Friends of Branded!
Happy Saturday and I hope you had a great week.
It was 1992 and I’m bartending at Martell’s, a neighborhood joint on the corner of 83rd street and 3rd Avenue in New York City. Two guests sitting at the bar start chatting with me and one asks, “do you know who you look like?” I shake my head b/c I see no upside in front-running this question as I know an answer will all but immediately follow.
“Michael from Melrose” one of the women said, and her friend agrees (was that right way for me to have clarified that the two guests were female?).
Dr. Michael Mancini, played by actor Thomas Calabro, on the 1990s prime time drama “Melrose Place,” started out as a devoted and honest husband with a career-driven mind-set. While his character became very different over the course of the series, I was confident this comparison to “Michael from Melrose” was one solely based on my physical appearance and I’m not going to lie, I was good with this. Too good.
The very next night at Martell’s, and I’m again asked by a couple at the bar (a man and women this time) “do you know who you look like?” the woman asked. This time rather than remaining silent and waiting for the answer, I nodded, maybe with a little swagger, and said that I’ve recently been told that I look like “Michael from Melrose.”
No said the women, “George from Seinfeld.”
The bar giveth and the bar taketh.
But away from our physical similarities, Geoge Costanza (Jerry Seinfeld’s best friend, despite possible protests from Elaine and Kramer) and I do have something very important in common, we’re both in the import / export business.
George’s company, Vandelay Industries, had range, and initially dealt in the world of importing and exporting latex products, before moving onto the importing of potato & corn chips and the exporting of diapers.
Bringing this Top of the Fold (or in this case, maybe “Top of the Funnel” in for a landing (and I’m sure many of you have been wondering where the heck is this going), when it comes to the hospitality industry, borders are becoming more symbolic than real.
Don’t get me wrong, the restaurant industry has always been a melting pot, and that goes back to Italian red-sauce joints, to sushi counters, and to tacos on every corner, but lately, there’s been an acceleration of imports with the arrival of so many international brands and products.
I’m now going back to that moment in 1992. That’s right, I look like George Costanza, and I’ve also chosen to be in his line of work as an importer / exporter!
Let’s go!
Diving into the real story here, the US has long been a dominant exporter of restaurant and foodservice brands and leveraged its capital and global franchising & distribution networks to be the global leader. Much of the US’s first moves consisted of the exporting of global fast-food giants such as McDonald’s Burger King, KFC, Taco Bell, and Wendy’s which collectively have thousands of locations outside the US.
The international growth of these brands has been a MAJOR component of their business and success.
During my time working for the French financial institution, Societe Generale, and specifically my time spent in the home office in Paris, I recall many conversations about the US’s prowess in exporting fast-food joints into the region and its impact specifically on the Parisian youth. Let’s just say the comments weren’t flattering and a specific comment about the US exporting obesity still carries a little sting to it!
I wonder what’s like being an expat over in Europe (or elsewhere) in today’s environment (things that make you go hmmmm).
The US, of course, has also been a meaningful importer of restaurant brands, food & beverage concepts, artisanal foods, and beverage styles.
But the current environment seems different and by that, I mean there’s a growing demand in the US for more international brands. Call it the US consumer being hungry (an obvious pun) or cuisine-curious (I like the sound of that) for diversity and fresh brands.
I read an article this week by Sean Abrams at delish about the world’s largest fast-food chain (by unit count) opening in the US. Mixue Ice Cream & Tea is opening its first location in The City (I see you rolling your eyes at me JB) on Canal Street in Tribecca.
Mixue has a tremendous presence everywhere from China to Thailand and Vietnam.
Pulled from the article, “the playbook is simple and wildly effective: soft-serve cones, fruit teas, classic milk tea, and chewy add-ins, all priced to fit your budget. It’s the sort of menu that overly floods social feeds and happily empties wallets. Now it’s test-driving that budget-friendly formula in a city where spending money on overpriced food and drink is very much a personality trait.”
I’m not sure I appreciate what I read as a “dig” at New York’s personality trait, but I also don’t disagree with it (so we’re good Mr. Abrams). 😊
There’s no question that Gen Z (my favorite fast-growing and strong influencer generation) is making US diners more adventurous than ever and this generation is demanding authentic and global flavors.
While I started with the consumer (our guests), it’s the investor’s appetite (yup, another pun) that is really driving the demand here. Franchisees and private equity are enthusiastically looking for the next big thing. You can of course try to build one, but these international brands have established and proven playbooks. These are brands with traction in their respective home regions and an expansion into the US represents an opportunity to scale.
Again, international brands coming to the US market is NOT a new thing, but it’s the pace and variety of what’s landing on our shores that I find so interesting and exciting.
A Neapolitan pizza joint landing in every major city along with a wave of sushi joints opening in suburbia represented a recent wave of hospitality imports over the past few years, but I expect this next phase will be even more interesting and creative.
If you take away one thing from this week’s Top of the Fold, global flavors are NOT a trend, and operators need to embrace them as the future. Schatz and I are gearing up for a little drinking game and it involves the “F” word. I’m not talking about the word, “FRICTION” which is bad, but the word “FUSION.”
Yes, let’s all get ready to hear this word often.
The opportunity to partner and bring something fresh into your market or even existing brands is right here and right now. The consumer is excited about these diverse global flavor profiles, and this is not remotely limited to restaurant brands. The US grocery and food products sector are also importing specialty ingredients, package foods and beverages.
My George Castanza instincts and import / export prowess tells me that while the US has been a dominant exporter of restaurant brands, the balance of power is shifting.
Call it “global curiosity” among US consumers, improved global logistics and the importance of social media awareness and you’ve got a recipe (yup, another foodie pun) for the US being a dominant and most active importer of restaurant brands.
Friends, follow the money and the money is flowing into international brands that want to expand into the US market.
Are you an international restaurant brand or manufacturer of international food products looking for a partner to land and expand with in the US?
Well, Mr. Castanza is retired, but Team Branded is available to help!
It takes a village.
