Restaurant Unstoppable: Chris Schultz, CEO of Velvet Taco

Episode 1259 | March 9, 2026

Episode Overview

In this engaging conversation, host Eric Cacciatore reconnects with Chris Schultz, now CEO of Velvet Taco and a four-time guest on Restaurant Unstoppable. Schultz, renowned for his leadership in scaling restaurant brands (including Starbucks, MOD Pizza, and Voodoo Doughnut), shares his philosophies on building culture, scaling sustainably, embracing failure, and maintaining authentic connection in a rapidly evolving industry. The discussion traverses operational insights, personal evolution as a leader, today's changing workforce, and the outlook for Velvet Taco as it grows.

Main Themes

• Scaling with Integrity: How to maintain culture and authenticity while growing.
• Leadership Evolution: Schultz’s journey from hands-on operator to culture shepherd.
• Human-Centric Operations: Empowering front-line staff and flattening hierarchies.
• Adapting to Industry Change: Gen Z/Gens Alpha values in hiring, tech disruption, post-COVID model shifts.
• Authenticity & Brand Identity: Why “lightning in a bottle” brands win.
• Strategic Growth vs. Growth for Growth’s Sake: Thoughtful expansion and data-driven market selection.
• Wisdom for Restaurateurs: Humility, gratitude, and knowing your lane.

Key Discussion Points & Insights

Chris Schultz’s Scaling Pedigree

• Background (05:22–06:06):
  • Starbucks (15 years), MOD Pizza (1 store → 370), Voodoo Doughnut (4 → 25).
  • Now leading Velvet Taco: 56 locations (4 licensed, 1 franchise overseas).

Core Velvet Taco Metrics

• Unit Economics (07:17–08:34):
  • ~$3 million AUV per store.
  • “Very profitable at store level” (prime cost ~16–18.5%: “We’re on the high side”).

Leadership Mantra & Evolution

• Success Quote (09:00):
  • “It’s amazing what you accomplish when you don’t worry about who gets the credit.”
  • Schultz notes maturity: once it was about “me,” now it’s about empowering others.
  • “I celebrate my failures as much as my successes.” [09:47]

Scaling Culture & Recognizing Limits

• Getting Out of the Way (13:24):
  • Schultz frames himself as an operator more than an executive:
    • "I’m truly an operator... blocking and tackling."
    • At MOD, once the org hit 350+ stores, “It grew bigger than me… I don’t want to grow so big that I forget all the store managers' names.” [12:06–12:50]

The Changing Workforce

• Gen Z/Alpha Employees (14:07–15:53):
  • “They’re way more inquisitive. Why, why, why? Which is phenomenal."
  • "Far more sensitive… Acknowledgement, appreciation. We don’t need a rulebook, just parameters."
  • Emphasizes flat organizations, open dialogue (“My cell number is up in every restaurant, back by the schedule. My personal cell.” [16:59])

Flat Hierarchies & Empowerment

• Entangled Organizations (17:10–18:03):
  • Everyone, from CEO to dishwasher, is empowered to call out issues/violations of values.
  • Notable Book: That’s My Bad – About leaders acknowledging mistakes.

Owning Mistakes and Learning

• From Control to Shepherding (25:20–27:41):
  • Early at Voodoo, tried to process everything tightly—learned to “just let the brand breathe.”
  • Amplify the “why"—don’t impose your own narrative, but help discover and nurture the brand’s core.

Simplicity, Authenticity, and Brand Core

• True to the Core (32:44):
  • “Simplicity—stay true to what made you good.”
  • Schultz warns against chasing every trend (e.g. ghost kitchens), and instead focuses on tools that enhance, not distract.

Adapting Post-COVID

• Permanent Shifts (36:46):
  • Multiple pickup options & convenience channels are here to stay.
  • Third-party delivery: “A necessary evil… but you lose control over the guest experience and food quality.” [37:41–40:14]

Leadership: Humility, Ownership & Team-Building

• Limitations & Surrounding Yourself with Talent (41:44–43:03):
  • “If I’m the smartest man in the room, I need a new room.”
  • “This is OUR team… not MY team.”
  • Value of being the ‘dumbest in the subject’ to learn and foster greatness in others.

Fostering Connection at Scale

• Practical Tactics (57:27–60:42):
  • Schultz calls two store managers each Saturday, rotates through teams, sends handwritten notes on promotions.
  • Creates Velvet Taco Advisory Council ("V-TAC") – monthly meetings of rotating store GMs: “They can say anything, anything at all.” [76:48–78:57]

Notable Quotes & Memorable Moments

• On Ownership:

  • “It’s amazing what you accomplish when you don’t worry about who gets the credit.” —Chris Schultz [09:18]

• On Employee Empowerment:

  • “The person that sweeps the floor should choose the broom.” —quoting Howard Behar [20:41]

• On Brand Authenticity:

  • “Authentic brands win… Be the shepherd, not the owner.” [26:13]
  • “When people ask me, 'Should I go in the restaurant business?' I say, please don’t—we don’t need another inauthentic brand!” [26:17]

• On Mistakes & Vulnerability:

  • "The more I allowed people to make mistakes and be comfortable, the quicker we had success." [45:05]
  • “As a young leader, you want to be the superstar… Over time, I’ve realized: did I bring magic dust, or did I just join a great brand and nurture it?” [43:29]

• On Data Overload:

  • “We have a million people in our loyalty program—I can tell you exactly what they ate. But what does it mean? What’s important is getting down in the restaurant, seeing people enjoy food.” [54:55]

• On Growth:

  • “I’d say my specialty is scaling from 50 to 400 units. Understanding the uniqueness, learning process from Starbucks, agility from MOD, culture from Voodoo.” [66:23]

• On Scaling and Human Limits:

  • Discussion of Dunbar’s Number (human limit for stable relationships: 150): “When you get to 150, it becomes us-versus-them… How do you intentionally fragment to control relationships?” [80:02–84:47]

• On Legacy and Values:

  • “Be humble. Be grateful. Never forget where you came from.” —Chris Schultz (his three legacy lessons) [122:13–122:28]

Key Segments & Timestamps

| Segment | Timestamp | |---------|-----------| | Chris Schultz Re-introduction | 04:25–06:43 | | Velvet Taco Today—By the Numbers | 06:43–08:44 | | Leadership Mantra | 09:00–10:15 | | Managing Culture at Scale | 11:39–14:05 | | Empowering a New Generation of Workers | 14:07–15:53 | | Open Communication Culture (cell # in every restaurant) | 16:59–17:03 | | Acknowledging Leadership Mistakes | 18:03–19:06 | | Differentiating when to Lead or Get Out of the Way | 25:20–27:41 | | Lessons from Voodoo Donut Era | 41:39–52:08 | | Data Overload vs. Human Interaction | 54:49–56:31 | | Practical Connection Rituals (calls, notes, etc.) | 57:27–60:42 | | Advisory Council & Listening Groups | 76:48–78:57 | | Markets, Expansion, and Growth Philosophy | 85:53–105:04 | | On Weekly Taco Features (WTF) | 101:54–104:13 | | Legacy & Core Values | 121:32–122:28 |

Tools, Books, and Resources

• Notable Books:
  • It’s Not About the Coffee by Howard Behar
  • That’s My Bad (author not specified; about leaders acknowledging mistakes)
  • Reference to "The Social Brain" and "Generations" books (on social structure and business patterns)
• Tech/Analytics:
  • PACER AI (location and demographic analytics for site selection)
• Organization Models:
  • Advisory councils, monthly connection routines, tactile recognition (handwritten notes)

Closing Messages & Industry Takeaways

• “Don’t sleep on Velvet Taco.” Schultz urges listeners to experience the evolving brand.
• Authentic brands win. Focus on core product, mission, and true values rather than expanding for expansion’s sake.
• Scaling is not just about size; it’s about becoming better, not just bigger.
• Kindness, humility, and gratitude are foundational for Schultz—values that he believes the industry needs more than ever.
• Advice for Aspiring Restaurateurs:
  • “Be humble. Be grateful. Never forget where you came from.” [122:13]

Final Thoughts

Chris Schultz’s journey underscores the importance of humility, listening, and championing others—whether leading at 4 or 400 stores. Restaurant Unstoppable’s long-form format surfaces how great leaders adapt, the hard truths behind rapid scaling, and why brand authenticity and human connection, more than ever, are keys to sustainable restaurant success.

For Further Reference

• Connect with Chris Schultz: chris.schultz@velvettaco.com
• Velvet Taco: Website
• Show notes & resources: [RestaurantUnstoppable.com]

Summary by Restaurant Unstoppable Podcast Summarizer (2026)