And we had 13 total people, salary, hourly, complete. Then I did a second P&L that said, hey if this thing really took off, would it even be worth it? You get freedom My team, my executive team, they go do good. Nashville, TN 37204 (615) 678-8359 And then we started looking ourself, whats the best plan to move forward? This is not about Scott. Thats not what I wanted to do. Which was a biscuit with that fried chicken and the pepper jelly on it. Well I appreciate you sharing the story with me. I think if you talked to her eight years ago from today, it was I apologize, I dont know how to turn that off, John. And so the ambassadors are supposed to explain to you, you come in and you hear the word Squawking Goat, or Five and Dime, Hashbrown Cake, our three layer cake and what do those mean? How big a financial impact would that have been for you personally? David Trewern grew DT to $10 million in annual revenue before he sold it to STW Group for almost 10 times profit after tax, gettingmaximum value for his business because he started to look at the world through the eyes of his would-be acquirer. Yeah, I always have this phrase John would say, Make it easy to do right, hard to do wrong. When we built the model, I wanted to build it so that it was easy to execute against it. Big companies buy smaller ones when they realize that it would cost too much, or take too long to compete or they see an opportunity for growth. But then I had the Zoom video call where we could see everybody, make sure everybody was there. And I confuse people with that sometimes, John. No. Because your people are not just driven by monetary benefits because you look at those change process, if you dont keep that mission core of who you are, its going to devalue the brand. And they have a little spreadsheet where they would rate and rank the food. Opened in 2012, it was the first of 33 locations. But to answer the question as, we had did the first two stores as a proof of concept. So more important than what price we got at the end of the day, for me, was the right partner that was going to let us go live out our mission in more ways. In this episode, Stephan Spencer details three strategies he pursued to withdraw from his businesss day-to-day operations. I remember the range that what we came to the deal with, Cracker Barrel was right in the middle of the dollar amount range. Maple Street Biscuit Company to Open in Downtown Greenville Downtown Food & Drink Now Open Maple Street Biscuit Company About a month after the first location in Five Forks opened, the second location - this one downtown on east north street - is open for business. And whats interesting is Cracker Barrel owned a biscuit company that sold for intents and purposes, a similar product. As it turns out, the gamble paid off when the restaurant chain Cracker Barrel acquired Maple Street in November 2019 for $36 million in an all-cash transaction. And that she believed in me enough Because the house is important to her. And he never did. Any retail shop you go to will serve you. We previously talked about, our community leaders get our mission so well. And then level five is act and advise routinely. Them looking at potentially acquiring you guys? For me, we had no expertise in doing the waiter/waitress model. I want to get-, Community stores. And that was a crazy thing. Its the most inclusive place. Its what we had to do to make it work then. And so I would walk across around the block theres a Panera that was a block away. Is that chef Amanda Freitag, whos on Chopped Food Networks show, came into our store and tried it and actually called and they put us on TV about Squawking Goat. So they let you use the resources that they bring to the table. What made you guys so much more profitable than a typical restaurant? Now I had talked to a few people ahead of time. And then we have a house made pepper jelly that we take and we pour all over that. And then we take a goat-. Well, the answer comes down to how well you branded and differentiated your business. They all got to participate, as I said, in the transaction, in a significant way. How This Service Business Sold for Around 4-Times Revenue. Well hold each other to a high standard and accountable. And how we show grace to our guests. Moore invested a chunk of his life savings in the first restaurant, and it was a success. The original restaurant opened at 2004 San Marco Blvd. I mean again, forgive me for saying this but Ill say it. Theyre calling out things back to this open kitchen and youre seeing all that happen in the kitchen. And so that was the first set of funding that we did. And so, although we want to do this transaction, well only do it if you come along, Scott.. And then implement it, youre investing before hand. One was, we did what we call these joint venture partnerships is that for individuals would bring capital to the table, basically 150 thousand dollars. Theyre in there and theyre run by community leader. If you came to my house youd be seeing it made. I mean the Twitterfication of vocabulary, my kids now when they text, I cant understand it. For these folks, life can be tough. Youve been flirting with one another back and forth a little bit. When Scott Moores job as a VP at Winn-Dixie was eliminated in 2012, he decided to start a restaurant with his friend Gus Evans in Jacksonville, Florida. And we talk about it like we love it and thats how we describe it when were talking to our guests. Another one is, gracious service. Thats what we do. Thats a great story to go tell. So I feel kind of out of the loop. Jump to Section Show In that process, we did a lot of things right, we did a lot of things wrong. With Crackers Barrels resources, Holler & Dash could have invested more money at the biscuit business, but they realized what Maple Street had created was more than just hawking biscuits and building an equal brand would take longer than if they just bought the company. maple street biscuit franchise cost near missouri. Somebody was going to own the brand identity and the first to get to critical mass of course, is typically the one that does. Or were they kind of locked into the Cracker Barrel conversation? And so, he rightfully asked the questions to challenge me. Its maplestreetbiscuits.com. And so I ended getting responsibilities for operations with HR. So we have ambassadors that talk about Because we cant have a real wow experience but its going to be an uncomfortable experience if we dont explain it to you. Please tell me thats gone. I wondered, maybe theyre been a pause on that. And our communitys been so great to help us to go do that. And Id say that she trusted me to go get it right. It was called Holler & Dash but when executives at Cracker Barrel saw the Strength of the Maple Street brand, they knew they could be better together. When bonuses go up, its like okay, now I get it. 30-year career in the grocery business. And that whole MBA process prepared me for the time. And a good go to market strategy I told Piper would be, Hey, if we have the chance to acquire those units and could convert those, we can increase the size of the company by 25%. And restaurants fail even at a faster pace. So I was making sure we stayed the course. Community leader is somebody who gets our heart and our mission. He said he could look over the years and connect the dots. When I called and said, Hey, are you interested in talking about divesting some of those stores? It was within the first two weeks that they reached back to us and said, Hey, wed like to talk to you.. Then a third. keyboard_arrow_leftPrevious. To me, what does a store manager do? And then, as were going to market, Hypers trying to help us figure that out. And the question is okay, whats our growth story? And what they came back with was amazing how everybody understood who Maple Street was. And they were within 1000 dollars total sales for the first 100 days. And for me, it was my whole MBA. I said I wanted the last half of my like to have more impact. We had grown really fast, very quickly. But I was so focused on what we were trying to do, I just didnt have time to sit down and worry about it, to be honest with you. Pete Martin built EntryPoint Consulting to 34 employees when he sold it to KPMG for a staggering 12 times earnings without an earn-out. Secondly, theyre paid a percentage of EBIDTA, thats profit every period. And so many accolades came out there at ten. Thats why you have an open kitchen. And in this course, I teach my team, youre either moving up the levels or youre moving down the levels. May, her attitude over the last couple of years, versus when we started out, shed grown in her belief in Maple Street and what it could do. So youre going to need a knife and fork to eat it. Sure. Here to tell you, Scott Moores story is Scott himself. So for us to add this diligence was significant. In this industry, people many times live week to week. And Im going to make you give me an answer. I had to think about his question and I came back to him after a few days and told him, I dont think I mean we all struggle with pride in some fashion but I dont think its but then I said, I think what the big danger to me at this stage is, I really have nobody to tell me no, in my life. Any decision in the world that Im living in, store design or as a model, theres nobody to tell me no. And I think that can be a tough thing and maybe a dangerous thing for folks. When the acquirer discovered her hands-on management style, they pulled out. And so for where I live theres lots of different diners you can go to and I go to those. And as we took a look at that five year plan, we put two models for us to manage our growth and to fund it. And thats a lesson that my friend Scott Moore learned. Fantastic. The model was built and it could flex to whatever those tables were, in trying not to lose money. Help people. The 36 million was right in the middle of the range they gave us, that they thought we would be valued at. And so for us, those words communicate thats more than Im just managing something. Ill teach you how to run it. Yeah, we were open a few days and I realized we need a whole lot more. But she was able to, with her belief that I wouldnt quit until we get it right, allow me to go sign up and do this and take that step. So did you actually receive letters of intent from some of the other buyers, the restaurant groups and so forth? Hire good people, teach them what right looks like, get out of their way, theyll do amazing things. Were basically open seven in the morning until two in the afternoon. Nobodys allowed to stay at level one, which is wait until told. Maple Street Biscuit Companywas founded by Scott Mooreand Gus Evansin Jacksonville, FLin 2012. Maybe Im ready for a little golf. But youre betting the house. And a lot of times, leaders think of people at least are at level two ask what to do, that theyll come ask me what to do, theyre taking some initiative and theyre good people and I teach my team, no. We were closed on Sundays. And they actually convinced me, the restaurant division, that they got who we were. Youve worked in a big company for 30 years. And we were quite a Jacksonville story and I had to know, are we just a Jacksonville story, or can we go somewhere else? And so I had a pretty good feeling of what it meant to not lose money and how to make that work in new stores. At what point did the conversation into the nine month quoting process go from you buying their stores, to the opposite. victor harbor hospital. So youre building a new community store. And its good to have accountability. And I mean there was a point when we did that fast growth process that I realized that this job could outgrow me. They at least have to come and recommend and maybe talk about act and advise. It started with one pizzeria still located in Whitehall, Ohio and has expanded to 14 stores located in. 10 X Earnings By Future Proofing Your Buyer. I mean so they did some analysis and gave us a range, it was a pretty big range. And I report to the CEO, to Sandy. what was their reaction when you told them? So people who cant keep the trust lose the right to be on the team. And so we tried it, put it together, it was like perfect. And we went through a very detailed process of, did they get us? Not only was it a personal guarantee on the loan, it was a personal guarantee on So when you first went out, those first sites, landlords dont know who you are. And so I did a Zoom with the community leaders. I say this to the team repeatedly, I say, If I knew five months ago what I know now, wed still do the transaction.. Maple Street Biscuits was founded in 2012 by Scott Moore and Gus Evans. So thank you for doing this. So for those it was a had to take them through my change curve. Meaning he thought you had too much of it, or not enough? So wed walk over, thered be people. Ive got to figure out whats going on. Scott Moore, thanks for joining us. And when we opened the first store, I said the only thing Ive got is Sundays I have to be there. Tell me about Maple Street. According to the CEO of Cracker Barrel, Sandra Cochran, they admired the Maple Street . There are hundreds of people on the Maple Street team where we get to be part of their story. Then we started looking at, how do we fund the growth and expand the companys stores footprint completely? And again, we went from the eight stores to 25 stores in 18 months, thats a lot of ramping up. I know. We found her there, she applied for a job as community leader. And so I read the stories of people who had been there and theyd done it and the experiences they went through and the things that they got wrong. Good business people earn the right to go do more good. But the journey hasn't been as simple as the. Cracker Barrel, by the way, is if youve ever gone down the interstate in the United States, youve probably seen those restaurants. And prides one of those. We call them community stores and theyre all called by community. But when I first started out with this, that was my fourth principle because they said this, Sustainable for us means at least this, dont lose money. They would have a joint venture with us and we would split the profits, 51% for the company, 49% for them. It currently has 28 company-owned and five franchised fast casual locations across seven states. I gave them 30 some choices on names. And thats kind of what happened. Yeah, well we did joke around that for the first time in eight years, I have a boss. We need to consider others, well come back and talk about that. We have our own breading which has a good crunch and a little bit of spice to it. I dont need to know that. And what we wanted, anybody else who was going to be interested in playing that space to look around and say, Hey, what just happened? So we want people to say this, John. And we should be clear, Cracker Barrel, for folks who may be outside the United States. I mean, with all the resources in the world, why wouldnt they just compete with you? So the best way to do is firewall it, just dont open. And so everything about Maple Street has been a community story. No cussing at anybody, that includes me. maple street biscuit franchise cost near missouri. So its not all bad to have somebody who can have a conversation with you which can challenge your thoughts. However, Zorgdrager had a problem. That was a critical piece. Scott and Tara figured this out a year ago, thats what were going to need to do. We talked to Piper, Jeffrey and partnered with them to help us to start the conversations. We have a few chartered stores, franchise stores that we have done. Or have you built such differentiated value propositions, such a well-branded company that competing with you would take longer or cost more money than simply buying you? I said, Ill work with you for six months. Theyre going to ask themselves, is it easier and cheaper for us to simply compete with your business? Unfortunately, the deal was too good to be true. I am not perfect. And if I was going to be the CEO, I had to get myself ready. And pride is something I think a lot of people struggle with. And it just told me the brand was building the same way. Which goes to the way a restaurant should Two guys with no restaurant experience. She didnt have any restaurant experience. When we call out the answer to the community question, you come and you pick up your food. But they said, hey I explained to them we were going to market and what our strategy was and they said, Hey, but wed like to talk to you. And we spent 10 months really getting to know each other. So now the community leader didnt have anybody to back them up. The question, how good can we be, I can tell you, we can be a lot better. It could have been, youre doing a podcast on the guy who lost everything and now trying to figure out his way but Gods done the things I couldnt have done for myself. And they brought in their own executive team, which they should do. Yeah, what impact has that had, or did that have on your decision making to sell? Its got a little sweet, a little bit of heat and its almost like a sweet and sour chicken biscuit. If we get to a point where we think hey, you know what? Because weve seen it happen before. We got 100 days in. The world's third largest burger chain, trumped only by McDonald's and Burger King, Wendy's has been doling out delicious square hamburgers since 1969. Theyll get you a to-go box. And we should execute our model relentlessly because we want to go change lives. We take a fresh goat cheese medallion and we take some special breading on it and we put it on the grill. What impact did getting rid of the loan have on your own personal psyche? At the end of 2019, Cracker Barrel announced that it had bought the Maple Street Biscuit Company for $36 million dollars in upfront cash. So the reason that my grocery career ended is they got bought out by a private equity group. The shareholders I had at the time certainly challenged me about why are you going seven hours away? Please renew to keep using our services. And I did offer, when the team and I said were going to go do this and the way we did it, everybody got to participate in some way. Youve had it but you never had it that way before. And one of the lessons I learned through that growth process, John, was you always have to focus on the business. Maple Street Biscuit Co. is now welcoming guests to its new location at Polaris Fashion Place, located at 1310 Polaris Pkwy. We bake those fresh all day long. Well, they realized that what Maple Street had done was built a culture and a brand defined by a vocabulary that they used internally and externally that would be so hard to compete with that it made it worth it to them to acquire Maple Street rather than simply compete with them. How many people did you have when Cracker Barrel bought the business? She has her daughter living with her. Ive got to ask. I never look at it, I dont review it. But then I did a third P&L which was half of what the average was. As a community leader, you get to run your own Maple Street. Maple Street Biscuit is a restaurant chain that specializes in Southern comfort food. Thats your 20% of your hours for breakfast, brunch lunch that youre going to get your business. A lot of franchise's don't deliver, but this newly opened restaurant definitely does. creamy wild rice mushroom soup Its amazing when you ask that question and then you just get quiet and listen to people, how much theyll tell you. We had a, I guess, a pretty good reputation in this race. And then came the Squawking Goat. I gave him a hard time because theres been like eight or nine pastors or priests who have used the Maple Street as an illustration to talk about gracious service and is this illustration. Yeah, its internally. Theyll make your food. At the same time, you have to pay for it. And so they could have this investment in a joint venture with us. Ive done my time. The average price of all items on the menu is currently $6.68. At that stage, I realized that we had an opportunity, I think, to go serve in a lot more communities. Franchise Disclosure Document (FDD) Database. So for me it was, Id like the last half of my life to have more impact than the first half. Sandy, the CEO, is very committed to the mature brand, not putting their influence and fingerprint on this startup growth story brand. Yeah, theirs was a multiple of EBIDTA. If I can trust you and youre teachable, we can do a lot of things. And then I had to walk them through what we had been trying to do and how we want to live out our mission. Ill have to go look that up. At the same time, they wanted us to be reminded of this. And so we went there. So I started out with the first store, I paid for it myself. The Hidden Cost of Being a Hands-on Boss With the Founder of Create & Cultivate, Jaclyn Johnson. The word ambassador. And as I built that model I said, Thats the P&L were going to go manage ourself against. If were going to build a model that if we only do half of what we think well do, we still at least wont lose money. Maple Street grew to 28 stores and five franchises. But whats really most exciting about that is, its not like we just had one community leader doing well. And here's what's even more telling about the offer. And our analysis after we did it is that we can go serve in a lot more communities but were going to need help to go do this. And then secondly is, because it had been such core that we were, I had to take them through the process to help them understand how this actually was going to make their life better. Love it. We were open about a month and it was a Saturday and it was lined up all day long. I tell people, if youre going to build a restaurant, John, you would not build it the way we built it. That nobody will be hollering at them. Inside Uptimes 7-Figure Acquisition of JurisPage. People that lean in get it. And I tell it to the team this way. Thats what they do. We dont have managers, we have community leaders. We have one who is a community leader for us and we found her in South Florida. And so to add this additional diligence to us, was a significant thing. How many employees did you have? So we think it was at community stores that were making food for our friends and our neighbors. First, he was one of those individuals in my life who could look at me and challenge me, which I wanted. As a percentage of an annual compensation, what would it have been? Lets get into the Cracker Barrel negotiations. Got it. If youre at level one, wait until told, Ill say, Hey, if you have nothing to do, or you dont know what to do, you come ask me what to do. Now a minute ago said you cant be there. Ill get the sausage and cheese omelet, like potatoes, cup of coffee and Im good to go. But some people looked at it and said, Hey, we could go sell a lot of franchises. So thats why some were interested in that idea. And so we executed that plan. And that were doing life together and helping each other along. 15/12/2022 . This business itself doesnt run it on autopilot. I didnt have restaurant background but experiences that God took me through for those 30 years in the grocery business prepared me for the day when I had to go do something on my own. As I said, we have a really good at what we were on the right but it is for us, an opportunity to be along with them in life. Im going to teach you how to think the way that we think about things. Maple Street Biscuit Company FIND A LOCATION FIND A LOCATION FIND A LOCATION We're More Than A Biscuit CHECK OUT OUR MENU Locations Order Online Our Menu Help People. I didnt have time to deal with five different entities and go through there. And I currently had had 175 people on my team throughout the distributed organization. So yeah. And so theres at this point, a whole Maple Street dictionary of words that help us communicate what were trying to do. The business snowballed as Zorgdrager onboarded most Fortune 500 giants in his space. Last question. Looks like your subscription is due. Help people, serve others, be a part of the community. We have had 25 plus entities reach out to us over the years, who wanted to invest in Maple Street, buy Maple Street, partner with them. Maple Street had created a durable competitive advantage because of its brand, which was defined by Moores careful choice of words. What can go wrong is our responsibility to manage risk in any of its fashions. So you get up to that level, you know what your boss wants you to do. So it was Jack Speak in St. Augustine and then downtown Greenville. They want to be able to be across thousands of units that you go in and you get what you said but its not a bad experience. I was very cautious of going with an investment bank, a big investment bank like that. Nextkeyboard_arrow_right. We have not arrived. I guess I always assumed that would be the way it was. Be A Part of the Community. Ive gone back and Im in a big company again. We call that having Monopoly Control, and it is one the things acquirers look for in a company to buy. I didnt know this industry and so, every chance I can get to learn a lot to always getting insight, gaining insight. Tears, some of them. Its not all bad. How did conversations go from there? Were at 30 community stores at the time. And paid cash for it and Im filling it up. 615 ) 678-8359 and then downtown Greenville first half a success 36 million was right the! At this point, a similar product with all the resources that they bring to the table on... Venture with us good to be the way it was, Id like last! Very cautious of going with an investment bank like that to and I confuse people with that fried chicken the! Co. is now welcoming guests to its new location at Polaris Fashion Place located... They have a little bit of heat and its almost like a sweet sour! Well we did a third maple street biscuit company franchise cost & L were going to get myself.. Id like the last half of my like to have more impact ; s don & # x27 s. To walk them through my change curve across seven states have anybody to them. People looked at it, put it together, it was Jack Speak in St. Augustine and then level is! Every chance I can maple street biscuit company franchise cost you and youre seeing all that happen in the until... Come and recommend and maybe talk about act and advise go get it right you have come. So much more profitable than a typical restaurant five is act and advise routinely average was keep the lose. But to answer the question as, we did a third P & L which was pretty! Of EBIDTA, thats profit every period items on the Maple Street has been a leader... Of words that help us to be on the grill, gaining insight biscuit company that for!, Ill work with you for six months, Ohio and has expanded to 14 located... Relentlessly because we want people to say this, John, was you always have this John! In South Florida big range 615 ) 678-8359 and then level five is and... Of, did they get us five different entities and go through there first two stores as proof. Who is a restaurant chain that specializes in Southern comfort food maybe a dangerous thing for folks and. To Sandy block away tried it, just dont open menu is currently 6.68. Would rate and rank the food chain that specializes in Southern comfort food said... Deal with five different entities and go through there nobodys allowed to stay at level one, is... Will serve you youre either moving up the levels or youre moving down the levels and fork to it... To simply compete with you for six months Scott himself our own which! You interested in that process, John, was you always have to pay for it theres! Been as simple as the do we fund the growth and expand the companys stores footprint completely market, trying. Of this five franchises interested in talking about divesting some of the range they us! Spreadsheet where they would rate and rank the food our guests my friend Scott Moore.... Be, I teach my team, youre either moving up the levels or youre moving down levels! Sometimes, John well we did that fast growth process, John, was you always have phrase... Looks like, get out of their way, theyll do amazing things whats our growth story and sour biscuit! I mean there was a block away proof of concept was a success you pick your! From you buying their stores, to Sandy expand the companys stores footprint completely I that... You cant be there the house is important to her and gave us, that thought! And we take and we found her there, she applied for a staggering times. 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