Issue #81: Thriving Through the Storm

Thriving Through the Storm

As I sit down to write this issue, outside the window next to me, snow continues to fall faster and faster. Latest estimates have snowfall reaching one-and-a-half, maybe even two feet. For the past three to five days, retailers have been slammed, with videos of long lines and empty shelves going viral. Here is an image from a Trader Joe’s in NYC:

At this point, for most retailers and brands, the chaos has passed. Either you were able to capitalize on the increased demand, or unfortunately, you were not prepared and missed out on a great opportunity to not only grow sales, but also win over customers by having a strong experience and in stocks during tough times. This likely won’t be the last major weather event retailers have to deal with, so I wanted to answer a couple of questions.

How do I handle the increased demand for products?

Getting the hardest question out of the way first! Ultimately, there is no silver bullet here, but the only way you will be successful here is by having a solid foundation. That solid foundation starts with data and relationships. On the data side, making sure you have an understanding of the weather potential as early as possible, so you can act as quickly as possible. Walmart may have a war room at all times on this, but luckily for most other retailers, there is so much weather data out there. The second part of data, once you know inclement weather is a possibility, is understanding YOUR customer. What products do they need? What products that normally don’t spike will spike? How much of each product should you get? Once that is established, it is important that your supply chain is already super flexible. There will not be much time, so you will need to flow as many goods as possible to the shelves. This is also where strong vendor relationships will come into play, so you can get the extra limited allocation. Time is of the essence, but data, robust vendor partnerships, and a flexible supply chain will allow you to be ahead of the curve.

How do I train employees? How do we prioritize tasks?

While there will definitely be increased demand, strong everyday practices will set up employees for success here. It shouldn’t really need super special practices. Stakes will be higher, but employees should be prepared to handle them through everyday practices. The big difference will be in the prioritization and staffing. The main priority is making sure as many goods are on the shelves and customers are getting moved through the store as quickly as possible, to avoid a backlog and long lines. Are there tasks that should be paused or reduced until after the weather passes? On the labor front, it may make sense to bring in extra shifts, since extra people will be in the store, more people will be needed at checkout, and for stocking. Similar to the supply chain aspect, a lot of this work should be done ahead of time.

How can brands get involved?

On the brand side, similar to retailers, the goal should be to flow as much inventory to the shelves as possible. You want as much opportunites to sell your product as possible. For new brands, this can also be an opportunity to cement their position from the competition. Go the extra mile, whether it be helping stock your product on shelves or making special deliveries to distribution centers to ensure sufficient product. It is a great opportunity to make a great impression and build a lasting relationship. One other opportunity to review is sampling and tasting during this time period. Retailers might be too crowded to execute, but the elevated foot traffic will be there.

What else would you recommend brands and retailers do to set up for success during inclement weather? What other questions do you have? 

Founder’s Table Accquires Protein Bar & Kitchen

In 2020, did you know that Chopt, the fast casual salad restaurant, and Dos Toros, the fast casual Mexican restaurant, joined forces to form Founder’s Table? If you did, kudos to you! I had no idea until this announcement! Now, they are bringing a third concept into the fold, Protein Bar & Kitchen, which was founded in 2009. It specializes in better-for-you meals for value-conscious consumers. Many of its locations are in non-traditional locations, like airports and college campuses. Protein Bar operates 15 corporate units, four licensed locations, and has 30 licensed locations under development. I am very interested to see how this acquisition unfolds, given I am not sure how complementary it is - there is a lot of overlap with Chopt. However, I do believe the salad places are going to have to push more into the bowl space to further grow, so this could help accelerate that menu development. Plus, geographically, Protein Bar & Kitchen is primarily midwest focused, while Chopt and Dos Toros are more Mid-Atlantic/Northeast. It wouldn’t surprise me if this move helps rapidly grow Chopt in the Midwest, even converting locations to a Chopt.

Capital One Cafe Discourse (It’s Actually A Good Strategy)

This week, Capital One, the legacy financial institution, acquired Brex, a B2B expense management and credit card startup. All in all, a pretty big win for investors, employees, and the founders. Plus, Capital One gets to tap into a new business line. Strong synergies. Still, this spawned a weird discourse and competition around the acquisition between Brex allies and people who favor Ramp. As much as I want to break this down (I love using Ramp, but am happy for the Brex team on the outcome), this is not a newsletter to analyze VC debates. You are here for the retail breakdown.

The retail part of this conversation was around the Capital One Cafes, which were getting a lot of criticism, as part of Capital One's buying of Brex. For some context, the Cafes are a part of Capital One’s physical bank strategy. In addition to ~700 branches and ~7,000 ATMs, they also have around 30 cafe locations. These cafes feature a space that is a mix between a co-working space, a traditional coffee shop, and a bank. (Pro tip: coffee is very reasonably priced for Capital One cardholders, but still tasty, and a great place to do work). The decor is a little basic and bland, which is what most of the criticism centered around, but that should not distract from the fact that it is a really good business idea. So much so that other companies are getting into the game. Ralph Lauren has long operated multiple Ralph’s locations, but now Coach and Uniqlo are also opening cafes. Personally, I think LinkedIn should get into the game too. Who do you think should open cafes?

Additional Links:

1. Dutch Bros acquires 20-unit Clutch Coffee (read more here)

2. Factor launches in Target stores across the Midwest (read more here)

3. Dick’s Sporting Goods fulfills 80% of its shipping orders from its stores, not from warehouses and distribution centers (read more here)

4. Subscription fatigue is hitting consumers hard, especially when it comes to meal kits (read more here)

5. Goop Kitchens, founded by Gwyneth Paltrow, is set to open its NYC location this summer for takeout and delivery only (read more here)

6. Airbnb is partnering with CookUnity, the meal delivery service, to offer meals through its Airbnb Services platform (read more here)

7. 2026/2027 should be the start of the wine industry turnaround (read more here)

8. Macy’s and Amazon may be competitors, but they cooperate on advertising, where Macy’s leverages Amazon’s Media Network (read more here)

9. PopUp Grocer partnered with Nordstrom to launch displays in 70 locations (read more here)

10. D2C brands are seeing the value of brick and mortar in 2026 (read more here)

11. PopUp Bagels and Wing Stop are partnering on a cream cheese, making it the first? collab with another retailer I can recall (read more here)

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