Advice Line with Pete Maldonado and Rashid Ali of Chomps
Digest
This episode features advice from Chomps founders Pete Maldonado and Rashid Ali, Yadi's Artisanal Empanadas founder Yadi Dhariz, Noble Pies founder Zachary, and Achigan founder Josh Schrenko. Topics include navigating product recalls, scaling artisanal food businesses, expanding into retail, building lifestyle brands in niche markets, and the strategic transition to full-time entrepreneurship. The discussion highlights the importance of consumer safety, strategic growth, community building, and managing the challenges of business ownership.
Outlines
Introduction to Chomps and Business Advice
Guy Raz introduces the "Advice Line" with Chomps founders Pete Maldonado and Rashid Ali, discussing the protein market and Chomps' position. They also share their experience with a challenging product recall due to potential metal contamination, emphasizing their commitment to consumer safety and the resulting process improvements.
Yadi's Empanadas: From Teacher to Entrepreneurial Growth
Yadi Dhariz transitioned from teaching to founding Yadi's Artisanal Empanadas, focusing on high-quality ingredients. She discusses her business's significant daily sales and seeks advice on expansion strategies, including opening a second location or increasing distribution, while considering her current location's ownership and campus seasonality.
Noble Pies: Overcoming Financial Crisis to Bakery Success and Retail Expansion
Zachary recounts how Noble Pies, specializing in pies with all-butter crusts, emerged from a family financial crisis in 2008. The business grew from roadside sales to multiple retail stores and wholesale partnerships. Zachary seeks advice on entering larger retail markets like Whole Foods and Target, with discussions on capacity, distribution, and demonstrating sales growth to buyers.
Achigan: Building a Niche Lifestyle Brand and Transitioning to Full-Time
Josh Schrenko introduces Achigan, a lifestyle brand for smallmouth bass fishing enthusiasts, which has expanded from apparel to include an online board game and lures. Josh seeks advice on transitioning to full-time entrepreneurship while managing financial responsibilities, with guidance on focusing on high-revenue products and scaling production.
The Power of Niche Communities and Founder Retrospectives
Guy Raz reflects on the success of micro-brands within niche communities. Chomps founders Pete and Rashid offer retrospective advice to their past selves, emphasizing the benefits of initial ignorance, patience, focus, and preparedness for business challenges.
Keywords
Product Recall
The process of withdrawing a product from the market due to safety concerns or defects, crucial for consumer safety and brand reputation.
Artisanal Food
High-quality, handcrafted food products made with traditional methods and premium ingredients, emphasizing unique character and craftsmanship.
Wholesale Line
Products offered to other businesses for resale, involving bulk sales at lower prices to retailers or distributors.
Lifestyle Brand
A brand that embodies the values and interests of a consumer group, creating an identity and community around a shared passion or lifestyle.
Niche Market
A specialized segment of the market focusing on a specific group of consumers with unique needs or interests, fostering deep engagement and loyalty.
Scaling Production
Increasing business output to meet growing demand by expanding capacity, optimizing processes, and investing in resources for efficient production.
Cash Flow Management
Monitoring and optimizing the net flow of cash in and out of a business, essential for operational stability and growth.
Proteinification
The trend of adding protein to various food and beverage products, catering to consumer demand for higher protein intake.
Q&A
What is the "proteinification" trend, and how does Chomps fit into it?
The "proteinification" trend involves adding protein to diverse food and beverage products. Chomps, as a grass-fed meat stick brand, offers a natural protein source and aligns with this trend, while also considering potential consumer fatigue with overly processed options.
What was the biggest challenge faced by Chomps, and how did they handle it?
Chomps faced a potential metal contamination issue, leading to a large product recall. They prioritized consumer safety, conducted an investigation, and implemented stricter processes, ultimately strengthening their operations.
What advice did Pete and Rashid give Yadi regarding her empanada business expansion?
They advised Yadi to consider a food truck for flexibility and explore commissary models with delivery options, targeting specific locations like bookstores or coffee shops for strategic scaling.
What strategies did Noble Pies use to differentiate their frozen pies in the market?
Noble Pies differentiates through all-butter crusts, scratch-made fillings with minimal ingredients, and sourcing locally, positioning their pies as a premium upgrade to existing frozen options.
What advice did Pete and Rashid offer Zachary of Noble Pies regarding breaking into major retail?
They emphasized demonstrating strong sales velocity and repeat customer rates to buyers, suggesting initial focus on a specific region or limited stores to build a case study before broader expansion.
What is the core concept behind the Achigan brand, and what is Josh's main business challenge?
Achigan is a niche lifestyle brand for smallmouth bass fishing. Josh's challenge is transitioning to full-time entrepreneurship while supporting his family, requiring a clear strategy and capital to scale the business.
What advice did Pete and Rashid give Josh regarding scaling Achigan and going full-time?
They recommended focusing on high-margin products like lures, scaling production, and understanding market potential. They also suggested that one co-founder could go full-time while others support part-time, as the business needs full-time attention to scale effectively.
What is Rashid's key takeaway from Chomps' early days, and what advice does he offer?
Rashid believes initial ignorance was beneficial, allowing organic decision-making. He advises patience, focus, and preparedness for the inevitable challenges of the business "roller coaster."
Show Notes
Today’s callers: Yadi from New York thinks through an expansion strategy for her college campus-based empanada business. Then, Zachary from New York looks for ways to break into big retailers with his fresh-made frozen pies. And Josh from Indiana wonders how to go all-in on his small mouth bass lifestyle brand without overhauling his family’s lifestyle.
Plus, Pete and Rashid reflect on the ‘protein-ification’ of our food, and how a scare last year reaffirmed the importance of doing right by the customer — no matter the cost.
Thank you to the founders of Yadi’s Artisanal Empanadas, Noble Pies, and Achigan for being a part of our show.
If you’d like to be featured on a future Advice Line episode—where Guy and former show guests take questions from early-stage founders—leave us a one-minute message that tells us about your business and a specific question you’d like answered. Send a voice memo to hibt@id.wondery.com or call 1-800-433-1298.
And be sure to listen to Chomps founding story as told by Pete and Rashid on the show in 2023.
This episode was produced by Kerry Thompson with music by Ramtin Arablouei. It was edited by John Isabella. Our audio engineer was Jimmy Keeley.
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