Kiplan Welsch
Okay. I’ll go first. So, yeah, I’m the president for 313, and the brand leader and I’ve been with VF for going on three years in July. Actually started my career with Chili’s, a lot of years ago, straight out of college. A great deal of time. And with P.F. Chang’s and then BJ’s Restaurant and Brewhouse as well.

Kiplan Welsch
Yeah. And, essentially, you know, a hospitality bug 16 on, you know, working in the restaurant industry gets a hold of you. And I didn’t even go to school originally for this, but that’s what ended up being my career. So.

Peter Ravesies
Wow. Similar story. Peter Robinson, the director of operations and leader of all of our operations, overview of two and three started, the other side of Brinker, Marciano’s were there for ten years, worked my way up from team member all the way to management, regional training manager, then went to Business Restaurant Brewhouse for about seven years, working with them as well before joining via three on three.

Peter Ravesies
So didn’t go to school for hospitality either. Went to school for criminal justice and then ended up falling in love with the industry. So you both ended up a BJ’s. Did you meet a BJ’s?

Kiplan Welsch
Actually, no. I went to, another group called Bliss and Hospitality in Southern California after BJ’s and before via. And I was looking for somebody elite operations in the California restaurants. One of the training managers from B from BJ’s recommended a couple of people for me to talk to, one of which was Peter. So Peter literally met me, came on board of bluestone.

Kiplan Welsch
I left bluestone for VA, and then he eventually was going to be joining another restaurant group. Knew I had an opportunity and boom, we’re back together again.

Curt Richtermeyer
Don’t over. Yeah. The timing. Yeah. Forever growing like crazy. So how many locations are you now?

Kiplan Welsch
So yeah, 24. We said today, we’ll have 25 within the next six weeks. Cypress is our fifth Houston restaurant. Yeah, we’ll stop at 25 for this year, but we’ve already got like the next five builds already.

Curt Richtermeyer
Our so got everything for us. That’s really rapid growth. I mean, I keep seeing them pop up, everywhere I go around Austin and surrounding areas. So yes. Yeah. Congratulations on all the success. Thank you. Shall we get.

Kiplan Welsch
Started? Yeah. Let’s.

Curt Richtermeyer
All right. The first one we’re starting here is, they call us smoky heat.

Curt Richtermeyer
Cities. No mercy.

Curt Richtermeyer
That is good. It’s good. It’s got this one to be. I think it’s got a really nice playroom. The.

Kiplan Welsch
It’s really balanced.

Peter Ravesies
Yeah, yeah, yeah. Garlic. A little bit of heat, but not overpowering. Yeah, yeah, I think maybe somebody said earlier that it has almost a little bit of a fruit, case, a little bit of fruit in that. Well I agree yeah. You’re right. All right. So we talk a little bit about how you got discarded in the industry.

Curt Richtermeyer
Oh. What’s your favorite part about working in hospitality, even though neither of you intended to go there? Right. You landed there.

Kiplan Welsch
So I, I actually personally like both sides of operation. I’m big on the kitchen side. I spent a lot of time in the kitchen, my career growing up, but also in the hospitality and the guest facing sides. But I honestly think watching the experience for me, I love seeing guests that are happy, seeing team members that are happy and that love the food.

Kiplan Welsch
And for me, in my position and often surveys say, hey, what’s your biggest accomplishment? Honestly, I think it’s about the people that I’ve been able to watch grow and to see grow through my career. It’s a really cool industry, and a lot of people that don’t think that that’s what they’re going to make a career out of end up doing it because of how much opportunity is out there and walk in the restaurants and watching people try our pizza for the first time.

Kiplan Welsch
The engagement, that’s that’s what does it for me.

Peter Ravesies
Yeah, same people grow up. But I think, you know, I kind of grew up in a foreign background. And I thought to myself, like, what if this is the only chance for them to celebrate? This is a chance to for them to work. And so restaurant, I remember being that poor kid going, hey, this I’m celebrating at a nice restaurant for my birthday.

Peter Ravesies
Same thing. I want to give them the best experience they’re going to get so well. Hospitality is like walking into the moment they sit down to never wanting to need anything because we’re there for them and also just great food. You know, that’s I think that’s huge. That is awesome. Well, like I said, I, I love your beats.

Kiplan Welsch
We love to hear that.

Curt Richtermeyer
So good. Oh, it’s really interesting. Food. Both of you kind of keyed in on this, this notion of like, the. The people that are there, either the people who work there or the people that are coming there, you know, this might be like the their chance to do something special is beautiful, to actually help them do that.

Curt Richtermeyer
Right? Yeah. So all right. I think that’s, I think that’s really important for all of us. Like the to get you sort of enjoyment out of your job. You’ve got to find like, there has to be a meaning behind doing it. You know. So we move on to our first Perry Perry sauce. All right. So here’s a this is kind of I think the challenging thing, which is, what do you think is going to shape the restaurant industry kind of going forward over the next 3 to 5 years, like where where’s this all happened?

Kiplan Welsch
So the for me what honestly thing because I mean we’re in a pretty tough time right now. We’re struggling obviously same store sales, same store traffic. How to stay relevant with this much competition is going to have to be continued. Many diversity I think loyalty rewards programs, things to incentivize guests where it isn’t a coupon based approach, but it is still targeting, you know, any type of a favorable guest, you know, experience that they can also find a greater value.

Kiplan Welsch
So let’s incentivize. Yeah. And then I do think I is going to continue to play a really big part. I know in the past couple of years, it seemed like it was a little slower for people to trust me from like automated phone ordering to engagement at the tables. I think you’re going to have to be in that space to be able to be competitive.

Peter Ravesies
Yeah, I agree, I agree, and I would I would just add on to the AI piece is to enhance hospitality, but I now is really just making it faster, smoother. And that way most of our team is the focus on guest service. You know, not taking them away from anything else. That’s, that’s the biggest piece. I think it’s going to advance us until the next level.

Peter Ravesies
We have the pottery of the hospitality. Now, having the AI is a match that I need long with speed because we’re always trying to be relevant. Sphere. That’s certainly the way I see it. Like having it has such a huge impact on helping you free up your people, to be able to do things in the restaurants that are not, you know, sitting in the back counting or doing all these things that they have to do.

Curt Richtermeyer
All right. Yeah. Are you guys already using AI in the restaurants today?

Kiplan Welsch
In some capacities. Peter uses it heavily with the teams from a scheduling aspect and also for their cell forecasting. Yeah, we do a little bit of that in real estate development, using things like place your AI to assess, you know, where the best places are to go based off our guest demographic. We are going to go into actually about to start three restaurants on a platform to do automated phone ordering that will go right into our boss and just to see how it works for us.

Kiplan Welsch
But I think.

Curt Richtermeyer
I directly in the US.

Kiplan Welsch
That’s right. All right, lady, though, you’re right. This is yeah. I think that could, could tell a lot for what we do moving forward because as you said, frees up the team members to be able to do the orders, put stuff together. That phone, if it’s 20 calls at a time, it takes it.

Peter Ravesies
Yeah. Right. Yeah, I, I definitely agree I think I like to with with with that ability to be able to answer the phone and really focus on guest hospitality execution. It’s going to be huge for us moving forward. It’s also well yeah. So we try number three. Now this one you guys probably recognize. Yes, yes yes. Said the CAC guys Austin based I think they recently sold first I don’t know like billion three or something like but it was a big transaction that is for sure.

Curt Richtermeyer
They did. Well that was a family I think the awesome based family. Yeah. So all right well this one let’s give it a shot some more.

Kiplan Welsch
Like, I’m all in.

Curt Richtermeyer
In. Oh wow. That one. Delicious. Very very good. Okay, so maybe in a similar question to what we just talked about. So how are you guys thinking about for the via 313 brand. How are you thinking about kind of balancing technology with the human aspects of all the people you’ve got in the stores?

Kiplan Welsch
Yes. Yeah. And that’s the piece. I think there’s a real fine line, especially because even even though we are pizza, we’re a little bit of an elevated type of product and experience, and we got to be very careful to dance like right there, all we need to be. So yes, don’t lose that human connection, but can still feel, hey, I’ve got speed, you know, as an advantage.

Kiplan Welsch
I’m getting my order correct and accurate. I think it will play a big part for us, essentially in that takeout space with the ordering. Some of the other things we’re looking at is how to get orders. And ahead. So if a guest is like, hey, I’m on the way to the restaurant, I would like to go ahead and place my order.

Kiplan Welsch
That way we can queue it. Yeah. And then even if they check in at the front desk, that way it will fire to our kitchen display screens and save all that front end interaction, you know, with the guests and the server having to get the ordering it up. If it’s already going, we can cut seven, eight, maybe more minutes off the front end of the experience.

Curt Richtermeyer
Yeah, and not only that, just reservation too. We’re looking at online reservations and making sure that we were available for you to come in as best as you can. And then also just looking at geofencing, some of the times we’re looking at different technology saying, hey, you’re a mile away, we can fire off your pizza like you were just talking about.

Curt Richtermeyer
But the walking away is like you can be staring at the screen. We have to go back to training, like, take the screen down as we’re putting, or let’s have guest interaction, you know? Yeah. I can’t make them feel like, you know, this, this. They’re taking the time away from, home. This is your own break right now, right?

Curt Richtermeyer
So let’s make sure we take care of them so we won’t miss that. Please. I love the idea of when you get into the vicinity of a restaurant. Like the loyalty app tells me. Hey, you nearby? Yes. Well, there’s the cookies.

Kiplan Welsch
The geofencing and the technology attached to that so that you can be very specific and target. We are working on like offers that are also attached to our social and today part, so that based off of proximity, it’s like, hey, the plans for dinner here is there. So I think everybody in this space is trying to do something similar to that, just because of the need to be able to get guests attention.

Curt Richtermeyer
I think the loyalty is going to be such a huge word, is that particularly if we’ve got a shaky economy or an unpredictable economy, loyalty is where you’re going to see a lot of your, you know, current regimes or sales growth and things like that. Yeah, one of the other this is the one that we had made for the show marketing team went to a local shop here in Chicago.

Curt Richtermeyer
Hot Schedules customer. And they were to come up with this this up. This one is actually quite good. Okay. And definitely take some with you when you go. So let’s give this one a shot. All right. So. Mall warming dogs. That’s so fresh and flavorful. Well, I think it’s so good. Oh my gosh.

Kiplan Welsch
Wow. Yeah. That, that’s got a really good flavor. And you’re right, it does a day for very fresh.

Curt Richtermeyer
Very good. This one and the last one are my two favorites of all of, I think I bow out really, really good. So, you know, when you, when you encounter this in your scorer. So you kind of these people have been there for a while and they approach you with ideas like, do they is it a regular thing or are they coming to you saying, hey, I think we should we should try this or I think we should look at changing this operation.

Kiplan Welsch
Yeah, yeah, they’re very comfortable to come out to us. And actually Peter and I launched it’s been about three weeks, like, hey, we should have a channel or a platform for this. That’s easy for us of several in the leadership team to see. So we created, basically a web or an hour webinar, email address. And then we post it out on the communication boards called Share My Ideas.

Kiplan Welsch
And we have 313.com. And I’m surprised like GM’s managers, people are pushing us like, hey, have we thought about this or this package or this could save labor and they’re taken on it. So we’re going to reward, you know, those ideas we’re using to keep funneling now. But I was very happy with that.

Curt Richtermeyer
It has it helped you guys developed like you have like an operating system for when you open a store. This is how things run, you know. Oh yeah. We have a complete yeah, yeah for sure. We have a complete training team. And you know, they do a really good job with the operating systems. And we have a director of training and, you know, director of operations services that does all the opening.

Curt Richtermeyer
So it’s really smooth. We’re builds from the opening to all the way to the transition to where the managers take over the restaurant fully. So we do all three phases of transition. So. All right. So let’s try this next one. This this one is snow bird. Yeah. Yellow bird. You probably had this one. This is their blue agave serato.

Curt Richtermeyer
Right. Okay. Here we go.

Curt Richtermeyer
Oh I was tasting oh that’s really good. I think this is a this is a good question. You guys are doing a good job of this so you’ll have a great answer. So what’s the hardest thing in today’s market in any market. What’s the hardest thing about running a profitable operation?

Kiplan Welsch
Oh, yeah. Yeah. I think, you know, the quick answer is that to that is honestly just starting at the top line. Sales to sales are so challenging right now. And that’s the forgiveness and cost of goods and and labor. I think the other thing is where you’re at, where we’re at with a talent, the there’s not as much seasoned talent out there as there has been ten years ago, 15 years ago.

Kiplan Welsch
And so we’re building our talent internally. And so that’s a little slower when you’ve got an internal, you know, team or you’re working an hourly team members getting into their first manager roles. Yeah, I think, hey, that’s great because that’s what we want is we want them to see a career trajectory, but we don’t always know what they don’t know.

Kiplan Welsch
And it’s trying to build systems around how to get them up and quickly and proficient. And then, you know, on the other side it is how do you balance, you know, the guest sentiment in regards to your pricing and what they see as value of your product, without getting so far away that they can only use this once a month or that they’re not coming in.

Kiplan Welsch
So those are our biggest challenges. Cost of goods have been very favorable for us. We as the pizza space is, and we’re not using as much chicken or some of the plate proteins.

Curt Richtermeyer
I would agree with everything he says. I would just give it a little more texture to top line. Sales is going after dining room and bar sales and then catering sales delivery. We do a lot of third party deliveries and takeout, really, really executing at a higher level there. And we’ve been doing a really good job. And we were just always continue continually to look at ways to improve speed and service on that side of it, because it’s almost 40% of our business, even more certain restaurants, you know, do you live the 52% of the serve restaurants?

Curt Richtermeyer
That’s amazing. So you guys are doing but that much of your business is catering.

Kiplan Welsch
To out the door and that crazy,

Curt Richtermeyer
Well, let’s let’s have this last one. I a good a good question for you related to profitability.

Kiplan Welsch
Okay. Let’s someone’s got a good color to it.

Curt Richtermeyer
All right. So here’s the big question around profitability. So how are you thinking about it differently today than you did three years ago.

Kiplan Welsch
Oh wow. Yeah that’s good. Another very good question. So labor because we’re being such a cost, we are we’re making decisions around operations that we never would have for years ago. I think as we were coming out of post Covid space and sales were starting to roll in and things were coming back to normal, you could be a little more free with what you were adding as far as your labor in those places.

Kiplan Welsch
Now, as it is hurting a little bit and we’ve tried to get back to functional operations as normal, you have to be much more careful. So we are trying to figure out that balance because it is full service. If we cut too much, then we’re not ready for those rushes. We can deliver the experience. Yeah, that is going to in turn impact the sales.

Kiplan Welsch
So the second leg of that, besides labor, we don’t want us personally. We’re trying not to impact anything quality wise. So we’re keeping the scratch preparation on our ingredients, not changing ingredients.

Curt Richtermeyer
So my man now now got me.

Kiplan Welsch
Snuck up.

Curt Richtermeyer
On me. Let me know if you want some milk. No point of oh, no, no.

Kiplan Welsch
There. I think I just got sideways there, looking at our ops expand. So just being more selective with what we use for other, you know, third party vendors. Real a more careful with facilities and maintenance. Small was trying to find ways to squeeze the PNL there a little bit more than anything. That way we don’t impact the guests experience.

Curt Richtermeyer
So I think as you guys have grown, you guys are growing really rapidly. You probably are is probably attracted to suppliers as well. So you get a little bit more leverage with them.

Kiplan Welsch
Yes, the 100%.

Curt Richtermeyer
Yeah. Oh, it’s just, you know, we shifted the mindset to the back in the days, you know, when you talk about third party you take out, it was an afterthought. Yeah. When you’re you’re shifting the 4,550%, your business is there. You have to staff for that. Right. You have to be ready for that. Your execution has to be ready.

Curt Richtermeyer
It’s the it’s one of the main things that you have to focus on now. So we really had to concentrate on that side. But also I think kept it a really great job of just looking at the things that we can affect by paper goods. So he’s brought in a different liner, he’s brought in a different pizza box.

Curt Richtermeyer
So where we were able to save costs, well, affecting any guest experience and still falls under our brand, what we’ll look for. And I think that those are ways we can say, well, we also, you know, utilities as well. Yeah, yeah, we got we have ways to save on utilities as well. So look at contracting on that piece.

Curt Richtermeyer
Nothing that we do will affect I guess that’s what that’s what we want in our. So that’s the biggest piece. Well that’s that’s like the the hard balancing it. Oh yeah. Yeah. Keep the guest experience. Keep the product quality high. We’ll try and find ways that you can shave some cost out of there every you know and which I think is the civic challenge that I think everybody’s face would be.

Kiplan Welsch
We get question you know is we still do black linens and have a linen service and two year old. So we’re not like you’re a pizza place. Why would you not just go to a paper napkin or an airline napkin, although there’s a higher cost attached to it. So Brandon and Zain specifically, I would say that feels more premium and matches our product.

Kiplan Welsch
Right? I want a heavy piece of silverware. I want a nice linen to life. You know, my face.

Curt Richtermeyer
I think you’re right about if it was paper, paper goods, you would start beginning to look more like a quick serve type of a place, right? I mean, not sit down and have the second drink or whatever. You know, you’re 100%. Yeah. Listen, you guys truly appreciate you. Taking time to sit down with me will be interesting to me.

Curt Richtermeyer
I’d love your pizza. We’d love to hear that for sure. You have a good time. Continue to be a customer for a long time. Outstanding. And I hope you guys enjoyed the hot sauce.

Kiplan Welsch
Dad.

Curt Richtermeyer
Yeah, definitely. Take some with.

Kiplan Welsch
You.

Curt Richtermeyer
Okay. We’ve got a bunch of it here. We need a bunch of it.

Kiplan Welsch
Is that right? And, That’s delicious. So now, thank you for your time. We appreciate you talking to us today.