Some random thoughts about the online interview.
1) I seem to be in the minority in thinking that coming out with branded merchandise before you have a brand to drive it is a mistake. No one knows who GIGL is yet but they are going to spend money on getting cooler space, inventory, marketing, etc. on a brand that is unknown. Backwards. It will take funds, time, and effort away from building the next store. It's a step back, not forward.
I do NOT think he can accomplish building a couple restaurants now and merchandise line at the same time. He doesn't have the money, experience, or manpower for it. I think it's the path of least resistance for him. If he can't open another location, he thinks, maybe do a food line instead? I don't know, I can't make sense of it in the long-term.
2) If he has the money to do this food/merchandise line, surely that could be used to open another 1-2 locations if the malls are "rolling out the red carpet" as Joey says. That would help build the brand.
3) He makes it sound like they have numerous locations already. They have only two, there is no real brand yet. GIGL is just one store more than a start up, proof of concept. Yes, they are getting great reviews, so build on that success.
4) Again with the Hollywood obsession. He LOVES to talk about the celebrities.
5) I wish he'd stop saying how they "hide" healthy food in the children's food options. It sounds tacky. Just say that you are making healthy food options for kids, nothing wrong with saying the truth like that. I'm not sure why he thinks that is so cute (or insert your own word instead of cute).
6) There was talk about expansion yet no talk about the Bahrain LOI that was signed? So, that pretty much confirms it's completely dead. No big deal, but there are some people here who are still hanging on his words about that deal. He should announce its true status and move on.
7) Stop basing your marketing on celebrities. I know this is difficult for Parsi to stop. He's really fond of them. Sure, use them for the gimmicky exposure you get out of them but gimmicks don't sustain a business. The execution of a great concept does. GIGL is a great concept. But it lacks execution now. Celebrities are fickle and they will eventually stop going to GIGL on to the newer fad restaurant and then what?
If he doesn't build more locations, someone else will. There is little barrier to entry and no IP stopping anyone from replicating this concept.
8) He also lacks focus....still. I can see the argument for catering, ok, I'll give a pass on critiquing that. But clothing, toys, food, etc. before the next location is open? That shotgun approach is short sighted.
9) I'm a shareholder since the beginning of the year and want them to do well. I just think his shotgun approach is taking away from true expansion. Expansion of the core concept--restaurants--is what will build this brand.
You don't build/expand a restaurant business by NOT building restaurants.
Again, I know I'm in the minority on this. I think shareholders want any good news and even if not good for the long term, will take the short term pleasure they feel from anything happening.
Has anyone seen "The Founder?" Watch it to see how McDonald's expanded. It built locations. Then it built more. Then it built even more. No Happy Meals. No movie related merchandise until the brand was built. In fact, there is no mention in the movie about any merchandise at all because it came much later, after McDonald's was an actual brand to drive the merchandise.
If they do frozen food, toys, and clothes now, they are building a merchandise brand and are not a restaurant company.
Stock manipulation according to the SEC. "Making false or misleading statements about a company."
