Summary
Overview
This episode of How I Built This Advice Line features Pete Maldonado and Rashid Ali, co-founders of Chomps, the grass-fed meat stick brand. They field questions from three food entrepreneurs navigating critical growth decisions: Yaddy from Yaddy's Artisanal Empanadas considering expansion strategies, Zachary from Noble Pies seeking retail distribution, and Josh from Achigan Brand deciding when to go full-time. The conversation explores themes of strategic expansion, managing retail relationships, production scaling, and knowing when to take the entrepreneurial leap.
The Protein Market Wave and Business Resilience
Pete and Rashid discuss Chomps' position in the booming protein market, noting they've been in the space for 13 years and are well-positioned for both current trends and future consumer fatigue. They candidly address last year's product recall challenge, explaining how they handled an isolated manufacturing incident by voluntarily recalling products despite finding no actual contamination. The experience cost millions but strengthened their processes and consumer trust, with no regrets about prioritizing safety over short-term costs.
- Protein is being added to everything from water to ice cream, creating a "proteinification" trend
- Chomps is positioned to win both during the protein trend and after consumer fatigue sets in
- A voluntary recall was conducted for one batch from a single facility, evening shift, on one packaging line
- The recall cost millions but no metal was found and no consumers were harmed
- New processes were implemented to prevent future issues
" This is a cultural shift. It's not a fad. People are changing the way they're dieting and eating and they're educating themselves and that's not going away. "
" When I tell the team, one recall is one too many. It's just not acceptable. We can be better. "
Yaddy's Empanadas: Choosing Between Campus Expansion and Distribution
Former teacher Yaddy DeRees left her 23-year career in 2021 to start making authentic empanadas, quickly growing from kitchen production to landing at SUNY New Paltz campus with $3,000 daily sales averaging over $700,000 annually. She's wrestling with whether to expand to more college campuses, open a brick-and-mortar location, or focus on distribution. The advisors recommend starting with a commissary model for distribution, leveraging delivery apps, and keeping expansion within an hour radius while addressing the seasonality challenge of college closures.
- Yaddy's moved from a small campus convenience store to a central location, doubling sales to $3,000 daily
- The business is profitable with a team of nine people and can now run without the founder on-site
- College seasonality creates a four-month period with no revenue during breaks
- Food truck model could solve seasonality by moving to different locations during campus closures
- Connecticut expansion is being considered, less than an hour away with multiple colleges
" I quit my job four years ago and I'm here. So moving forward now and taking that next leap of faith and going to the next level, I got nothing else to lose. "
" Empanadas, it's not like there's an empanada shop on every corner, like there's a burger joint every corner, right? But it's got the potential to be something really interesting. "
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