Advice Line with Pete Maldonado and Rashid Ali of Chomps

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• Prioritizing customer safety over immediate cost during a potential contamination scare, as demonstrated by Chomps, reinforces long-term customer trust and organizational strength.  Copied to clipboard!
• For niche lifestyle brands like Achigan, scaling requires focusing capital investment on the highest-margin, most functional products (lures) rather than spreading resources across lower-margin apparel.  Copied to clipboard!
• Founders should be wary of scaling too quickly into complex channels like major retail before mastering direct-to-consumer or direct program channels, as complexity and trade requirements can materially challenge the business.  Copied to clipboard!

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Chomps Founders Interview Setup

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(00:01:54)

• Key Takeaway: Pete Maldonado and Rashid Ali of Chomps joined Guy Raz for the Advice Line segment.
• Summary: Pete Maldonado and Rashid Ali, co-founders of Chomps, returned to the show for the Advice Line. They were first featured on the main show in 2023. The segment begins with Guy Raz asking them about the current protein market trend.

Protein Market Trends Discussion

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(00:02:30)

• Key Takeaway: Chomps anticipates winning market share after the current ‘proteinification’ trend leads to consumer fatigue by focusing on convenient, natural protein sources.
• Summary: The founders noted the current trend of adding protein to nearly all food items, referring to it as the ‘proteinification of everything.’ They believe this is a cultural shift, not a fad, but expect consumer fatigue from over-saturation. Chomps aims to succeed by offering convenient, natural protein solutions that will appeal when the broader trend cools.

Handling Product Recall Crisis

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(00:04:08)

• Key Takeaway: Chomps executed a large-scale recall based on a potential, isolated metal contamination risk, prioritizing customer safety over the significant financial cost.
• Summary: The company faced a difficult situation involving a potential metal contamination in one batch from one facility, leading to a massive recall despite no confirmed contamination or adverse reactions. The founders stated that the cost never factored into the decision, as removing consumer risk was the sole goal. This event ultimately strengthened the organization’s infrastructure and processes.

Empanada Business Expansion Strategy

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(00:07:40)

• Key Takeaway: Yadi’s Artisanal Empanadas, currently successful on a college campus, should leverage its portable product via a commissary model combined with food truck mobility to mitigate campus seasonality.
• Summary: Yadi DeRees, founder of Yadi’s Artisanal Empanadas, is achieving $3,000 in daily sales on the SUNY New Paltz campus but faces revenue gaps during school breaks. The advice suggested focusing on a commissary kitchen model that supports delivery and wholesale distribution to other locations like Connecticut colleges, using a food truck to maintain mobility during off-seasons.

Breaking into Major Retailers

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(00:19:46)

• Key Takeaway: Noble Pies must demonstrate category growth and strong repeat velocity data to major retailers, focusing on one SKU and one region initially, rather than relying solely on product differentiation.
• Summary: Zachary of Noble Pies seeks strategies to enter large retailers like Whole Foods and Target after previous rejections. The Chomps founders emphasized that buyers prioritize risk management and velocity; therefore, Noble Pies needs 6-12 months of strong velocity data to prove incrementality (bringing new customers). They advised focusing efforts on one region and one SKU before expanding distribution complexity.

Transitioning to Full-Time Entrepreneurship

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(00:30:50)

• Key Takeaway: Josh of Achigan should focus on scaling the highest-margin product (lures) to unlock true demand and generate sufficient capital before leaving his stable job to go full-time.
• Summary: Josh Shrinko, running the Achigan smallmouth bass lifestyle brand, needs capital to transition from his medical distribution job to full-time entrepreneurship. The advice centered on focusing on the lures, which have higher margins than apparel, to determine the business’s true scaling potential. The signal to go full-time is when continuing part-time feels riskier than making the leap.