What Epicura needs is a jackpot opportunity.
The current business has been in the swamp of stagnation for two consecutive years, so it’s a stretch to package it as a jackpot.
That’s why a new acquisition is needed.
We need to secure a brand that will achieve trendous success in the future.
Of course, even I can’t be sure if the new brand will actually hit the jackpot.
But what we need right now isn’t “results” but “opportunity.”
“As we can see from the examples of Chipotle and Shake Shack, fast casual is an explosively growing market.”
Let’s first hype up the “fast casual” sector.
“Their growth rate is comparable to Apple’s. In fact, Apple’s stock price surged about sixfold within five years of launching the iPhone. Similarly, Chipotle recorded an incredible 5.6-fold increase in the sa period.”
It would feel incomplete not to ntion Apple here.
“But it’s not just about the numbers being similar. The key point is that both of them pioneered new consur trends. Just as Apple opened up a new market with smartphones, Chipotle introduced the concept of fast casual, shaking up the dining industry.”
In other words, it’s as if the dining industry has entered the smartphone era. We’re at a major turning point in dining trends.
“Yes, Epicura will be at the forefront of this transformation. To do so, acquiring a fast-casual brand imdiately is imperative. That’s why Mr. Whitr and the board hurriedly sold Harbor Lobster—to secure funds for the acquisition of a new brand.”
“…!”
“……!”
When I ntioned the board, Pierce and Whitr’s focus intensified.
Yes, everything I’ve explained so far and everything I’m about to argue are the ssages to be presented to shareholders in the board election.
“We are confident that the brand we acquire will beco the next Chipotle. And we believe this brand will be the driving force to lead Epicura into its second golden age.”
The brands we choose will inevitably soar.
After all, they’ll beco the Apple of the dining industry.
“Of course, there will be shareholders who oppose. They might argue that success can’t be guaranteed yet, or that Chipotle and Shake Shack are outliers. They could be right. However, we still want to challenge this new future.”
Yes, there will be skeptics.
But what can they do if we’re determined to bet?
“So will strongly oppose. They’ll demand more solid data before agreeing to sell a flagship brand at a bargain price.”
They’ll criticize us for betting without grounds.
It doesn’t matter.
“But if we wait for data, the opportunity will already be gone.”
What’s one of the most intense emotions humans have? It’s the fear of missing out (FOMO).
“Everyone knows about the first-mover advantage.”
The first-mover advantage, or pioneer advantage, refers to the benefits companies gain when entering a new market first.
“Consurs tend to rember the leading brands that open a market. At most, there are three that stick in their minds. Chipotle and Shake Shack have already taken two spots, leaving only one left. The one who acts swiftly to secure the third spot will win. If we hesitate, we’ll miss the golden age that has finally arrived in the dining industry.”
Let’s sprinkle in so principles of scarcity and FOMO here.
“I’ve heard that other dining companies are seriously considering entering this space. Rumors say McDonald’s and Burger Kings are also looking into acquiring fast-casual brands.”
Let’s create a few fictional competitors to heighten the sense of urgency.
“Of course, we wanted to explain everything in detail at the shareholders’ eting and proceed with approval. But if we had done so, the acquisition process would have been delayed by months, and soone else would have taken the third spot.”
Well, I’m sorry for not telling you in advance, but if I had, the bus would’ve already left.
“Additionally, we were concerned that disclosing such strategic plans to shareholders could leak to competitors.”
What if we disclosed it and wealthier, faster companies snatched the third spot before us?
“We sincerely apologize for causing concern by not informing shareholders of the specific circumstances in advance. While the sale and acquisition may seem like a reckless gamble, we made this decision with the belief that it was absolutely necessary for Epicura’s survival and business.”
Yes, the board didn’t agree to the sale because of personal ties to the CEO.
They were driven by greed to bet.
“What do you think?”
I turned to Pierce.
I had presented a plausible election strategy to soone aiming for an election disruption.
Would he still stick to his original strategy?
“……”
Pierce avoided giving an imdiate answer.
After a mont of deep thought, he turned to Whitr and asked.
“This strategy requires visionary leadership. It’s entirely different from Mr. Whitr’s existing image. Are you ready to take this on?”
This was an unexpected reaction.
I thought he’d probe deeper into the flaws of my strategy, but he redirected the focus to Whitr.
A good move.
“Mr. Whitr, you’ve built credibility with safe managent based on data and numbers so far. However, adopting this strategy ans leaving all of that behind and becoming a leader who sells the dream of a new era.”
Pierce’s continued words left Whitr with a complex expression.
To follow my strategy, he would have to beco the Jobs of the dining industry.
While every executive harbors the ambition to achieve such a status,
‘Not him.’
Whitr is a figure who rose from an accountant to CFO and then CEO.
He’s a type of manager who relies on data to tread safe and reliable paths to success.
The exact opposite of Jobs’ leadership style.
“There’s no guarantee that the newly acquired brand will succeed, is there?”
As expected, he’s not confident in selling a far-fetched dream.
“Moreover, you’re asking us to present an exaggerated vision of the future. If those rosy promises fall apart, wouldn’t we be accused of being fraudsters?”
So full of worries.
But my role is to dispel all such concerns.
“That’s not true. If we disclose all processes transparently, even if we fail, we’ll be rembered as tragic pioneers. Being labeled a fraudster only happens when the truth is distorted and concealed.”
Yes, as long as we don’t lie, everything will be fine.
All you need is to cite your sources properly, and there won’t be any problems.
"Above all, it's clear that fast casual is a land of opportunity. Of course, mismanagent could lead to failure, but with just the basics in place, high growth is more than achievable."
Whitr was a sufficiently competent manager.
If you exclude the two main brands holding him back, Epicura was essentially a promising company with over 60% annual growth.
If he were at the helm, he would certainly do well.
However, Whitr was cautious.
“Of course, we could achieve above-average results. But if we proceed as you suggest, wouldn’t the shareholders expect us to beco the Apple of the dining industry?”
“Yes, that's the expectation we need to encourage for them to agree to the bet.”
“And if we fail to et those expectations, disappointnt will be inevitable, won’t it?”
Did he think I wouldn’t have prepared for that?
Of course, I had a solution ready.
But should I reveal it here and now…?
As I hesitated for a mont,
Bang.
The conference room door opened, and the secretary entered.
"Sir, it’s ti for the conference call."
Our allotted ti was up.
***
After the eting ended,
We stepped out of the Epicura building, but the car that was supposed to be waiting for us was nowhere in sight.
We had reserved a town car to take us to the airport.
When I called the driver, he said he would arrive in 10 minutes.
"Would you like to wait inside?"
Pierce didn’t answer my question.
But since he didn’t move, it seed he preferred to wait outside.
So, I stood by his side.
And then, silence ensued.
"Florida is hot. It feels like sumr is already here."
To break the silence, I tried so light chatter, but Pierce remained silent.
‘Well, of course.’
I had blindsided Pierce by disclosing the ticking ti bomb during a eting with the client without informing him beforehand.
He probably felt betrayed.
However, an ordinary MD would’ve scolded right after parting from the client.
But Pierce didn’t.
It wasn’t until after the plane had taken off that Pierce, who had remained silent the whole ti, finally spoke.
"Why didn’t you inform beforehand?"
It seed the interrogation was about to begin.
Of course, I wasn’t flustered.
I had anticipated this question.
“Because I wasn’t confident myself.”
“You expect to believe that?”
“All I had were vague hints: the fact that there were many Black custors, that the mortgage crisis disproportionately affected Black people, and the recent surge in Black Lives Matter activity. These clues lingered in my mind, but even I didn’t think they were the answer until I saw Whitr’s reaction.”
“……”
Knowing the future allowed to connect the dots.
But at this point, piecing this information together would’ve seed absurd.
“Even so, if you had that hypothesis, you should’ve told in advance.”
“Would you have believed if I had?”
“……”
“That’s why I kept quiet. Also, it was such a sensitive topic that it wasn’t easy to bring up.”
My hypothesis essentially suggested abandoning Black custors who weren’t profitable.
But discussing racial issues like this is arguably more taboo than addressing cris like embezzlent.
That’s how difficult it was to raise the issue in advance.
“Yet you had no trouble speaking up earlier.”
Well, he wasn’t wrong.
I had just blatantly advised a Black CEO to abandon Black custors.
But I had prepared a defense for this, too.
“That was because it was a last resort.”
The mont I brought it up was after Pierce had issued his ultimatum.
“I had no intention of presenting such an outrageous hypothesis. It was only when all other options were blocked and nothing else remained that I decided to take a shot. I never thought it would actually co to that.”
In short, it wasn’t preditated but a desperate gamble at the last minute.
“If you had objected, I would’ve kept quiet from the start. That’s why I sought your approval again before proceeding.”
I always sought Pierce’s permission before speaking.
I wasn’t acting on my own; I always got my master’s consent before making a move.
“If you still don’t trust , there’s nothing I can do about it…”
As I spoke, I studied Pierce’s expression.
If he was considering cutting from the team over this, I’d be in trouble.
If that happened, I’d have only one option left.
The first rule of Wall Street: Eat or be eaten.
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