Episode #671: Going National While Staying True to Your Local Roots with Jay Rushin, H&H Bagels

Release Date: May 2, 2025
Podcast: The Agile Brand with Greg Kihlström®
Host: Greg Kihlström
Guest: Jay Rushin, CEO of H&H Bagels

Introduction to H&H Bagels' National Expansion

In this episode of The Agile Brand, Greg Kihlström welcomes Jay Rushin, CEO of H&H Bagels, a quintessential New York City institution famed for its appearance in popular culture shows like Seinfeld and Sex and the City. Jay shares his journey from a 20-year career in finance to acquiring and transforming H&H Bagels into a burgeoning national franchise with over 70 locations across the United States.

Balancing Growth with Authenticity

One of the central themes of the discussion revolves around scaling a beloved local brand nationally without losing its authentic New York essence.

• Jay Rushin on Authenticity vs. Evolution (04:32):
  “Authenticity can also become a trap, limits evolution. So it's almost, you know, something you want to connect with, but you don't want to wrap your entire brand around because there's a lot of dangers to kind of that.”
  Jay emphasizes the importance of maintaining core brand values while remaining open to necessary changes that foster growth and improvement.

• Maintaining Product Authenticity (04:54):
  “We connect that authenticity with our core product, our bagels. We use the same recipe, the same process that we've used for over 50 years. We still fully kettle our BO. Our bagels in New York City water.”
  By preserving the traditional bagel-making process and using high-quality ingredients, H&H ensures that the product remains a faithful representation of its New York roots, even in distant locations.

Evolving the Customer Experience

Jay discusses the critical evolution of H&H’s customer service model to enhance efficiency and satisfaction.

• Initial Challenges with Traditional Model (10:28):
  Jay explains the shortcomings of the old system where orders were taken by one person and prepared by another, leading to inefficiencies and customer dissatisfaction.

• Experimentation and Learning (12:00):
  “We first tried a QSR model where the order is placed at the cashier and then prepared in the back, but it was an epic failure. Mistakes went up, customer satisfaction went down.”
  This trial-and-error approach highlighted the complexities of the bagel category, especially with numerous product modifiers.

• Adopting a Customer-Facing Model (13:36):
  Inspired by Chipotle, H&H shifted to a model where customers participate in the bagel-making process.
  “If the customer could almost participate in their order being made and the team member is facing them and communicating with them, that all of those modifiers can be communicated to the team member, but also could be caught if something was going wrong.”
  This change significantly improved accuracy and customer satisfaction, laying the foundation for successful nationwide scaling.

Franchise Growth and Partner Selection

Expanding nationally requires selecting the right franchise partners who align with H&H’s values and understand the brand's legacy.

• Selecting Passionate Partners (07:14):
  “They’re really, really passionate about the brand. They absolutely get what we're doing and where we're going.”
  Jay highlights the importance of partnering with groups that not only have business acumen but also a genuine connection to H&H’s New York heritage.

• Cultural Connection and Brand Awareness (08:21):
  Initially, many franchise groups had direct ties to New York City, providing an authentic connection to the brand. As H&H expands, partners with varied connections and high brand awareness are welcomed, ensuring the essence of H&H is maintained nationwide.

Leveraging Pop Culture for Marketing

H&H Bagels’ rich presence in iconic TV shows offers a unique marketing advantage.

• Utilizing Cultural Cachet (14:52):
  “We touch on it from time to time. We, we, we, we definitely love, love that connection, as I said. But yeah, but you know, every, everybody's got to evolve and improve and grow otherwise, you know, weathers and dies.”
  While H&H embraces its television fame, Jay insists that the brand should not solely rely on it, encouraging the marketing team to innovate and keep the brand dynamic.

Overcoming Scaling Challenges

Scaling a national franchise involves meticulous planning and robust infrastructure.

• Building the Backbone (16:06):
  Jay discusses the extensive groundwork done before franchising, including the construction of a 20,000 square foot bakery in Queens to ensure product consistency across all locations.
  “Now every single bagel globally is made out there and now we know that the product is going to be the same whether it's in Los Angeles, California, New York, New York, Boca Raton, Florida or anywhere else...”

• Continuous Improvement and Collaboration (17:10):
  Regular operational calls and openness to franchisee ideas foster a collaborative environment that supports ongoing improvements and adaptability.

Future Plans and Continued Growth

Looking ahead, H&H Bagels is poised for significant expansion with numerous new markets on the horizon.

• Upcoming Locations (17:51):
  Jay reveals plans to open stores in Washington D.C., West Palm Beach, Jacksonville, Knoxville, Tampa, Los Angeles, and more, with at least half a dozen additional cities expected by year-end.

Staying Agile in Leadership

The conversation concludes with insights into maintaining agility within leadership roles.

• Jay on Agility (18:35):
  “I'm a big, big believer that success comes from keeping a flexible, open mind at all times.”
  Jay attributes his ability to steer H&H’s growth to his inherent curiosity, willingness to embrace failure, and openness to new ideas, fostering a culture of continuous improvement.

Key Takeaways

1. Authenticity vs. Evolution:
   Maintaining core brand values while being open to necessary changes is crucial for scalable growth.

2. Customer Experience Innovation:
   Adapting the customer service model to enhance efficiency and satisfaction can significantly impact brand success.

3. Strategic Partner Selection:
   Choosing franchise partners who are passionate and aligned with the brand's legacy ensures cohesive national expansion.

4. Cultural Leveraging:
   Utilizing pop culture connections can enhance brand visibility but should not hinder ongoing innovation.

5. Infrastructure Development:
   Robust backend operations and consistent product quality are essential for maintaining brand integrity across multiple locations.

6. Agile Leadership:
   Flexibility, openness to feedback, and a willingness to learn from mistakes underpin successful leadership and business growth.

Notable Quotes

• Jay Rushin (04:32):
  “Authenticity can also become a trap, limits evolution...”

• Jay Rushin (14:52):
  “Every brand needs to evolve and improve and grow otherwise, you know, weathers and dies.”

• Jay Rushin (18:35):
  “Success comes from keeping a flexible, open mind at all times.”

Conclusion

Greg Kilstrom and Jay Rushin delve deep into the intricacies of scaling a local icon like H&H Bagels into a national brand without losing its authentic essence. Through strategic evolution, customer-centric innovations, and agile leadership, H&H Bagels exemplifies how legacy brands can successfully navigate the challenges of expansion in today's dynamic market.

For more insights and to join discussions on marketing and AI, be sure to tune into future episodes of The Agile Brand with Greg Kihlström®.

This summary is based on Episode #671 of The Agile Brand with Greg Kihlström®. For the full transcript and additional resources, visit theagilebrand.com.