ful about all the options. There are lots of places to get money from investors, but it’s harder to do it under time pressure when you’ve got to make pay- roll. There’s a lot of information out there, but you need time,” she said. Govindraj said that in addition to operators find - ing the time, there also needs to be normalization of these alternative sources of financing and under - standing what questions need to be asked to find the right source. She added that more such conver- sations have taken place since the pandemic. Kless said higher interest rates have also accelerated the conversation. “The reality is up until a few years ago money has been basically for free. You have a lot of inves- tors from wealthy individuals and family offices up to pension funds, including institutions looking for sources of return, that’s really helped the alterna- tive investment space,” he said. Miller said it’s important to continue accelerat- ing the conversation, adding that only about 20% of emerging brands have taken on some sort of pri- vate equity funding. “We have to build through alternatives and nor- malize it,” she said. “Think creatively. Then look for alternatives until you’re large enough to attract tra- ditional financing or PE.” And, be patient. “It’s so much harder today than it was 15 years ago. You’ve got to be willing to get kicked in the face a few times before you get your first check,” Majew - ski said. It is a hard market, but it’s not impossible, Peskoe added, because of the growing interest from alter- native financing sources. “We have left a period of FOMO – a fear of miss- ing out, where investors were afraid they weren’t in the right deal. We are now in a period of FOFU – fear of f*cking up, where you could be blamed for deci- sions later. You’ve got to be patient as an operator,” he said. Peskoe said his company is unequivocally fo- cused on cash flow, while Lakhani said Elliot Group focuses on culture. “Turnover can be the most distracting, disrup- tive thing. You can have the right real estate, food, you can be organized, but where is the company in terms of its leadership? Are they aligned as a team?” Lakhani said. Team alignment typically leads to stronger align- ment with an investor. “The biggest thing is that expectation gap. In any big deal, you know both sides are coming to you for a reason. The owner needs that capital to grow, but they have to make sure everyone understands what that’s going to look like on the other side, that visions are aligned, goals are aligned, and every- body works well together,” Gannon said. The Investment Summit was supported by Gold Sponsors Savory Fund and inKind Capital; Strategic Alliance partners The Elliot Group; and additional Sponsors Landed, The Largo Group, and Golen- bock, Eiseman, Assor, Bell & Peskoe. • INVESTMENT SUMMIT •
INSIDE THE INVESTMENT SUMMIT
The second annual Nation’s Restaurant News Investment Summit brought together leaders of emerging restaurant brands with the investment community, providing a unique environment for networking, education, and exploration of growth capital opportunities.
COOKING FOR A CAUSE Four talented chefs go head to head in the 12th annual Texas Pete Kitchen Hero Cook-Off at CREATE, putting their creativity, skills, and adaptability to the test. Watch as they craft mouthwatering dishes under pressure, all to support Share Our Strength’s No Kid Hungry.
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