Friends of Branded!

Happy Saturday, and I hope you had a great week!

It’s not yet midnight, and I’m up in the Adirondack Mountains, about 25 miles north of Lake George in the town of Horicon, staying in a cottage that sits on the west side of Brant Lake Camp and below Brant Lake Sports Academy.

The only lights that remain on in the cottage are coming from my laptop and the two travel monitors I take with me when I’m on the road.

It’s dark, but I’m NOT wearing sunglasses. Let’s hit it!

My 8-year-old daughter and wife watched Adam Sandler’s Happy Gilmore (the original) before going to bed tonight (that’s either some irresponsible or awesome parenting and I’m still not sure which) and I’m reading passages from Milton Friedman on his theories about self-interest as the engine of markets after having a pretty awesome day (juggling between my work at Branded and my ‘work’ at camp).

The American economist and statistician, Milton Friedman, who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy, is meaningful to me specifically for his theories on self-interest as the engine of markets. His theories have been challenged by many ranging from behavioral experts to financial market experts (including the legendary CEO of BlackRock, Larry Fink), and yet, here I am thinking about how true the power of self-interest is.

Adam Sandler, love him or hate him, (and if you hate him, we can’t be friends), is authentic, genuine and appears to have a big heart and an even bigger love of his friends. In Happy Gilmore II, he paid tribute to Cameron Boyce, an actor who passed away far too young and that my daughter loved. That’s why we let her watch the movie tonight.

Whatever drives Mr. Sandler to do what he does, cast who casts, and dress like he dresses, I feel confident in saying it meets his self-interest.

Coming up to Brant Lake each August to jump back into officiating all sorts of sports and spending time with old friends, new friends, and family, that’s my self-interest.

Now bringing this back to where it needs to be, we’re continuing to witness an overall decline in capital being allocated to ResTech. What’s going to make this current chapter of ResTech so exciting, self-interest. Not just mine. Yours as well!

First, let’s address the elephant in the room: why the slowdown? Great question.

One contributing factor is that generalist VCs have pulled back from early-stage ResTech and are instead focusing on AI and machine learning opportunities. Venture capital firms are rewarded not to miss the next big thing and at this moment, the next big thing is in AI. These VCs are following their self-interest. Respect.

There are always reactions to actions and the pullback in capital flows to early-stage companies have resulted in a wave of M&A as focus shifts from funding innovation to funding consolidation.

In H1 2025, M&A deals increased 45% compared to H1 2025, which tells the story of this pivot toward consolidation over the pursuit of new venture funding. We can point to some recent transactions that tell this story and they include, but aren’t limited to Thoma Bravo acquiring Olo, and DoorDash acquiring SevenRooms.

The market pendulum is operating properly and with capital flows and valuations dropping sharply in the early-stage ResTech sector, we’re seeing an increase in M&A activity.

We’re witnessing a buyers’ market and this was a key driver of Branded affiliating with Oaklins DeSilva+Phillips, a leading global investment bank specializing in mid-market, sell-side and buy-side mergers & acquisitions for media, marketing, and technology companies.

As a subscriber to the importance of self-interest theory, I believe Milton Friedman’s views on the subject map beautifully to the dynamics in hospitality, especially when it comes to ResTech.

Mr. Friedman’s principle is that individuals and businesses, in pursuing their own self-interest, end up creating value for others. Please don’t ever confuse self-interest with selfish (at least not on my watch).

Operators that embrace ResTech, aren’t doing so out of altruism, but b/c they believe they’re gaining advantages by doing so. Maybe the operator’s embracement of ResTech leads to reduced food waste, increased upsell revenues, or labor efficiencies. These “self-interested” moves have the potential to create value for others, for example, less waste, more affordable dining, and improved worker scheduling.

Let’s apply the Friedman lens to the M&A market and the capital flowing toward scale and efficiency. This consolidation has the potential to ensure operators get more integrated platforms rather than the army of point solutions or Frankenstein-tech stacks operators have become accustomed to.

Milton Friedman wrote in Capitalism and Freedom, “The great advances of civilization…have always come from individuals and the incentive that has driven the individual has been self‑interest.”

That principle is alive and well in today’s hospitality industry.

When restaurant operators embrace ResTech, they’re acting in their own self‑interest (which they must do!). They want to reduce costs, increase throughput, get labor scheduling under control, and protect their already razor‑thin margins. These self‑interested moves end up benefiting others (that sounds like something Milton Friedman would say). 😊

If executed correctly, guests can enjoy shorter wait times, more accurate orders, and smoother experiences. Workers can benefit from smarter scheduling and fewer manual headaches. Society benefits from reduced food waste and more efficient resource use (yes, Branded’s food waste and donations platform portfolio company, Copia, has been on my mind this week).

I think Milton Friedman would look at today’s wave of ResTech consolidation as a textbook case of his theory of self-interest. As hospitality operators demand simplicity, scale, and integration, capital flows to platforms that deliver such efficiencies, and this pushes fragmented point solutions into comprehensive operating systems.

It’s the circle of life!

Operators, friends, you don’t need to feel guilty about adopting ResTech b/c it improves your bottom line. Mr. Friedman would say that in pursuing your self‑interest, you’re helping the entire ecosystem get better. Operators who lean into ResTech to address their needs are also, maybe without even realizing it, making hospitality better for guests, workers, and communities.

It takes a village.

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The FIRST shoutout this week goes to our partners at Starfish and specifically their celebration of a most successful internship group of 2025!

In full disclosure, the Branded team loves embracing interns and the energy and enthusiasm they bring to our office each summer.

This year, we did something a little different and by that, I mean we took in a larger summer intern group than usual but engaged with several of or portfolio companies to have them join us in our efforts to spike their learning curves and engage with them in a most meaningful way.

Starfish is one of Branded’s early-stage companies, but the speed in which they’re building and empowering transparency and trust in our global food supply chains is nothing short of amazing.

Teams that are growing and moving quickly create unique and needed opportunities for interns to have opportunities not only to learn, but to potentially provide leverage and value to the mentors that work and engage with them.

You can read a little bit about Starfish’s gratitude for their Summer Intern crew of 2025 here: Future Food Leaders in Action

Thank you also for the great hats Wiggs! 😊

The SECOND shoutout this week goes to our partners at Curbit, the kitchen capacity management solution for restaurants.

This week, the good people from Mellow Mushroom, the legendary stone-baked pizza brand known for its vibrant atmosphere and imaginative menu, partnered with Curbit and QSR Automations to enhance the digital ordering experience across its system.

Hospitality operators are fully aware that off-premises guest expectations are higher than ever—and Mellow Mushroom is focused on delivering a digital experience as memorable and satisfying as its dine-in vibe. The first phase of the Curbit implementation focuses on guest messaging, using real-time kitchen data from QSR Automations to keep guests informed throughout the order journey.

Thanks to Curbit, Mellow Mushrooms guests will receive text updates telling them:

This transparency reduces uncertainty, builds trust, and ensures that fans of Mellow Mushroom get their food hot, fresh, and right on time - without needing to wait or wonder.

Pulled from the announcement Curbit shared about this new partnership “We’re focused on improving the digital experience in a way that reflects the hospitality we’re known for in-store,” said Ahsan Jiva, EVP of Strategy & Transformation at Mellow Mushroom. “With QSR’s kitchen platform and Curbit’s guest messaging, we can give guests more clarity while helping our teams stay focused on food quality and execution.”

This shoutout extends beyond Curbit and also goes to the folks at QSR Automations and the importance of building on strong partnerships.

The collaboration between Curbit and Mellow Mushroom is made possible through QSR Automations, a trusted technology partner of both Mellow Mushroom and Curbit. As Mellow Mushroom deploys QSR’s kitchen display system across its locations, Curbit will be added to each new installation, creating a seamless pipeline of real-time kitchen data to power smarter guest interactions.

Again, pulled from the announcement, “This partnership is a great example of what’s possible when best-in-class kitchen tech and real-time orchestration come together,” said Scott Siegel, CEO of Curbit. “We’re proud to work alongside QSR Automations to support Mellow Mushroom’s digital transformation.”

Branded believes in partnerships and we love this one among Curbit, Mellow Mushroom and QSR Automations!

Branded invites readers of the H^2 that are interested in learning more about our portfolio companies, and investment strategies to be part of our Access Hospitality Network.

In the latest episode of Hospitality Hangout, we sit down with Zack Gharib, President of Red Roof, for a candid conversation about how hospitality brands are evolving to meet the moment. From digital transformation to shifting guest expectations, Zack shares real-world insights on what it takes to lead a legacy brand in a fast-changing landscape.

He discusses how Red Roof is adapting to traveler behavior, embracing innovation, and setting bold strategies to enhance guest experience and long-term brand value. This episode is packed with essential takeaways for hotel operators, foodservice professionals, investors, and anyone focused on the future of hospitality.

Listen on Spotify:

Listen on Apple Podcasts:

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That’s it for today!

See you next week, same bat-time, same bat-channel.

It takes a village!

Jimmy Frischling

Branded Hospitality Ventures

[email protected]

235 Park Ave South, 4th Fl | New York, NY 10003

Branded Hospitality Ventures ("Branded") is an investment and solutions platform at the intersection of foodservice, technology, innovation and capital. As experienced hospitality owners and operators, Branded brings value to its partners through investment, strategic counsel, and its deep industry expertise and connections.

Learn more about Branded here: Branded At-A-Glance