back in 2007, which came to a halt due to the, the
- 3:02economic crisis. And we waited it out till about
- 3:052010 when we, when we purchased the existing restaurant that was
- 3:10the Mediterranean and we turned it into the Beirut.
- 3:15So a year into it, we opened up the Beirut and and that's that's
- 3:21where we're at now. And so do you still run and
- 3:24operate the Beirut? Is that in existence?
- 3:28I do not, not any longer. We took the Beirut and I ran it
- 3:33for about a year until I spun it off and created the fast casual
- 3:37concept which formerly known as PETA by the Beirut.
- 3:41So PETA had a history of starting in 12/12/2012, we
- 3:44opened our first location under the name PETA by the Beirut.
- 3:48And it was a fast casual version of the Bay really with a similar
- 3:53menu but more on a fast casual side.
- 3:55And when we spun that off, I, I personally found a great success
- 4:00in, in, in the fast casual segment and I, and I began to
- 4:04love and appreciate it more than I do the fine dining segment.
- 4:08So that's how Pita was born. OK, so you went from the Beirut,
- 4:14now you've got the Pita street food concept.
- 4:17When did you feel like you knew that you really had something
- 4:21with with this new PETA street food concept?
- 4:23When when did you feel like we've got something we can
- 4:25really build on here? So I think it was when we, we
- 4:30opened our first location 12/12/2012 not, not not long
- 4:34after that we, we began our, our second, the opening of our
- 4:39second location in 2013. Once the second location opened,
- 4:43we had the traction that we knew we had something is when I had
- 4:46the idea of like, OK, we want organic growth, we want to grow
- 4:49this internally and see where it takes us when we get into the
- 4:52Atlanta and outside the perimeter.
- 4:54Market, you specifically mentioned 12/12/12 is the date
- 4:59that you opened. Was there any particular
- 5:01significance to those numbers? It just kind of happened that
- 5:03way. I can assure you it just
- 5:06happened that way. OK.
- 5:08And is 12 your lucky number now No print that on all your
- 5:11shirts. Nope, just OK that was just a a
- 5:14nice happenstance. OK, so you start out with one
- 5:18location you went to two. It takes you know, in my
- 5:21experience talking with business leaders, business founders is it
- 5:24takes a certain set of skills to be able to start something brand
- 5:28new, get it off the ground, maybe get that first location,
- 5:31even the you know the next two or three.
- 5:33But to go from that to where you are now with think he's got 33
- 5:38locations now, is that right? 3 corporate, 30 franchises.
- 5:41That's, that's a whole nother set of skills that not everybody
- 5:45who has the skills to be a founder can grow into, right?
- 5:49You're putting a management team in place.
- 5:51You have to learn to delegate. You can't be doing everything
- 5:54and always have your finger on the pulse of everything.
- 5:57Talk to me a little bit about what that transition was like
- 6:00for you during during this growth process.
- 6:04Absolutely. So I think when we we took a
- 6:07deep dive into franchising in late 2016 when we had a lot of
- 6:12potential franchisees really come to us and say, hey, we want
- 6:14to open up a Peter location. We love the concept.
- 6:17So when we took that deep dive into franchising and we began to
- 6:20sell at the end of 2016, it really gave me the opportunity
- 6:24to understand the business from a different perspective.
- 6:28One, what it takes to run a company when you have multiple,
- 6:34multiple people involved in the process.
- 6:36You know what is it? You know what it took for us to
- 6:39create the franchise disclosure document.
- 6:41Number one, you know what kind of systems we had to put in
- 6:44place for that franchise disclosure document.
- 6:46Because for you to become a franchise, you have to have
- 6:49those systems in place to incorporate into those documents
- 6:52so that the franchisees that are buying your concept and, and and
- 6:56believing in your concept have something of a playbook to play
- 6:58on. So that's how our our initial
- 7:02response to the franchise was that we built the system
- 7:05internally and we utilize that system in that playbook to grow
- 7:09into our future perspective franchise locations.
- 7:12Talk to me about the decision to grow using the franchise model
- 7:16as opposed to continuing to open more corporate owned facilities.
- 7:21So at the time we started franchising, we had five
- 7:24corporate locations and that was that was that had been our
- 7:28vision since day one of us growing the concept organically
- 7:31and not from a franchise perspective.
- 7:34You know, I, I come back to the, the demand that played a big
- 7:37part for us of people wanting to open kind of swayed me in the
- 7:40direction of us. Maybe we do have something here
- 7:43that we can take and and grow. Now I understand the
- 7:47difficulties of of growing a franchise, you know, having so
- 7:50many different owner operators involved and understanding you
- 7:55know how how the concept will be taken from there with so many
- 7:58different locations, so many different ways to operate a
- 8:01store. From day one, we incorporated
- 8:04our products to be made in the central kitchen and that allowed
- 8:08us to control the product during our growth strategy.
- 8:12So having that control from day one, it kind of assisted us in
- 8:17the in the franchise model because it alleviated a lot of
- 8:20the issues that would come from a franchise concept.
- 8:24You know, when you go to a location, let's say in Atlanta
- 8:27and you have the hummus in the Euro and you love it.
- 8:30And if you go to a location down in Florida and you have the
- 8:33hummus in Europe and there's a discrepancy in taste, we don't
- 8:36have that because we control the, the back end of it, the
- 8:39production of the sauces and the proteins.
- 8:42It's all made in essential kitchen distributed out.
- 8:44So at the franchise level their their responsibility is to cook
- 8:48the product, to order and and take care of the guests.
- 8:52Yeah. You mentioned that pretty early
- 8:54on you were having potential franchisees coming to you
- 8:58inquiring about possible opportunities.
- 9:00That says a lot about something that you guys were doing.
- 9:04What? What is it that you guys are
- 9:05doing that was so attractive to people that they were raising
- 9:09their hand before you were asking for volunteers?
- 9:12I think, I think it has 100% to do with the food.
- 9:14The food that we were serving and we still continue to serve.
- 9:18It is beyond phenomenal, especially in our eyes and our
- 9:21franchisees. We sold the concept to the
- 9:25franchisees because they were sold on the food.
- 9:27The Mediterranean concept that we brought out and the food and
- 9:31the flavors and the profiles is what really, you know, sold the,
- 9:35the, the perspective franchisees and the current franchisees are
- 9:38with us on the concept. And what is it that's so
- 9:42different about your food? Is it fresh or certain spices
- 9:45that you're using? Talk to me a little bit about
- 9:47that. So obviously the Mediterranean
- 9:49diet plays a big part in our, in our, in our growth strategy one
- 9:53right, it's healthy. We use fresh ingredients, olive
- 9:57oil, different spices, different flavours, you know, shawarmas,
- 10:02hummus, things that resonate with a lot of people that, that
- 10:06have that exposure of travelling abroad.
- 10:08And, you know, you, you, you combine that with the, with the
- 10:12healthy meaning of Mediterranean food and, and the clean eating
- 10:16of Mediterranean food. It kind of really played into
- 10:17one and it kind of just, you know, really took off from there
- 10:20for. Us talk to me a little bit about
- 10:23the customer experience. They walk in.
- 10:26Are they, you know, is it a quick service restaurant?
- 10:29They order from a counter and you know, some people take away,
- 10:32some people sit down. Is there a drive through to tell
- 10:34me what the typical restaurant's like?
- 10:37So the typical restaurant, and I'll kind of go back to day one
- 10:39when we built the concept, we kind of followed.
- 10:42We, we looked at Chipotle as our, OK, well, Chipotle's doing
- 10:45a fast casual model, right? We took it and we said, OK, what
- 10:49can we do differently to piggyback off of that, but at
- 10:52the same time do something where we have fresh to order food.
- 10:55So we took that fast casual concept.
- 10:57We made it where you order at the counter.
- 10:59So you enter into our restaurant, you go to the
- 11:01counter, you order your food. It's an open kitchen concept.
- 11:04So you see everything being done in front of you.
- 11:06There's nothing done behind the walls.
- 11:08We, we are creating your food made fresh to order.
- 11:11And from day one, that's been our model and that's, we
- 11:13continue to accept it. That's what separates us from a
- 11:16lot of different concepts is that you're not going down the
- 11:19line and adding so many different things to a thing to
- 11:22a, to a bowl or a PITA or whatever that is that you're
- 11:25getting you order off the menu. We create that product for you,
- 11:28fresh made the order and we deliver it to you in 10 minutes
- 11:31or less. That's pretty impressive.
- 11:34So they're not getting it at the counter.
- 11:36They're ordering there and then they're going to sit down and
- 11:38it's being brought to them. Absolutely.
- 11:39Yep, Yep. And at the same time we give you
- 11:41that, that open kitchen concept so you can see your food being
- 11:45your, your meat being shaved off the comb, the grilled chicken
- 11:48being cooked on the grill, on the char grill, your pita being
- 11:51made in front of you. So that we we expose ourselves
- 11:54to the customer so they feel one-on-one with us.
- 11:56Total transparency on what's going on.
- 11:58This is how your food is made. Yeah.
- 12:01Tell me about the decision to go 100% halal, and maybe actually
- 12:06first start by explaining what that means for people listening
- 12:09who aren't familiar with that. Sure.
- 12:10So so you know, and and from the roots of it all, Beirut was at
- 12:16open under halal and we continued that process all the
- 12:19way through. We knew the importance of having
- 12:21halal, having a halal concept as during that time frame and even
- 12:27continuing on now was really important to us from our roots
- 12:30being from Lebanon. So halal is a lawful and
- 12:34prohibited way of, of slaughtering meat in a way,
- 12:36right? And not only that, but there's
- 12:38different items like like different sauces and different
- 12:42desserts that might have things that are prohibited in the halal
- 12:45concept, right? So we took that halal aspect of
- 12:50our business and continuous. So we, we advertise and we are
- 12:55100% halal concept and we take that on from from the day one we
- 12:59started until until the end of day.
- 13:01So we're going to continue doing using our 100% halal brand.
- 13:05And so is that been more challenging for you to find
- 13:10suppliers that can meet those criteria for you here in the in
- 13:13the Southeast United States? Absolutely.
- 13:17I wouldn't say it. It was not challenging as it is
- 13:21more so from a cost perspective, right?
- 13:24So when you go to a halal or even if you say a kosher thing,
- 13:27it's really tough because the product pricing increases
- 13:30dramatically, right? So if you have if you're buying
- 13:32a pound of the steak or a pound of meat at $2.00, when you go to
- 13:37a halal aspect of it, you're buying it at maybe 250.
- 13:39And that plays a big, big part for us in, in the, in the full
- 13:43cost aspect of it. But it's also beneficial because
- 13:47our franchisees love it and our and our and our customers love
- 13:50it. You know, a lot of times we'll
- 13:52get phone calls of saying, hey, are you guys hello?
- 13:55And we say, yes, we have certifications at every single
- 13:57location. You're more than welcome to come
- 13:59in and see the halal certificates where we get our
- 14:01proteins from and we provide those for any customer that that
- 14:05requires it. And for those people who are
- 14:07listening, that maybe halal is kind of a, a, a new concept for
- 14:11them. What would why would this be
- 14:13interesting to them? Is it, is it a cleaner process?
- 14:17Is it kind of paint a picture on on why somebody who's just
- 14:20learning about it for the first time might might be interested
- 14:23to partake in this? I think more than anything it's
- 14:26more of a religious thing, right?
- 14:28So from religious background, it's halal is something that you
- 14:31know that is driven from a religious point of view, right?
- 14:35It doesn't change anything for the actual customer, right?
- 14:40That's not looking for it. It's not going to, it's not
- 14:44going to taste any different. It's just more of a religious
- 14:46aspect of it in the way that it's like a permissible food for
- 14:49the people who are looking for halal.
- 14:52Gotcha. So let's talk a little bit about
- 14:56what your growth plans look like, What we're at 33 locations
- 15:00right now, What's coming down the Pike here in the next
- 15:03several months? So super excited to talk about,
- 15:06you know, what we just signed, we just signed a 14 story store
- 15:09deal with Walmart, which is amazing.
- 15:11We're taking over, you know, pre-existing restaurants that
- 15:14were in there and, and, and they're not kiosks, but they're
- 15:17actual physical restaurants. So we signed a deal with them
- 15:20to, to start opening up actual brick and mortar stores inside
- 15:24the Walmarts. And we're going to run and
- 15:27operate those like we do any store with third party delivery,
- 15:31with catering, with, you know, customers, dining and take out,
- 15:36you name it. And then in the pipeline, we
- 15:38have another 6 brick and mortar stores coming within the six to
- 15:40eight months, one in Panama City Beach, a couple more in Georgia
- 15:45and a couple more in Alabama. The 14 locations in Walmart,
- 15:51that sounds like a pretty fun opportunity.
- 15:54Was there any thought to, hey, maybe we'll just try one or two
- 15:58there to see how it goes versus let's just jump all in with, you
- 16:03know, 14 right out of the gate? Well, so when, when the, when
- 16:08the deal was brought to us, it was brought to us for almost
- 16:12like a national brand, right. So we can go anywhere in the
- 16:14United States that they've had availability.
- 16:17So we looked at it and we decided they just the way that
- 16:21we've grown our concept organically and from in and
- 16:24going out it's we found much better success focusing on our
- 16:27territories and reaching out to let's say we want to open one in
- 16:30California or one in Arizona, which didn't make sense because
- 16:34there's a lot of lot of pipeline deals that have to come into
- 16:37play for us to make that happen. So we took on the majority of
- 16:41the available locations in Georgia and we sent it out to
- 16:45our prospective franchisees and one individual really took all
- 16:48the Georgia locations, which really simplified our decision
- 16:51making because it was, it was his decision to say, hey, I want
- 16:55all the Walmart territories in Georgia and that's why we signed
- 16:58those deals in there. OK, that makes sense.
- 17:00And you guys had actually been offered even more locations
- 17:04across the US to like, hey, there's, there's a whole supply
- 17:08chain pipeline here. I mean you're, you're 100%
- 17:10halal, right? You control the the production
- 17:13of all your proteins and your sauces and essential kitchen.
- 17:17You've kind of got your arms wrapped around what that is like
- 17:21in the geography that you're at in the Southeast United States.
- 17:24Things change a lot when you know you've got to develop that
- 17:28same pipeline or figure out a way to ship all that stuff all
- 17:30the way across the country. So that obviously played a big
- 17:34part in your decision. Like let's just stay where we're
- 17:36comfortable in right now, where we've got that supply chain
- 17:39built up. Absolutely.
- 17:41And, and Anthony, I'll touch a little bit on it, why we decided
- 17:44to do that because a few years back we had sold 21 locations in
- 17:48Chicago in the Chicagoland area TO11 master franchise.
- 17:52And, and we learned a lot through that process.
- 17:55And that process really opened up our eyes of what it takes to
- 17:59grow across the country into the Midwest, from the Southeast to
- 18:02the Midwest. And it really takes a lot from a
- 18:05franchise perspective to do that, you know, understanding
- 18:08the DCS that we have in play with our current partnership
- 18:11with U.S. Foods, what does it take to take
- 18:13our proprietary proprietary items up there?
- 18:15How many skews of those proprietary items are
- 18:18recommended to be sold to stay in the pipeline up there?
- 18:21What do we have to do and deliver from our central home
- 18:24base in Atlanta, GA to them? You know, how do we manage the
- 18:27stores up that way? So we learned a lot from the
- 18:31from the Chicago store opening. And it kind of really, I'll tell
- 18:36you, they put us, they gave us a real perspective of like, OK,
- 18:39maybe we grow organically. Let's build our pipeline from
- 18:42within and continue to grow that way organically because it made
- 18:45more sense from all aspects of the business.
- 18:49So did the Chicago locations not work out then?
- 18:53What was so we opened one during the pandemic, we opened our
- 18:56first location and due to the to the issues of of of distribution
- 19:02and operations and management, we ended up shutting the store
- 19:05in 2023. Yep.
- 19:07But we never really master agreement at that at in the in
- 19:11the Chicagoland area. OK, so talk to me about what
- 19:17that roller coaster must have been like, right?
- 19:19You, you get excited, you, you had a deal for, you know, 20
- 19:22locations and a new part of the country, you know, as a business
- 19:26owner, you're, you're hyped. You're like, yes, like this is
- 19:29great growth. We can be in a, you know, a
- 19:31great city in, in, in the Midwest and and then things
- 19:35don't materialize. What you know, talk me through
- 19:40that. Yeah.
- 19:41So again, like you, you hit it spot on.
- 19:43It was super exciting at the beginning.
- 19:45We had, we were, we were head over heels to sign 21 locations
- 19:49in the Chicago area. There are some things that that
- 19:52the viewers need to understand and, and, and when they're
- 19:54looking at a franchise concept, when you're going into states
- 19:58that are not franchise friendly. And I'll, I'll speak on
- 20:01Illinois, for instance. There are many aspects of of the
- 20:06city of Illinois that you have to understand when you go to
- 20:08franchising, which you cannot, you can sign as many locations
- 20:12as you want, but you cannot collect the franchise fee on
- 20:14more than one location per as as they open.
- 20:18So from a financial perspective, it really it it, it affected us
- 20:22because we had to invest so much time, money and effort to be
- 20:25able to be franchisable in the state of Illinois, number one.
- 20:28Number two, we had to wait for each location to open to be able
- 20:32to collect the franchise fee and understanding those rule and
- 20:37those laws that come into play for many states that are are
- 20:41part of that franchise law is is number one.
- 20:44So make sure that you have a great franchise attorney that
- 20:46can kind of guide you in the right direction, understanding
- 20:49that you know your growth strategy in those markets need
- 20:52to be very well calculated and and understanding your your
- 20:58distribution pipeline so. So you shake off sort of the,
- 21:05the disappointment from that experience and you came through
- 21:08it with some really powerful lessons about understanding the,
- 21:11the, the franchising laws in different States and maybe even
- 21:15more importantly than that, understanding the challenges of
- 21:17distributing to a much wider geography.
- 21:20So I'm looking at your website now.
- 21:22I see you guys have a location in South Carolina, lots of
- 21:26locations in Georgia, one in Florida, some in Alabama, and
- 21:30there's a lot more coming. What what are the geographies in
- 21:34the territories that you guys are looking to continue growing?
- 21:37Where are you looking for new franchise opportunities?
- 21:41I think Florida, North Carolina, Alabama and and South Carolina
- 21:46is kind of our target territory. We're really hyper focused on
- 21:49the Southeast. We love, we love that area.
- 21:53We understand the clientele in that area.
- 21:55We understand that the capabilities that we have to
- 21:57fulfill the needs of our franchisees in those areas.
- 22:00Now I will not rule out anything outside of the Southeast as long
- 22:04as we have a multi unit deal in place.
- 22:07Because that multi unit deal allows us to negotiate with the
- 22:10DCS and our, you know, our supply chains of giving them the
- 22:15idea of like OK, we have a three or A5 unit deal going on in
- 22:18Tennessee or Oklahoma or Texas, you know, that allows us to kind
- 22:22of gauge our growth with them. Would you consider something in
- 22:26the Chicago area again, or do you feel like you've been burned
- 22:30once and that that was enough? You know, I will say this to all
- 22:34the viewers, Chicago is is an amazing market, but it's a very,
- 22:37very, very tough market. There is a lot of direct and
- 22:40indirect competition. So I say for anybody that's the
- 22:43halal concept or even the Mediterranean concept going in
- 22:46the Chicago area, do your due diligence, understand the
- 22:49market, understand where you're going.
- 22:50And if, if if I had to do it all over again, I think it would, it
- 22:54would highly be unlikely for us to go back because we've learned
- 22:57our lesson. We understand that market now
- 22:59and we know what it takes to go in there.
- 23:01But it would, it would require, it would require a lot of
- 23:06manpower for us to reconsider that.
- 23:09Understood. I'm looking at your website and
- 23:11I see that you offer catering here.
- 23:13Is that a significant part of your business?
- 23:16Absolutely. I think the catering business
- 23:18right now is running about 25 to 30% of our business, which is
- 23:21the number. And again, that's heavy flow.
- 23:25It comes and goes during, you know, we had a great quarter too
- 23:28because of graduations and and a lot of things that happened.
- 23:33And during the summertime, obviously it dies down, it picks
- 23:35back up when school comes back around and stuff like that.
- 23:38So, yeah, it's, it's a great aspect of our business,
- 23:42absolutely. Yeah, I'm looking at some
- 23:44pictures here on your website, and the presentation's
- 23:46beautiful. I mean, not only does the food
- 23:48look delicious, but it's a nice, bright, colorful presentation.
- 23:52You know, something you'd be proud to set out at a graduation
- 23:56party or a a birthday or whatever it may be.
- 23:59Absolutely. You know, we, we strive to have
- 24:01the fresh Mediterranean food as, as part of our concept, the
- 24:04colorful, the, the healthy choices, the grilled chicken,
- 24:08the hummus, things that resonate with people that they, they,
- 24:12they want to change, they want to do something different other
- 24:14than the pizzas and the hamburgers and, and the BBQ,
- 24:17right. So, so it's a good spin for for
- 24:19and a good change for people to to to have.
- 24:24Noor what? What's your favorite thing on
- 24:25the menu when you walk into one of your restaurants?
- 24:27What do you like to get? Steaks or warm up pita every day
- 24:32all day you. You walk in, they say, hey,
- 24:36Noor, we got your, we got your regular coming out for you.
- 24:38No. I'll be honest with you, I walk
- 24:41in, I go straight to the kitchen.
- 24:42One of my favorite things to do is work in the kitchen.
- 24:44So I I will go in and, and start making food for customers
- 24:48because this, this is my passion.
- 24:49It's my hobby. That's what I love to do.
- 24:51How would you describe what your your active role is in the
- 24:54company? Now what?
- 24:55What are the hats that you're wearing these days?
- 24:57Well, it's, it's, I hate to say it, but it's really sad because
- 25:00I'm out of the I'm out of the restaurant, right.
- 25:03So I deal with a lot of back office emails, contracts,
- 25:07negotiations, you know, different territories, Realtors
- 25:11looking for, you know, looking for new spaces.
- 25:15By the way, I'm not complaining. I'm just telling the people who
- 25:18are passionate about food, when you start to grow concept in the
- 25:21business, you slowly have to remove yourself from the
- 25:25restaurant and and start taking off things that are different
- 25:28than what you're used to normally.
- 25:31But and and what? Yeah, you went from being a food
- 25:34man to a businessman. There you go.
- 25:37That's part of the ongoing transition.
- 25:38Yeah, I get it. You know, and as a businessman,
- 25:43you know, one thing that all business leaders need to do is
- 25:46keep, you know, their eye constantly on the bottom line.
- 25:48And there's two ways that you can sort of affect that number.
- 25:52You know, one is looking to boost sales.
- 25:54Another is, you know, how to decrease costs.
- 25:57I'm curious as you think about both of those levers, they're,
- 26:00they're particularly creative things that you've tried and
- 26:03found success with in boosting sales or lowering costs?
- 26:08To everyone listening, there's one solution to all the
- 26:11problems. Sales cure all.
- 26:14It's simple as that. Sales cure all and and and, and.
- 26:18I drive that you know, to, to all our, our current stores and
- 26:23our and our franchisees and prospective franchisees this
- 26:25serious girl. When sales are coming in,
- 26:28everything is great. When things are down, you know,
- 26:30a lot of lot of issues begin to arise with food cost and, and
- 26:34distribution and menu pricing and labor and, and we've come
- 26:39out of a pandemic, right. So we know every quarter was
- 26:43something new, whether it was labor, it was distribution, it
- 26:46was high food cost. So sales Kuro and I, I drive
- 26:50that that that hammer into that nail every single day.
- 26:54And and it's and again, I'm talking to the people that are
- 26:57listening Sales Kuro. So you mentioned the pandemic.
- 27:01Let's talk a little bit about that.
- 27:03Sorry to pick at a scab, but I know that that was a a tough
- 27:06time for a lot of people, in particular people in, you know,
- 27:10the restaurant and hospitality space like yourself.
- 27:12How did you guys keep going through all of that?
- 27:16You know, it was, it was a shock at the beginning.
- 27:19It really was, I think from from day one when things, when things
- 27:24took a turn, we, we, the first thing we did, we obviously shut
- 27:27down our dining rooms and focused on curbside pickup only,
- 27:32you know, to the then we pivoted over to the third party, which
- 27:35took a huge leap. I mean, it was, it was a, a game
- 27:40changer and a saver for, for a lot of the people in the
- 27:42restaurant industry, right? Having that third party really
- 27:45kept our doors open. Talking about like Uber Eats and
- 27:47places like that, yeah. Eats and DoorDash and Grubhub
- 27:51and all those just having the opportunity for people to order
- 27:54from us and for us not having the capability of delivering
- 27:57that product, it really opened our eyes.
- 28:00Now from the pandemic, the Uber Eats and the DoorDash and
- 28:03Grubhub, you know, continues to play a big part of our business,
- 28:06close to 35 to 40%. No kidding.
- 28:09Huge. Part of our business and it kind
- 28:12of feeds off the question you had before, you know, how do we
- 28:14combat food costs and, and paper costs and chemical costs when
- 28:18we're, we're, we're diverting so much of the funds on the third
- 28:21parties, right. So we, we took the initiative of
- 28:24of adjusting the menu prices on all third parties to be able to
- 28:27absorb those those those costs that are coming in from them.
- 28:34And I'm kind of curious, you know, when was it that you guys
- 28:39felt like, OK, we've finally broken through the pandemic,
- 28:42Like we're we're finally back on kind of more normal footing?
- 28:47I think we're going to make it. I think we're going to be all
- 28:49right. Yeah, I think the late into 2022
- 28:53we did, we did, you know, and I, I can't say stress enough that,
- 28:56you know, all the programs they had during the pandemic for the
- 28:59restaurant industry were amazing.
- 29:01And we fought hard for our franchisees to make sure they,
- 29:04they knew how to fill out the certain, you know, for the
- 29:07different, you know, different programs they had for us to help
- 29:10these guys from the employee the ertc program to the SBA programs
- 29:17and all that. You know, that helped us really
- 29:21transition into 2022 from 21 into 2022.
- 29:24And things got better for us in late 2022 where we start seeing
- 29:27a lot of dining customers come into play.
- 29:30We started seeing a lot more catering orders come into play.
- 29:33The offices start opening back up and, and you, we have, we
- 29:37have had an amazing 2023 and even a better 2024 now.
- 29:41So we know it's bad. That's terrific.
- 29:43Yeah. I think one thing that surprised
- 29:45some people, and myself included, is, you know, as we
- 29:48were going through the pandemic and right, we were ordering more
- 29:52food curbside. We were more ordering more of
- 29:55our, you know, products and goods online instead of going to
- 29:57physical stores. You know, a lot of people,
- 30:00myself included, thought, hey, this is going to be a more
- 30:02permanent transition even once. And in whatever way it happens,
- 30:06the pandemic subsides. You know, people got used to
- 30:09sort of a new way of operating. And I think the thing that
- 30:11surprised me, and I'm curious to hear your viewpoint on this is
- 30:14once things started opening back up, man, we realized how much we
- 30:18missed being out in public, being around other people, going
- 30:23places to have these experiences.
- 30:25And, you know, it just we love our homes, we love our
- 30:27apartments, but getting outside, you know, being able to to be
- 30:31around other people. Were you worried during the
- 30:35parts of the pandemic that things might not come back to
- 30:37the way that they were? Absolutely.
- 30:40And and even to today, Anthony, we have not gotten back to our
- 30:45pre pandemic in store traffic numbers.
- 30:48We have not it's, it's, it's there, we're almost there.
- 30:52But we, it's 2024 and the pandemic's what maybe a year and
- 30:55a half behind us and we're still not to our pre pandemic in store
- 30:58traffic numbers. And that plays a big part of of
- 31:01how the the whole economy shifted and the and the consumer
- 31:05perspective on on food and ordering fast casual food you
- 31:09shifted to to go into a more simplified way delivery take out
- 31:14to go that aspect of it. Let's talk about your team for a
- 31:19moment. You know, in a competitive job
- 31:21market, recruiting and retaining good employees can be even more
- 31:25challenging. I'm curious, what are some
- 31:27things maybe that you've tried and found success with to
- 31:31recruit, Retain good staff? I'll start with that corporate
- 31:34team. Our corporate team has been with
- 31:35us since a lot of them since day one of our inception, you know
- 31:40starting part time and going into full time with us.
- 31:43You know, we've, we've had a close knit corporate upper
- 31:46management team that we've we've kept closely guarded and, and we
- 31:50work together as a team and, and I appreciate each and every one
- 31:54of them 100%. Without them, we couldn't, we
- 31:56wouldn't be where we're at now at the store level.
- 31:59You know, we, we rely heavily on our general managers to, to take
- 32:03lead and build, build out their, their, their team member
- 32:07schedules. We have found to retain
- 32:11employees by paying decent wages, but at the same time
- 32:15offering the tip program. And that's something we can do
- 32:17deep dive into if you'd like. But once we introduce that, that
- 32:20tip program, it's helped, it's helped retain a lot of employees
- 32:26in, in our, in our system. Now we know in the fast food,
- 32:31fast casual industry, in the restaurant industry, we have, we
- 32:35have change over every single day.
- 32:37So retaining those employees means a lot to us because hiring
- 32:40somebody new requires time, effort and a lot of money,
- 32:43right? So once we introduce the TIP
- 32:45program, it's helped retain a lot of the know the the
- 32:49management team that are in place now.
- 32:52Tell me more about this tip program.
- 32:54So a tip program kind of launched again, very close to
- 32:58the pandemic time frame where, you know, a lot of food was
- 33:00being taken to go. And it's something on the, on
- 33:04our POS system that's offered to the to the consumer.
- 33:07And they have the the capability of tipping on any order, any
- 33:10percentage they want based on how they feel they they were
- 33:14served. Now, granted, we're not a full
- 33:16service restaurant, so we're not waiters and waitresses that are
- 33:19coming to you and serving you, but you know, it's, it's helped
- 33:22out tremendously and, and, and a lot of our customer base really
- 33:25appreciates the hard work that we're putting in.
- 33:28And I think honestly, our open kitchen concept plays a big part
- 33:31of that tipping because they are seeing what we're doing for them
- 33:35in terms of creating the food. And it's kind of derived from
- 33:38that. They're saying, you know what,
- 33:39my food's being made fresh to order.
- 33:41He's working hard, he's got 10 tickets on the line, he's
- 33:43running like crazy or they're running like crazy and they give
- 33:46that extra one or two or three percent added on to their bill.
- 33:51I think this is actually a really good thing that that we
- 33:53brought up here, because I know a lot of people, they go to a a
- 33:56quick service restaurant, they see a tip jar out or, you know,
- 34:00on the credit card thing, you know, it's asking for a tip and
- 34:02they're like, what, what am I tipping for?
- 34:05You know, they're not coming to my table.
- 34:06They're not bringing me my drink.
- 34:08You know, it's like, no, they're not waiting on me like this is
- 34:11this is quick service. But but I think you, you've got
- 34:14a great comeback to that. It's like, look what's going on
- 34:17back here. Like these, these men and women,
- 34:19they're hustling, right? They're, they're moving around.
- 34:21They're working hard to make your food and bring it to you
- 34:24with a smile. And you know what, what, what
- 34:29does it hurt you to give a little bit of extra, you know,
- 34:31appreciation for that, right? I, I, you know, a lot of it is,
- 34:34is customer service driven too. You know, when you come into a
- 34:37store and A and A and an employee or a team member greets
- 34:40you, it automatically shifts your, your mindset how you're
- 34:46going to be served, right? If they're greeting you with a
- 34:49smile at the register, as a consumer, you, you go out of
- 34:54your way to make that tip happen because you're, you feel
- 34:57welcome. When you feel welcome and you
- 34:59feel appreciated, you have nobody has a concern of tipping.
- 35:02It becomes almost, you know. I'm happy to do it.
- 35:07Yeah, mandatory, I'd say to do it because you know, when I go
- 35:10to a restaurant and I feel welcome and I feel appreciated
- 35:13that I'm there and the, and, and then and the team members are
- 35:15happy. You know, I, I, that energy
- 35:18really resonates with me and it resonates with a lot of
- 35:20customers too. So it's it's a lot of that is
- 35:23driven from that perspective. Noor, what's something you wish
- 35:27you could teach a younger version of yourself?
- 35:30Oh boy. You want to get into that, huh?
- 35:33Absolutely. If there was something I want to
- 35:40to younger version of myself, I would probably tell them to slow
- 35:46down. Interesting.
- 35:49And slow down and, and I say that if you'd like me to kind of
- 35:53elaborate on as a young entrepreneur, you're excited
- 35:58about everything that's happening around you.
- 36:00You're excited about all the things that that come with, with
- 36:04people wanting the franchise, not knowing what it takes
- 36:08financially, mentally and from a family perspective, You know,
- 36:12the time that it takes, it will takes you away from your family.
- 36:15Slow down, analyse, understand, you know where you want to go
- 36:20and it's not, it's easier said than done, right?
- 36:23People? This, you see the dollar signs
- 36:25you see, the growth you see, hey, listen, I've worked so hard
- 36:28for this. You know, a lot of times I get
- 36:30the question, would you do it all over again?
- 36:31I don't think I would. I really don't.
- 36:34I'm here now and I will never let go.
- 36:36But if, if I had a chance to do it, it, it requires a lot of
- 36:43mental and financial and responsibility.
- 36:50It does, especially if you're going at it alone, right, which
- 36:53we are. We're going at it alone.
- 36:55We don't have VC, we don't have PE money, we don't have
- 36:58investors, we don't have different partners.
- 37:00I'm going at it alone. So it's different.
- 37:02If you're going at it alone, slow down and and, and, and
- 37:06forecast your future and understand the financial and the
- 37:09mental capabilities that you have.
- 37:12But it's interesting to hear you say that.
- 37:14You know, if you had a chance to do it all over again, maybe you
- 37:17wouldn't. What?
- 37:18What might you do instead, do you think?
- 37:22You know I would. It goes back to what I said
- 37:26earlier. I find passion being inside the
- 37:29restaurant, right? I find passion being around the
- 37:33team members and cooking and joking in this open, open
- 37:36kitchen concept. This is what I say.
- 37:39The amount of responsibility you have as your concept continues
- 37:43to grow when you're doing it on your own, It's it's, it's, it's
- 37:47a really tough pill to swallow. And I'm, I'm just talking to the
- 37:50people right now, right? So it's not something that's
- 37:54when you go at it alone that's easy to take on.
- 37:57So that's why I say I would, I would go back and maybe focus on
- 38:02two or three locations that allows me to be in those
- 38:05specific stores, take care of my customers, be happy with with
- 38:10who's coming in and, and, and really provide them an
- 38:14experience every single time they come in.
- 38:16Yeah, I think what I hear you saying is you have a lot of
- 38:19gratitude for where you are now. You're never going to let go.
- 38:22You're going to keep, you know, letting this this beautiful
- 38:25concept that you've created continue to grow, you know, as
- 38:28it as it's allowed. But man, there's a big part of
- 38:32you that misses, you know, being there in the restaurants, making
- 38:35the food every day. You, you kind of got away from,
- 38:38you know, a little bit of the fun part of it.
- 38:40And Oh yeah. I get that conflict.
- 38:42Yeah. What's?
- 38:45Go ahead, Nora, follow up on that.
- 38:47Again, we're, we're, we're shooting for the moon right now,
- 38:50right? So there's no stopping not just
- 38:52for myself, but not just for our company, not just for my family,
- 38:55but for the franchisees as well, you know, building a brand that
- 38:58they are excited about and they've invested into.
- 39:01And we want to make sure that we, we, we answer to that.
- 39:05And so we, we are going to go as, as as hard and as fast as we
- 39:10can go because now we have the systems in place, We understand
- 39:13what it took to get to this point.
- 39:14So it's easy for us to multiply by two or three.
- 39:17It's no difference anymore, right?
- 39:19But yeah, being back in the store is is is definitely
- 39:22something that's that puts a big smile on my face.
- 39:28Are there specific mentors, books, or maybe learning
- 39:34experiences, the masterminds that have been helpful for you?
- 39:38Have you? Have you, as you've gone through
- 39:40your professional career, you know?
- 39:43I'm a self-taught individual, right?
- 39:46So I don't read a lot of books. I do listen to a lot of
- 39:50podcasts. I find podcasts very intriguing.
- 39:52I find interviews very intriguing.
- 39:54I learn a lot from them. You know, reading different
- 39:58magazines that have to do with the restaurant industry plays a
- 40:01big part in, in my vision and what I'm doing as we continue to
- 40:05grow. But but yeah, I I am a
- 40:07self-taught individual man. What are some of your favorite
- 40:11podcasts or or specific people who have been interviewed that
- 40:15you you like to listen to? No, I love restaurant business
- 40:18podcast because they they interview a lot of different
- 40:21people from different from different areas of the
- 40:24restaurant industry. So that's one of my go to's.
- 40:26It's easy to listen to. It's about 30 to 40 minutes
- 40:29long. You take it on a drive when
- 40:31you're driving somewhere like that.
- 40:33And then you kind of just get the perspective of what people
- 40:36are going through in the industry and what they're doing
- 40:38to combat different things. Noah.
- 40:41What's a fun fact that most people would know about you?
- 40:46Fun fact, I love cars and I love my family.
- 40:50Tell me about your family, Married kids.
- 40:53Married to a beautiful wife, Carol, and my three beautiful
- 40:56children, Mila and Nyan Rain, which by the way, they all work
- 41:00inside the stores when we're there.
- 41:02How old are they? They are 11/8 and four.
- 41:05What's the four year old do in the in the store room?
- 41:07Well. He tends to just eat and just
- 41:10run around around. But the the the my oldest
- 41:13daughter, Mila loves to be on the register.
- 41:15So when I'm, when we go for a site visit, you know, she'll hop
- 41:18on the register, take care of a couple customers and then my
- 41:21well, she's 9 now. I'm sorry, my 9 year old, she,
- 41:24she can make a Peter like nobody.
- 41:26She knows the menu inside and out and she can do any Peter
- 41:29that comes to the POS system. So do you think they're likely
- 41:33to step into the family business at some point?
- 41:36No, I would love them to, I really would.
- 41:39It's something that they're passionate about.
- 41:41You know, every time we go to the store, the first thing they
- 41:42want to do is put on a PITA shirt and a PITA hat and hop
- 41:45back there and work. Obviously that's not feasible at
- 41:48a lot of locations because they're not corporate owned, so
- 41:51we can't just throw them back in the franchise location.
- 41:53But yeah, they, they, I think they're passionate about it.
- 41:57That's fun. You mentioned you like cars.
- 41:59What kind of cars? Oh, anything, I'm, I, I love
- 42:04anything when it has to do with with cars, fast cars, trucks,
- 42:07you name it. It's just my hobby, right.
- 42:09So that's, that's what I love about, about that.
- 42:11I love collecting them, passing them down to my son, you know,
- 42:15or my daughters when I, when I get older.
- 42:18Any fun new menu items that are coming or something that's been
- 42:21recently released? I'm so glad you asked that
- 42:23question because it's, it's and, and, and we, we try to stay true
- 42:28to our Mediterranean routes as much as possible.
- 42:30But when it comes to a LTO, which is a limited time offer
- 42:33that we like to offer, we like to put a little spin on it.
- 42:36And what we're launching July 22nd of 2024, we're launching
- 42:40the Euro Philly, right. So it's an Amoroso role with the
- 42:45Euro meat with onions, Peppers and mushrooms with the provolone
- 42:48cheese. And we also do with our with our
- 42:51grilled chicken. So you have the chicken or the
- 42:53euro option. It's called the Euro Philly.
- 42:56And how long will that be available?
- 42:57Starting at the end of July to when?
- 42:59Till about the end of the year. OK.
- 43:02So we run our Lt. OS.
- 43:04Pre pandemic we used to run our Lt.
- 43:05OS about three months. Post pandemic we're running
- 43:08about five to six months to give them the shelf life that they
- 43:10need to get the end to get the actual raw data that we need to
- 43:14to analyze and say was it successful?
- 43:16Was it not because we're basing it off of you know, 30 plus
- 43:19locations. So we really need to run it for
- 43:21about 5 to six months. And so it's sort of like an
- 43:24audition period. If it does well, maybe it
- 43:26becomes a permanent feature on the menu.
- 43:27Or do you do you like the funness of sort of cycling
- 43:31through new ideas? Yeah, no, we like the, the fun
- 43:34idea, the fondness of, of cycling of new ideas, because,
- 43:37you know, it opens up our, our customers, our consumer base,
- 43:39right. So you never, nobody, you know,
- 43:43you never think of when you're a Philly, right.
- 43:45So us introducing that into the market of like, oh wow, you know
- 43:48what, let me try because Philly is, is a very well known
- 43:51sandwich, right? I I'm infatuated with that
- 43:53sandwich, so us putting the stand on it kind of brings in a
- 43:56different perspective on things and it allows us to try new
- 43:59things we're not without bringing in too many new items
- 44:01into the store because we always have to look at the skews that
- 44:04we run inside the stores as well.
- 44:07You know, nor before we went live and we were kind of going
- 44:10through the tech setup, you mentioned to me some of these
- 44:14new locations that you're opening up are going to be in a
- 44:18much more efficient structure. Can you talk more about what
- 44:21that means? Sure.
- 44:22Yeah. And, and we want to hyper focus
- 44:25on the Walmart locations. We're going to go kiosk heavy
- 44:28where it kind of kind of allows the the customer to order from,
- 44:32from a kiosk point of sale system.
- 44:35And you know, having the, the, the, the integration of the
- 44:39third parties into our our POS system.
- 44:41So we no longer need all the iPads sitting at the front
- 44:44register that you see at a lot of different restaurants.
- 44:46Everything's integrated into our POS system that spits out the
- 44:49ticket or it comes up on our kitchen screens internally.
- 44:53So, so some of our, our tech plays are really rely on, on our
- 44:57current partnership with with Toast and what we've done with
- 45:00them to integrate the third party, integrate the kiosks and
- 45:03into the stores and allow the customer to order on their own.
- 45:09And I'm going to assume that this is going to reduce the the
- 45:14the amount of employees that you need to rely on, which is
- 45:16probably helpful to franchisees in a really competitive job
- 45:19market like this. Yeah, I mean, we tested it
- 45:22during the pandemic. One of the first things we we
- 45:24did during the pandemic was, was kind of introduced of kiosk
- 45:28because, okay, we barely have anybody to work.
- 45:31We can't find people to come into work.
- 45:33Well, we introduced the kiosk that kind of alleviated one
- 45:35individual from our, our, our lunch and dinner lineup, right?
- 45:39That helps out tremendously. It also when you have a line out
- 45:42the door, it allows people to go and, and bypass and go to the
- 45:45kiosk in order, which allows you not to have to stay in the line
- 45:48and wait for the next person to finish up their order process.
- 45:51So yeah, it's, it's helped us tremendously introducing the
- 45:54kiosk and, and the technology into also when it comes to our
- 45:58app and our online ordering platform as well.
- 46:01You know, we made it so easy that a customer driving to the
- 46:05store, just right before they leave to the store, they can
- 46:07order their product and then that's the moment they pull up,
- 46:10it's grab and go. Nora, I just have one more
- 46:14question for you. But before I get to that, I want
- 46:16to do 2 things. Folks, if you're listening today
- 46:19and you like today's content, please hit the subscribe, like
- 46:22or share button on your favorite podcast app.
- 46:25Nora, I want to tell people the best way to get in touch with
- 46:28you. What's that?
- 46:30Best way is to go on our website petastreetfood.com and hit a
- 46:35submit a contact us form. OK.
- 46:39Last question for you. I'm curious in the next five
- 46:42years, where do you see your business and your industry
- 46:45going? What are the big changes that
- 46:47are coming? Well, there's a lot of direct
- 46:51and indirect competition coming into the Mediterranean segment.
- 46:53So separating ourselves from from from the current segment
- 47:01plays a big part for us. We want to, we want to get to
- 47:04100 locations. Absolutely.
- 47:06I think that has been our goal for a while now.
- 47:08And I think the pandemic's behind us.
- 47:10So reaching 100 location, proving our concept out and
- 47:14then, you know, finding a VC or PE to take us to the next level
- 47:19is, is kind of our goal. And that's, that's kind of our
- 47:22our vision for the future. Any timeline for getting to that
- 47:26100 locations? You know, I would put it between
- 47:303:00 and five years realistically, you know, 'cause
- 47:33we will be at close to 50 locations by Q1 of 2025.
- 47:39So that then we're halfway there.
- 47:41Once we get to the 50 locations, momentum takes plays a big part
- 47:45in our growth strategy and you know new new trade areas and new
- 47:50franchisees come into play. Well, there's just some exciting
- 47:53plans ahead. Be looking forward to following
- 47:56your success. Nowhere and know where I want to
- 47:59be the first one to. Thank you for making the time to
- 48:02Share your story today. I really appreciate it.
- 48:05Anthony, it was a pleasure. I really appreciate you and
- 48:08thank you everybody for listening.
- 48:11Folks, that's a wrap on another episode of the Inspired Stories
- 48:14podcast. Thanks for learning with us
- 48:16today.