Business of Home Podcast – Episode Summary

Title: The Thursday Show: John Edelman's Quest for Good Plastic. Plus: Schoolhouse and Food52 Cut Deep

Host: Dennis Scully
Guests: Fred Nicholaus (Executive Editor, Business of Home), John Edelman (CEO and President of Heller)
Release Date: March 20, 2025

I. Introduction and Episode Overview

Dennis Scully opens The Thursday Show by outlining the key topics for the episode: discussions on John Edelman's latest endeavors with Heller, significant layoffs at Food52, the emergence of a new design district in Charleston, South Carolina, and an analysis of how the Covid-19 pandemic has transformed the interior design industry. He is joined by Fred Nicholaus, Business of Home’s executive editor, to delve into these subjects.

Notable Quote:
[00:34] Fred Nicholaus: "Listeners should know Dennis is in LA to do an event, a very important event."

II. Monday's Episode Recap

Dennis and Fred briefly revisit the previous episode featuring interior designer Nick Olson. They highlight Olson's proud identification as an “interior decorator” rather than an interior designer, emphasizing the nuanced distinction between the two roles within the industry.

Notable Quote:
[02:21] Fred Nicholaus: "Nick was very loud and proud. Like, I'm a decorator, I am not an interior Designer. I'm an interior decorator."

III. Food52 Layoffs

The conversation shifts to the troubling news of Food52's significant staff reductions. Fred outlines the timeline of Food52’s growth and subsequent decline, noting a substantial decrease from over 300 employees to between 90 and 140 within four years. The focus has shifted from their drop-shipping marketplace to prioritizing Schoolhouse, a decision that has led to internal turmoil and operational challenges.

Notable Quotes:
[04:38] Fred Nicholaus: "Food52 was founded as a recipe blog... it was very successful... in 2019, they raised $83 million..."
[06:38] Dennis Scully: "Every time I use that Food52 spatula, it makes me smile, Fred."

IV. New Design District in Charleston

Dennis and Fred express excitement over Jamestown's announcement of a new design district in Charleston's Navy Yard. This 150,000-square-foot development aims to consolidate showroom spaces, with established brands like Schumacher and Kravet already on board. They discuss the potential benefits for regional designers and the broader Southeastern design community.

Notable Quotes:
[11:49] Fred Nicholaus: "I think there's clearly an opportunity to set up a hub outside of Atlanta for designers in the Southeast."
[12:07] Dennis Scully: "It's going to have a great rooftop restaurant, which I'm looking forward to."

V. Real Estate Industry Consolidation

Fred discusses the recent consolidation in the real estate sector, notably Compass’s talks to acquire Berkshire Hathaway's Home Services of America and Redfin’s acquisition by Rocket Mortgage. They analyze the implications of these mergers, particularly in the context of the National Association of Realtors (NAR) settlement, which has strained profit margins and influenced these strategic moves.

Notable Quotes:
[14:14] Fred Nicholaus: "There are no brokerages doing great right now because the housing market is still very stubbornly frozen."
[14:58] Fred Nicholaus: "The 6% commission structure is pretty hard to change."

VI. Impact of Covid-19 on the Design Industry

Dennis and Fred reflect on the five-year mark since the Covid-19 pandemic began, debating its long-term effects on the interior design industry. While anticipating significant shifts such as the rise of virtual showrooms and decreased need for travel, they observe that many predicted changes have not fully materialized. Instead, the industry has seen a resurgence in in-person events as professionals crave the lost community interactions.

Notable Quotes:
[21:21] Fred Nicholaus: "Virtual showrooms haven't become the norm."
[24:58] Dennis Scully: "The lasting impact of the outdoor space remains."

VII. Kitchen Islands Trend Reversal

The hosts discuss a Wall Street Journal article about homeowners moving away from kitchen islands in favor of classic kitchen tables. They explore the differing perspectives among designers—some advocating for tables due to family safety and practicality, while others emphasize the utility of islands, especially for households with children.

Notable Quotes:
[28:44] Dennis Scully: “Gail felt like more people should have a nice table and some chairs.”
[30:06] Fred Nicholaus: “Several people weighed in feeling quite strongly that, no, you need to have an island, particularly if you have children.”

VIII. Tribute to Pilar Velades

The episode takes a somber turn as Dennis and Fred acknowledge the passing of Pilar Velades, a respected design journalist and former editor at House and Garden, Architectural Digest, and the New York Times Magazine. They share heartfelt tributes reflecting on her legacy and impact within the design community.

Notable Quotes:
[33:44] Fred Nicholaus: "She was a generous mentor, a meticulous and acute colleague, and a lovelier friend."
[34:19] Dennis Scully: "She will definitely be missed and I'm sure there will be a tremendous outpouring for her."

IX. Interview with John Edelman on Heller

Guest: John Edelman, CEO and President of Heller

Dennis welcomes John Edelman to discuss his journey with Heller, including the acquisition process and the company’s commitment to sustainability. John elaborates on Heller’s innovative approach to making regenerative plastic furniture that decomposes into nutrient-rich soil under specific conditions, positioning it as the only regenerative furniture in the industry.

Key discussion points include:

• Acquisition of Heller: John's strategic move to preserve Heller’s legacy and design integrity after the passing of founder Alan Heller.

  Notable Quote:
  [36:46] John Edelman: "We apologize and made friends with Alan and built a business and became quickly his biggest customer."

• Sustainability Efforts: Heller’s advancements in using recycled materials and developing plastic that can biodegrade, emphasizing longevity and recyclability without increasing costs for consumers.

  Notable Quote:
  [46:59] John Edelman: "By April 1, 100% of our furniture will be made this way. Regenerative. But April 1st, our furniture will be sustainable."

• Challenges in the Current Business Climate: Addressing tariffs and their impact on pricing, and evaluating the efficacy of the industry’s roll-up strategies.

  Notable Quote:
  [48:33] John Edelman: "We have clients waiting for them, and they cost 20% more now. So what do we do? I can't eat a 20% increase."

• Be Original Americas Initiative: John discusses his role in promoting authentic design through education and collaboration with leading design firms and educational institutions.

  Notable Quote:
  [55:04] John Edelman: "Be Original America is an amazing organization fighting for authenticity and design."

X. Industry News Highlights: AD Covers and Printon Opening

Highlights:

• Architectural Digest’s COVID Cover: Fred praises AD’s bold and unconventional bathroom project by Adam Charlep Hyman, recognizing it as a departure from their typical style and commending their willingness to take creative risks.

  Notable Quote:
  [58:43] Fred Nicholaus: "It's very cool and interesting cover. Kudos to AD."

• Printon’s New Retail Space: Dennis shares excitement over the upcoming opening of Printon’s new storefront in downtown, designed by AD100 architect Laura Gonzalez. The store is anticipated to be a significant addition to the retail and design landscape.

  Notable Quote:
  [60:39] Dennis Scully: "It looks incredibly compelling... a must-visit location."

Conclusion

Dennis wraps up the episode by reiterating the diverse range of topics covered, from industry layoffs and new developments to sustainability innovations and influential tributes. He encourages listeners to engage with additional content on the Business of Home website and expresses gratitude to guests and contributors.

Notable Quote:
[61:32] Dennis Scully: "All the time we have today. Thanks so much for listening."

Notable Quotes Summary:

• Fred Nicholaus:
  [02:21] "Nick was very loud and proud. Like, I'm a decorator, I am not an interior Designer."

• John Edelman:
  [36:46] "We apologize and made friends with Alan and built a business and became quickly his biggest customer."
  [46:59] "By April 1, 100% of our furniture will be made this way. Regenerative."
  [55:04] "Be Original America is an amazing organization fighting for authenticity and design."

• Dennis Scully:
  [06:38] "Every time I use that Food52 spatula, it makes me smile, Fred."
  [58:43] "It's very cool and interesting cover. Kudos to AD."
  [60:39] "It looks incredibly compelling... a must-visit location."

This comprehensive summary captures the essence of the episode, highlighting all significant discussions, insights, and memorable quotes to provide a clear understanding for those who haven't listened to the podcast.