SPEAKER_00: 0:00

Welcome to another edition of Give and Ovation, the Restaurant Guest Experience Podcast. I'm your host, Zach Oates, and each week I chat with industry experts to uncover their strategies and tactics to help you create a five-star guest experience. This podcast is powered by Ovation, the feedback and operations platform built for multi-unit restaurants. Learn what's actually happening in your restaurants and exactly how to improve while driving revenue. Learn more at ovationup.com. And today we have what seems to be on the surface, a very quintessential guest that we would have. He's the founder and CEO of Rush Bowls and Rush Bowls franchising. He's been doing some amazing stuff. Andrew Padalov. What's up, Andrew? Having a great day. Great to see you. Happy to be on your show. And the reason, Andrew, uh give you a bit of a hard time is because while on the surface, you seem just like the quintessential guest. You had a stint outside of the restaurant industry. Now we're going back 21 years because you've been at Rush Bowls for a long time. But when I sat down with you for dinner, your journey into the food business was just like so interesting. I would love for you to share how did you get from where you're at to where you are? Sure.

SPEAKER_01: 1:13

Yeah, I have a couple of lives basically. Uh so earlier in my career, and to midpoint in my career, I would say, depending on how you define your career, I was global head of fixed income derivative trading in New York City. Wait, sorry, I fell asleep.

SPEAKER_00: 1:29

You were fixed the ice.

SPEAKER_01: 1:32

I was a gambler for the banks. Okay. I was a professional gambler taking uh positions on behalf of the bank, not brokering, actually taking the positions for the banks in very interesting structures, derivative structures, they call it. So placing bets for a lot of different banks and generating returns on them and providing services for institutional customers that needed to handle the balance sheets in certain ways or handle income in certain ways. So it was a specialty that would involve currency, interest rates, futures. So it was pretty involved, and it involved very large large-scale trades. The smallest trade I ever did was 20 million. So up to a billion.

SPEAKER_00: 2:19

When you were like, hey, fam, I got an idea. Why don't we leave all of this money stuff behind and sell food? I'm sure they were like, Andrew, do it. That's amazing. What a good idea. How did that conversation go? Going from like finance, which is just like so stable, to something that is just what a crazy asset to have a restaurant brand.

SPEAKER_01: 2:43

Well, a couple of things. It's not stable. If you're generating revenue, and I was, it's stable, but very few people can do that for an extended period of time. So my shelf life at that type of position was nearing an end. But the trigger really was 9-11. So I was working in New York City. My wife was working, she was in the tower in '93 the first time they bombed it, and that was pretty harrowing for her. She was really high up. Wasn't my wife at the time, but 9-11 was her first day back from eternity. She was in the 20s. I was in midtown. She actually saw the plane crash in. And one of my good friends worked at Cannor. He jumped. Oh my god. It was pretty catastrophic for us, really emotionally. Living in New York City, too. There was anthrax warnings. You couldn't take the subway. You had to duct tape your windows. It was pretty harrowing on all levels. I wanted to interact with people more. So when you were in that position that I was in, you're taking big bets. You're yes, mine, yours. There's not a lot of interaction with customers, and it's very curt. And I really wanted to move out of New York, do something totally different that I had no knowledge about, and build it from scratch based on my abilities. And I wanted nothing, the industry that's very different. I wanted to really challenge myself and really create a different environment for my kids to grow up in. So unfortunately for me, I pick food, which is one of the toughest industries you can pick. I think certainly banking is a lot easier, I would say, but food is definitely more interactive, more interesting in many ways, and more fun.

SPEAKER_00: 4:22

What an incredible story and the journey to get in here and realizing that this is all about people. I mean, I often talk about when I do my keynotes, I talk about the famous quote that many people climb the ladder of life only to realize it's leaning against the wrong wall. And what good does it do to climb this ladder if you get to the top and you're like, wait a second, everything that's important is on that wall. And it often takes something pretty dramatic happening in our lives to push us to make that change. I mean, you look at people that are unhealthy and they go to the doctor and they're like, hey, you've got two years to live, and they turn their life around and things like that that take it. But it's like, how do we have that mentality every day on keeping what's important? And over the last 21 plus years, how have you kept that mentality of putting first things first?

SPEAKER_01: 5:18

What you said was really important in my life, right? So, and it's very telling the highs were lower and the lows were lower. I was running a big trading group. I had really a super high position at the bank and banks. And it wasn't about money, really. They paid me well for what I did that afforded me to change, but I wasn't happy on a lot of fronts. And 9-11 just brought that together. So when you say the latter's leaning against the wrong wall, well, early in my career, it's the greatest life in the world. You're treated like a rock story. But after a while, it's not as meaningful. And I wanted to do something that was meaningful. And I had little kids and I saw what they were eating in New York City, and it was a hot dog, grilled cheese, pizza, chicken fingers. That literally is what I'm ordering for lunch today. It's on its way right now. So yeah. I wanted to go into a college town. Boulder is known to be a little more health-oriented and really change how people are eating. And that's how I stepped into this role and created the bowl concept 21 years ago, and no one was doing bowls.

SPEAKER_00: 6:27

Yeah. And it's amazing to see how this has boomed and this concept is just from this little seedling. Because at the end of the day, when you're looking at health and you're looking at what you're doing and what you're building, like people want to eat good and feel good and feel full. And looking at your menu, that's what you're all about. And so when you think about this in the perspective of the guest experience, and it's kind of interesting because you've lived in the restaurant industry long enough that you're no longer a finance guy, but you're a restaurant guy. And when you think about the guest experience, what do you think the most important aspects are? And are there any lessons that you've learned from finance that that have carried over, or have you had to like start fresh when it comes to the guest experience?

SPEAKER_01: 7:14

Well, two things. Finance was incredibly important for me running my business. I think you can't underestimate the importance of understanding COGS, understanding running a business, how to make it profitable. I came into this with a very different approach, and I think it was very, very helpful for our success. In terms of customer experience, I've learned a lot, but I will tell you it's changed a lot too. And people always want that interaction. They want to feel like that's their friend when they come into the store, right? They want to have that personal connection. And at today's day and age, that's really hard because the consumer still, I think, even striving for it more and more, but the employees are so it's a more of a challenge for employees because they're so used to being on their phone, are isolated. And I see a very divided society in many ways because everyone's insulated into their own worlds, whether it's phone, social media, whatever else. And how do you convert that and make the employee interact more with the consumer and make the consumer happier? Because on a consumer side, they're looking for that interaction. I see it every day. And the consumer to me, they're telling you everything. They're telling you, which is great for your software too, but they're telling you, hey, I like this product, I don't like this product. You didn't say hi to me, I'm not happy about it. Like, or this is the greatest employee ever. And for us as a company, it's for us to make that consumer as happy as possible.

SPEAKER_00: 8:54

Yeah. I mean, I love that. And if you think about that from the perspective of everyone is striving to make the guest happy, what does that look like? What does that look like when someone comes in and hey, you made my bowl wrong? Do you argue with them? Because, or do you just say, Great, let's do that again for you? Or someone messages in and is like, hey, you forgot my toppings. It's like, how do you make that right? How do you make them happy? And I was actually just at a Dave's Hot Chicken conference, and it was really interesting to see them, while not the most healthy food, they also are trying to be like a genuine, authentic company. But one of the big things is like they just say yes because is it worth fighting a guest over a five-dollar thing off of the principle of it? Or just like just make them happy, right? Because the power that a negative review has is just dangerous. I mean, it's gonna hurt your business genuinely.

SPEAKER_01: 9:51

Listen, the consumer's always right, it's an old adage, but it has to be treated that way. And in a franchise system, too, it's a little has its own complications because you have a franchisee who may take it personally, may be like, well, I serve that person perfectly. I don't know, it's not worth it. And it's really still a customer service business, right? So they have to and we have to always have that mentality for a successful business that the cons customer is right, even if they're wrong, they're right. Our job is to make them happy. And if they wanna, they don't like the bowl, who cares, honestly. For us, it's 25-30% cost of goods, labor, whatever it is. What are you giving up? But if you give them an argument, you're not changing their minds, right? It's almost like a political argument with whoever you're supporting, you're not gonna just convert them because of your beliefs or you feeling you're right.

SPEAKER_00: 10:50

Right. When's the last time someone said you are so dumb for voting for that person? And they were like, I never thought of it that way. You are right. I'm gonna switch my political views. Like, that's just not how it happens.

SPEAKER_01: 11:03

Right. And I think it's the same thing with food, right? And as people are more and more isolated in their environments, their opinions are not gonna get softer, let's put that.

SPEAKER_00: 11:13

Yeah, I think that's a really good point. So, what are some tactics that you've used to improve the guest experience?

SPEAKER_01: 11:20

Well, first of all, real and genuine. I mean, number one, be real, be genuine, interactive. We even script people because I know that doesn't sound real and genuine, but it at least initiates that conversation going, right? I view our restaurants as healthy bars, basically, serving healthy food without alcohol or anything negative. You know, we're unique in this position because everything is customizable. There's no strawberries, no added sugars. You can make it, whether you have a dietary need, an allergy, any which way. With that type of product, it's really impairing to the consumer. The consumer has to also understand you want strawberries on top, you want blueberries, you want coconut. We're here to please you. Have it your way. I think Burry King was really smart early on with that. That's our same philosophy. Most of our competitors in this space have a pre-made sugar off sugar ice cream, basically, base or sorbet that they put fruit on. That's not us. So having the consumer really understand they're empowered. We only do real fruit, real vegetables. We don't have pre-made bases or added sugars. So it's really empowering the consumer and getting feedback from the consumer about what they want. So you kind of force the interaction a little bit on that regard, but also training the employees. We've spend tons and tons of time training employees because it is difficult. A lot of employees we hire are college age and they're looking at their phones all the time. The Gen Z stare, they call it. So it's just a blank stare, and it's not meant, it can be perceived as impersonal or rude, and it's not really meant that way. So, really redefining how we handle customer service, and we're working on that every day. We put a lot, a lot, and same thing with digital, making that as involved, making the consumer feel connected, what they want, what they like, really spending a lot of time in that arena to make sure the message gets across in every which way.

SPEAKER_00: 13:24

Well, and when you look at your online ratings, you know, 4.5, 4.8, like it's coming through. People are seeing it and they're doing it. Because at the end of the day, this is why, as you know, from a finance perspective, when PE groups tend to buy restaurants, you look at all these restaurants that have gone bankrupt, and almost every single one of them is owned by a PE group. And the reason is because they try to extract everything out by canceling programs that the guests care about, by reducing the quality of food to increase the margins, and they take a one-year, two-year bump. And then what happens? Guest satisfaction falls off, people stop coming in. And so when you do, I love that behind you says rush is real. When you're using those real things and you're trying to be authentic and you're giving the guidelines, the you know, putting the bumpers in the alley, but in the uh I don't bowl very much, obviously. But what are those things? Is that what are the gutters? I don't bother too much. But like those are things that are really gonna make a difference for you in the long run. And hey, look, if you're looking to build a long-term asset, which obviously you've done 20 plus years, it's because you do it with authenticity and with real quality. So kudos to you, Andrew. It's amazing to see what you build. I've followed you for a long time, and it's amazing to see just how consistently you beat that drum of real and you don't compromise there, which says a lot about who you are. So kudos to you, man. Now, being in this industry for so long, you know a lot of people. Who is someone that deserves an ovation? Who is someone that we should be following?

SPEAKER_01: 15:01

Besides you, um oh, come on. I don't know the person at all, but I will tell you Kevin Hotchman from Chili's. What he's doing for a brand that was not known, but was known but not in a positive light, is really remarkable. I think what he's doing is something that really he's ahead of the curve. He's basically taking business, I think, from QSR because people are now sitting down in restaurants, so it's going against the trend, and has done he he's the CEO of uh Chili's, he's Brinker International. I think he's doing an incredible job. I've never met him, I have no affiliation with them whatsoever. But when I look at companies that have rethought the business model and how to be successful, he's number one for me right now.

SPEAKER_00: 15:59

I mean, I will tell you, it was years, I mean, probably a decade since I had gone to Chili's. And I was there with one of my buddies, and I'm like, hey, where should we go to lunch? And I kind of like jokingly was like, Oh, you want to go to Chili's? And he was like, dude, it's actually good. I was like, Come on. He's like, No, let's go. We went there and I got the big QP burger. I walked out of there spending as much money as I would have at McDonald's, and I was like, I had leftovers, and it was good. So love that shout out, someone that we should definitely be following. Cause yeah, I talk about someone who's got something peeking around corners. If you are a fast follow of him, you'll probably be on pace with what's going on.

SPEAKER_01: 16:40

So yeah, I mean, it's really interesting because they are exactly your situation, simpler menu, and we're working on actually to simplify our menu too, less items, actually, but really continue with that super high quality. And he's taking business from five guys, McDonald's, all those businesses because people are now like, oh, I'll sit down and eat at a restaurant for the same price. It's really interesting because it really stemmed a tide that was 100% going the other way.

SPEAKER_00: 17:11

By the way, with that, what's your P-Mix cutoff of like, hey, this is on the chopping block? A bull and smoothie-wise? Yeah. What do you look for with PMIX percentage?

SPEAKER_01: 17:21

Well, it's all about data, right? So we look at well, 80% of our sales are bulls. So our business is a bull business. So we're still going through, you know, the bottom 15% to cut and just really stay with what sells and adjust. We're doing more LTOs, we're doing more interesting ingredients like mushrooms and stuff like that, and really kind of upping our game because you always have to be moving forward, right? Love that, Andrew. Uh, and how do people find and follow you? Rushbulls.com, R-U-S-H-B-O-W-L-S.com, rushbulls.com. All the information about the companies on there. We have 20 stores to open between the really mostly next year now, as we're the end of this year and next year. We actually have a store opening in a non-traditional store opening in Greenville. Uh I saw it. Yeah. That's exciting. I think this weekend, and we opened two stores last weekend, I believe. Which is the international market? Not yet, actually. But what's the non-traditional store? Oh, the the I don't even. I know the woman's day on it, the international market, but she's a really interesting woman, also. But certainly there's be information out on that. And then we're opening in Powell, Ohio in the next few weeks and in Scottsdale.

SPEAKER_00: 18:47

Oh, nice. Okay. Well, hey, Scottsdale, I may have to take a flight down there to check it out. Give me give me any excuse to go to Scottsdale. I'm there, especially in the Utah winter. But Andrew, for leaving the boring life of finance behind to give us real authentic food. Today's ovation goes to you. Thank you for joining us on Given Ovation. Well, thank you for having me. Always great to see you. Thanks for joining us today. If you like this episode, leave us a review on Apple Podcasts or your favorite place to listen. We're all about feedback here. Again, this episode was sponsored by Ovation, a two question SMS based actionable guest feedback platform built for multi unit restaurants. If you'd like to learn how we can help you measure and create a better guest experience, visit us at ovationup.com.