Advice Line with Brett Schulman of CAVA (July 2024) - How I Built This with Guy Raz

Summary

How I Built This with Guy Raz – Episode Summary: Advice Line with Brett Schulman of CAVA

Release Date: January 2, 2025

In this insightful episode of How I Built This with Guy Raz, host Guy Raz welcomes Brett Schulman, co-founder and CEO of the fast-casual Mediterranean restaurant chain CAVA, to the Advice Line segment. Brett joins Guy to provide expert guidance to entrepreneurs navigating the complexities of scaling their businesses. The episode features engaging conversations with three passionate entrepreneurs seeking advice on various challenges, ranging from imposter syndrome to marketing strategies and securing growth funding.

Introduction to the Advice Line

Guy Raz introduces the episode as an "Advice Line" where seasoned entrepreneurs like Brett Schulman assist callers with pressing business issues. Brett, renowned for scaling CAVA from a single restaurant to a nationwide chain, brings a wealth of experience to help listeners overcome their entrepreneurial hurdles.

Caller 1: Devin Strahan of Devin Spiked Root Beer

Background: Devin Strahan, founder of Devin Spiked Root Beer, shares his entrepreneurial journey. Transitioning from a private chef and owner of a healthy muffin company, Devin pivoted to creating an alcohol-infused root beer after his muffin business failed financially.

Challenges: Devin grapples with imposter syndrome and the pressures of scaling his rapidly growing business, now present in approximately 160 locations in the Houston and Austin areas. He also faces operational challenges, such as unreliable co-packers, which have recently exacerbated his feelings of inadequacy.

Advice and Insights:

Dealing with Imposter Syndrome:
Guy Raz [13:34]: “Most of us have an experience, a version of this at times in our lives. Some people are just better at hiding it.”
Guy emphasizes that imposter syndrome is a common and often healthy feeling that prevents overconfidence. He encourages Devin to recognize his accomplishments and the expertise he brings to his business.
Seeking Mentorship:
Brett Schulman [15:37]: “Don’t be shy about cold reaching out to business leaders that you maybe admire or respect.”
Brett advises Devin to seek mentors and advisors who can provide valuable insights and support, especially during challenging times.
Operational Stability:
Devin discusses recent issues with co-packers, highlighting the importance of reliable partnerships. Brett underscores the necessity of having trusted advisors and partners to navigate such setbacks.

Notable Quote: Devin Strahan [08:07]: “What a pivot.”

Caller 2: Sophia Bowden of Little Me Allergy

Background: Sophia Bowden is the founder of Little Me Allergy, a company that creates bright and colorful allergy accessories for children. Inspired by her daughter's severe food allergies, Sophia aimed to design appealing and functional products that advocate for kids with allergies.

Challenges: Sophia seeks advice on expanding her marketing reach and sales channels. As a mission-driven business, she aims to effectively reach parents and guardians to promote her allergy-friendly products.

Advice and Insights:

Marketing Strategies:
Brett Schulman [35:55]: “I love partnering with the allergen friendly food brands, and especially when you think about social collaborations and giveaways for the back to school season to help amplify what you’re doing.”
Brett recommends collaborating with established brands and leveraging social collaborations to enhance visibility and credibility.
Sales Channels Expansion:
Guy Raz explores the potential of participating in trade shows and entering brick-and-mortar retail spaces like gift shops. Brett concurs, emphasizing the importance of understanding the marketplace and selecting distribution channels that align with the business's goals.
Target Audience:
Guy advises Sophia to focus on marketing to parents rather than children, ensuring that the messaging resonates with those making purchasing decisions for their kids.

Notable Quote: Sophia Bowden [27:01]: “Yeah. And you launched this in July of 2023, so about a year ago.”

Caller 3: Sean Murray of Rootless Coffee Company

Background: Sean Murray is the founder of Rootless Coffee Company based in Flint, Michigan. Rootless is a craft coffee roasting company that stands out through its unique, artist-designed packaging and commitment to high-quality, ethically sourced beans.

Challenges: Sean seeks advice on determining the right time to seek growth funding and the best methods for doing so. He aims to scale his business sustainably while maintaining quality and operational efficiency.

Advice and Insights:

Channel Focus and Scalability:
Brett Schulman [53:05]: “Scaling restaurants is not like scaling SaaS software. It takes people, it takes process.”
Brett explains the importance of prioritizing growth channels that offer the highest return and align with the company's long-term vision. He suggests focusing resources on the most profitable channels before expanding further.
Financial Strategy:
Guy Raz advises Sean to consider short-term consulting to gain industry-specific insights without committing to long-term hires immediately. This approach can provide the necessary expertise to prepare for larger-scale funding rounds.
Revenue Growth and Funding:
Brett highlights the significance of presenting a clear scaling strategy to investors, showing how capital will be utilized to drive growth effectively. This clarity helps build investor confidence and secures the necessary funding.

Notable Quote: Brett Schulman [47:40]: “It's going back to my original question about instinctively, were there any kind of bricks and mortar places that you thought about going?”

Key Takeaways and Final Advice

Prioritization and Focus: Brett underscores the importance of prioritizing what not to do as much as what to do. By focusing on core strengths and strategic channels, businesses can navigate growth more effectively.

Building the Right Team: Hiring the right people for specific roles at each growth stage is crucial. Brett advises entrepreneurs to seek out experienced professionals, including fractional executives, to bolster their teams without overextending financially.

Emotional Resilience: Both Guy and Brett emphasize the significance of emotional resilience in entrepreneurship. Overcoming self-doubt and staying committed through challenges are essential traits for long-term success.

Notable Quote: Brett Schulman [54:15]: “Prioritization. You know, what I said earlier about what you don't do is often more important than what you do do.”

Conclusion

The episode wraps up with Brett sharing valuable lessons learned from his journey with CAVA, particularly the importance of having the right people and maintaining focus during expansion. Guy Raz encourages listeners to reach out with their business challenges, fostering a community of shared knowledge and support among entrepreneurs.

Final Notable Quote: Guy Raz [55:34]: “And by the way, if you haven't heard Brett's episode, the Story of Cava and how they turned it into this incredible chain, go back and check it out.”

This episode of How I Built This serves as a masterclass in navigating the complexities of scaling a business, emphasizing the need for strategic focus, robust support systems, and resilient leadership. Brett Schulman's practical advice offers invaluable guidance for entrepreneurs aiming to transform their ventures into enduring successes.

Transcript

Guy Raz (0:00)

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Guy Raz (2:17)

To you by Klaviyo. Klaviyo helps you build smarter digital relationships with your customers with its unified data and marketing platform featuring email, SMS reviews, and more. Make every moment count with Klaviyo. Learn more at k L-A-V-I-Y-O.com hey everyone, it's Guy here. I hope everyone's been having a great holiday season so far, and as you can imagine, our team is taking a little time off to be with their families and loved ones. So we're bringing you an advice line episode that we really loved. It's the one with Brett Schulman, co founder of Cava. And I was so happy to have Brett back on the show to give our callers some adv because he was the perfect person to guide them through the growing pains of trying to scale a business. And in a lot of ways, I think it's also a great episode for the new year since a lot of us will very likely experience growing pains of our own with like, new resolutions and goals. Speaking of which, I hope you have a very, very happy new year that is filled with lots of growth and learning and joy. And hopefully this episode will give you some inspiration. And without further ado, here it is. Hello and welcome to the advice line on How I Built this Lab. I'm Guy Raz. This is the place where we help try to solve your business challenges. Each week I'm joined by a legendary founder, a former guest on the show who will attempt with me to help you. And if you're building something and you need advice, give us a call and you just might be the next guest on the show. Our number is 1-800-433-129. Send us a 1 minute message that tells us about your business and the issues or questions that you'd like help with. You can also send us a voice memo@hibtid.wondery.com and make sure to tell us.

Summary

How I Built This with Guy Raz – Episode Summary: Advice Line with Brett Schulman of CAVA

Release Date: January 2, 2025

Introduction to the Advice Line

Caller 1: Devin Strahan of Devin Spiked Root Beer

Advice and Insights:

Dealing with Imposter Syndrome:
Guy Raz [13:34]: “Most of us have an experience, a version of this at times in our lives. Some people are just better at hiding it.”
Guy emphasizes that imposter syndrome is a common and often healthy feeling that prevents overconfidence. He encourages Devin to recognize his accomplishments and the expertise he brings to his business.
Seeking Mentorship:
Brett Schulman [15:37]: “Don’t be shy about cold reaching out to business leaders that you maybe admire or respect.”
Brett advises Devin to seek mentors and advisors who can provide valuable insights and support, especially during challenging times.
Operational Stability:
Devin discusses recent issues with co-packers, highlighting the importance of reliable partnerships. Brett underscores the necessity of having trusted advisors and partners to navigate such setbacks.

Notable Quote: Devin Strahan [08:07]: “What a pivot.”

Caller 2: Sophia Bowden of Little Me Allergy

Advice and Insights:

Marketing Strategies:
Brett Schulman [35:55]: “I love partnering with the allergen friendly food brands, and especially when you think about social collaborations and giveaways for the back to school season to help amplify what you’re doing.”
Brett recommends collaborating with established brands and leveraging social collaborations to enhance visibility and credibility.
Sales Channels Expansion:
Guy Raz explores the potential of participating in trade shows and entering brick-and-mortar retail spaces like gift shops. Brett concurs, emphasizing the importance of understanding the marketplace and selecting distribution channels that align with the business's goals.
Target Audience:
Guy advises Sophia to focus on marketing to parents rather than children, ensuring that the messaging resonates with those making purchasing decisions for their kids.

Notable Quote: Sophia Bowden [27:01]: “Yeah. And you launched this in July of 2023, so about a year ago.”

Caller 3: Sean Murray of Rootless Coffee Company

Advice and Insights:

Channel Focus and Scalability:
Brett Schulman [53:05]: “Scaling restaurants is not like scaling SaaS software. It takes people, it takes process.”
Brett explains the importance of prioritizing growth channels that offer the highest return and align with the company's long-term vision. He suggests focusing resources on the most profitable channels before expanding further.
Financial Strategy:
Guy Raz advises Sean to consider short-term consulting to gain industry-specific insights without committing to long-term hires immediately. This approach can provide the necessary expertise to prepare for larger-scale funding rounds.
Revenue Growth and Funding:
Brett highlights the significance of presenting a clear scaling strategy to investors, showing how capital will be utilized to drive growth effectively. This clarity helps build investor confidence and secures the necessary funding.

Notable Quote: Brett Schulman [47:40]: “It's going back to my original question about instinctively, were there any kind of bricks and mortar places that you thought about going?”

Key Takeaways and Final Advice

Notable Quote: Brett Schulman [54:15]: “Prioritization. You know, what I said earlier about what you don't do is often more important than what you do do.”

Conclusion

Final Notable Quote: Guy Raz [55:34]: “And by the way, if you haven't heard Brett's episode, the Story of Cava and how they turned it into this incredible chain, go back and check it out.”