Episode 112: Franchise Secrets: Why The Melting Pot Still Dominates Casual Dining

Discover how JC Crawford, CEO of Front Burner Brands, is evolving The Melting Pot’s 50-year legacy for the modern investor. Learn the specific operational shifts that allowed this iconic franchise to maintain zero closures during the pandemic.

Highlight Extract:
"I’m proud of the work the leadership team did to support our franchisees through some pretty challenging times... During that period of time, we did not close a restaurant. It’s pretty amazing." — JC Crawford, CEO

Key Takeaways
Pandemic Resilience: The Melting Pot maintained zero closures during the COVID-19 pandemic through aggressive franchisee support and lease renegotiations.

Brand Evolution: How the brand is 85% through a system-wide renovation to provide a more modern, elevated guest experience.

Operational Ease: The introduction of the "Celebration Menu" to streamline high-volume party bookings and improve kitchen execution.

Investment Details: A breakdown of the $1.6M to $2.7M startup cost and the robust Item 19 data provided to candidates.

Mission-Driven Success: The brand’s 20-year partnership with St. Jude, raising over $18 million to date.

Guest Website: Melting Pot Franchising

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Mike Halpern, CAFC
mike@franchiseqb.com

Transcript

0:42

Joining us in the huddle today is JC Crawford, CEO of Frontburner Brands and Melting Pot Restaurants. Welcome to the show, JC. Thank you, Mike. Glad to be here. Yeah, it's glad to have you here. So you have a very impressive resume in the casual dining and fine dining space of the restaurant industry. 40 years of leadership, including 20 years with Bennigan's, 10 years with Ruth's Chris, an engagement with Roy's Hawaiian Fusion, and now currently in your role as the CEO of The Melting Pot. How did you get into the restaurant and hospitality industry? Yeah, it's kind of interesting. So prior to that, again, to me when I was 14 years old, I started as a dishwasher in St. Claude, Florida, a little small restaurant and hotel there and went from there to, you know, short order cooking a line. I was, you know, doing breakfast and lunch. And then it's interesting. I mean, I really enjoyed doing I remember getting yelled at by the owner. Now I understand it back then I didn't but like I'd make these massive banana splits that the guests love. And even then I didn't really connect the dots, but I'm like, I just want to make the guest happy. So I'm going to make this thing beautiful. And of course he was thinking about it. And he was making it pretty clear that I had some need to have some balance in there. So good learning experience at a young age. And there was a weekend that I don't know for sure what happened to servers just didn't show up. And I was a little cocky at a young age. I was like, Hey, I could do that. You know, he said he was going to cover the line and they had somebody else. So I knew a lot of the guests, because I used to go out and engage with them sometimes at Deliver Food, but I started waiting on tables and I had no clue what I was doing the day that there were no servers. But the guests that were in there that day were very understanding and I got pretty good at it. I I knew exactly what their order was going to be. They walked in the door, I fired their order, know, coffee with two creams, three sugars, whatever it was. I kind of had a down pat and really enjoyed making the connections. with gas, didn't know what that meant back then. I just enjoyed the people. And so that's kind of how I got fit by, I think the hospitality bug is pretty young age. And then I was lucky enough, there was a McDonald's that opened when I was 16. And I wanted to go check that out. Nothing wrong with what I was, but I just wanted to kind of grow. And the culture I experienced at McDonald's back then, was pretty amazing. And the mentorship I received from that general manager or store manager, think we called it back then, was pretty amazing. And I was, I was kind of driven to be the best and help others be the best in what they were doing in a restaurant space. And back then didn't really know what that meant. I just enjoyed doing it. And, know, I'll tell you the system disciplines and training that I received at McDonald's, still today, every, every brand that I joined, I brought. things from that experience and that training. So they really helped create a foundation. You know, I got kind of bit by the spark, the hospitality spark at that little restaurant in St. Gallup, Florida, and that continued with McDonald's and got a good solid training foundation that helped me support growth at Benegans, at Ruth Chris Steakhouse, at Roy's and now being part of Mountain. Yeah, that's really cool. Thanks for sharing the origin story with us. I think you share that in common with a lot of people that one of their first jobs or they had some kind of impact being employed in the restaurant space. For me, I worked for Little Caesars as a delivery driver back in high school. I also worked with what was then Boston Chicken became Boston Market. I don't even know if it's around anymore, but learned a lot like hard work and working with different people, different ages, different skill sets, different languages, the whole thing. So And that kind of put me into a career of franchise development in the restaurant space for many years before I became a franchise consultant. So, JC, you've been with the Melting Pot and Frontburner brands for five years and were promoted to CEO last year. Congrats on that promotion. What are some of the key lessons that you've learned stepping into the CEO role at a legacy brand like the Melting Pot? Yeah, it's interesting. I joined Melting Pot March of 2020. I remember calling the HR person like two weeks prior to me supposing to join. I'm like, are we still doing this? I like the world's kind of shutting down. goes, yeah, Mike Bode is his name. Hey, JC, could you actually start earlier? And actually, I'd like you to go meet some of the FBC's, the franchise business consultants on Friday, you can. So I started a week earlier and it was very interesting that, you know, I had some experiences at both Ruth Chris and Ben against with some downturns with the economy, 9 11 and different things like that. So I had lived through that. So I felt like I was coming in, you know, to help support that team. And I'm proud of the work that the leadership team did and our organization did to support our franchisee through some pretty challenging times going above and beyond. say really providing best in class support, you know, with helping them renegotiate leases with landlords and, you know, get some forgiveness on leases that weren't being paid, doing ERTC, PPP, everything we could to keep them focused on, hey, we're going to find a way to get through this as a brand. Strong franchise system, lots of great support. And I'm proud of the fact that that team really helped lead franchisees through that tough time. And during that period of time, we did not close the restaurant. It's pretty amazing. We had closed some prior, but during that period of That's really impressive. Yeah, it's interesting. mean, I was two years into my career out of college when 9-11 happened, and I remember the shockwaves that sent through, like, obviously the world and our nation, but in business, like it was a moment and that happened, you know, obviously very different situation in 2008 with the financial crisis, but definitely had a negative impact on retail and restaurant space. And then pandemic was the worst thing. that we've seen in the restaurant industry. And you know, you were just thrown right into the fire there, like starting the gig, like right as you know, the world's coming to an end. So that's awesome that you guys put franchisees first and figured out ways to kind of keep them open and operating and having no closures is really a nice feather in your cap. I moved to Arlington, Virginia, where you have a location on Glebe Road in the Boston neighborhood. And that opened in 2000. And it's now 2026. So I mean, my wife and I have been there a bunch over the years. And I know you have a couple additional units out in Gainesville and, and rest in, but I just love seeing a restaurant in the casual dining space and the fine dining space make it 25 years. I mean, that's a huge milestone. You guys just celebrated 50 years in business, but 25 for like a neighborhood restaurant near me is great. So why do you think the melting pot has had the staying power in the marketplace that it's had over these past five decades? Yeah, think we're melting pots a little different is it's really a place where people go to escape, connect, celebrate life's big moments. mean, we have birthdays, anniversaries, wedding, marriage, for rosals, countless futures that have been dreamed up and toasted around the melting pot. So it really is a unique interactive differentiation from traditional restaurants. It's just different. We consistently deliver experience that I think builds trust. around the region, around all of our locations. Constantly working to evolve the menu. I mean, it's still cheese and chocolate, but we evolve in really the enhanced salads and different flavors and the entree course. think maybe, I don't know, now we have a grill cooking style, so it's not just rock. So pretty cool. it is great for date night celebrations, family gathers. And it really helps us kind of, you know, during even times like now, people still want to celebrate birthdays, anniversaries and all that, and they choose the melting pot. So I'm pretty excited. And what's kind of interesting is you have the task as CEO of kind of balancing their 50 year heritage and tradition, but also you have to innovate because you always have to stay relevant in the marketplace. Can you give us some examples of initiatives that have refreshed the guest experience, restaurants, design, training, technology, things like that? Yeah, it's interesting. know, my responsibility, our responsibility is to evolve the brand without losing what makes it special. You know, got to be able to kind of connect and continue to connect with our core guests, but you also have to evolve for guests of the future. And innovation shows up in how we deliver the experience, but not removing what guests love. So, you know, one of the things we're nearing the finish line of a system-wide renovation effort, you know, Reston is a good example of that. And Gaithersburg both have been remodeled. And it really transforms the look and feel to reflect a more elevated modern experience. And on top of that, still making it intimate. There's still good spaces. Lever's Lane is what we call it. It's where people can enjoy a date night or an anniversary. And you can see that, you know, if you look at pictures of St. Petersburg that opened last year, Rogers, Arkansas, New Haven, Connecticut. all reflected that new design. We're probably about 85 % of the way through the entire system. So if you haven't been, you got to go check it out. Yeah, I'm going to be in Tampa next week. So maybe I'll see St Pete's or maybe I'll go to rest. And that's a lot more convenient. It's only maybe 15 minutes from my house. So you mentioned all of those kind of design elements and even interior improvements. How about operations? Like, do you have to, you you mentioned the grill component. how have you shifted operations to kind of stay current? Yes, mean, really everything and anything we can do to elevate the experience. mean, the here's a good example celebration menu is something we're in a process of testing is a challenge or has been a challenge historically to go to the belt of pot with a large party. There are just so many choices that you have to make if you're hosting that. And so we're in a process about 34 locations are testing this throughout the holidays. to where it basically really makes it easy. It's three different menu options, kind of a premium, awesome, mid-tier option, and entry-level options where it makes it so much easier for our teams to execute. So from an operational standpoint, we're able to deliver the perfect night out, even though it's a large group. In addition to it, it's really giving the guests what they want. Lots of options, lots of choices, but making it streamlined to where we could do that. Well, on top of that, we've evolved training systems. mean, since I've joined, brought on a phenomenal lead, you know, director, trainer, Brad Stiles, that's done amazing work of really fine tuning our management training systems, creating, developing and identifying training locations, and really putting together a solid training program that really helps guide new general managers and managers to have success in opening new restaurants or If a franchisee is in need of a new general manager, a good turning platform for them to leverage. we have continued every single year, we evolve training for employees. It has to change how they receive information. You know, if we want them to have the ability to deliver the perfect night out, be inspired to do that, we have to constantly be looking at ways to do that in a different way to kind of meet them in the way they like to learn. Okay. Do you guys offer or do you operate corporate stores or all your units owned by franchise owners? Yeah, we operate corporate stores. have three Minneapolis, St. Louis and the one we just opened in St. Peter's. Okay, cool. So let's kind of focus on the franchise side of it on owner support, right? This is a sophisticated business. There's a lot of employees. There's, you know, the way that you do business is not like cookie cutter. So how does your ops team effectively like support franchise owners to maintain that consistency? Because you do have a nationwide footprint. Yeah, yeah, first of all, we have a phenomenal, I mean, our franchisees, we've got great franchisees that have been in the system a long time. Many of them were like servers and got promoted into being a franchisee or decided to purchase franchisee 20, 30 years ago. So it's pretty impressive. You know, really work to partner them with phenomenal franchise business consultants that truly are business partners with them. It's not just about compliance, it's about getting in them and really help them understand how to improve their business. Each franchisee, depending on their cycle of time, they've been there 10, 15 years, or somebody that's been there two or three years, needs something different. Some of them need things to help them grow their business. Some of them need cost control help. Some of them need to understand how to better invest time in their community. And we've got a super talented group of franchise business consultants that have been owners themselves, have been COOs. EVPs, and that's probably the biggest change I made when I joined is really elblating that position to understand they have to maintain brand standards and their mission is to make sure that our franchisees are delivering that. But they also have to make sure that our franchisees are having success and driving top line sales and bottom line results so they have long term sustained success. And then our support system within the home office, mean, our tech stack that we provide to our franchisees, the amount of tools they have, they can look at a demand report and understand if their general manager doesn't have open tables set up in a way that helps them be able to capture every bit of demand. Or if they're not staffed properly for the demand that's coming in. And really, there's some great forecasting tools that we've continued to evolve to provide support for them in addition to the training and operational support they did. Great stuff. Thanks, JC. So in terms of the current footprint, I'm curious how many current melting pot restaurants are operating around the country. And then what is the thought on expansion and differentiation in the market? Yeah, there are 94 locations, 93 domestic and then one in Canada. And, you know, I'm not looking, we're not looking to open 10, 12 restaurants a year, you know, three, four, five restaurants a year. good growth, I would say, but, you know, in a manner that we can support new franchisees to make sure they're set up for success. Yep, that makes sense. mean, you want to make sure that you get the right real estate and the right partner and then the rest kind of works itself out. So I want to talk a little bit about philanthropy. Your organization has partnered with St. Jude's Children's Research Hospital and made a pretty substantial financial commitment. Can you talk a little bit about that? Yeah, I'm incredibly proud of the 20 year partnership that Bob started with actually one of our franchisees recommend, but a shout out to Mark Rosenthal that made that recommendation. You know, our core values and purpose are the heart of everything we do supporting patients and families at St. Jude fight against child child-worn cancer. I don't know that there's a better cause than that. I mean, there are a lot of things we could focus on. We surpassed $18 million since inception. and supporting in our partnership with franchisees. And then we had a record setting, $1.2 million last year. So pretty exciting. I actually had an opportunity, I think it was two years ago, my wife and I went to the facility in Memphis and it was amazing. It's such a great organization and a great partnership for us. And I feel like our guests value brands that make a difference. Being involved in charity strengthens our connection to communities. and purpose and profitability can and should coexist. I love it. mean, that's a significant commitment that you've made over a long period of time. And that recent contribution you mentioned of 1.2, I mean, that's just incredible. So congrats on that. And it's nice when the brand can deliver to its guests and also be mission driven, like you guys are doing. So let's talk a little bit about who you want to join the system. It sounds like you have a lot of sophisticated operators that are well capitalized. That's who a lot of casual dining and fine dining chains are looking for in ownership. What's your ideal owner profile for someone that's going to join the system that may not currently operate a store in your network? Yeah, good question. You know, I'd say someone that has an entrepreneurial spirit wants to be in business for themselves, but not maybe by themselves. So they want, you know, support of a franchise or with the systems tools and processes and guidance to help them have success. You know, ideally somebody that's really connected in their community. You know, we're not in fact, we have said no to people that wanted to live in a certain market, but try to operate a restaurant at distance. Most of our franchisees live in the community they operate in. We have some multi units that have great teams to support that, but that's kind of the general world with new franchisees. We're hospitality centric and people focus brand, so they need to fit into that culture. Yep, makes sense. And then geographically speaking, are you open to, you know, the market obviously has to fit your demographics, but nationwide, is there anywhere you won't go or pretty much as long as you get the right owner in the right market, we'll consider it. Yeah, no, right. Owner, right market. And eventually, I think there's an opportunity to expand further internationally. But I want to make sure our systems process and the support is buttoned up before we do that. had the opportunity to do that with the other brands. I'd love to bring that to the Yeah, makes sense. So let's talk a little bit about getting into the deal. If someone's like, I really want to participate in this. This sounds like, you know, it's right up my alley. What are the startup cost ranges and item seven? I know with a big construction project, there's going to be variants, but what's our general guidance there? 1.6 million to 2.7 is kind of the range. Smaller footprint, we can do 1.6. Trying to work, know, it's interesting construction cost has gone up a lot, but that's kind of what we have on our item set. Okay, and then do you guys provide item 19 guidance so candidates can have an idea of what earnings might look like? Yeah, okay, cool. on top of that, we provide some additional things. We have obviously visibility with our company operator locations and food cost and beverage. So cost of goods is like a 20.9. We can provide some details like that with our company operator locations. Excellent. This has been great, JC. Anything else you want to add to the mix before we wrap up today? Yeah, you know, I just simply say I can't, you know, it's pretty amazing to me. Last year we celebrated our 50th anniversary. I'm honored to lead a brand with such a rich legacy and incredible passionate franchisees. They're what drive our success. The Meltzer Pot's more than a restaurant. It's a place people gather to connect, celebrate, make lasting memories, and I'm excited to be part of it and excited to be leading the team that's helping us have a lot of success for the next 50 years. Well, I'm really glad that you chose to be a guest on the show. I will visit Reston because it's close and I want to see the remodel. And if anyone listening would like to connect with JC, regarding front burner brands or the melting pot restaurants to learn more about becoming a franchise owner, contact me at franchiseqv.com and I'll get you connected with JC and his team. JC, thank you so much for taking the time to get in the huddle with us today. Yeah, thank you, Mike. Really, really enjoyed the conversation and look forward to hopefully meeting you in person soon. I did as well. Thanks so much.