Episode 22 - Scott Hudler
Jenifer Kern: [00:00:00] Good afternoon and welcome to Restaurants Reinvented. This is Jen Kern and today I'm with Scott Huddler the CMO at Torchy's Tacos. Hello Scott.
[00:00:32] Scott Hudler: [00:00:32] Hey Jen, how are you? Thanks so much for having me.
[00:00:34]Jenifer Kern: [00:00:34] Oh, thanks so much for coming. It's really exciting to have you here. And as we were talking about before the show you're in Austin, Texas, the budding metropolis. How's it there today?
[00:00:45] Scott Hudler: [00:00:45] It's great, you know, so I've been, I've been in Austin for two years, came from the Frigid Tundra of Boston, Massachusetts for 12 years. So the conversion to it's November the fifth as we're recording this and it's going to be 80 degrees is pretty spectacular.
[00:01:01] Jenifer Kern: [00:01:01] That is spectacular and we're having a similar day, as I was telling you here in DC, where it's actually 75 degrees in sunny so our spirits are good. We're ready to roll. We're ready to roll. Well, let's talk about you and your background. If you can give our listeners a little bit of insight into your career, where you've been and what brought you to Torchy's and what you're doing today?
[00:01:20] Scott Hudler: [00:01:20] Yeah, so probably not the most linear path of a restaurant CMO but started at an agency right out of school I had a professor who said You need to go work in an agency right out of school You're not going to make any money but you're going to learn a ton He was right on both accounts and that was great And then went to uh so I actually started my career on the PR side of things So I worked at a PR agency and then went in-house with a company which still may be the greatest corporate name ever America's favorite chicken company Which then became AFC enterprises and at the time owned church's chicken and Popeye's chicken so worked on the corporate side then as more brands Cinnabon and Seattle's best coffee came in the portfolio they dropped it to just AFC enterprises and then went and worked just on the Popeye's side of the business and then got recruited up to Mars snack food in New Jersey and you know said Oh my wife And I said we're going to move to New Jersey for one year maybe two tops And then we're getting back to the South Well that was 2000 and so we stayed in New Jersey until 2007 And then instead of going back South went farther North which to a kid from Albany Georgia I didn't think there was any way you could go farther North in New Jersey but there is land up there it's really cold Um but it was awesome And uh Boston So then was it Dunkin with John Luther who was the seat The president of the Popeye's when I was there And so he recruited me up and he's An amazing man mentor and just one of the people I admire most in this world And so then was it Dunkin for about almost 12 years a variety of roles on both the you know brand marketing side digital engagement last role was chief digital officer there And then Having been in kind of the food restaurant space for such a long time I just wanted to use some different muscles and went and took the CMO role at Dick's sporting goods So from restaurant to traditional retail and you know it was a great experience and retail's tough really tough And would the main thing I learned was I missed the restaurant space I missed the speed at which it works I love the work around positioning and menu innovation and coming up with different ways to attack that So had always wanted to do something a little more entrepreneurial had worked at you know some really big companies throughout my career So wanting to do something a little different be a little more nimble and so this opportunity came up with Torchy's and in Austin Texas is a pretty awesome place to live too And my wife and I had always had that on our kind of shortlist of if anything was available in these cities And so this came up and could not be happier two years in we love love Austin loved everything about it and really have enjoyed being a part of a brand And Torchy's that is Set to really take off for this next phase of growth
[00:04:15] Jenifer Kern: [00:04:15] So back to the South you went
[00:04:16] Scott Hudler: [00:04:16] Yes I'll link to only to you know 20 years but we're here
[00:04:21] Jenifer Kern: [00:04:21] that's so cool Well several touch points there So churches we just recorded and released last week Alan McGee From Church's and Brandy Blackwell was on probably two months ago with us from Dunkin and her story about landing in Boston was hilarious too Cause she's a Florida girl Florida and a Georgia girl And she just had the funniest story about like her first day in Boston in the snow So apparently it's a big shock for a lot of people going North I'm a northerner so I'm used to it but
[00:04:55] Scott Hudler: [00:04:55] In uh in a hotel for five months with a then three and a half sorry five and one and a half year old I can't believe I'm still married but I remember the first It's like the first or second night we stayed there and I had to leave early to go to the airport to fly out and I walk out of the hotel slip on the ice just flight So it's like a movie I'm flat on my back looking up at the stars freezing cold and thinking this is what I signed up for
[00:05:20] Jenifer Kern: [00:05:20] Yeah she has a very similar story it's funny but so wow So a lot of really great brands you've worked for some big brands like you said I'm curious cause you mentioned the entrepreneurial nature of what you're doing now which is very different I assume than like a church's or Duncan maybe what are some of the things that you did at Dunkin that's helping you now and in a smaller brand
[00:05:44] Scott Hudler: [00:05:44] Yeah So I think you know the great thing about Torchy's is we are almost 15 years old So August 1st, 2021 will be our 15th anniversary so that's the team the 13 14 15 years It's awkward It's development it's growth It's maturity So I have a 15 year old son So I always say that I see growth awkwardness developed maturity at home and at work every day And so I think a lot of that process and things that we did at Duncan cause know we grew a lot at Duncan It was just different levels of growth but trying to bring some of that To to Torchy's you know it's a very entrepreneurial brand and that's exactly what I wanted to do And you know nine out of 10 times it works perfectly but in smaller organizations sometimes it is are can be a ready fire aim type of approach So just trying to bring some of those processes and planning to the table without taking away the entrepreneurial spirit is really the balance
[00:06:45] Jenifer Kern: [00:06:45] right right So let's talk about the brand Because I know it's a very unique brand and I read the background on it starting in a trailer or like a food truck And it sounds like the marketer's dream because the word of mouth was all through Twitter is what I whatever it is that true Okay So tell us about the brand and the humble
[00:07:05] Scott Hudler: [00:07:05] Yeah So Mike Repco who's our founder classically trained chef had done a lot of great things ran food service at the world bank where he you know would blend different cultures and food tasting on a daily basis And and then he always tells a story of he served the last meal at Enron as Enron was going under so you know he had kind of seen that and said you know what I want to do something for myself And had a buddy whose father had an old beat up barbecue trailer that they'd got for not a lot of money Fixed it up put it in a I'm not sure great part of town from a traffic standpoint And so the food was amazing but just it was tough for everybody to get exposed to it So Mike had a red Vesper and he wrote it drove it around town all over Austin handing out tacos in case of tacos and salsa chips and salsa to anybody that would take it And you know people would And see this guy come up at a stoplight and knock on the window and say Hey would you work Torchy's wherever here on cell first street would you like to try our chips and salsa and tacos So people would take in and be like man that's damn good And so that has become You know and then it became part of the logo very shortly thereafter And you know I'll jump ahead quickly fast forward It's now part of our mission So it's about just to be damn good So whether that's in the restaurant the way we treat our guests you know the runner knows that when they're getting set to run those tacos out to the table if they don't think it meets the damn good criteria So it out make it again go explain to the guests why it's going to take a little longer because we really want to make sure that we can keep that damn good Level of service up So started in this food trailer and then went to the first brick and mortar location a few years later And then slowly you know a couple of years after that opened the first location in outside of Austin and Dallas And to your point the way The brand was growing was right around the time Twitter was starting to take off and social media was really just growing exponentially And so it would be Hey Torchy's could you guys open in this part of Austin Hey could you guys come to Dallas And so you know a lot of college students at UT would go experience Torchy's and then go back to where they were from and talk about it and then you know requests for it to come So it's just and it has grown word of mouth Even today We don't do Paid advertising You know we'll do a little thing some on social but we're not doing big TV campaigns or anything like that we talk about the brand and the most important thing we have is the food Every weekend we can have the coolest edgiest brand ever but it all starts and ends with Damn good tacos And we think about our brand in a little different way Like we're clearly not fast food We're not casual dining And even the fast casual brush we don't feel like that accurately captures who we are So sounds cocky but we created our own positioning of what we call craft casual which has three pillars the first is we have the speed and value of fast casual So again we're are we more expensive than taco bell Absolutely Are we less expensive than some you know more casual dining type places Absolutely But if you want to come have a leisurely dinner with your friends and drink margaritas and chips in case we can do that If you're in a time crunch and you need to come in for lunch We got you covered there as well So that's the first pillar The second pillar is just the creativity and authenticity Of our menu Mike's goal When he set out to start churches Torchy's was to elevate the street taco because that's where you see so much creativity and menu And so you couple that with his classical training background and his experiences in food over the years you know we think that we have a menu and some of the unique flavor combinations then you're not gonna find anywhere else One of our most popular tacos of the month is called the Roscoe it is a two fried eggs waffle bacon and a fried chicken Tinder inside a taco
[00:11:21] The greatest doco ever so yeah so like that's the type of things that we put in then you know we put in fun unique names to them Like our number one selling taco is called the trailer park and that's you know back to our roots the first day in the trailer park And if you want a trailer park trashy you get it with case put on it So you know fun unique ways like that And then the third piece is just the craft nature of the brand So all of our food is made to order It's not sitting in a steam while waiting for it to get dumped on a plate when you order that's when we fry your chicken we put your proteins on the grill and then just the craft nature of our business So and about 75% of our restaurants we have a full bar And you know margarita is are really the driver of that And we squeeze our own lines for the margarita is we're not buying a concentrate and dumping it in there Everything's made from scratch Everything's made by hand it's all made there in the restaurant and so that craft nature of our business is a big part of who we are and who we have been and who we will be So you know we take those three things and we think that it better illustrates who we are as a craft casual brand versus fast casual
[00:12:30] Jenifer Kern: [00:12:30] that is so cool There's I mean there's so much this is what I mean when I say it's a marketer's dream right Like first of all you start with that tagline and now you're saying it's like the purpose it's your you know it's your North star It's your your purpose driven model branding right That's your purpose is damn good And when I w you know when I first saw that I just kept thinking about the food but I love how you're applying that across all areas of the business And I was just thinking like all the different permutations you could have so much fun Yeah
[00:12:58] Scott Hudler: [00:12:58] Yeah it's fun
[00:13:00] Jenifer Kern: [00:13:00] damn You're good Damn I'm good Hey it's damn good
[00:13:04] Scott Hudler: [00:13:04] It pays off grave you know talking about things that have nothing to do with the menu whether it's Hey this piece of creative the restaurant design the benefits program you know that's the filter We use it through like is that damn good Or is that just good Like and if it's just good All right well let's go back and do what we need to do to make a damn good
[00:13:26] Jenifer Kern: [00:13:26] so much fun and you stepped out and did some category creation So you stepped down and said we ha we're going to create this new category We don't quite fit into fast casual We don't quite fit in a fast food or QSR So we're craft casual Do you think other people are gonna follow in your footsteps
[00:13:42] Scott Hudler: [00:13:42] I think right now there are some smaller maybe five to 10 unit locations that you know I would begrudgingly say yeah they're craft casual too but no one's doing it at the scale that we're doing it And I think where the industry is going I think absolutely more people will try and go down that path versus just you know stamping out another quick serve restaurant or you know Casual struggling And I think you know fast casual and the others are where people want to go So I absolutely see people cause I think it's what consumers want They want to know that you care for the ingredients that you take great care that your food is made to order that Yeah I might have to wait a few more minutes but I know that it's fresh and that's what the consumers want and that's the direction things are heading So I absolutely see people following us
[00:14:34] Jenifer Kern: [00:14:34] And it reminds me when I talked to Matt Smith at tequila I don't know if you're familiar with that brand but he was talking about how they don't really fit into fat they're they're fast casual but they're an elevated fast cat experience And so yeah there are a you know a lot of restaurants I bet we're going to see new ones cropping up too that don't want to put themselves like Pinpoint themselves just like as fast casual or create their own segments So it's really interesting So the food sounds amazing
[00:15:03] Scott Hudler: [00:15:03] one of the best parts of the job is we get a hundred dollars gift card that reloads every month and the fastest I've used It was the second of the month We had some family in town and we went twice like boom Back to back But yeah it's a the other family Dines at Torchy's a ton that's for sure
[00:15:22] Jenifer Kern: [00:15:22] I bet So what's your favorite menu item
[00:15:24] Scott Hudler: [00:15:24] I liked the mr Orange which is a salmon taco with like a black bean relish like that one um a little boring relative to our menu but just a good chicken fajita tacos Pretty awesome and then the trailer park is mean It's a fried chicken pocket How can you not like that But what another thing that makes us different is we have a taco of the month every month So it's a different taco that comes in So the Roscoe that I mentioned is one then a couple of favorites there The Roscoe obviously we have one the scallywag which is a fried shrimp taco and the great thing is whenever we announce a new taco of the month on the first of every month The comments are pretty consistent Like either That sounds awesome If it's a new one or what about old taco that you haven't brought back in a while And then could you please come to fill in city here
[00:16:17] Jenifer Kern: [00:16:17] DC
[00:16:18] Scott Hudler: [00:16:18] Yes Yes on the roadmap for sure
[00:16:20] Jenifer Kern: [00:16:20] I'm surprised you not ever get the comment Damn That sounds good
[00:16:26] Scott Hudler: [00:16:26] We do get a lot of people that take a damn good uh to talk at them but yeah
[00:16:32] Jenifer Kern: [00:16:32] you have so much fun with it So now are your do you have crispy or soft or both
[00:16:37] Scott Hudler: [00:16:37] Uh so we have actually we they're both soft We have flour and corn so no crispy tacos Taco shells Tortillas Yeah
[00:16:45] Jenifer Kern: [00:16:45] And some other important questions to get out of the way here Cause you know I'm doing a tacos series so and I'm a passionate consumer So your guacamole does it have tomatoes or not
[00:16:54] Scott Hudler: [00:16:54] that's a secret I can't disclose
[00:16:56] Jenifer Kern: [00:16:56] Really
[00:16:58] Scott Hudler: [00:16:58] our Glocks Our guac is amazing I mean I'm picking it's the thing we're known for is our case our guac
[00:17:05] Jenifer Kern: [00:17:05] me that was my next question The case though is it is your case so white
[00:17:10] Scott Hudler: [00:17:10] No orange we did a white case So as a limited time product this past summer
[00:17:16] Jenifer Kern: [00:17:16] Okay
[00:17:17] Scott Hudler: [00:17:17] so yeah it's orange just a regular kind of cheese you know CAISO that it's you know we joke it's like crack it's super addictive it's amazing
[00:17:27] Jenifer Kern: [00:17:27] I'm on a plane
[00:17:27] Scott Hudler: [00:17:27] Yeah and it's got and then it's including you know the two ways you can get well there's two ways you can get our case The main way is with our proprietary hot sauce which we call Diablo sauce So our case though has the ABO sauce in it the green chili case So with Diablo sauce and then if you want a beat chorizo when it you can get it's called hillbilly style So you get the case with chorizo which is absolutely insane
[00:17:53] Jenifer Kern: [00:17:53] my husband would be all over that I'm not a big Curio fan I'm kind of like Paris with my and that's why I asked about the guac because I don't like tomatoes Very
[00:18:03] Scott Hudler: [00:18:03] yeah You didn't have you're not gonna see tomatoes in her clock No it's just it's squawk It's old school Guam Yeah
[00:18:09] Jenifer Kern: [00:18:09] Okay Cause I actually make a really mean guac myself Yeah But I'm also a guac a fishy Nado I just I love it
[00:18:17] Scott Hudler: [00:18:17] a lot of work So when Torchy's comes to DC you can just go and take that off You dusk walk around Yeah
[00:18:24] Jenifer Kern: [00:18:24] It is a lot of work particularly getting the avocado the right ripeness of the avocado and a good avocado which isn't easy and DC
[00:18:34] Scott Hudler: [00:18:34] Yeah And so that's part of the when I talk about for the brand the care that we take for our ingredients we don't just Go buy whatever's the cheapest avocado I mean we have very exacting standards on where the avocado comes from the quality of the avocado and that's you know avocado cheese everything proteins beef chicken shrimp everything we take exact care on where it's coming from and making sure that it's you know super high quality So it delivers the best product
[00:19:03] Jenifer Kern: [00:19:03] Phenomenal so okay So we got an amazing product a fantastic brand platform and positioning and purpose and then we have a pandemic
[00:19:15] Scott Hudler: [00:19:15] Yeah
[00:19:16] Jenifer Kern: [00:19:16] Okay So let's talk about how you've been doing I know that you were on a growth trajectory before the pan pandemic What happened for you and what's going on now
[00:19:26] Scott Hudler: [00:19:26] Yeah So in January we went to the ICR conference which we had treated we were going to treat this like a coming out party And it was great We did a Torchy's pop-up there the event and you know announced publicly we're building 20 restaurants this year and the year 2020 then you know six weeks later everything stops But I think you know we have I've been really amazed at the way our operators have weather the storm and Figured out how to get things done You know another thing that makes Torchy's different is we don't have general managers in our restaurants We have managing partners so they write us a check and then they get a percentage of the operating profits every month So they're absolutely incentivized to figure things out and do that So We can we call it an internal franchising program So we don't have franchisees We own all of our restaurants but it's somewhat Similar to that so you know pre pandemic we were two thirds dine-in one third takeout and then obviously like everybody we very quickly pivoted to a hundred percent take out did a lot of things super fast launched family packs which is like a pound of protein and kind of a way to assemble tacos at home And Then started selling those luckily Texas is where we have the majority of our restaurants and the TABC touched us alcohol beverage commission very quickly made it okay to sell at first margarita packs And then secondly fully assembled margarita So that was a big win And If they'd listen to this podcast I would hope that does not revert back when the pandemic is over the other one was on the you know just making sure we didn't really have curbside at our restaurants We had it at maybe one or two We kind of loosely data because off premise was only a third of our business our operators I jokingly say they MacGyvered together curbside and all of our locations some were really elegant we had already started down a path of testing it using technology with iPads and check-in and things like that And some had really elegant solutions Some you know in the early days of the pandemic was You know what we're going to do We're going to pull a bunch of cat five and ethernet cable from the register to the curb throughout the tent and we'll get a whiteboard and a marker And that was curbside And so we had both ends of the spectrum on that And now we're going back to really systematize that and focus on that The good thing was we looked at and our CEO GJ Hart had always said we need to think about a world that is 50 50 50% on from this 50% off premise So this was you know when he first got here and so we were luckily down the road on some of those things but still the pandemic just forced us to rapidly accelerate those things and think about our packaging and everything and making sure we had contactless delivery across all of our restaurants and where we could do it you know curbside and then also obviously we were already partners with door dash but that became a much bigger part of our business overnight And just to continue figuring out how to drive our third-party delivery business, because we know that, you know, in the pandemic and I think for the foreseeable future, there's going to be.
[00:22:42] People who are super comfortable coming into a restaurant, there'll be a group that's comfortable coming to pick up and take home. And then there's a group that doesn't want to doesn't even want to go near a restaurant. And so we just want to make sure that we're, we have, however they want to use this, that we're available to them.
[00:22:58] Jenifer Kern: [00:22:58] Yeah. So what is the channel breakdown percentage today from between dining in curbside and delivery, or maybe just the what's your breakdown on and off prep?
[00:23:10] Scott Hudler: [00:23:10] Kind of two-thirds on premise to one-third off-premise now it's about, And it fluctuates between like 55 and 60%. Off-premise 40% on premise. So as, things have gotten a little better, you know, again, in our core market of Texas and other places, and dining rooms started to open up a little bit.
[00:23:28] We started to started to see that off-premise number go down and on-premise go up. We're also pretty fortunate that we build. Every restaurant with the exception of a few, maybe urban locations with a patio, like a patio is a big part of our business. our guests are really comfortable coming in, eating outside on the patio and the tables are obviously, appropriately distanced.
[00:23:49] and so that's been a big help for us, throughout it again, you know, based on where we are geographically, You know, especially the last few weeks is the weather in Texas has been great. People love that opportunity to get out of the house. Go enjoy your margarita, some tacos on a patio on a beautiful day.
[00:24:06] it's been really?
[00:24:07] Jenifer Kern: [00:24:07] Yeah, I'm kind of nervous as we head into winter up here. Like we've been going to a lot of patios too. And, thankfully it's, hasn't been that cold yet, but it's, we all know it's coming. so did you have to close any locations?
[00:24:23] Scott Hudler: [00:24:23] did. We temporarily closed 10 locations. and a lot of those. Out of that. 10 were either, you know, we closed one in downtown Austin because no one was working in downtown Austin at the time. and we closed a few that were adjacent to college campuses because there were no students there. but you know, we opened all of those backup.
[00:24:43] We had, When we were planning, probably one of the biggest days in Torchy's history was we were going to open three restaurants on one day on March the 30th. and obviously, I mean, they were ready to go and when we shut things down mid-March, but we then opened those backup at various points through the summer.
[00:25:00] So fast forward, our plan was to open 20. We've opened 12 this year, nine of those four, kind of, since the pandemic started. and so we opened our last one a few weeks ago in Lawrence, Kansas, which, you know, For a brand during the pandemic to open 12, including three new States of Louisiana, Kansas, and Missouri.
[00:25:21] We're pretty excited about that and feel like, you know, our goal has been to come out of the COVID 19 pandemic, stronger than we went in. And we feel like we're on our way to that.
[00:25:31] Jenifer Kern: [00:25:31] that's awesome. So you're in how many States now?
[00:25:34] Scott Hudler: [00:25:34] So right now we have 83 restaurants in seven States and we'll, our plan is to open 17 new locations next year or so at the end of the year, we should be at number one.
[00:25:45] Jenifer Kern: [00:25:45] that's awesome. Well, congratulations on that. I mean, that's like you said, that's a big feat to be opening restaurants in a pandemic period.
[00:25:52] Scott Hudler: [00:25:52] Yeah.
[00:25:53] Jenifer Kern: [00:25:53] You had alone 12 and that's a big jump for you guys.
[00:25:56] Scott Hudler: [00:25:56] and it's tough because, you know, we know, yeah. We are competitive with all restaurant chains. If we look at the sheriff stomach, but it's really sad to see what has happened to the restaurant industry during this pandemic. And. you know, it's terrible. And so we, one of the other things we did during the pandemic was we formed a coalition of similar restaurants in Austin.
[00:26:17] Austin obviously has a very vibrant food scene and there's been some really great concepts that have been birthed in Austin and have gone on to do great things. And so we formed a coalition. And we called it come and take out, which is a play on the famous Texas slogan, come and take it. and so created takeout Tuesdays, a series of days and where, you know, ourselves and hat Creek and Hopdoddy and Pluckers and some other great Austin chains, really came together to encourage take out not only from their restaurants, but from other, from the other concepts in the.
[00:26:52] And the group and just, you know, encourage people to, you know, order from your favorite Austin restaurants and help keep them server are surviving.
[00:27:01] Jenifer Kern: [00:27:01] That's great. I've loved to see how people come together, you know, in the industry, during this as challenging and difficult of a time as it's been an industry that really bands together and sticks together and helps others. I don't know if you saw the commercial or the ad that was kind of went viral, which was, I think it was McDonald's saying, go ahead.
[00:27:21] Eat at burger
[00:27:22] Scott Hudler: [00:27:22] Yeah. And BurgerFi doing their thing. Yeah. That's fantastic. And it's great because it is, you know, the restaurant industry's very ancestral as people move around and kind of like myself, you get in it and you stay in it. So you have friends that. a lot of different concepts and, you know, it's just, it's really sad, you know, seeing the numbers of, especially the local independent mom and pops because it's, you know, yeah.
[00:27:45] We're, you know, We're 83 restaurants now, but we started as a trailer and you know, that was us. And, you know, if COVID had happened in 2006, I don't know that Torchy's would still be here. So we want to make sure that we do our part and, you know, support, especially the communities where we do business and especially, in Austin.
[00:28:03] Jenifer Kern: [00:28:03] Yeah. So from a sales perspective, how are you doing? Can you share how you're doing? Are you back, you know, to even are you up, I mean,
[00:28:11] Scott Hudler: [00:28:11] Yeah, we're down slightly. I mean, but we're, we feel pretty good about where we're at. you know, we've continued to, like I said, open restaurants and, you know, yeah. We have some locations that maybe we're a downtown location, in, you know, that isn't doing as well, but some of our suburban locations are now.
[00:28:30] Seeing, you know, tremendous increases and they're doing, you know, positive comp sales even, because you've got all these people that aren't working and, you know, maybe they're not getting tortillas at lunch, so they're going to go get it for dinner. yeah, kind of based on trade area, we have, some that are doing really well and some that are, you know, we're just until that workforce comes back, they're going to, they're going to be a little slower.
[00:28:52] Jenifer Kern: [00:28:52] Yeah. that's pretty typical right now. Are you also seeing trends like higher volume during the week?
[00:28:57] Scott Hudler: [00:28:57] Yeah, I think, you know, we see the higher volumes cause it's, Neil and again, having, you know, when you can order a margarita and it shows up with your dinner, that's perfect. and then also obviously, you know, even pre pandemic, just we see third-party delivery as a bigger ticket.
[00:29:14] but we've continued to see that accelerate.
[00:29:18] Jenifer Kern: [00:29:18] I'd love to get your perspective on from the technology standpoint, you alluded a little bit to the curbside and starting out super scrappy, whatever it took a whiteboard, a tent, which I saw a lot of those around here also. and now evolving that, From a tech standpoint. First of all, what is your role sort of in the industry, like within your company on the executive team and how do you make those tech decisions?
[00:29:43] And then what are you prioritizing right now? And into 2021 you know, everyone's talking about digital transformation, right? From a transformational standpoint.
[00:29:52] Scott Hudler: [00:29:52] Yeah, I think so for me, obviously my background at, Dunkin' is chief digital officer. I always say I'm the chief digital officer, but I don't write in ones and zeros. I can't code, you know, I think about it and we're in a nice. Partnership that I had both at Dunkin' and here where, you know, I feel like I represent, what the guests wants needs, and then working with our, CTO to figure out how do we build that and make it happen.
[00:30:18] I don't know the best. Router way to route orders and that, but I just know how do we make it easy. So, as we're thinking about transformation, it's about just constantly improving the online ordering experience. You know, I think as we were just bombarded with that, as people were going to that yeah.
[00:30:35] You know, we've always thought, okay, it was good, but it kind of was it damn good? Like how do we make it better? I'm starting to look at things like order and pay at table. you know, one of the challenges with Torchy's, I mean, this is a first-class problem, but on the weekends, our lines are pretty long because the way it works is you come in, you order your food at the POS, and then you get to sit down and we bring it to you, but we're not full serve.
[00:30:59] so if you want that second margarita, another taco, you gotta get up and go get back in the line. And. Why not just let people order using their phone from right there and just continue to drive the ticket. So, things like that, you know, we're really fascinated by. how do you, use text to pay for phone owners?
[00:31:18] So, you know, as we sell phone orders, go through the roof, you know, most of the time in our restaurants, we have cashiers who are dealing with the guests who are in line, also answering the phone, I call it's like the ballet and it's magical to watch them navigate back and forth. But a lot of it is, you know, that actual credit card order of.
[00:31:38] Okay. Was that a three or a four? What did you say? so we're looking at that where, when you get the order, you get a mobile number, you hang up, boom. It just sends there. we have, we have a kind of joke that there's 50 different ways to order from Torchy. So how do we make sure that you, that we're constantly improving every one of those from our third-party delivery to our native online ordering, To making that guest pickup better, you know?
[00:32:00] So as pickup orders continue, sometimes it's a bit of a cluster it's like, all right, you got the DoorDash dashers there. You got people ordering, you got, I just want to pick up. So how can we continue to make that better? And while that might not be a technology solve, it might be, Hey, just put a shell, some shelving here.
[00:32:19] How do we make sure that the technology integrates into all that? And, you know, we say that, there are a lot of restaurant companies who will say, well, we're not a restaurant company, we're a technology company, which we're not confused where we are a restaurant company. Our goal is to sort of damn good food technology is going to enable us to do that in a better and more efficient way and just make the guest experience stronger.
[00:32:43] Jenifer Kern: [00:32:43] yeah. I'm glad to hear that I'm always suspect of those companies that are in one industry and say they're actually a tech company. I'm always like,
[00:32:51] Scott Hudler: [00:32:51] Yeah, no. Yeah. More power to them if that's how we're going to be. But we are not confused. we are a restaurant company that uses technology as an enabler.
[00:33:02] Jenifer Kern: [00:33:02] Okay. Okay. Are there any specific tech. That you've been adding that you feel like you'd want to let the listeners know about like, Hey, you should check this out. This has really helped us.
[00:33:12] Scott Hudler: [00:33:12] Yeah. I think just, Making our online ordering better. So that is the key. That's the foundation. And then we can just start to build on that. We can build curb, make curbside better on top of that. We can make order and pay at the table better on top of that. And, you know, we've, really focused a lot of time on just making that experience better.
[00:33:31] and I'm excited to see it now starting to starting to roll out.
[00:33:35] Jenifer Kern: [00:33:35] Yeah. How are you converting from delivery to your native, you know, site and online site? I know that's a big topic in the industry has particularly for marketers to recoup some of that, that money that you're losing through the delivery
[00:33:49] Scott Hudler: [00:33:49] margins.
[00:33:49] Yeah. So we've done a couple of things. One is, Improving our experience, I think is a big win because the, you know, the door dash experiences is, um, is pretty good. so how do we make that better? and then also, you know, we're exclusive to door dash and I think that's one area where not a lot of people in the restaurant industry want to go.
[00:34:10] And there's a couple of reasons we do that. One just to be candid is, you know, as an exclusive partner, we have a lower commission structure. and that's a huge win for us as that category is continuing to decline. Secondly, I think, you know, we just, it's a partnership. we focus organizationally a lot on partnership and I know it's a word that's thrown around a lot.
[00:34:30] But like I mentioned before, our managing partner program is super important to us. And then as we look to do agreements with, you know, I'm not a real fan of the board vendor. so you know, we look at door dash as a partner. They, you know, our success is their success. So we want to make sure that we have mutually aligned, goals and incentives.
[00:34:51] And so that's, that's a big help for us. And we've been really candid about, look, we need to, Figure out a better way to make this a more profitable part of our business. That they've been super receptive to that. And I'm really excited about what the future holds for us with door dash
[00:35:06] Jenifer Kern: [00:35:06] well, it just makes a ton of sense. I mean, one just from the simplicity and focus standpoint, like when you're spreading yourself across, like, I know some companies that have five to seven different delivery providers and. Then from a marketing perspective, it's that's a lot to manage. It's a lot to manage operationally.
[00:35:23] It's a lot to manage. So the exclusivity makes a lot of sense, I think. And, I would think from a marketing perspective, it helps you to, but going a step further and talking about like, Hey, let's get rid of that word vendor. I hate that too. Like,
[00:35:36] you know, we're not a vet, we're not a machine.
[00:35:38] Scott Hudler: [00:35:38] yeah, exactly. we wanna, we want to partner with people who are, who have similar goals and objectives. That we do. And then our success is their success. And so I, you know, I just liked that. And, it's something that I used to talk about a lot through, or have talked about a lot throughout my career is, you know, in some cases there are vendors who it's a very transactional nature of.
[00:36:02] I need, you know, a bunch of blue pins. but in some cases, you know, it's a partner and we want to make sure that we're aligning with people that will be in partnership with us.
[00:36:14] Jenifer Kern: [00:36:14] Yeah. And one of our favorite partners is RTN restaurant technology network. And I know you guys are very involved there and Angela's always posted. She loves your brand. She's always posted about you guys. Are you involved with RTN or is it you're mostly your tech
[00:36:28] Scott Hudler: [00:36:28] Mostly through the technology team. Yeah. Yeah.
[00:36:30] Jenifer Kern: [00:36:30] Yeah, they've done some phenomenal stuff, particularly even during the pandemic.
[00:36:34] So, what about the ghost in the host? Any plans there?
[00:36:38] Scott Hudler: [00:36:38] Yeah. So we're super intrigued by it. And I think we look at it in a couple of ways. one is, it could be a way to supplement some of our existing locations where we're maybe a capacity. it's a way to look at some, you know, our, some of our core markets of Dallas, Houston, Austin, which luckily are.
[00:37:00] Some of the fastest growing markets in the country. And as they continue to grow from suburbs to excerpts, there may be locations that aren't yet served by a brick and mortar towards electric traditional Torchy's because maybe the housing's there, but the trade areas and develop. So, you know, we have certain things we look for in a trade area.
[00:37:20] and maybe if that's not there, there's a chance to put one, a ghost kitchen in some of those markets to serve the outermost XR. And then the third one is, as a way as we're to enter new markets, to give people the taste of Torchy's 12, 18 months before a brick and mortar restaurant opens in that market.
[00:37:39] So we're exploring it. We're intrigued by it. we have taken the attitude of. We can talk about it all day. We're not going to learn a thing, talking about it. We need to actually do one, and maybe do a few. and that's how we're going to really learn if it's, if it's a part of our business moving forward, I think it will be, it'll definitely be a percentage of our business, but as we look two years, three years from now, is that 5%?
[00:38:02] Is it 20%? Don't know we've got to get out there and do it.
[00:38:05] Jenifer Kern: [00:38:05] Yeah, absolutely. Absolutely. Well, that's great. That's exciting. You could get one in DC. Mum's the word, what's the word? okay. Let's talk about data and personalization. I'd love to get your perspective there. and this has been coming up a lot with the podcast guests and, I guess the first, you know, first question would be, are you. Able to get a good view of your guests right now with the data and the different technologies you have.
[00:38:34] And what's your perspective, how bullish are you on data? A single view of the guest.
[00:38:39] Scott Hudler: [00:38:39] I think so. I would start at just candidly. I think we can do better. we're building it out right now. and looking at what are the different ways we can get that full 360 degree view of the guests, you know, How that, morphed into execution. I think down the road is still TBD. we're, we're a little different from a lot of brands we don't discount.
[00:39:00] So, you know, as we get that data personalization, what we're not inclined to do is, come in today for 20% off your order. Things more traditional, like, especially QSR restaurants use, that's just not who we are. but we want to make sure that we know what our guests are ordering, because again, we have this really creative menu.
[00:39:23] And if we see that the Jen that you always order. Tacos are the month that they have shrimp. And then we have a new talk of the month, but shrimp has never been launched before. How do we make sure you know about that? so I think, you know, we are on a, a rapid acceleration to that. And in terms of building out.
[00:39:39] How did we get that three 60 degree of invest building data, warehouses, exploring a loyalty program? that would be a non traditional loyalty program in the vein of Torchy's and how we would do it. so we want to go through that, but you know, it all ladders up to how do we build that 360 degree view of the guest?
[00:39:56] And we got a lot of work to do.
[00:39:57] Jenifer Kern: [00:39:57] Yeah, well, you're not alone. You're not alone. I mean, we've been talking about it for a while, but the fact of the matter is it's baby steps and then, and a lot of folks just aren't there. Right? So personalization. Are you doing any kind of segmentation or personalization? One-to-one
[00:40:15] Scott Hudler: [00:40:15] Is early days of that. you know, I think we've taken the attitude of let's build this, how we want it and then go find the right tech partner to help us build it. Versus let's go look at a bunch of tech partners and then say, Oh, well, You got three of the four things we liked. So I guess we'll just settle.
[00:40:32] It's like, that's now let's figure out exactly what we want. Then we can go find the right partner to either buy it off the shelf or build it. but yeah, early Derek,
[00:40:42] Jenifer Kern: [00:40:42] I'm so happy to hear that, because what you're saying is you want to have the strategy first and have the technique, the strategy, not the other way around. And I think a lot of people get into trouble doing it the other way around. It's like, Oh, here's the magic bullet.
[00:40:54] You know, it's silver bullet. You know, this tech is going to solve my problems. No, because then you have to think about it, right? So who's managing it. And who on your team is doing that? And, I worked with a guy at Dunkin' years ago when social media first came out and he had a great line and I think it applies to social media thinking a lot applies to personalization, everything.
[00:41:13] Scott Hudler: [00:41:13] And his line was social media is like a puppy it's really cute at first, but you got to take care of this and it's true. Like you, you gotta continue to. To use it and nurture it and learn and grow. And, it's not a set it and forget it type thing.
[00:41:27] Jenifer Kern: [00:41:27] Yeah. So what are some of the best traffic drivers for you now?
[00:41:31] Scott Hudler: [00:41:31] So, taco with the month is a big one, you know, so it's something different and there's a charitable component to it.
[00:41:37] A portion of the proceeds every month go to one of our three. Charitable partners, Make-A-Wish foundation, MD Anderson cancer center, which is based here in Houston and Phoenix house, which is a, sort of like a halfway house for her recovery. So, we love doing those to talk with a month is a big driver.
[00:41:54] we also like to do some kind of non-traditional promotions to drive people in. So. this year on Valentine's day, you know, which is a very sentimental mushy kind of cheesy holiday that restaurants promote. we kind of took the opposite and said, you know, Torchy's is a brand, our baby, our mascot is a baby devil and a diaper and fire.
[00:42:13] And, so we said, we took the opposite approach and said, it's salty singles' day. Bring in some of your excess stuff, put it in our bin. We'll burn it for you. and we'll get you a free Torchy shirt and, you know, okay.
[00:42:27] Jenifer Kern: [00:42:27] no way.
[00:42:28] Scott Hudler: [00:42:28] that was great. It was great. we had, we got some media coverage about it and they wanted to interview this woman and she was like, no way.
[00:42:36] I'm like, I can't let my accent. I she's like, this is for me, I'm doing this. how cool
[00:42:41] Yeah, but we like to do things like that, like fun things that are going to cut through and break through. Because again, we don't have a big TV campaign in 2019 during South by we shut down the street by making it rain tacos with parachutes and, you know, it got great stuff out of that.
[00:42:58] So those are the types of things we like to do recently. We, We did a campaign around, we have, we have a taco on the menu called the Democrat. We have a taco with them and you called the Republicans, which we took off the menu, coming out of COVID and. The reason we took it off was cause it just, it didn't sell.
[00:43:16] but you would have thought, you know, it was massive political conspiracy. So we took the approach of, you know, a lot of brands would just say, Hey, sorry, it offended, you know, blah, blah, blah, blah, blah, putting it back on. So we kind of made fun events. Like, you know, you call us in an elaborate conspiracy.
[00:43:32] We actually removed tacos that don't sell. It's a crazy concept. And so we put it back on the menu. And so for October the month of October, We had a tacos case or 2020 campaign. So we had fake attack ads from the Republican, the Democrat, and then our taco of the month, which was the Washingtonian. and, you know, put together tacos case or 2020 shirts that were available for sale.
[00:43:57] We had tacos case or 2020 yard signs. that started as they were just available for our restaurants, but they were all getting stolen from, and we had security cameras, people stealing our signs. So we. They put a social post on that and said, you know, get your own damn sign here at taco Torchy's March.
[00:44:14] And we did a small run of signs and they sold out in like a week. So, How fun is that? Who's coming up with all these great ideas.
[00:44:22] Jenifer Kern: [00:44:22] This is all
[00:44:23] Scott Hudler: [00:44:23] we do it all internally. Definitely not me. Definitely not me, but we, we do it internally. We do work with a few agencies. but yeah, it's just, I think it's. Again, the great thing about this entrepreneurial brand is we can move pretty quickly on these things and go forward.
[00:44:38] And, and it's fun. I mean, we're talking about tacos. we're not saving the world here, you know, and like it's, I always say our mascot is a baby devil and a diaper, so let's, don't make things too heavy.
[00:44:49] Jenifer Kern: [00:44:49] Yeah. Yeah. I know you started bringing up their public and Democrat too soon. Scott
[00:44:53] Scott Hudler: [00:44:53] Yeah. let's just say we had some amazing ads, a guy named Scott Paul on our creative team did some absolutely amazing things that were so good, so funny, but not across the line with some people. And so we pulled it back a them, but man, they were good.
[00:45:13] Jenifer Kern: [00:45:13] It got a laugh. I mean, come on, you gotta laugh. People need to laugh. And I mean, you're talking about food here, so I mean, food is meant to be fun. Enjoyable, comforting.
[00:45:23] Scott Hudler: [00:45:23] Yeah. And so, I mean, I think I'm really proud of the work we done on that. Cause I thought, you know, we really had to thread the needle and let's just say maybe versions one and two didn't thread, the needle. the one we in ones we ended up with did, and you know, I think a you're right. People needed it and it's like, Oh my gosh, there's just so much election noise.
[00:45:41] and so it was just a fun way to. To talk about it. and, but at the same time, what's celebrated, like voting is super important. So, you know, we encourage people to go vote, but you know, we're going to have some fun with this campaign.
[00:45:52] Jenifer Kern: [00:45:52] Yeah, that's so cool. Oh, wow. Time is just flying by here. loyalty. I want to talk about loss and get your perspective on this. I mean, a lot of the senior marketers have been talking to a lot of CMOs, VPs have different definitions of loyalty. What's your definition of loyalty.
[00:46:09] Scott Hudler: [00:46:09] I think it's about, you know, how do you get that full 360 degree view of your guests? And then, is there a way to reward people for their loyalty? Like at the general, like just most core essence of that program is loyalty. And, but again, it's how do you reward and incentivize.
[00:46:33] Not for what they're doing day to day. Not that what they're going to do no matter what, but how do you get them to come in an extra time? How do you get them to try something new on the menu, try a higher price item. and not just rewarding. Like, Hey, you get a, you know, the same thing every day. I'm not going to reward you, Jenifer for doing what you were going to do regardless.
[00:46:53] Jenifer Kern: [00:46:53] right, right. So do you have a pretty loyal following? I mean, do you have a lot of repeat customers?
[00:46:58] Scott Hudler: [00:46:58] We do, you know, we don't have a loyalty program yet. We're, it's in development, but I think we are, like I said, I use this not all the time. Professionally. One of the things I'm most proud of is building the DD perks program at Dunkin'. it's the absolute, last thing we're going to build at Torchy's two completely different brands, completely different uses.
[00:47:18] you know, coffee is all about frequency and ritual. Ours is about how do we get people to come in more often and enjoy the brand. But we do have a really loyal following. So what can we do that is different and not, the last thing I want to do is. Come in today after three for a case though, and get 50 bonus points.
[00:47:37] That's just not who we are. What we're going to do is, Hey Jen, you're one of our best, guests. We're having a surprise concert on Thursday night at the continental club in Austin. You're in, or, you know, Jen. Yeah. Hey Jenna, today's meals on us. Thanks so much for your business. You know, like that's the way we want to do it.
[00:47:56] So a mix of surprise and delight and. Different benefits for people.
[00:48:01] Jenifer Kern: [00:48:01] I love that. Surprise and delight is key.
[00:48:04] Scott Hudler: [00:48:04] Yeah. Tough. Tough to pull it off from the technology standpoint.
[00:48:08] Jenifer Kern: [00:48:08] It is, but I like how you're thinking. I like how you're thinking, because there is too much of this rote stuff out there. I mean, I have a lot of apps and I'm, you know, I get a lot of points and I track that stuff and I like to get free stuff. I'm not gonna, I'm not gonna lie.
[00:48:21] But, um, but I mean, you're talking more about an enriched experience is what I hear you saying. And more of an emotional, like a deeper connection that's not inside and outside of the restaurant. Right. It has to do with the food and it has to do with the brand and you're being so like you, you have such strong roots as a brand and being true to that innovation and creativity is I hear that driving and that's
[00:48:44] Scott Hudler: [00:48:44] And also thinking about not making it transactional,
[00:48:48] you know, like exactly emotional and, uh, you know, forming that connective tissue with the brand versus just, Oh, Hey, I got a free taco.
[00:48:56] Jenifer Kern: [00:48:56] yeah. So I called them the podcast restaurants reinvented because obviously restaurants need to keep reinventing themselves. And this is the year for it. And probably next year, too. What does reinvention mean to you?
[00:49:12] Scott Hudler: [00:49:12] not being complacent, not being comfortable, continuing to push yourself and think about different things that, could get you out of your comfort zone, both individually and as a brand. And making sure that you're constantly looking at things, you know, we look at the menu all the time and, you know, say, Hey, there's, there are no sacred cows.
[00:49:31] Like we, we need to get rid of things that aren't performing and maybe think about what are some other areas we could go into. And we have lots of debate about it. And, but I think having that healthy debate, like we constantly need to reinvent ourselves and just not be complacent and feel like, Oh, this is.
[00:49:48] You know, it's been on the menu for 10 years. We should keep it on there. Nope. If it's not pulling its weight and it needs to go
[00:49:54] Jenifer Kern: [00:49:54] yeah. Okay. And what keeps you up at night, Scott?
[00:49:58] Scott Hudler: [00:49:58] a lot, I think part of just making sure how are we continuing, you know, consumer trends and tastes change so quickly? How do we make sure we're staying on top of that? from the con the menu side, from the technology side that changes in a flash, how do we just make sure we're keeping up and, you know, there's, none of those are probably the big ones And then the other one is just, how do we get it all done?
[00:50:22] You know, we have a lot of amazing ideas and projects in the works, but we're a smaller, more nimble brand. So, you know, how do we prioritize and just get it done?
[00:50:33] Jenifer Kern: [00:50:33] Yeah. Yeah. I mean, marketers have so much on their plate,
[00:50:38] Scott Hudler: [00:50:38] I love it. I wouldn't change it for the world, but I think, you know, I do sometimes think, Holy cow, we got a lot going on. Let's just make sure we're placing the right bets.
[00:50:49] Jenifer Kern: [00:50:49] Yeah. What's the best career advice you were ever given?
[00:50:53] Scott Hudler: [00:50:53] I think just keep learning, keep growing. And, you know, I don't know that there wasn't like a singular moment where that was given, but it was, you know, probably it hit me the most when I was at Dunkin' and I. Had been working on the brand side for a while. And the gentleman who was, running the, we called it then consumer engagement.
[00:51:16] So media, advertising, all of those things left the company. And I was like, you know, that sounds fun. I like technology. I can be creative, says everyone ever. but, and I was just, and luckily my boss at the time, John Costello was like, That's not the worst idea I've ever heard. So, he gave me that chance in it, to me, it really enforced like, yes, take that chance, go out there and do something different.
[00:51:41] Be a sponge, go learn all you can. because you never know, don't pigeonhole yourself. Give yourself options.
[00:51:47] Jenifer Kern: [00:51:47] Yeah, absolutely. What about this question? What commonly held belief within the restaurant marketing industry? Do you disagree with.
[00:51:56] Scott Hudler: [00:51:56] discounting is the way to go. I just, I don't, I mean, I feel like you, you bring in, I think it's a crotch, it's a bit of a drug and you get a short-term bump on it, but it's not necessarily building long-term brand value. You'll bring in the people who are only going to come in because you're giving it to them at a discount.
[00:52:13] And if your is so great, why are you going to sit really? Just so you know, used occasionally it's fine. But I think there's a lot of brands that is the strategy. And, again, everybody has different. Short long-term aspirations for the business. And, you know, I don't obviously don't know everything going on in those businesses, but, I just feel like it, I don't know that it creates that true long-term brand value that you would get from just delivering a great experience and an awesome food.
[00:52:40] Jenifer Kern: [00:52:40] Yeah. And as we wrap, what advice or words of wisdom do you have for marketers for restaurant marketers up and coming marketers or people that have been in the industry a while?
[00:52:50] Scott Hudler: [00:52:50] Yeah, I think just keep learning, reach out to people. Network. There's so many incredibly smart people in this industry who. If you just send them an email, I'm sure they'd love to take 15, 20 minutes and just talk to you. And, I mean, I find meeting other marketers in the restaurant industry. it's great.
[00:53:07] It's great networking, but sometimes it's just therapeutic. Like we all have a lot of the same challenges, a lot of the things concerns. and so just continue to keep those, Contacts cause you never know. And it's, you know, people move around. it's just great to have those contacts and lean into them and network and chat and grab coffee.
[00:53:27] And, you know, like I said, it's like a therapy session.
[00:53:30] Jenifer Kern: [00:53:30] Yeah, a hundred percent. Um, well I know we're coming up against time here and I really appreciate all the time you've given our listeners today to get a glimpse behind the curtain net at Torchy's. and so right before we wrap the last thing I'd like to say is, do you have any shout outs that you want to give for your brand, for your team, the, you know, to your infomercial
[00:53:50] Scott Hudler: [00:53:50] Yeah, I will. I will gladly take it. I would just give a huge shout out to, the Torchy's operators. They're amazing what they do, the way they adapt, the way they. Work through challenges and work in partnership with all of us is unbelievable. Unlike anything I've ever seen in my career. So a huge, huge shout out to those guys,
[00:54:11] Jenifer Kern: [00:54:11] fantastic. Well, I'll try to find a way to tag them when the episode comes out, you can help me with that. Well, thank you so much for your time today, Scott, all my best to you and Torchy's. The fun era or Reverend brand that you have, and, uh, wish you all the best.