Q&A with Brian Mommsen of Resident

"We have a proven product that is receiving rave reviews from a discerning list of corporate clients. Our first step towards scaling is to create a corporate membership program that capitalizes on existing corporate demand and drives recurring revenue to our business. We feel confident introducing this program at a time when corporate teams and individual consumers are used to subscription-based models. One such recent example: Inspirato, launched a $30,000 a year, “Business Pass” subscription, allowing their members to travel to Inspirato properties up to 26 times a year. They have sold $65,000,000 in ARR within six months of launching the pass.

We believe that selling corporate memberships will translate into free cash flow that will allow us to invest in our own business. We see several additional opportunities on the horizon, some involving tech, e-commerce, sponsorships, and content that will transform Resident into a full-fledged hospitality brand. "

"One main source of competition is restaurant Private Dining Rooms (PDRs). Resident’s product is different than PDRs in that, 1. clients are guaranteed total privacy in our venues, 2. clients can enjoy more facetime with the chef who is cooking just a few feet from the dining table and personally introducing each course. Resident dinners are a more cost effective solution when compared to PDRs because we leverage strategic relationships with real estate partners to reduce our rent lability and pass along these savings to corporate clients.

Experiential dining pop-ups, supper clubs, and members-only boutique restaurants also serve as competition. These are mostly mom-and-pop operations that are not scalable due to their lack of infrastructure, financing, and lack of focus on B2B customers. These competitors have little quality control and most serious enterprise clients do not want to run the risk of booking events with them. After hosting over 150 events, Resident has refined its proven, scalable events model that guarantees consistency and high standards. In addition, most of these competitors struggle with profitability because they are also paying full retail rent rates.

Resident is also differentiated in that our brand is built on creating value for chefs. By investing resources into supporting our chefs’ career advancement, we’ll be able to retain and recruit the next generation of top talent. "

Experiential dining pop-ups, supper clubs, and members-only boutique restaurants also serve as competition. These are mostly mom-and-pop operations that are not scalable due to their lack of infrastructure, financing, and lack of focus on B2B customers. These competitors have little quality control and most serious enterprise clients do not want to run the risk of booking events with them. After hosting over 150 events, Resident has refined its proven, scalable events model that guarantees consistency and high standards. In addition, most of these competitors struggle with profitability because they are also paying full retail rent rates.

Resident is also differentiated in that our brand is built on creating value for chefs. By investing resources into supporting our chefs’ career advancement, we’ll be able to retain and recruit the next generation of top talent. "

"Resident is a three-sided marketplace that creates value for Chefs, Corporate Clients, and Real Estate Partners. Resident can capitalize on the existing momentum we have created with each of our marketplace cohorts at a time when each is receptive to our value pitch:
For our chefs, the restaurant industry remains brutal. The statistics are sobering. The median annual wage for chefs and head cooks is $48,460, and cooks can expect an annual raise of $1. 44% of chefs report working between 48–60 hours per week, and there are more sexual harassment claims filed in the restaurant industry than any other. A 2017 survey of London chefs by Unite revealed that 51% of chefs suffered from depression due to being overworked. All of these challenges translate into high turnover (75% annual turnover rate), labor shortages, and limited opportunities for talent growth.

Despite these professional hardships, the content tsunami (accompanied with the boom in streaming services and explosion of social media) has unlocked opportunities for chefs. Chefs are more empowered than ever to build their own brands and control their professional futures. They see Resident as a partner that could expedite this progress and fast-track their career by removing the logistical and financial burdens associated with producing pop-up events. As a result, despite our early stage and without any marketing efforts, we’ve received a consistent stream of high-quality inbound interest from chefs who have heard about Resident only through word of mouth.

For our corporate clients, our product creates access to an unparalleled dining experience in a controlled, private environment that is ideal for building relationships and bringing together a client’s community. With the emerging “experience economy,” companies today recognize the value of bringing their clients to a memorable experience. 82% of C-suite executives believe in-person events are integral to success, and 92% plan to invest as much or more in future events. Restaurant private event revenues have grown on average 7.1% per year since 2010. We offer an opportunity for companies to entertain in a manner that keeps things fresh for their clients because we showcase new chefs, venues, music, and art which translates into unique experiences that keep our customers coming back.

In addition to offering a best-in-class product, Resident offers a more cost-effective solution for Enterprise Clients, because we can invest in improving our product without the exorbitant lease payments with which most restaurants are burdened.

The timing is also perfect to develop Real Estate Partnerships. We are scaling Resident at a time where there is a massive inventory of empty residential real estate spaces. According to Bloomberg, at 2019’s pace of sales, it would take more than 6 years for the 7,050 newly built units in New York to be sold. We are cementing real estate partnerships where our value proposition is focused on lowering their CAC both in new developments and luxury rentals. These partnerships will eventually scale nationally and enable us to bring Resident to new cities. "