When was the last time you left a conversation feeling actually, completely motivated? . . . .

How to Use Performance Reviews to Motivate Employees

When was the last time you left a conversation feeling actually, completely motivated? Like your goals and priorities have been put into focus, your synapses are firing, and you’re excited to get to work? Got it? Okay. Now, when was the last time you felt that way after a performance review? It’s no secret that performance reviews have gotten a bad rap in recent years. At best, they can be a time to realign personal and professional goals and priorities, and track growth. At worst, they’re seen as time-wasting busywork – an HR formality. But it doesn’t have to be that way. When done right, reviews can inspire the same motivation and drive in your workforce as that conversation did for you. Here’s how:

1. Be clear about purpose and process

Over time, performance reviews have become the catch-all meant to not only evaluate employee performance, but also, according to Gartner, to “inform compensation, promotion and succession planning decisions as well as to drive employee performance, development and engagement.” And as more and more companies (rightfully) shift from annual reviews to more frequent, structured check-ins, it’s important to be clear and upfront about the purpose of each meeting, and what the employee can expect. Will you be discussing day-to-day tasks or broader career goals? Will this conversation impact compensation or other organizational decisions? Removing any ambiguity will lead to more productive conversations between managers and direct reports, and prevent the frustration that comes from unmet expectations.

2. Shift from competition to collaboration

Have you ever worked at a company where you felt like your annual review was more like an interview where you had to re-prove your value as an employee year after year? That competitive culture does not lend itself to valuable, honest conversations. “The best managers in the world are architects of effective coaching conversations. They create moments where genuine dialogue can occur, where employees feel their opinions matter and like they are cared about in a unique way,” says Gallup. If you want to motivate employees and drive real engagement, treat performance reviews as a time for managers and their direct reports to collaborate on a shared goal: setting the employee up for success.

3. Mitigate personal biases with data 

Even the best managers are prone to bias–we’re only human, after all. Some personalities click while others don’t. But effective performance reviews depend on objective, accurate feedback. If employees feel like their review is unfair or subjective, they’re likely to get defensive or check out entirely. Instead of relying solely on personal assessments, use data-driven tools to objectively track performance and create a multi-dimensional profile for each employee’s development.

4. Connect the dots

You’ve been clear about the purpose and expectations of the review. You’ve approached the process with a collaborative mindset, and put data-driven systems in place, all of which have led to an honest and insightful conversation with your employee. All done, right?

Think again.

For performance reviews to truly drive engagement and motivation, employees need to see the impact of these conversations. If they don’t see the value gained from the reviews (be it development training, new opportunities, or business results), then the reviews will fall flat. Follow through and follow up with training opportunities, continued learning, career benchmarks, or any of the action items discussed in the review. When managers and HR leaders show how these conversations directly impact the employee, team, and business as a whole, it makes the employee feel more connected and engaged in their own performance. Performance reviews are just one part of a larger performance management system. Keep them clear, focused, and targeted, and they will become a valuable tool for staying connected with your teams and building a thriving employee experience.  – Source: Human Resources Today.

Classic American Restaurant Group, Ruby Tuesday emerged from voluntary
Chapter 11 restructuring as declared in October . . . .

Ruby Tuesday Emerges from Chapter 11 Bankruptcy

After declaring Chapter 11 bankruptcy in October, Maryville, Tenn.-based Classic American Restaurant Group, Ruby Tuesday, has emerged from bankruptcy, the company announced Wednesday. A Delaware bankruptcy judge approved of the company’s restructuring plan last week, allowing the company to shed liabilities (including 185 stores shuttered due to the pandemic), move forward with its current portfolio of 209 corporate-owned locations, and continue to invest in virtual delivery-only brands. “Ruby Tuesday is a healthier company now and is positioned to be more efficient, competitive, and stable for the future,” Shawn Lederman, CEO of Ruby Tuesday said in a statement Wednesday. “We want to thank our employees, partners, and creditors for helping to ensure our plan of reorganization was successful and we look forward to continuing quality service for our guests and communities for many years to come.” When Ruby Tuesday initially filed for bankruptcy, the company cited the “unprecedented impact” of the COVID-19 pandemic on their business, leading to the permanent closure of 185 stores most impacted by coronavirus-related challenges. In November, the NRD Capital Management-owned restaurant chain received approval from the U.S. Bankruptcy Court for the District of Del. to begin a sale process of the company. At the time, Ruby Tuesday’s parent company RTI Holding — of which NRD Capital is an affiliate — had just under three weeks to enter a stalking horse agreement and until Jan. 19 to submit a bid. RTI Holding Company submitted a restructuring plan in December. Ruby Tuesday is not the only company to be bought out of — or attempt to be bought out of — bankruptcy in 2020: Flynn Restaurant Group bid $816 million to buy NPC International out on bankruptcy earlier in November, and the Krystal Company was bought out of bankruptcy in May by Fortress Investment Group. Ruby Tuesday’s advisors during its reorganization included Pachulski Stang Ziehl & Jones LLP as legal counsel, CR3 Partners, LLC, as a financial advisor, FocalPoint Securities, LLC, as an investment banker, and Hilco Real Estate, LLC, as lease restructuring advisor and consultant. – Source: NRN.

Startup restaurant matchmaker Franklin Junction finds restaurants with spare kitchen space, and marries them with brands that want to expand their delivery-only reach . . . .

Ruby Tuesday Hawking Nathan’s Famous Hot Dogs to Earn Extra Revenue as a Host, not Ghost, Kitchen

Ruby Tuesday, which has permanently closed several restaurants in recent months, has found a new way to generate revenue during the pandemic: sell hot dogs from Nathan’s Famous. Dozens of Ruby Tuesday restaurants are acting like host, not ghost, kitchens for the iconic hot dog chain, as well as other brands looking to expand their delivery-only reach in the United States. The companies were brought together by Franklin Junction, a marketplace platform that matches restaurants with spare kitchen space with brands that want to expand their delivery-only reach. Aziz Hashim, a founder of Franklin Junction, says his company is a cross between Airbnb and Match.com for the restaurant industry. But don’t call it a ghost kitchen operation. He refers to restaurants like Ruby Tuesday as “host kitchens” looking to earn money off their excess kitchen space. Hashim says Franklin Junction acts more like Amazon by providing a marketplace for restaurants who want to generate new revenue by selling food from other brands using third-party delivery companies like Grubhub. Franklin also uses proprietary data to ensure restaurants like Nathan’s are matched with host kitchens that are in the right market, where there’s known demand for their menu as a delivery product. “There is no one doing what we are doing,” said Hashim, who has trademarked the term “host kitchen.” Franklin Junction also ensures brands are matched with host restaurants that have the correct kitchen equipment needed to cook products. For example, Ruby Tuesday restaurants are using “spare” ovens and flat grills in their kitchen to cook signature items from Nathan’s. Ruby Tuesday cooks prepare the meals. This allows each brand to benefit because there are no startup costs to launch the partnership, Hashim said. “Franklin Junction is a marketplace platform that puts excess kitchen capacity together with brands that want to expand,” he said. “There’s no capital expenditure.” In the case of Nathan’s, the brand’s ready-to-cook meal kits and signature menu items are prepared and sold in host kitchens across the country, including Frisch’s Big Boy and Ruby Tuesday restaurants. The brand is betting on a delivery-only marketplace to build its brand. Earlier this year, it began working with ghost kitchen operator Kitopi. “Restaurant delivery sales have seen incredible growth during these unprecedented times,” James Walker, Nathan’s senior vice president of restaurants, said in a statement. “The idea around delivery-only kitchens is something we began researching and implementing many months ago. When we came across this unique opportunity, we jumped at the chance to partner with Franklin Junction and collaborate on making New York favorites more accessible to Nathan’s enthusiasts around the country.” Frisch’s and Ruby Tuesday, as host kitchens, collect revenue from selling a secondary product for delivery only. They, in turn, pay Franklin Junction a fee per transaction. From that fee, Franklin pays Nathan’s. Hashim declined to discuss the exact cost structure, as every agreement is different, he said. For Ruby Tuesday, a new revenue channel is needed. The company has closed dozens of restaurants since the start of the year, according to various media reports. The company could not be reached immediately for comment. However, in early July, the company told Business Insider that  they had “made the decision to close select locations in an effort to better position our restaurants for future business.” Hashim said Franklin Junction is a platform designed “to help as many retail locations and brands thrive in this uncertain restaurant reality.” Besides brokering deals among Nathan’s, Frisch’s Big Boy, and Ruby Tuesday restaurants,  Franklin Junction has also created its own delivery-only brands: The Captain’s Boil and Order XOXO. The company declined to reveal the names of other brands and host kitchen partners it is working with. Franklin Junction said its partner concepts will be deployed across a network of about 550 host kitchens. It expects to have 1,000 facilities join the platform by the end of 2020. – Source: NRN.

Molly Cooper shares how the fast-casual brand focuses on promoting from within. Meet the innovative, inclusive, and industry-changing leaders of the 2021 NRN Power List . . . .

Panera Area Operating Partner on Coaching Employees

Molly Cooper, the area operating partner for Panera, was chosen for the NRN Power List by CEO Niren Chaudhary for her resilience and tenacity as well as her ability to develop and promote people on her teams. Here’s what else Chaudhary had to say: When I reflect on the values that have carried Panera through this year — resilience, tenacity, innovation, care, and compassion — Molly is a true example of all of them.  Part of our Panera family for more than 20 years, Molly is a savvy and dedicated leader and coach who can quickly adapt to change, while keeping her team focused on what matters most, creating a warm environment for her team, and amazing eating experiences for our guests.  Her collaborative and competitive spirit drives her team to be successful, celebrating each goal achieved while continuing to raise the bar.  One of the most impressive aspects of Molly’s leadership is that 100% of her management team has been promoted from within, reflecting her undeniable passion for coaching, developing, and mentoring her team. Molly exemplifies integrity and believes in being a servant leader. She surrounds herself with honest and caring people and has a unique and special ability to identify and grow talent. Her commitment to her teams and to our Panera family are some of the reasons why Panera is emerging stronger as we look forward to 2021. Nation’s Restaurant News talked with Molly Cooper about navigating the challenges of 2020 and helping employees reach their full potential. Here’s what she had to say: What’s the biggest lesson you’ve learned this chaotic year? I’ve learned that working together through this ever-changing environment has made us emerge even stronger as a team — and that together, we can do amazing things, especially when we focus on care and compassion for our associates and guests. Through this crisis, when we think like business owners and focus on being resilient leaders, embracing and adapting to change through creativity and tenacity — we’ve quickly been able to switch gears and continue providing an outstanding experience for our guests. What are you most proud of in terms of company leadership and community impact as you look back at the challenges of 2020? I’ve seen such a focus on loving our associates from all levels of leadership.  We’ve instilled traditions of recognition, from our Golden Bread Bowl peer-to-peer award for collaboration to applauding outstanding GM’s and recognition from Niren directly.  There’s also been a commitment to staying connected and focusing on sharing and learning through things like town halls and other ways of staying connected virtually.  We’ve also stayed true to our mission to make great eating experiences accessible to all — from innovations like contactless delivery, curbside, and Panera Grocery to our community partnership with Feeding America and our Meals for Heroes programs around the country. What does leadership impact mean to you? I really believe in the potential of each and every associate who comes into Panera. This is truly a place where you can turn a job into a career if you’re willing to learn — and so I see a big part of my role as a leader really as a teacher and coach. I’m proud of everyone on my team who has grown alongside me. – Source: NRN.

SANITATION

US Affirms no Transmission of COVID-19 through Food or Packaging

A joint statement issued Feb. 18 by the Food and Drug Administration, the US Department of Agriculture, and the Centers for Disease Control and Prevention underscored “there is no credible evidence of food or food packaging associated with or as a likely source of viral transmission of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), the virus causing COVID-19. “Our confidence in the safety of the US food supply remains steadfast,” the agencies said. “Consumers should be reassured that we continue to believe, based on our understanding of currently available reliable scientific information, and supported by overwhelming international scientific consensus, that the foods they eat and food packaging they touch are highly unlikely to spread SARS-CoV-2.” The statement attributed to then-Acting Secretary of Agriculture Kevin Shea and Acting FDA Commissioner Janet Woodcock, MD, was timely in view of continued assertions made by Chinese health officials and state media suggesting traces of the virus on imported frozen food or frozen food packaging may have been the source of the June outbreak of COVID-19 in Beijing and even of China’s initial outbreak in Wuhan in December 2019. China has been pushing back against indications the global pandemic originated in China. Chinese officials have stepped up inspections of imported frozen food in the past several months, which has led to some shipments being rejected on claims traces of COVID-19 were found on the packaging.  China’s trading partners, including the European Union, Canada, Brazil, and the United States, said China has produced no evidence to justify its rejection of certain frozen food shipments or to the effect traces of the virus found on frozen food or packaging could lead to infection of humans. The statement also came shortly after comments by Peter Ben Embarek, Ph.D., who led the World Health Organization team of scientists that recently was in Wuhan to investigate the origins of the initial COVID-19 outbreak in China. Dr. Ben Embarek during a Feb. 9 press conference, just before the team departed China, affirmed the most likely source of the virus was animals, perhaps farmed non-domesticated animals, as has been widely suspected, but the idea that the virus may somehow be transmitted to humans who come into contact with frozen foods or frozen food packaging that exhibit traces of the virus may be “worth exploring.”

At the same time, Dr. Ben Embarek in an interview with Science magazine on his return to Geneva indicated even if it were possible for an individual to be infected with COVID-19 from traces of the virus on frozen food or packaging, this would have played no role in the outbreak in Wuhan. “China has reported over the past months a few instances where they have isolated the virus and positive samples on imported frozen products,” Dr. Ben Embarek said. “But that was happening in 2020, at a time when the virus was widely circulating in the world when there were multiple outbreaks in food factories around the world. “It is probably an extremely rare event. We can see that from only a few dozen positive findings in China, out of 1.4 million samples taken so far. It’s potentially possible, so it’s worth exploring. But we have to separate the situation in 2020 with imported goods in China, and the situation in 2019, where that was not a possible route of introduction. There were no widespread outbreaks of COVID-19 in food factories around the world.” In their Feb. 18 statement, Mr. Shea and Dr. Woodcock said COVID-19 is a respiratory illness that is spread from person to person through the air, unlike foodborne or gastrointestinal viruses, such as norovirus and hepatitis A that often make people ill through contaminated food. “While there are relatively few reports of the virus being detected on food and packaging, most studies focus primarily on the detection of the virus’ genetic fingerprint rather than evidence of transmission of the virus resulting in human infection,” they added. “Given that the number of virus particles that could be theoretically picked up by touching a surface would be very small and the amount needed for infection via oral inhalation would be very high, the chances of infection by touching the surface of food packaging or eating food is considered to be extremely low.” Mr. Shea and Dr. Woodcock pointed to the Sept. 3 opinion issued by the International Commission on Microbiological Specifications for Foods that affirmed, “Despite the billions of meals and food packages handled since the beginning of the COVID-19 pandemic, to date, there has not been any evidence that food, food packaging or food handling is a source or important transmission route for SARS-CoV-2 resulting in COVID-19.” Mr. Shea and Dr. Woodcock continued, “In addition, considering the more than 100 million cases of COVID-19, we have not seen epidemiological evidence of food or food packaging as the source of SARS-CoV-2 transmission to humans. Furthermore, the transmission has not been attributed to food products or packaging through national and international surveillance systems. Food business operations continue to produce a steady supply of safe food following current Good Manufacturing Practices and preventive controls, focusing on good hygiene practices and keeping workers safe. “Based on the scientific information that continues to be made available over the course of the pandemic, the USDA and FDA continue to be confident in the safety of the food available to American consumers and exported to international customers,” Mr. Shea and Dr. Woodcock said. Source: Food Safety Monitor.

Texas opened up restaurants completely and ditched mask restrictions, Massachusetts removed all indoor dining restrictions while Chicago and San Francisco increased capacity . . . .

The CDC Warns Against a Fourth Coronavirus Wave as Texas, San Francisco, Chicago, and More Loosen COVID-19 Restrictions

The wave of cities and states loosening COVID-19 restrictions on businesses this week — including Texas, Chicago, San Francisco, and Massachusetts — prompted Centers for Disease Control and Prevention director Dr. Rochelle Walensky to warn Americans Monday that there is still strong potential for a fourth wave of the virus, despite the fact that numbers of new cases have dropped by more than half since their peak in early January. The group of cities and states starting to roll back restrictions includes Texas, where Gov. Greg Abbott just announced that the state would be rolling back mandatory mask policies and getting rid of all dining capacity limits, effective March 10. Also this week, San Francisco reopened indoor dining to 25% capacity on Tuesday, Chicago mayor Lori Lightfoot announced indoor dining capacity would increase to 50% effective March 2, and Massachusetts has removed all indoor dining capacities starting March 1, Gov. Charlie Baker announced. “Please hear me clearly,” CDC Director Dr. Rochelle Walensky said in a White House press conference on Monday. “At this level of cases with variants spreading, we stand to completely lose the hard-earned ground we have gained.” Speaking directly to states and cities that have rolled back restrictions, she added, “Now is not the time to relax the critical safeguards that we know could stop the spread of COVID-19 in our communities, not when we are so close.” Other health experts agree. Diana Cervantes, an epidemiologist at the University of North Texas Health Science Center in Fort Worth, told The Dallas Morning News, “We don’t want a spring break spike. Right now we’re at a critical cusp point where things could definitely turn around. It could either go up or down.” On Wednesday, President Joe Biden called the decision for Texas and other locales to lift restrictions, “Neanderthal thinking,” saying, “We are on the cusp of being able to fundamentally change the nature of this disease because of the way in which we are able to get vaccines in people’s arms.”

But states like Texas believe it’s time to get back to as close as normal as possible, for the sake of economic recovery, with Abbott saying, “We must now do more to restore livelihoods and normalcy for Texans by opening Texas 100%.” While this is good news for the business community, some restaurants remain skeptical that it’s safe enough to roll back restrictions. Eater has compiled a list of 35+ restaurants statewide that have already committed to sticking with either mask restrictions and/or dining room capacity limits. Other operators and chefs have expressed very strong opinions about Abbott’s plan, with chef Michael Fojtasek posting on his Instagram that “Reopening Texas without vaccinating hospitality workers is murder.” Currently in Texas, frontline healthcare workers, people over 65, and those with a select list of co-morbidities can get vaccinated, but it is not certain when hospitality workers will join that list. Rohini Dey, who owns Vermilion in Chicago also expressed concern over her employees coming to work without getting vaccinated. Chicago restaurant workers are currently on track to start getting vaccinated by the end of March. “Our industry – NRA and SRAs – has to fight for our employees to be vaccinated as essential workers,” Dey told Nation’s Restaurant News. “Some states have done it, most haven’t. We are essential – we apply the maximal safety precautions  for people to get together without clustering in their own homes and causing unfettered irresponsible spread.” Dey added that she will be reopening her restaurant Friday “with great trepidation.” “75% of me doesn’t want to do this because of the risk to our team and being a potential factor in the spread,” she said. “But a year of bills and only 20% revenues, escalating debt, two four-month bouts of mandated and voluntary indoor closure and a decimated and unemployed team (starting from scratch again, it’s killing us) has forced us into reopening.” Chef Tiffany Derry, owner of Roots Chicken Shak in Plano, Texas, tweeted her concern over enforcing mask mandates when the statewide restriction is lifted. Derry expressed concern over choosing between her ethical stance on mask mandates and wanting to keep her business alive:

“Guests are now choosing which businesses to support based on their stance on the issue,” she told NRN. “And I and my employees are now responsible for enforcing our rules, which could cause conflict with guests who do not choose to wear masks. Without the mandate in place, we don’t have a place to turn for support when a guest conflict arises.” Derry said that she will continue enforcing mask mandates for her staff and strongly encourage customers to wear them, in large part because she is concerned not doing so can cause a fourth wave. “I would like to see more planning and thought put behind these decisions, with consideration for how they will impact independent businesses—and put guidelines in place to support us,” she said. Here is a breakdown of all the most recent COVID-19 restrictions changes from other cities and states around the country:

Arkansas — Gov. Asa Hutchinson rolled back most of the COVID-19 restrictions on businesses on Friday, including capacity limits for bars, restaurants, gyms, and large venues. Hutchinson said that if positivity rates remain under 10% then he will also lift mask mandates on April 1.
Chicago — Mayor Lori Lightfoot expanded restaurant and bars capacity to 50% or 50 people (whichever is fewer) on Tuesday, and bars are now allowed to stay open until 1 a.m. Previously, restaurants were open at 40% capacity and had to close at 11 p.m. Bars and restaurants can now sell alcohol two hours later until 11 p.m.
Massachusetts — Massachusetts Gov. Charlie Baker announced the week of Feb 22 that the state was going to move into the second step of phase three, starting Monday. Restaurants no longer have a capacity limit and can now hold musical performances, while other venues with capacity limitations have been raised to 50%. Mississippi — Gov. Tate Reeves announced Tuesday in an executive order that he is lifting all capacity restrictions on businesses and rolling back mask mandates as well, and said that Mississippians are “encouraged” to wear masks and social distance, but no longer required by law. The only capacity restrictions remain in arenas and schools.  San Francisco just moved up to the state’s red tier, where indoor dining can now resume at 25% capacity. Previously, no indoor dining had been allowed in most areas of the state. Mayor London Breed said that the city could move into the orange tier over the next few weeks if all goes well. Source: NRN. March 4, 2021: This story has been updated with comments from restaurant operators.

The company also promoted Michael Hines to vice president of inclusion and diversity . . . .

Starbucks Promotes Regional vice President Dennis Brockman to Global Chief Inclusion and Diversity Officer

Starbucks CEO Kevin Johnson announced the promotion of Midwest regional vice president, Dennis Brockman to senior vice president and global chief inclusion and diversity officer. He replaces Nzinga Shaw, who left the company in December to work for Marsh & McLennan. Additionally, Michael Hines has been promoted from director of inclusion and diversity compliance and analytics to vice president of inclusion and diversity. Brockman took the role on an interim basis in December and has now been officially promoted after working for Starbucks for 13 years. Before working as Midwest regional vice president, Brockman was the regional director of operations for the company. “Dennis has an unparalleled understanding of Starbucks culture, a deep connection to our partners, and a vision for advancing inclusion, diversity, and equity throughout our company at all levels,” CEO Kevin Johnson said in a letter to employees. Brockman will report to Johnson and will be responsible for continuing to build on Starbucks’ inclusion and diversity strategy, building an inclusive culture of leadership and accountability, developing inclusion and diversity ambassadors throughout the company, fostering mentorship and other professional development, and amplifying the importance of inclusivity throughout the company. “Dennis, know that partners around the world are cheering you on as we continue our journey forward together to be a more inclusive, diverse, and equitable company,” Johnson continued in his letter. Before coming to Starbucks, Hines worked for GlaxoSmithKline in multiple roles. In his new position of vice president of inclusion and diversity, he will be responsible for leading new inclusion and diversity “centers of excellence” around compliance, analytics, policy, learning, and development. These announcements were made within the context of Starbucks’ new diversity and inclusion initiatives throughout the company, including new company-wide goals released in October like linking executive compensation to diversity goals and committing to a 30% BIPOC workforce by 2025. “For all of us at Starbucks, each day we must reaffirm our responsibility to one another — to care for each other, to strengthen our communities, and to ensure diverse perspectives are represented at the company’s highest levels,” Johnson said in Friday’s letter. “We have committed to do so with intention, with transparency, and with accountability.”  — Source: NRN.

A Missouri-based private-equity firm acquires fast-casual steakburger concept . . . .

Freddy’s Frozen Custard Sold to Thompson Street Capital Partners

Thompson Street Capital Partners has acquired Freddy’s Frozen Custard & Steakburgers, the 360-unit fast-casual concept, St. Louis, Mo.-based private equity firm said. Terms of the deal with the Wichita, Kan.-based Freddy’s were not disclosed. Freddy’s was founded in 2002 in Wichita and features a menu of steakburgers, shoestring fries, and frozen custard. The company began franchising in 2004 and now has more than 360 locations, about 30 of them company-owned. “Freddy’s is a highly unique, scaled franchisor platform that has built a premium brand over the past two decades with leading franchisee retention, remarkable growth, and a passionate guest following of ‘FredHeads,’” said Bob Dunn, managing partner of Thompson Street Capital, in a statement. Randy Simon, Freddy’s co-founder, and CEO said, “There remains a large segment of the country where we are not present and by partnering with TSCP we will be better able to expand in those areas and continue our strong growth going forward.” Scott Redler, Freddy’s co-founder and chief operating officer, said the company would continue to invest in a corporate support system to ensure operators get the resources they need. “Our partnership with TSCP will elevate those capabilities and enable us to take our franchisee support to another level,” Redler said. Thompson Street Capital invests in healthcare services, software and technology, and business services. Its portfolio includes such companies as Green Mountain Technology LLC, Len the Plumber, StayLock Storage, and others. Joe St. Geme, a director at Thompson Street Capital said Freddy’s acquisition allowed the company to partner with the concept founders and management “to grow a premier system by accelerating franchise development, increasing focus on marketing and technology deployment and enabling operational best practices across the footprint.” Freddy’s in November signed a franchise agreement with St. Louis, Mo.-based RSolution, a shopping-center developer for 50 restaurants in the Southeast. Freddy’s has units in 32 states. – Source: NRN.

First line-service model set to open in Minnesota in September . . . .

Famous Dave’s Plans Quick ‘Que Service Format

BBQ Holdings Inc. is working with a Famous Dave’s franchisee to open its first line-service Quick ‘Que model in September, the company says. The Minnetonka, Minn.-based Famous Dave’s, which has 117 restaurants, will open the new streamlined format in Coon Rapids, Minn., with DTSG, a legacy franchise group. Famous Dave’s has traditionally offered a table-service casual-dining format. “Quick ‘Que is a major leap forward for us as a brand,” said Jeff Crivello, BBQ Holding’s CEO, in a statement. “Not only will the line-service prototype provide a more convenient experience for customers without compromising the quality of the food,” Crivello said, “it will also create a more affordable and potentially much more profitable model for franchisees.” BBQ Holdings is also planning to add a drive-thru to the new Quick ‘Que model, the company said in a press release, “creating even more convenience for customers.” “Quick-Que’ is a major leap forward for us as a brand,” said Jeff Crivello, BBQ Holding’s CEO. “Not only will the line-service prototype provide a more convenient experience for customers without compromising the quality of the food, but it will also create a more affordable and potentially much more profitable model for franchisees.” DTSG, a franchise group headed by Julie Wright Card and John Glockner, already owns and operates three Famous Dave’s locations: Fargo, N.D.; Sioux City, Iowa; and Sioux Falls, S.D. The company said the new model’s format is based on that of Highland Park, Ill.-based Real Urban BBQ, which it acquired in 2020. Famous Dave’s has tested fast-casual models in the past. “We learned so much from our acquisition of Real Urban BBQ,” Crivello said, “and we’re excited to put everything we’ve learned to use in this new restaurant model.” It also acquired the assets of Granite City Food and Brewery in a bankruptcy auction last year. As of Feb. 24, BBQ Holdings had four brands with 143 locations in 30 states and three countries, including 47 company-owned and 96 franchise-operated restaurants. – Source: NRN.

The $1,400 stimulus checks in President Biden’s stimulus plan could lift restaurant sales by up to mid-single digits for seven weeks . . . .

Stimulus Checks could Give Restaurants a Boost for up to 7 Weeks, Research Shows

The $1,400 stimulus checks that will be distributed to Americans under a certain income threshold (likely $75,000 for individuals and $150,000 for households) as part of President Joe Biden’s American Recovery Plan could lift restaurant sales by low-mid single digits for up to seven weeks, an analysis from Bloomberg Intelligence released Wednesday predicts.  In comparison, the study says, the $600 checks last time around boosted restaurant sales by 3% for casual-dining and 5% for quick-service for three weeks. Quick-service stands to see more of a boost than full-service because many customers are still taking advantage of drive-thru, delivery, and takeout at this point in the pandemic, with Bloomberg researchers predicting another 5% boost. Same-store sales for quick-service chains are already on the rise, with chains like McDonald’s, Dunkin’, Burger King, Wendy’s, and Jack in the Box seeing a 7.6% same-store sales increase in the first three weeks of 2021 vs. 2.3% in the fourth quarter of 2020, according to MillerPulse data. Casual-dining chains like Bloomin’, Brinker, and Darden stand to see another 3% same-store sales gain from the stimulus check boost this time around, as dining room restrictions tamper recovery. Same-store sales at these chains are much more slowly recovering, with MillerPulse reporting a same-store sales drop of about 21.9% in the first three weeks of the year vs. a 25.2% drop in the fourth quarter of 2020 for chains like Applebee’s, BJ’s Restaurants, Cracker Barrel and Denny’s. According to the latest updates from Bloomberg, the Senate is still debating Biden’s $1.9 trillion plan and voting will likely extend into the weekend of March 5, as the March 14 deadline for the bill approaches. Also included in the bill will be the $25 billion restaurant relief bill, which is targeted to help small businesses, but not the minimum wage bill, which cannot be included in the finalized version of the bill, according to a ruling from the nonpartisan Senate Parliamentarian. – Source: NRN.

Dine Brands Global also plans to resume development of IHOP’s fast-casual spinoff . . . .

Applebee’s Parent Foresees a Future Encompassing Virtual Brands

With a new CEO at the helm, the parent of Applebee’s and IHOP is adjusting its plan for the post-pandemic era to reflect recent lessons from the pandemic, including what the company learned from the discontinued test of a virtual wings concept.  Executives of Dine Brands Global said a second virtual venture, Cosmic Wings, will figure into that new normal. The delivery-only concept generated $510 in incremental sales last week for each of the 1,250 Applebee’s restaurants that produce its Cheetos-flavored wings for delivery, according to Applebee’s President John Cywinski.  The seven-day stretch was Cosmic Wing’s first full week of operation, and sales grew day by day during the period, Cywinski said. Many of the industry’s largest casual chains have launched virtual brands, but Dine Brands is one of the few to be on its second concept. Cosmic Wings replaced an early venture called Neighborhood Wings by Applebee’s, which had been tested in 700 stores. That experiment provided such key insights as to the need to keep a virtual brand separate from its mother operation; hence the lack of a connection to Applebee’s with Cosmic Wings, Cywinski explained. The casual chain also learned that the virtual concept appealed to customers who were younger than a typical Applebee’s patron, and was likely to be male. Customers were not necessarily current patrons of Applebee’s, Cywinski indicated. “I’m really glad we did Neighborhood Wings,” he said. The revelations about Cosmic Wings came during the first quarterly analysts’ call hosted by Dine Brands new CEO, John Peyton, who joined the two-concept franchisor from the hotel industry. He succeeded Steve Joyce, whose contract was not renewed by the board when it expired at the end of 2020. Peyton sketched out a mid-to-long-range strategy that was not significantly different from the one that Joyce had put forward, though with a few adjustments inspired by the pandemic. For instance, Peyton vowed to “realign our menu to reflect learnings from the last 12 months.” Like many operations, Applebee’s and IHOP had tweaked their menus for the sake of simplicity, execution, and saving labor.

Peyton also indicated that both Applebee’s and IHOP will focus on retaining the bulk of their takeout and delivery business, which soared as dining rooms were closed and to-go became consumers’ only restaurant option. Peyton projected that both brands would benefit from pent-up demand for onsite dining. “In the short term, the biggest opportunity is vaccines, vaccines, vaccines,” he said. “We are optimistic that people are anxious to get out, see other people, hug other people. And restaurants are the place to do that.” One of the strategic objectives of IHOP is increasing the chain’s afternoon, evening, and nighttime traffic. Although the family-focused brand has tried to bolster the dinner business with such menu moves as revamping its burger choices, IHOP is still seen by many consumers as the place to have breakfast, not any later meal. The chain made significant strides in that mission during the fourth quarter with an initiative called IHOPPY Hour, a riff on the happy hours widely used by liquor-serving restaurants to pull in consumers before dinner. IHOP added its version last September. Between 2 and 10 p.m., a number of popular items are offered at deep discounts. Entrees, for instance, begin at $5 in some markets, and drinks are priced as low as $1. “IHOPPY Hour is driving incremental sales in the high teens,” said IHOP President Jay Johns. The promotion was “four times more effective” than other traffic drivers the chain has tried. Johns revealed that IHOP plans to resume opening restaurants after pruning the system of 41 weak stores during the last year or so. Among the additions are likely to be branches of Flip’d by IHOP, a fast-casual riff unveiled by Dine Brands right before the pandemic started. The venture has largely been shelved because of the crisis. Peyton said he intends to move forward with the goal set by Joyce of adding another franchise vehicle to Dine Brands’ holding. The company was reported to be among the suitors exploring an acquisition in pre-pandemic times of Pei Wei Asian Diner. Joyce would neither confirm nor deny those reports. IHOP has struggled more than its casual sister during the pandemic, a reflection of its reliance on breakfast, the daypart with the sharpest drop in traffic. For the fourth quarter of 2020, the chain’s same-store sales fell 30.1%, compared with a drop of 17.6% for Applebee’s. Comps for the week ended Feb. 21 dropped by 28.1% at IHOP and by 19.1% at Applebee’s. Overall, Dine Brands posted a loss for Q4 of $1.6 million, compared with a net profit of $28.4 million a year ago. Revenues for the most recent period totaled $196 million, down 13.8% from a year ago.

Restaurant reservations startup Tock was on a mission to restore the advantage to restaurants and small businesses when the pandemic hit. Turns out, the company was just getting started . . . .

The Startup that Saved the Restaurant Industry in the Nick of Time

Nick Kokonas, CEO of the restaurant reservations platform Tock, is meeting a handful of new employees over Zoom for the first time. The latest hires of his rapidly growing Chicago-based company are tuning in from their apartments. He’s logging in from a house in Lake Tahoe that he’s rented for a few weeks in January in an attempt to take a vacation after an extraordinarily busy year. The plan is to welcome his employees to the company with an introductory pep talk. He’ll explain how his 6-year-old reservation system is designed to help chefs manage both their dining rooms and kitchens more efficiently. He’ll go on to tell them about the way it threw a lifeline to independent restaurants during the pandemic by allowing their kitchens to offer take-out and delivery service on better terms than other platforms. And then he’ll explain how the 140-person company is now taking on some of the biggest industry players with a tech platform that gives more control to chefs and restaurateurs. He is, after all, co-owner of Chicago’s renowned Alinea restaurant, along with several other eateries in the city, and has spent the past decade and a half thinking about what a restaurant needs to survive and even thrive. But before he begins, Kokonas wants to set one thing straight: He did not purchase the large wooden yin-yang that hangs above his head. “This is not my house. This is not my yin-yang,” he tells his new hires. “This is T. Harv Eker’s house, who wrote a terrible book called The Millionaire Mindset. I rented his house.” Yeah, Kokonas has some opinions. He also has a track record of being right. His strong views on everything from menu items to food delivery have helped upend the hospitality industry several times already. The Chicago-based entrepreneur arrived on the food scene 16 years ago as an outsider: a former derivatives trader who was looking for a new career and had a few thoughts on what a great meal should taste like. After eating a couple of meals cooked by Grant Achatz, he offered to give the young chef a restaurant. When it opened in 2005, the now three-Michelin-star Alinea changed fine-dining forever by taking cues from Spain’s legendary El Bulli to turn meals into spectacles (edible balloons, olive oil lollipops, scented pillows to infuse a dish) and dining into an experience. Kokonas took the concept of dining as theater even further in 2015 by launching the restaurant reservations platform Tock, which pioneered the notion that restaurants should charge diners a deposit to hold a table (or even have them pre-pay for their meal) and use dynamic pricing for more coveted tables. Within a few years, Kokonas had signed on some 3,000 restaurants in 28 countries and was managing both his Chicago restaurant empire and a burgeoning competitor to OpenTable.  But it was during the pandemic that Kokonas may have struck upon his most industry-transformative idea yet: Tock To Go, which helps restaurants offer now-essential takeout and delivery meals, but doesn’t charge the onerous fees of services like Seamless and DoorDash, which can take up to 30%.

Instead, Tock charges restaurants a flat monthly fee of $199 plus 2% on orders, or just 3% on orders without a subscription. (The service offers a “pro” plan for $699 a month, charging nothing for bookings and 2% on Tock To Go orders.) Tock also, crucially, lets restaurants retain their customer data, so they can establish their own relationships with diners. The platform presents a compelling alternative to the third-party booking and delivery services that have been eroding restaurants’ revenue and autonomy in recent years—a trend that has been exacerbated by the pandemic. A July report from food services consultancy Technomic and Uber Eats found a 27% increase in restaurants using third-party delivery services since the pandemic began. As restaurants that are new to these platforms wrestle with how to stay in the black while paying such high commissions, regulators in cities across the country have responded by placing temporary caps (usually 15%) on the fees that third-party services can charge. Pre-pandemic, most restaurants using Tock were on the higher end, but as Tock To Go came online, the platform brought on neighborhood gems and even dive bars looking to stave off closure. In 2020, Tock more than doubled the number of businesses that use its services to roughly 7,100 restaurants and nearly 1,000 wineries. It expects to hit $1 billion in gross merchandising volume in 2021. “What makes Tock such a strong player is that they’re both on the reservation side and the delivery side,” says R.J. Melman, president of Lettuce Entertain You, which owns and licenses more than 100 restaurants across the country and was an early investor in Tock. “So when things open back up and take-out business becomes a lower portion of what you’re doing and your reservation business will increase, [Tock] will help you on either side.” He says that 40% of his company uses Tock for reservations, while between 80% and 90% use Tock To Go. For Kokonas, who expresses frustration with people who complain that restaurants are a bad business, the hospitality industry may be challenging, but it’s not impossible, even in a pandemic. “If you’re [a restaurant] owner who says, ‘We could barely make it [in 2019],’ to me, that says you weren’t running it right. You’re saying it was boom time and you could barely make it,” he told me last spring. “I want these restaurants to reopen in a sustainable manner.” Restaurant owners, in other words, need to take better command of their businesses, whether they’re running a beloved local joint or a Michelin-starred, travel-worthy establishment. And Kokonas is positioning Tock to be their essential tool.

THE PANDEMIC PLAN

Kokonas knew that 2020 was about to go off the rails when he saw, last February, reservations for the 60 or so Hong Kong restaurants on Tock go to zero in a single week as the island struggled to contain COVID-19. It was clear: Once the novel coronavirus spread to the States, the same would happen here. A few weeks later he noticed the same pattern in Seattle, one of the first cities hit by the pandemic. Then it spread to the rest of the country. When Illinois issued stay-at-home orders in late March, Kokonas and his team had already worked out a plan to turn Alinea and the other restaurants in the Alinea Group into carry-out places. He furloughed some 300 restaurant employees but remained hopeful about rehiring them. After all, the appetite for restaurant food was still there. Those meals just needed to be consumed at home—and Kokonas needed to adapt his technology to enable that. He pulled together a team of nearly two dozen engineers and designers, who worked around the clock to transform Tock into a platform to book and process carry-out orders. Within eight days in mid-March, the team had a working prototype of Tock To Go and started piloting pickup orders at fine-dining restaurant Canlis in hard-hit Seattle. Three days after Chicago shut down, Alinea was selling takeaway Beef Wellingtons for $35—an unheard-of price for the establishment. Kokonas had figured out that customers uncertain about their futures did not want a $375 meal; they wanted comfort food. He pushed Alinea’s chefs to create a simple carry-out menu with the price of each meal under $40. By April, the restaurant was selling 1,250 meals a night, making about 75% of its previous revenue, and it had rehired 62 of its 85 employees. Alinea hosted diners in an outdoor rooftop space over the summer but closed those operations in the fall as the weather turned and COVID-19 rates rose; by the end of 2020, it had served 135,587 to-go meals via Tock.

As restaurants throughout the country began closing their doors last spring and the pandemic’s grim toll on the hospitality industry became evident, Kokonas was advising chefs on Tock to lean into takeout and delivery. For many of the fine-dining places on the platform, creating meals to be eaten at home—something previously inconceivable—became essential for survival. Chef Kyle Connaughton, of Healdsburg, California’s acclaimed SingleThread Farm-Restaurant-Inn has used Tock To Go as a stopgap to keep his luxury restaurant afloat, offering more affordable take-out meals through the service. “When you go from a $500 checkout to a $50 checkout, it’s hard. We can’t support a 75% reduction in revenue. But this has allowed us to stay open.” Tock To Go has also allowed Kokonas to expand his company beyond its fine-dining base. Pat Odon, the owner of Chicago’s oldest sports bar Nisei Lounge near Wrigley Field has used the service to sell mixology kits and to manage reservations as indoor dining opens up. “Tock’s fee is better than the cut other apps take,” he says. He plans to keep using the service to generate extra revenue even after the pandemic recedes. Tock also partnered with the city of Chicago in October to offer Tock To Go for free to restaurants in low-income neighborhoods, to help retain the city’s small-business fabric. Tock To Go is different from services like Seamless, Postmates, and DoorDash in two crucial ways. First, instead of taking up to 30% in commissions, which can break a restaurant’s margins, Tock charges between 2% and 3% on all orders. On the back end, while other delivery services submit orders as they come, Tock asks users to select pickup and delivery times in 15-minute intervals. It’s the same way that Tock schedules reservations: to prevent kitchens from becoming overwhelmed. Since Tock To Go has launched, the service has added even more features, including two-way texting from within the dashboard to limit face-to-face communication. It also integrated last-mile deliveries with DoorDash and Postmates—charging diners the delivery fee. Just as important, the platform allows restaurants to keep their customer data. Noticing the negative impact that platforms like Booking.com have had on the hotel industry, Kokonas is wary of restaurant reservation and delivery services that insert themselves between chef and diner, making restaurants subservient to their brands. One of his “core beliefs” about the hospitality industry is that “businesses should ‘own’ their customers, not rent them from third party middle persons.” He compares Tock to a company like Shopify, the commerce engine behind many direct-to-consumer brands that is increasingly positioning itself as a platform for entrepreneurs. It’s known as the anti-Amazon. “Tock empowers restaurants to actually sell what they produce,” Kokonas says. If there’s one class of professionals that Kokonas dislikes, it’s intermediaries. He has a history of avoiding them. When he and Achatz published The Aviary Cocktail Book in 2018, a gorgeous tome with photos and recipes from their boundary-pushing Chicago cocktail bar, they produced the book entirely themselves. Kokonas just couldn’t stomach the terms that most cookbook publishers offer authors: They put the risk entirely on the chef, while reward goes almost entirely goes to the publisher—a fact that Kokonas laid out in a popular blog post at the time. Kokonas and Achatz found their own graphic designer and visual artist, raised funds on Kickstarter, and went from there. The result: They have kept most of the profits of book sales and pulled back the curtain on the publishing industry.

Likewise, after corresponding with Kokonas for a while, I realized that unlike most restaurateurs I’ve emailed, he doesn’t have a press person. “A PR person from a firm has several clients, and they have to please all of them,” he explained to me when I asked about it. “So they might pitch publications in a very rote way. I figured I could just do that outreach myself.” The man behind the curtain of the Alinea Group and Tock’s press releases is, well, just him. It’s also clear that he has little patience for restaurateurs who don’t prioritize their finances. (Another of his core beliefs. “Art and commerce are necessary for one another and improve each other. “) While Kokonas supported Paycheck Protection Program (PPP) loans to help restaurants weather the pandemic, he’s openly critical of owners who didn’t use that financial support to plan ahead. “They had no expenses for two months. No rent, no payroll. If you’re doing any carry-out business at all, you did really well those couple months,” he says. “When I see some of the chefs on TV and they’re now going, ‘The PPP is terrible. It doesn’t work.’ What they’re really saying is ‘The PPP didn’t work for me because I didn’t do anything [with it].’” At the start of the pandemic, he joined the leadership team of the Independent Restaurant Coalition, a trade group formed last year to lobby all levels of government for restaurant relief, serving alongside the likes of chefs Tom Colicchio, José Andrés, and Nancy Silverton.

But he has not been active in the group since the early days of the outbreak. He’s been increasingly vocal about supporting the $15 minimum wage and the elimination of tipping in restaurants, which puts him at odds with some members of the group. He’s also “not a huge fan” of the 2021 American Rescue Plan, which includes putting $25 billion towards grants for struggling independent restaurants and bars. His assessment: “Too much pork, no accountability.” When it comes to delivery, he’s equally blunt. If a restaurant is paying a third-party service too much, it’s choosing cheap convenience over price. It’s up to the restaurant to switch to another service. He doesn’t believe cities should step in to set price caps on delivery fees.  When Jason Heltzer, a managing partner at Chicago VC Origin Ventures looked at his portfolio last March as the coronavirus began rolling across the country, the company he was most concerned for was Tock. Heltzer should have known better. After all, as he told me, he liked the product, but he really bet on the founder. “[Kokonas is] a contrarian, but what I have learned over time—and he’s demonstrated this over and over again—is that he knows the restaurant business. He can figure it out.”

NOT ALL SEATS ARE EQUAL 

Kokonas has always had an appetite for fine food, but his tastes can be particular. His Wikipedia page prominently mentions that he “finds peanuts and peanut butter to be repulsive.” Though his father owned a grocery store and diner, Kokonas didn’t come from great food—he describes his mother’s cooking as “terrible, so bad”—or a wealthy background. He recalls that when his terminally ill father came to visit him in New York, he was blown away by a bowl of soup served as an appetizer at a tony restaurant. Then he saw the price: “He was like ‘$18 for a bowl of soup! What is in this soup?’” Now Kokonas owns a restaurant where meals go for hundreds of dollars ahead. Kokonas’s path to restaurants was anything but direct. After majoring in philosophy as an undergraduate at Colgate University, he turned down a spot in a JD/Ph.D. program at the University of Pennsylvania to sell posters to sororities and small businesses—which turned out to be surprisingly lucrative. “I was a 22-year-old dude in a van, going sorority to sorority,” he recalls. “I sold hundreds of thousand dollars worth of posters.” He followed up with a stint as a derivatives trader, then, in the early ’90s he started his own firm, Third Moment Trading when he realized the system could be optimized to be even more profitable. He installed the first closed-cellular network so that his firm’s traders in different cities could speak directly from their respective stock exchange pits, giving them a split-second advantage over others in the pit who relied on hand signals to communicate. But when his wife told him he was “at risk of turning into an asshole,” Kokonas quit and put his money toward traveling and dining at some of the world’s best restaurants. His meeting with chef Achatz is now something of a legend. After enjoying a couple of meals at Trio Restaurant near his Chicago home, Kononas asked to meet the chef—who was then on loan from Thomas Keller’s The French Laundry. Kokonas offered Achatz his own restaurant on the spot. In 2007, less than two years after Alinea opened and a year after Gourmet named it the best restaurant in America, Achatz developed Stage IV tongue cancer.

Miraculously, he recovered after undergoing an experimental treatment at the University of Chicago, though he was missing his sense of taste. Slowly, it came back. While Achatz was battling cancer, Kokonas was learning how to run a restaurant. He approached it like he did a trading floor: finding patterns in what might seem like chaos and then optimizing the operations. Alinea was a hot restaurant; as soon as reservation times were released, the phones, which were manned by a staff of three, would ring off the hook. Even so, some customers wouldn’t show up. This was an industry-wide trend—according to Kokonas, typical no-show rates are between 15% and 18% in normal restaurants. He looked at existing reservation solutions, like OpenTable, but determined they weren’t actually helping restaurants. To his mind, they were just wrestling away control of the customer relationship and not delivering much in exchange. “[OpenTable’s relationship with customers] bodes well for the business selling the software, but very poorly for any future innovation or features,” Kokonas wrote in a 2014 blog post. He decided to expand on these thoughts at the 2014 Tech Table conference—sponsored by OpenTable. While Kokonas says he dislikes conflict, public feuds with Iron Chef host Cat Cora and Esquire food writer John Mariani might suggest otherwise. Perhaps a better way to put it is that he dislikes conflict, but he really, really, really loves being right. At the conference, speaking to an audience of restaurateurs and OpenTable execs, he brought up how “a clusterfuck of bad software” can destroy a restaurant’s efficiency. Then, he outlined his plans for a rival restaurant reservation service (eventually Tock) that would share customer information with restaurants and structure reservations to make it easier for the kitchens to manage orders. He also introduced his idea for prepaid reservations and dynamic pricing.

Next interior At Alinea, dining is experienced like a theatre. And as in a theater, not all seats are equal: Some are closer to the door, others are near the kitchen. On top of that, demand changes depending on the day, rising on weekends and falling midweek. Kononas reasoned that the best tables at the most popular times should cost more money. He had begun testing the idea of variable pricing at his restaurant, Next when it opened in 2014. When prepaid reservations on the rudimentary system he had built in-house sold out, he knew he was onto something big. Tock launched in 2015, backed by investors that included chef Thomas Keller, former Twitter CEO Dick Costolo, and Kimbal Musk. The app took root among restaurants that valued its novel embrace of ticketing and dynamic pricing, its informed approach to scheduling reservations in a way that’s mindful of how a kitchen works, and its customer relationship management assistance. Early adopters included some of the world’s most prominent chefs and restaurateurs, such as Daniel Boulud and Jean-Georges Vongerichten. SingleThread’s Connaughton built his three-Michelin-star restaurant with Tock running in the background. “I had worked in restaurants and could understand how it solved the challenge of booking,” he says. “When we opened in 2016, we used it to book seats all prepaid in advance.” Though it only had a small fraction of OpenTable’s 60,000-strong clientele, Tock commanded outsize attention, thanks to the caliber of restaurants on it and Kokonas’s one-man PR show. It was poised for even more growth after announcing a deal with Chase in February 2020 that would allow cardmembers to book Tock restaurants through a dedicated dining page and access exclusive pop-ups and dining experiences. (The hub launched in October.) Then COVID-19 hit, and Tock became two killer platforms in one: OpenTable meets DoorDash.

THE SAUSAGE FACTORY SUCKS

The person responsible for much of Tock’s growth over the past several years is chief operating officer Jeff Kaplan, who joined the company in 2017 after founding and selling two healthcare startups. He quickly set up Tock’s formidable sales and customer service teams. Asked about what attracted him to Tock and what made him stay, Kaplan delivers an almost Frank Capra-esque speech, “I believe in capitalism. I believe in it in the sense that I enjoy creating jobs for people, and making money for the business, and doing right by the customer. I believe you can do all of those things.” In less than a year, the company has found success doing just that. It has also tripled its number of employees. (Kokonas admits that he used to know everyone’s names.) Wineries, ski resort operators (including Vail Resorts), and even car dealerships are now using Tock for bookings. Kokonas is looking to expand the number of restaurants and purveyors that use Tock as a marketplace to sell meal kits and other goods. He’s even toying with a Spotify Wrapped-style service that would recommend experiences based on users’ dining habits. But Kokonas has never run a company so big or for so long. He admits that he might sell Tock. “We get inquiries every day, and I have investors. If I never sell it or liquidate part of it, then I never get their money out. They had faith in me and they deserve that return.” (Tock’s current valuation is private, but a source close to the company puts it about $500 million.) Kokonas seems to love big-picture problem-solving more than the daily grind of managing employees. He offers a story, by way of explanation. “In 1996 Wilco’s Being There came out, and it was punk, country, and bluegrass. I listened to it three times and threw it in the garbage. I was so angry at myself. I was thinking you’re never going to make anything that good in your life. I eventually got to know [bassist] John Stirratt. When I told him I loved the album he was like, no aspect of doing that was fun. And I was like, ah, that’s the part you don’t get to see, right? Nothing’s like it seems. The sausage factory sucks. That’s true of Tock and that’s true of the restaurants. It’s true of everything.” It makes me think of the book and film script that Kokonas told me he was working on in one of our first conversations. (Several people have told him not to write both simultaneously, but he won’t be deterred—besides, as he explains, he wants his book to read like a movie.) In it, a man wakes up from a coma and realizes his wife has been cheating on him with his best friend. He decides to leave everything and travel the world. One day, as he rests his head against the swirling marble pattern of some shower tiles in a Florence hotel, he wakes up in a hospital and realizes . . . it was all a lucid coma dream. And having dreamed about the alternative life he could be living, he embarks upon it for real this time, leaving his wife and setting off.

Sometime later he ends up back in the shower in Florence, looking at the swirling marble pattern and it hits him: What if this was all a dream again? There’s always another problem to figure out, whether it’s the most efficient way to get posters to college students and messages to derivatives traders or how to maximize profit on book sales and restaurant tables. Perhaps the most intriguing question when it comes to Nick Kokonas is which one he’ll decide to solve next. A quote about author T. Harv Eker and a Wilco album title was updated. Additionally, a description of Next was updated to reflect that it is a restaurant. To see Fast Company’s list of the Top 10 Most Innovative Companies in dining for 2021.  –Source: Fast Company.

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