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. And its romancing the food. At the same time, they wanted us to be reminded of this. Community leader is somebody who gets our heart and our mission. Level three is recommend and take resulting action. And we talked about what this meant to them individually. I mean it cant all be rainbows and unicorns. Help people, serve others, be a part of the community. Maple Street Biscuit Companyhas targeted AUVs of $1.0+ million and targeted store-level EBITDA of 17%+ of net sales. One is, if were just average, we just do what everybody as an average does, what would that look like based on our expected expenses for rent and insurance and all the things that would go into P&L. Because when did you start Maple Street? I will tell you, I did get challenged when we went to Chattanooga, Tennessee. Meaning he thought you had too much of it, or not enough? They called it The Maple Street Biscuit Company and offered what they refer to as comfort food with a modern twist.. Absolutely. The shareholders I had at the time certainly challenged me about why are you going seven hours away? What Do You Need From The Sale Of Your Business? And if enough people like our opinion, we have a compelling concept. Scott and Tara figured this out a year ago, thats what were going to need to do. We had 33 community stores and we only had 13 people on the whole family support team. And how do you reconcile in your own mind, the trade offs of continuing to run as an entrepreneurial leader in a bigger company. And thats kind of what happened. Youve worked in a big company for 30 years. Its like three letters for every two syllable word. And its good to have accountability. The company quickly took off after Crumpton landed a prominent blue-chip client. I might would have to go hire a CEO to run my company. With our growth, we really needed I mean we were doubling the size of the company in when 12 months. The model was built and it could flex to whatever those tables were, in trying not to lose money. How big a financial impact would that have been for you personally? Scott Moore, thanks for joining us. Thats why Maple Streets a mission company. In this industry, people many times live week to week. I mean, with all the resources in the world, why wouldnt they just compete with you? And I confuse people with that sometimes, John. And we went through a very detailed process of, did they get us? Ill get the sausage and cheese omelet, like potatoes, cup of coffee and Im good to go. There were some that had been on the Maple Street initially that it was a little bit of a shock. So from this little scrappy startup that was every nickel, dime and dollar just to earn the right to go do some more, to be in a position where we have no debt is such a freeing thing. Cant you be there when I can get there?. I went home and I thought about it. In 2002 Chuck Crumpton started Medpoint to help businesses bring medical devices and pharmaceuticals to market. Then I did a second P&L that said, hey if this thing really took off, would it even be worth it? But we werent telling anybody. Why would Cracker Barrel this NASDAQ traded hundreds and hundreds of stores be interested in little Maple Street? Its amazing when you ask that question and then you just get quiet and listen to people, how much theyll tell you. That said, we wanted it to be approachable food. Fresh Squeezed OJ NEW COMMUNITY STORES 2023 Pour maple syrup mixture into pie pan and place biscuits into pan in tortoise shell pattern. Then a third. And so thats our responsibility, was to go find a way to serve in more communities. Because we had been doing this on our own for years. And so that was the first set of funding that we did. Because being sustainable is from an environment perspective certainly. Mariel in fourth and Chatanooga and testing those questions is, my wife knows this is true, meaning that I just dont know how to stop. Maple Street Biscuit Company was founded by Scott Moore and Gus Evans in Jacksonville, FL in 2012. I gave them 30 some choices on names. One of those principles, comfort food with a modern twist, weve had made consistently. I have a very simple leadership philosophy. And one of the lessons I learned through that growth process, John, was you always have to focus on the business. For me, we had no expertise in doing the waiter/waitress model. And then we take a goat-. They were in turnaround situations and struggling. I had the Double Down Ralphie Deluxe, flaky biscuit, sausage gravy and two over easy eggs. Them looking at potentially acquiring you guys? Last question. And then implement it, youre investing before hand. Maple Street Biscuit Companywas founded by Scott Mooreand Gus Evansin Jacksonville, FLin 2012. Yeah. And what were they playing out. And then based on what they thought the strength of the brand was, on top of that. A lot of franchise's don't deliver, but this newly opened restaurant definitely does. Im writing this down on a little piece of paper. By 2010, he was able to take a six-month sabbatical which ultimately lead to a salein 2010 with onlya six-month earnout. And have resources Ive never had before to go do it. You get to make our house-made biscuits just like grandma did, but better! And then Ill go figure out what Im going to do. And they actually convinced me, the restaurant division, that they got who we were. Why not just keep it a lifestyle business? And Im going to make you give me an answer. I was an elder in the church. And our communitys been so great to help us to go do that. And for me, it was my whole MBA. We invited my friends and neighbors over to my house and we would make food for them. And so we had made that decision but we didnt move on it because that takes significant resources, to hire, train and implement those leaders. A lot of guys that age would be like, Perfect. Ill have to go look that up. How many employees did you have? I filter everything through those lessons of initiative and freedom. And that means grace has its limits. Nobodys allowed to stay at level one, which is wait until told. 4906 FM1463 Suite 700, Katy, TX 77494 And so I reached out to a guy who worked with me in the grocery business and said, I need to put this five year plan together. They were just a handful of stores and now all of a sudden, theyve got 25 across the Southeast.. So we fold that in, into layers. And so folks in that world theyd start life changing amounts. creamy wild rice mushroom soup It was in turnaround all the time and we kept bringing in these consultants. You ensure everyone is living out our mission and our principles, and that the business is profitable. Some of them got 80% of their annual salary. We brought her on. And so many accolades came out there at ten. Thats why you have an open kitchen. He said he could look over the years and connect the dots. Then based on my takeaway, I need to make sure I create space in my life for people to challenge me and to have the ability to say no. So we went to Chattanooga, Tennessee. And that she believed in me enough Because the house is important to her. Or the second write up I guess because you had the second one there. They could be the ambassador, they could go put stuff on the grill, they could go to the deli and make the stuff and bring it on the counter and call it. 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. 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. But you are? They have to explain to you why were doing it. Tell me about Maple Street. How big did you get the business before you decided it was time to sell? This is where Piper said, You get the best prices when you get a strategic partner. That somebodys not looking to buy you as a risk asset. But you think words are important. Yum! And I tell people this, If I can trust you but youre not very teachable, we can do a few things. And I had a restaurateur come into our store and say, You know you cant do that. He said, If you did paper and plastic, yes you could do that. Not only that, my names no longer on the piece of paper and so is no longer at risk. We should earn freedom. You have a Family Support Team that will guide you in the way to do things, but the store is YOUR responsibility. Is that okay? They all said, No, people get it. 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. But that was a growing process for her too. Because at the end of the day, the acquirers going to make a very simple calculation. Thats a great story to go tell. 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. And I understand what those looked like. I wish about the eight hours they come to Maple Street to be the place where they can get some rest. Its not our go to market strategy. And so what would the range be that they would typically quote? And so we executed that plan. He was working at the Volkswagen plant and didnt have restaurant experience but our model is designed that we go teach them. 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.. And so I sat there in these restaurants and I would count how many people came in every hour. Youre concerned about their concerns and they just give you freedom to go do it. Youve been flirting with one another back and forth a little bit. This could be a sort of like rocket fuel underneath our business. That Ive had it but Ive never had it that way before. And I mean there was a point when we did that fast growth process that I realized that this job could outgrow me. Which I was excited because that meant we could continue to create our mission and that I could go do this with a lot more community leaders and serving a lot more communities. And how we show grace to our guests. The concept is based on delivering a unique guest experience involving comfort food with a modern twist and gracious service. And prides one of those. And we should execute our model relentlessly because we want to go change lives. And added the sales in City Center, Chattanooga, for the first 100 days theyd been open. Wow. And so I would walk across around the block theres a Panera that was a block away. So we talk about grace and how we show grace to each other as team members. Help people. We were doing the six days a week, it was fine. You know that food. So anything that I had was mine. We found her there, she applied for a job as community leader. Or whats the best way for people to-. 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? And Id say that she trusted me to go get it right. And so I did a Zoom with the community leaders. 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. And I offered, say, Hey, if private equity group comes up and says hey, we like it and its the right offer but they want their own leader, Im willing to step aside. And so you come to there, its approachable. 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. And they were within 1000 dollars total sales for the first 100 days. 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. We bake those fresh all day long. We werent but for entities that are, or somebody whos just looking to buy it to flip it in a couple of years. So on our website, theres a section where they tell their story. Does it ever feel like, oh my gosh, Ive gone back, its Groundhog Day. Every month it changes. But gracious service is something more. And specifically, people who had maybe been on the journey that I He had seen me through that little journey. The last company that brought me in, in an HR role and But going through those experiences provided me insights and learnings that when the time came I needed to go do something on my own, those lessons were very valuable. So wed walk over, thered be people. But she did say, theres another role were creating and you could post for that, raise your hand for that and if you get it, you can keep your compensation and which as an officer of a Fortune 100 company is fairly significant. And we got to know her and she got to know us and we thought we could go do something. I was very cautious of going with an investment bank, a big investment bank like that. It currently has 28 company-owned and five franchised fast casual locations across seven. It sounds amazing but the skeptic in me is also saying, But what happens when you have an employee who drops the ball, whatever? I mean if we doubled what we thought we would do in sales, is it really going to be, this is a great thing? You get freedom My team, my executive team, they go do good. Maple Street, youre a company to communicate with. So the community has helped us name the company and even helped us name the food as we went along. Weve been able to help her get her credit turned around, to have her own home. And now shes going to help other people. If people around there, maybe we can win them over? In this episode, Stephan Spencer details three strategies he pursued to withdraw from his businesss day-to-day operations. As a community leader, you get to run your own Maple Street. And I came back and told her, Thank you but I want the last half of my life to have more impact than the first half. I didnt even know what that meant at the time, John. Did you have a sense before that conversation started, how a company like yours would be valued? We dont have managers, we have community leaders. And what they came back with was amazing how everybody understood who Maple Street was. And he talks about how you go from being the manager to managing managers and what that looks like. 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 thats why Yelp has, every year ranks the top 100 restaurants to eat at in the United States, based on guest reviews. First, he was one of those individuals in my life who could look at me and challenge me, which I wanted. Thats where Piper was a value to us. But we ended up really being that wow P&L and earning the right to go do more. Three years later, JurisPage had service contracts with more than 200 law firms when they got a call from Uptime Legal, an Inc. 5000 business specializing in technology and practice management software for law firms. Scott started the Maple Street Biscuit Company and sold it to Cracker Barrel for a cool $36 million. And then it has a community leader still have half the day left to go enjoy the day. Really quite a thing. On top of that, we take an all natural chicken breast. They didnt know everything that I knew about, if were going to serve more communities, what that would look like. But when I go to peoples houses and I have dinner, I pick up my plates and I take them to the kitchen. Thats the ultimate endorsement. Please renew to keep using our services. And he had earned the right, to really make me think about what drives me and what are the qualities that could put me at risk in life? That the experiences he had prepared him to go do what they did at Apple. Externally we call them team members. About a year ago though, our lead ambassador, chief people officer and I realized we needed a more sustainable leadership model. Wait, wait, yes. And I will say this, that the one thing I dont know is how to stop. Its got a little sweet, a little bit of heat and its almost like a sweet and sour chicken biscuit. And it was really from us as business people. It was 2012? But it just never came up. Pete Martin built EntryPoint Consulting to 34 employees when he sold it to KPMG for a staggering 12 times earnings without an earn-out. Are we committed to it? Love it. That nobody will be hollering at them. And since it was a second gen site, it was a former Moes restaurant, and they had just left everything that was in there. It started with one pizzeria still located in Whitehall, Ohio and has expanded to 14 stores located in. But we wanted a menu that was built in such a way that if you liked what we had, you had to come to us to get it. So I think that parts good. And so, we use terms So we have four principles which guide us. Thats what we wanted to do. And our guests were telling us, Cant you open on Sunday? So yeah, its been interesting because money is important at the end of the day but these folks get the mission so much, that if I dont start every conversation with these community leaders around our mission, theyre immediately like, Where you going?. A second store worked well too. And so I ended getting responsibilities for operations with HR. The Maple Street Biscuit restaurant as it opened Tuesday morning in San Marco Square. How did you finance the growth? Cracker Barrel didnt just buy a biscuit company. And Im not saying thats bad for people who call their leaders store managers. Maple Street had created a durable competitive advantage because of its brand, which was defined by Moores careful choice of words. 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 dont remember the number now, what it was. 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. According to the CEO of Cracker Barrel, Sandra Cochran, they admired the Maple Street . What are the seven levels, just real quick go from the bottom, up to the top. 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. Sandy, the CEO, is very committed to the mature brand, not putting their influence and fingerprint on this startup growth story brand. The average price of all items on the menu is currently $6.68. All this while producing a Sustainable Business. And we have some promises that we make and one of these is, its a safe place. Yeah. Serve others. So I told my partner, I said, Were going to spend 35 thousand and were going to remodel it in eight weeks. It currently has 28 company-owned and five franchised fast casual locations across seven states. They like what weve done. What in the business world they call the first write up, right? And we talk about it like we love it and thats how we describe it when were talking to our guests. Amazing. And so nobody at Maple Street refers to anybody at Cracker Barrel, except for me. We need to consider others, well come back and talk about that. And so for us, those words communicate thats more than Im just managing something. The second store, I put up the dollars for it as well. Its the most inclusive place. I dont know what theyre doing every day, every week. And then there was the Loaded Goat, which had the biscuit with the fried chicken and the goat cheese. And they brought in their own executive team, which they should do. Good business people earn the right to go do more good. Unfortunately, the deal was too good to be true. But then I had the Zoom video call where we could see everybody, make sure everybody was there. Well, the answer comes down to how well you branded and differentiated your business. And Im like, okay. And ask them if theyd put it in the dirty dishpan. So the Squawking Goat is one of our favorite ones that people ask-, Then this will be a favorite. Ill tell you, that what is built a fire under me. 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