WEBVTT
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Okay, so welcome to our podcast.
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This is a little bit different today because this podcast is a spin-off of our radio show.
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Welcome to our podcast again.
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So we've got uh it's the Doctor and the DJ working title right now, but our guest today is Sam Fox, entrepreneur, restaurateur, businessman.
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What do we call you, Sam?
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Sam.
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Sam?
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Yeah.
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But you've like changed the hotelier now.
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Hotelier, that's right.
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I love that name.
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It's very fancy.
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You've got the global ambassador that opened up about a year ago, almost a year ago.
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Yeah.
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But I mean, you changed the landscape of food in Arizona.
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Oh, thank you.
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Right?
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I mean, you really have to.
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Much broader than Arizona.
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California, Arizona.
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California, uh, Nashville, right?
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Did it be 23 states?
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Are you in 23 states?
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Yes.
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Yeah.
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Wow.
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Wow.
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Big portfolio.
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Are there any restaurants in other states outside of this that aren't here?
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Because I know you got the one with Justin Timberlake in National.
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Yeah, the only other one it would be the 1230 Club in Nashville.
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That's just a unique one-off.
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And uh I've never really done a one-off outside of Arizona.
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All the original brands and restaurants have all started in Arizona.
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That's the first one we did uh in Nashville, and the only one we've done so far.
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So we're like the food proving ground.
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So just you know, you have to these restaurants are like children.
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You have to nurture them and grow them and develop them.
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They don't just happen.
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And so I've always wanted to be close so I could be there every day, especially in the beginning when you're doing all that.
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So that was reasoning for that.
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So how did it start?
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You grew up in Tucson?
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Yeah.
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Working for your parents?
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Yeah.
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My parents were in the restaurant business.
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Which restaurant?
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Uh Hungry Fox on Broadway, and they're still there.
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Uh a little breakfast place that my dad had a Mexican restaurant and um a couple other places.
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And you know, the whole time when I was going to school and growing up, it was a hard restaurant career.
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My parents did not want me to go in the restaurant business.
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They were mom and pop restaurants.
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They worked opening the clothes.
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It wasn't some big fancy payroll.
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They, you know, they cooked and cleaned and swept and did everything and um you know, just made enough to make a living, but it was not uh some sort of fancy job that I might have today.
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So what happened?
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How did it start?
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How did you go?
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I know I was going to school at the University of Arizona as a sophomore, and I was in real estate finance.
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My parents moved away to Florida to take care of my grandfather.
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They insisted that I did not go into the restaurant business.
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I was interning at a real estate firm.
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Um that guy I was interning for told me to go to his wife's house in Tucson Country Club, and she had something that she wanted me to do.
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As an intern in college, you ran errands and picked up lunch and you made copies.
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And so I was going over there.
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I thought I was picking up some dry cleaning, and she knocked, she opened the door and said, Hey, uh, I have a flat tire.
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I need you to change my flat tire.
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It's July in the summer.
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I'm this little preppy intern.
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I got my khaki pants on and my white shirt.
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And she goes, Can you change the tire?
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I said, Uh yeah, and I'm not really mechanically inclined.
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So it took me about an hour to change the tire, about 150 degrees on the asphalt.
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My clothes are ruined.
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I get in the car, she barely says thank you.
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I drive back to the real estate firm, which is at Williams Center, walked in and to my boss and said, I quit.
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And walked out of the door and I said, I'm never gonna work for anyone ever again.
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I dropped out of school, did not tell my parents, took my tuition money, and then raised some money from some friends and family and took over the old Casmelina space on Campbell and opened Gilligan's Bar and Grill in 1992.
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That's how I got into the restaurant business.
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I was 20 years old when I signed the lease.
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But I couldn't open the restaurant until I was 21 because I had to get a liquor license.
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I thought I was the smartest 21-year-old in the world, which I wasn't.
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And um, I'd say that was my three, I had the business for almost four years.
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That was my business sort of crash course on sort of I call it the restaurant business.
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I was always good at the restaurant side of things.
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My parents had restaurants and hospitality became natural and easy to me.
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The business side, which my parents weren't great at either, was something that I had to work at.
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And then having that restaurant with really not a lot of money.
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I kind of shoestring it together and running a business for three years with no money.
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You learn a lot about business and you learn a lot by yourself, and you know what works and what doesn't work, and you got to make sure you know where every penny is.
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And so, really, a foundation for who I am, sold that business, cost$45,000 to open.
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I sold that business four years, three and a half, four years later, and for$500,000.
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It's kind of crazy.
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And then uh got into some other restaurants in Tucson, had a restaurant called City Grill, uh merged with the people that owned Buddies, and we had five restaurants together.
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And uh I was partners in that, owned a third of that.
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My partners owned two-thirds of it.
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They were late 50s, early 60s.
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I was 26, 27 at the time.
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And um, we worked together, learned a lot from them, and learned a lot of things that I didn't like about how they ran their business.
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And we kind of became oil and water.
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They were, like I said, we were two different places in our life.
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They were playing golf, and I was working, they'd come in and tell me what to do.
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And I was offended by that.
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They probably were right, but I was offended by it.
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And after three or four years of business together, we had five restaurants.
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Um, they basically came to me and said, We're firing you.
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And I said, Well, I didn't know I could get fired from my own company.
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I'm the owner.
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And realized that I could.
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Big business lesson for me there.
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And um was embarrassed.
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I was kind of this guy in Tucson, had all these restaurants, and um, was gonna move out of Tucson to New York.
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A friend of mine just bought um uh um a business in New York called Dina DeLuca that was already there and he acquired it.
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He was a mentor of mine.
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In fact, they owned radio stations in Tucson, and that's how I got to know a guy named Bill Phalan.
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Did you know Bill at all?
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Boy, that name sounds familiar.
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Yeah, Bill, they owned a whole bunch of radio stations around the country.
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I can't remember the company, but Bill would come into my first restaurant and he would mentor me.
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And and then over the years I got to know him, and then when my partners fired me from that, he goes, Oh, you should go talk to a guy named Leslie Rudd, who was uh living in Napa at the time.
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Leslie had bought this uh Dina DeLuca brand.
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And at the same time, while all this was going on, I started to date a girl that was seven years younger than me, and she was a senior in college at the University of Arizona.
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We came serious.
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I went to New York, I got offered the job.
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I knew if I took the job that my wife or that girl, my girlfriend at that time would be over, and I knew I was gonna want him to marry her.
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And here I have 26 years later, I've married that girl.
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Good choice.
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Uh, got fired from my company, it was the best thing that happened to me, and um sort of was gonna move out of Tucson, but decided to stay, get engaged, and open Wildflower in Tucson in 1998, still in our portfolio.
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150 restaurants later, we're up here in Phoenix and had about 16, 17 different brands.
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We've grown the company, we've grown brands, we've had one-offs, we have 40 and 50 of other units.
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We've sold true food, we've sold sauce, and then almost four years ago, a little over four years ago, I sold my whole company to the Cheesecake Factory.
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And I'm still there today running the business, and they're in amazing partners, and we have a really good thing going.
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So I want to ask you to me, Sam, you're kind of like the pioneer of concepts, though.
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Because everybody now wants to do concepts in the restaurant business.
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But you started it.
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Yeah.
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You were the first guy who said there's a trend here that we can we can you know play off of.
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So how did you come up with the idea?
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Well, all ideas are different, but all the ideas came from as far as true food goes, if you're referring to true food, um Andy Weil, who was our partner in it, his business people reached out to me and said, Hey, um, you want to come, Andy wants to talk to you about doing a Russian.
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I said, I don't want to do a restaurant with Andy.
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And Andy used to come to my restaurants and eat all the time.
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And you know, Andy was this sort of early to sort of healthy eating.
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I said early adopter.
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Early adopter.
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And I was like, you know, I don't need that.
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I don't want to have a partner who's a doctor and have these crazy things.
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And so Andy invited me down to his house down in Tucson, and I took my wife and we had dinner and cooked a whole bunch of food that I would never eat.
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I would never eat it, and it was all good.
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I went down there just as sort of as a courtesy to somebody, the business people.
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And now I left her going, shit, we should do this.
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And so um we worked on sort of putting our deal together and sort of what we thought it should be, and then um we found a location and we opened the original one almost 15, 16 years ago at the Biltmore, True Food, and uh the day we opened, it was been successful ever since.
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We uh got approached in sort of the third month by a guy named Rick Federico, who's uh chairman of the board and CEO of PF Jenks.
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And they said um I was having lunch with them at True Food to talk to him about trying to hire somebody that had worked for him to be my president.
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And kind of early in my career, I've always wanted to sell a few things.
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You know, I saw my parents how hard they worked, and these, you know, when I didn't have a lot of restaurants, you know, you have restaurants and you have cash flow and it's great, but you really are not really creating any sort of um wealth or any sort of long-term capital.
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It's always these are somewhat depreciating assets as you open these buildings.
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And so uh so Rick and I had a great relationship, and I was interviewing this guy named Russell Owens, who has become my president, has been with me since that lunch that day.
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And at the end of it, he said, What are you doing with true food?
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Because he knew I was always trying to sell himself.
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Hey, you want to buy sauce?
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You want to buy this?
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And uh I said, I don't know, we just open, we're figuring out he goes, Well, we want to buy it.
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I go, What?
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You want to buy it?
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I said, Well, we only have one.
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And uh, we made a deal, but they would give me some growth capital, grow it to five.
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Um, it was in the middle of 2000 sort of seven, two thousand and eight.
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There's really no capital out there, sort of in the early stages of the financial crisis.
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So Rick gave me$10 million almost on a handshake, a little more than a handshake, but it was a very loose terms.
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And the deal was we'd go and open, we'd get to five units.
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And once we did, they would either make me pay them back the$10 million or they'd be my partner.
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And so they became my partner.
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They were publicly traded.
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They in turn got bought by a big private equity company and they took them private.
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And so my partners wound up becoming a private equity firm out of New York.
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And um, it's a little interesting ride, a lot of learning experiences through that for sure.
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Um, and our our structure was grow up to 20 and then we would exit.
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So we grew up to 20, we exited, we wound up staying on for a little bit.
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Um, Oprah bought in at the same time when we were exiting.
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She was on the board.
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I got to meet Oprah and be on the board a little bit, and then sort of completely divested our interest uh about a year and a half later, and we've been out for almost eight years.
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So true food has nothing to do with nothing to do with anything that we have nothing to do with true food for the last seven or eight years.
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Wow.
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Yeah.
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Neither does Andy.
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Yeah, and he does.
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He kept his money in the deal.
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Oh, he did.
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I took my money out.
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Oh wow.
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So if a new new a new true food pops up somewhere, you have nothing to do with it.
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Correct.
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Yeah.
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So um I grew up in the restaurant business, my dad in Tucson.
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Yeah.
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Uh in fact, he had a Taco Bell that he sold to Greasy Tony.
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Do you remember Greasy Tony's?
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Yeah, sure.
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Yeah, that was my dad's.
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Oh god.
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I used to go there uh like late night drunk all the time and eat.
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Yeah, you want to hear about this is a horrible story.
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My dad owned the rights to the Taco Bell in all of Arizona and sold it in 1977 to go open at Sambo's.
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Yeah, that they worked.
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That didn't work out.
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Yeah, it's okay, right?
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That didn't work out.
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Yeah.
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But I remember him coming home after 18, 19 hours.
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I remember him taking off his shoes and he'd go and he would massage his feet and he'd tell me about the appreciating the little things in life, right?
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He's because he worked his ass off.
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Yeah.
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Um and it makes me think about health and fitness and how he never had time to exercise until much later.
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So here you are running these restaurants.
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Are you exercising?
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Are you eating right?
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Are you your worst customer?
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You know, we um, yeah, you know, true food was not how I ate.
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I was a Zin burger guy, right?
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And you know Zimburger's not bad.
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But yeah, but I'm up fries.
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There's a burger there called the sandburger.
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Oh it's bacon, it's Thousand Island, it's cheese.
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And so um, that was me.
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I was the sandburger.
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And then we opened up true food and I'm like, okay, this isn't, you know, so I was when we developed the whole brand, the whole brand was developed about food that I liked, not what Andy liked.
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I knew you know Andy's audience was 10% of the world at that time, right?
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Right.
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And I figured if we can make it that I liked it, I was the other 90%.
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And so that was really I'm we worked on the food in my test kitchen and it was healthy.
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And if I liked it, we would we would make it as a menu item.
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And you know, Andy would share ingredients and ideas, and you know, we were really, really, really early to kale, really early.
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And um drinking, you know, and just like see buckthorn and just some things that I never heard of at the moment in time, but you know, I just dove into it and you know, it turned out to be, you know, great.
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And so that was sort of the first time where I started to say, okay, maybe I need to take care of myself a little bit better.
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Oh, really?
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So did you do blood work?
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Did you do stuff like that?
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And you're like, I gotta eat better.