Podcast Summary: The Do’s and Don’ts of Brand & Startup Growth Ft. Chomps’ Founders Pete Maldonado & Rashid Ali

Episode Title: The Skinny Confidential Him & Her Podcast
Hosts: Lauryn Bosstick & Michael Bosstick
Guests: Pete Maldonado & Rashid Ali, Co-CEOs and Co-Founders of Chomps
Release Date: January 24, 2025

I. Introduction

In this engaging episode of The Skinny Confidential Him & Her Podcast, hosts Lauryn Bosstick and Michael Bosstick welcome Pete Maldonado and Rashid Ali, the dynamic duo behind Chomps, one of the fastest-growing food brands in the United States. The founders share their entrepreneurial journey, the challenges they faced, and the strategies that propelled Chomps to success.

II. The Genesis of Chomps (00:18 - 02:46)

Michael Bosstick introduces Pete and Rashid, highlighting Chomps' rapid growth in the competitive food industry. Lauryn Everts shares the inspiration behind Chomps:

"I was a personal trainer in college... my clients would leave and jump off the meal plan. It made life difficult because they weren't seeing the results I expected... So I started thinking about what I could bring to market to make their lives easier." (02:00)

This led Lauryn and Pete to explore various business ideas before settling on creating high-protein meat sticks that catered to fitness enthusiasts and busy individuals.

III. Early Challenges and Lessons Learned (02:46 - 06:05)

Lauryn discusses her initial ventures, including a frozen beef company aimed at competing with Omaha Steaks. However, high shipping costs and limited scalability posed significant hurdles:

"We realized without raising money, you can't really scale a business when it costs that much to ship frozen." (04:14)

Pete adds that their pivot to shelf-stable, individually packaged meat sticks was crucial for adapting to the e-commerce model and achieving scalability.

IV. Bootstrapping vs. Raising Capital (06:05 - 12:52)

The founders emphasize the importance of bootstrapping over early-stage funding to maintain control and understand their product deeply.

Pete Maldonado states:

"I wouldn't change anything on the way we built the company. I think you want to wait as long as possible to take outside funds." (09:58)

They opted for a friends and family debt round, offering attractive interest rates instead of equity, which allowed them to retain ownership and make strategic decisions without external pressure.

V. Scaling and Growth Milestones (12:52 - 18:43)

Chomps celebrated its 12th anniversary, marking over a decade of growth primarily through e-commerce before entering retail. Key milestones include:

• 2016: Partnership with Trader Joe's, resulting in a 10x business growth from 2016 to 2017.
• Expansion: Later collaborations with Amazon and Thrive Market.

Lauren Everts shares the operational challenges of scaling:

"Being able to just make 10 times the product... was insane." (07:37)

VI. Product Excellence and Market Fit (18:43 - 28:30)

Chomps' focus on high-protein, low-sugar meat sticks resonates with various consumer segments, including Paleo, Keto, Whole30 dieters, and those on GLP-1 regimens.

Lauren Everts highlights the product's relevance:

"Chomps is a great snack for somebody that's eating or on a GLP-1." (15:02)

The founders discuss how customer feedback and emerging health trends have bolstered sales, with an increasing number of consumers valuing quality protein sources.

VII. Building a Strong Brand and Customer Engagement (28:30 - 35:01)

Chomps has cultivated a loyal customer base that proudly wears the brand's merchandise, akin to lifestyle brands like Glossier. This emotional connection is fortified through authentic influencer partnerships rather than traditional celebrity endorsements.

Pete Maldonado explains their influencer strategy:

"The most successful influencer partnerships are ones where they would reach out and say, like, hey, I love your product." (32:51)

Additionally, customer-generated content, such as creative recipes incorporating Chomps, has enhanced brand visibility and engagement.

VIII. Team Expansion and Company Culture (35:01 - 41:47)

From a humble beginning with two founders, Chomps has grown to a robust team of over 140 employees, primarily focused on finance, operations, marketing, and quality assurance. The transition to a fully remote company during the COVID-19 pandemic posed challenges in maintaining culture, which they addressed by fostering strong internal relationships and protecting the brand's values.

Pete Maldonado shares insights on team structure:

"We have a strong marketing team, internal creative team, influencer social team... All departments are well-defined to ensure seamless operations." (36:25)

IX. Managing Setbacks and Maintaining Quality (41:47 - 39:31)

Chomps prioritizes quality control to mitigate risks associated with food safety, investing heavily in their quality assurance team to prevent issues like Listeria outbreaks. The founders also acknowledge product vulnerabilities, such as single-use plastic packaging, and are actively working on sustainable alternatives.

Lauren Everts candidly addresses product improvements:

"Single-use plastic is one of the things I don't love. We're working on ways to fix them." (38:52)

X. Strategic Planning and Future Goals (39:31 - 44:46)

Looking ahead, Chomps aims to solidify its legacy as a household name in the meat snack category. They strive for optionality, allowing flexibility in whether they pursue an IPO or potential acquisitions without being locked into a single path.

Pete Maldonado shares their long-term vision:

"Chomps is our legacy... we want to build something that's so large that regardless of where it lies, you can't break it." (23:09)

XI. Marketing and Social Media Strategies (44:46 - 35:01)

Chomps leverages authentic social media engagements, focusing on influencers who genuinely use and love their products. Their marketing efforts emphasize convenience, quality, and the emotional satisfaction of consuming a delicious, protein-rich snack.

Lauren Everts notes:

"We're not gonna pay for some big celebrity... we're usually working with influencers who truly consume the product in their everyday life." (32:28)

XII. Advice for Aspiring Entrepreneurs (26:29 - 29:07)

Pete and Lauryn offer invaluable advice to budding entrepreneurs:

• Avoid Copying Competitors:
  "Each brand, every situation is so different. It doesn't necessarily mean it would mean success for you." (26:40)

• Focus on Unique Brand Identity:
  "Stay disciplined and do your thing." (28:30)

• Leverage Data and Insights:
  "Data was super important for us. We needed to tell our story of incrementality." (34:14)

XIII. Conclusion and Giveaway (44:46 - 46:27)

As the episode winds down, Pete and Rashid engage with listeners, offering a 15% discount on Chomps orders using the code SKINNY at chomps.com. Additionally, they announce a giveaway where listeners can win Chomps products by sharing their favorite part of the episode on Instagram and following Chomps.

Rashid Ali encourages participation:

"All you guys have to do is tell us your favorite part of this episode with the Chomps founder on my latest post at Lauren Bosstick and make sure you're following Chomps on Instagram." (45:08)

Key Takeaways

• Bootstrapping Success: Chomps' founders emphasize building their business without heavy reliance on external funding, allowing for greater control and understanding of their product and market.

• Authentic Branding: Building a brand that resonates emotionally with customers through genuine influencer partnerships and high-quality products fosters loyalty and word-of-mouth growth.

• Strategic Scaling: Leveraging data and a deliberate growth strategy enabled Chomps to scale effectively while maintaining product quality and operational efficiency.

• Adaptability: The ability to pivot product offerings and embrace remote work during unforeseen challenges, like the pandemic, showcases the founders' adaptability and forward-thinking mindset.

• Long-Term Vision: Focusing on optionality and legacy ensures that Chomps remains flexible in its growth trajectory, whether aiming for an IPO, acquisition, or sustained family-led growth.

Notable Quotes

• "We want to be the noun." — Pete Maldonado (23:09)

• "Each brand, every situation is so different... it doesn't necessarily mean it would mean success for you." — Pete Maldonado (26:40)

• "Single-use plastic is one of the things I don't love. We're working on ways to fix them." — Lauren Everts (38:52)

• "How do we create something that's more scalable and perfect for E-commerce." — Pete Maldonado (04:30)

This episode serves as a comprehensive guide for entrepreneurs aiming to build and scale their brands effectively. Pete Maldonado and Rashid Ali's journey with Chomps offers actionable insights on bootstrapping, authentic branding, strategic growth, and maintaining quality amidst rapid expansion.