The Skinny Confidential Him & Her Podcast - How To Stand Out In A Crowded Space With Alfred Coffee's Josh Zad
Episode Date: June 26, 2020#277: On this episode we are joined by entrepreneur Josh Zad. Josh is the founder and creator of the wildly popular coffee brand; Alfred's Coffee. On this episode we discuss how to stand out in a crow...ded marketplace, how to build a brand, how to launch a business, and how to stay disciplined to find success throughout the process. To connect with Lauryn Evarts click HERE To connect with Michael Bosstick click HERE Read More on The Skinny Confidential HERE For Detailed Show Notes visit TSCPODCAST.COM To Call the Him & Her Hotline call: 1-833-SKINNYS (754-6697) This episode is brought to you by Feals Feals is a better way to feel better. Our premium CBD will keep your head clear and help you feel your best. CBD has been proven to greatly reduce anxiety, pain, and sleeplessness. Feals has us feeling our best every day and it can help you too.Become a member today by going to Feals.com/skinny to get 50% off your first order with free shipping! This episode is brought to you by Each & Every Each & Every’s gender-inclusive deodorant is formulated for sensitive skin–made without aluminum, parabens, baking soda, alcohol, and synthetic fragrances. With just 6 simple ingredients (plus essential oils), Each & Every uses natural ingredients like coconut oil and Dead Sea salt that work together to reduce body odor. Try it risk free with a 30 day money back guarantee and receive 30% off your first purchase by visiting eachandevery.com/skinny and using promo code skinny. This episode is brought to you by HYDRANT Hydrant is a simple, morning hydration mix, optimized to hydrate you rapidly. Lightly flavored with real fruit juice = subtle, refreshing taste. Up to 3x the electrolytes of a traditional sports drink. There are no synthetic color or artificial sweeteners. It's also vegan and only a buck a day for a 30 pack. For 25%off your first order , go to DrinkHydrant.com/skinny or enter promo code ‘skinny’ at checkout Produced by Dear Media
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The following podcast is a Dear Media production.
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Now let's get into the show.
She's a lifestyle blogger extraordinaire.
Fantastic.
And he's a serial entrepreneur.
A very smart cookie.
And now Lauren Everts and Michael Bostic are bringing you along for the ride.
Get ready for some major realness.
Welcome to the skinny confidential, him and her.
Aha!
One big mistake that I often see is bringing on partners that you aren't necessarily fit to be partners with.
This guy's a good chef. That is a major struggle that a lot of restaurants, a lot of businesses in general have, right?
It's like, I am a good front of house operator. Let's do partnership 50-50 and open a restaurant together. But what do you really know about
this person? When push comes to shove, do you have each other's back? Hey, hey, hey,
welcome back to the Skinny Confidential, him and her show. Happy Friday. We're back with another
fire episode. Josh Zad is on the show today to talk about entrepreneurship, building a brand,
building a business, and how he built Alfred's. I'm super excited about this episode because I
love Alfred's. I love their coffee. I love their burritos when I'm hungover. They have this sauce
that's so good with their burritos. Michael loves it too. Anyways, before we get into this episode,
I just wanted to say that I really appreciate all the support on my latest Instagram post.
I did a post on hormones and I've realized that that is a conversation that I will continue
to have on my platform.
There's a lot of questions around it and I'm going to do my best to get the right people
and experts involved in this conversation on the skinny confidential.
I have so many DMS asking me about, you know, what kind of specialists, what kind of hormones did I get tested? What kind of hormones am I on? I'm going to, you know, sort of wrap up all this
information on hormones and present it in a really, um, concise way. So expect more content on hormones on all my platforms. It's coming. I'm working on it.
I hear you. Anyway, so you can expect some fun, cheeky content. So with that, Josh Zad, for those
of you that are unfamiliar, Josh Zad is the creator of the Alfred's Coffee brand. It is all over LA.
It's starting to move all over the world. Alfred's Tea Room. Alfred's is all over in Japan now. He's
also got a new beer company called Cali Daddy. Really is an authority when it comes to branding. One of the things that excites me
about this episode is we get messages here all the time about how to jump into what people label as
saturated spaces. We've heard the influencer space is too saturated, the blog space is too
saturated, podcast is too saturated. To me and Lauren, we've always said that this is completely
untrue. If you find the right angle, build the right brand, have a way to distinguish
yourself, talk as only you can talk. And Josh has proven that. He built a brand and one of the most
extreme, one of the most saturated businesses you could get into, which is coffee. Think coffee
being Starbucks. Who would have thought I can build a massive coffee brand? He's done that.
And he talks a lot about how he did it and a lot about how he built a brand that can stand out and how
we can do that as well with any medium or any business that we choose. So with that, guys,
Josh Zadd, welcome to the show. This is the Skinny Confidential, him and her.
Josh Zadd, the king of Alfred's. Is that what you call the king of Alfred's? I guess you're the king
of Alfred's. The guy keeping me buzzing, keeping me going, killing my gut because I'm eating too
many Rico's Wild Burritos and now I got your chocolates. I got everything. Just really not
doing me any favors in quarantine in terms of health, but also keeping me awake. Josh,
welcome to the show, brother. Thank you so much. Really glad to be here. Appreciate it.
Listen, we just had a little pre-interview. Let's, let's go back a little bit. Let's get, you know, where are you from originally?
Where'd you grow up?
What was the childhood like?
Where, where do we begin with you?
I'm born and raised in LA.
Grew up, I would say probably West LA area around UCLA.
Spent most of my, my time there.
Went to a couple of different schools around town and ended up at a small private school, Buckley, for an eighth grade
and ended up finishing there. Made a lot of friends in a lot of different schools growing up,
which has been really helpful in my career and my personal life now. And then ended up going to
college on the East Coast at Yale and then came back to LA for a little bit. Did a little stint
in Dallas. And I'm back in LA for 10 years now and probably the rest of my life. So I'm an LA lifer.
Yale. Yeah. Yale's a hard school to get into. Really hard school to get into. And I got in
and we don't know how, and I had to go. You can't turn that opportunity down. If you get it,
you got to do your best to get there. So I did it and I went there. Yeah.
Well, one thing I think, we're going to get into the brand in a little bit, but one thing,
Lauren and I are not LA natives.
We're in San Diego for most of our lives.
Obviously very close proximity, get up here a lot, have experience.
But LA is not the easiest city to break into.
For people that are trying to move here, I mean, you alluded to this, you met a lot of
people growing up here.
And I think that's obviously been beneficial in certain areas, but if someone's young listener,
sitting there like, I want to move to LA, like what would you tell them?
I'd say do it. I mean, it's all the allure and the charm aside. I think it's a really,
a really great place for once people settle in and really find their way,
it's really hard for them to leave LA, right? There's just so much action. A lot of the industries like, you know, outside of let's say fashion, for example,
which could be potentially shifting here, you could say a lot of the industries like the pinnacle
of those industries and the most opportunity is in LA. Add to that, of course, the sunshine,
add to that, of course, you know, all the other fun elements of lifestyle that you get here.
And it's pretty hard to leave. And it's pretty hard to convince someone to not move here once
their mind is set. There's a reason for all of it. So I have to ask you this because I just want to
know, how did the idea of Alfred's come about? It's so micro. Were you out drunk with friends?
Was it something that you'd been thinking about for a while? How did it come to be about?
I had always wanted to start my own business. And I couldn't really pinpoint what that was I
wanted to do. And I think there was definitely a lure for me to get into the restaurant business
on some level, whether that be a bar or a restaurant. Coffee was probably not up there
for me. But coffee, when I had started to think about Alfred, was mostly Starbucks, right? It was mostly coffee bean.
Growing up in LA, I mean, coffee bean was probably the coolest.
And Starbucks was just much more prevalent.
And then I started seeing other third wave coffee shops pop up like Intelligentsia.
When I'd be in Silver Lake or Venice, I'd make sure to stop by there.
And I'm like, wow, what a vibe here.
This is just very different.
There's a lot of action.
And there's like four or five employees, whereas a restaurant had like 20 employees. So it seemed like a much, much less of a headache operationally
to run a coffee shop. Plus, you get to close much earlier than a restaurant. And I'm not about that
2am 3am bar life. I thought like forward in my life, it wasn't probably what I wanted to do.
So I started thinking about the idea, got obsessed with it. And I decided, you know what,
I can do it probably better than a lot of other people because I wasn't specifically a coffee person. I was approaching. I want to do YouTube, it's saturated. I want to do this, but it's saturated. But I think what you've done well
is you've taken a very saturated space. I mean, if you think coffee, everybody drinks coffee,
Starbucks and coffee bean basically had the market cornered in terms of volume,
but you were able to come in with an amazing brand and stand out. And I kind of want you to
speak on that a little bit and how important it is to brand and distinguish yourself because
I think people see a space like say coffee and they're like, oh, well, there's no point in trying there because it's already been done.
They use saturation as an excuse. So if you could sort of speak on that.
Just a funny thing, using saturation as an excuse, it's like, what's the latest thing
that people have gotten into? And it's like, okay, materials for cleaning materials or masks.
You had a one-week window before that became saturated to
like in light of everything that's going on in the world. So it's like, you know,
here's my mask business I started,
but then now there's thousands of masks selling businesses. It's just,
it's always going to be an excuse, right? So anything you want to do,
the good thing about a business being saturated,
I think is that there's opportunity there that there's a market for it too.
So you don't necessarily want to be the first because there might not be anybody who wants
your services or your product.
So going into a space that's saturated like coffee, well, guess what?
People that were going to Coffee Bean, Starbucks every day, they are addicted to coffee.
They love coffee, the flavor of it.
It was a daily habit for them.
So if I could do it better or differently enough to persuade a few of those people to come to
Alfred every day, then my market is already set. So my job is a little bit easier in a way,
and I could just focus on doing my part. So I think it could be an advantage to be in something
that's saturated, right? Same with real estate, same with anything you want to talk about. At least the market is ready for you. I cannot agree more. I mean, same thing with
podcasts. There's a million podcasts in existence, 1 million to think about people listening. You
don't have that much attention. And what I always tell people from the Dear Media perspective,
you can come in at a unique angle and say something different that only you can say
in a different way. Then it's not saturated because nobody can duplicate. And I think what
you did with Alfred's was you created a distinguishable brand that is
so much different than what's out there.
And for people that were looking for an alternative, the category coffee is not going, but it's
the same way Italian food is not going anywhere.
Or Japanese.
There's so many broad angles to go in and you just have to have a point of differentiation.
When you originally set out to build the brand, were you clear about it or did you have to
do some exercises and practices in order to build Alfred's? Like, how did that all come
about? What does the name even mean? Well, the name is the, it's the name of the butler from
Batman. So it's, it's for me, it's yeah, it's service. It's memorable. I mean, and everyone
loves Batman and everyone loves Alfred. So it's just like, he's always there for you, you know,
dependable. But yeah, you asked that question. It's like, Alfred is always a work in progress.
Everything is changing all the time for us. It's not like here, we hired a design firm,
and they're like, here is all you need to know. And this will last you for the next 10,
15 years. Good luck. You know, I created this thing organically. It represents a lot of my
personality, which is kind of quirky and crazy. And I changed my thing organically. It represents a lot of my personality, which is
kind of quirky and crazy. And I changed my mind a lot. And I'm all over the place. I think you
see that in our drink specials, every design of each cafe is different. Our logo has changed a
few times over the years, but it's just it stays true to, to who we are. And it's an it's an ever
evolving business and ever evolving presence for our customers, which keeps them engaged as
well. So it's a work in progress. But again, that comes back to... That's what I'm good at,
is those visual elements. And I also can't sit still. So you put that together and it's a recipe
to create something fun like Alfred. How did you have the foresight to make
Alfred so fucking Instagrammy and millennial? You were one of the people, a pioneer in the space
that made girls want to flock to your business because they wanted pink on their Instagram feed.
Yeah. It's part of having the confidence to create spaces that you know people will want to engage
with and just being like, this looks pretty cool to me. And I don't think it's like too out there. I don't think it's too simple. Hopefully they'll come. And then of course, it's as the longer we go with building a brand name and having a reputable service, reputable product, because people can come take a photo and how many businesses have popped up in LA. They look really cool. And they're gone a few months later. Like it has to the service and the product has to match the level of, you know,
neon or wallpaper that you have inside of the store. So it's really the full package.
Why do you think so many businesses, like, cause you know, there's a lot of people that like a
nightclub or a restaurant or a bar in LA and it's such a quick turnaround. You're somebody that's
obviously lasted like as an LA native, why do you think that is? I think we have a, we have a pretty
good meter for like internal meter for like, what's cool, but like not to try hard, you know, cause there's a lot of it's guessing you haven't opened your good meter for, like, internal meter for, like, what's cool, but, like, not too try-hard, you know, because a lot of it's guessing.
You haven't opened your doors yet.
So, like, are people actually going to like this space?
Are they going to like what we're doing here?
Are they going to like this new drink special?
Are they going to even engage with it?
So I think we have a good read on our customers.
We have a good read on the LA customer.
We have a good read on locations that we open and how we can kind of identify really
cool parts of the neighborhoods they incorporate into our design. But again, it's like what I'm
saying right now, there's no science necessarily behind that. So luck is definitely a factor.
Timing is definitely a factor. When Alfred came up about seven and a half years ago,
there were some third wave coffee shops opening up, but it was still a little bit of a risk.
But then you see now new coffee shops opening up every week.
You'll see on Eater something about a new coffee shop.
So it's still very robust.
So our timing was great being on the forefront of this movement towards smaller, more independent cafes instead of the big guys that have been around forever.
Hold up.
We need to talk about smells because I have gotten my smells under control.
Thank God.
This is like Christmas for me.
I've been waiting for this day for 20 years.
Here's my thing.
I didn't want to wear deodorant for like 10 years the whole time I've been with you
because I couldn't find one that was made without aluminum
and parabens and baking soda and alcohol and synthetic fragrances. And I've played around
with some of the natural ones, but there hasn't been one that like actually stops the smell.
You're telling me. It's called each and every. Okay. So basically their whole mission is proven
to fight odor. Thank God for Michael, but it's also an antiperspirant.
So they have six simple ingredients in their deodorant.
Totally looked into this.
They have essential oil too in it
and they use all natural ingredients.
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it goes on really smooth. You know how sometimes when you put natural deodorant on, it clumps up?
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always make sure these boxes are checked and it's risk-free. So if you don't like it, you get a 30
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instead of smelling my body odor, gets to smell ginger. Lucky him. I woke up today and I feel
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Your significant other will thank me later. Each and everyone thanks you Lauren. Thank you
each and every. Let's get back to the show. As an entrepreneur, what are some tools or habits or tactics that you
do every day that set you up for success? It could be something really small or something really big.
Try to have as much structure in my morning as possible.
Tell us about that. Tell us about your structure.
Well, wake up, immediately coffee. Have have coffee like within two minutes of waking up, try to wake up at the
same time every day.
Um, we have a new daughter, so I either have to make the milk or I have to wake her up
and change her diaper in the morning, but either, or how old is she?
Um, she's 10 months old.
We have a five month old right now.
So, Oh my God.
I'm trailing you.
You're over the hump though.
You're like, it's like normal now.
Yeah.
Somewhat normal.
It's always getting
more and more normal. So kind of there. And then, you know, answer my emails,
work out in the morning. And then, you know, by the time I get to the office, let's say
nine, nine 30, I anticipate all hell breaking loose. I'm ready for it. So everything has to
be movable. Um, but at least I have like those three hours of like solace in the morning and
kind of the building blocks. I got to set up my day as as well as I can because I think in general
managing multiple businesses and managing multiple locations and so many employees is tricky
you add to that what's going on in the world right now and it's just like anything can happen
you never know every day is a new challenge so you got to wear that armor the invisible armor
and you got to just be ready to fight I I imagine your business is, I mean, listen, it's been a challenge for everybody with
what's going on in the world. But I imagine if there was a protected food, beverage, industry,
restaurant business, like coffee is somewhat protected. People still need to drink their
coffee. Have you guys been using Postmates or DoorDash? How do you open? How have you navigated
all of that? Yeah. So we shifted to a takeout model. And instead of taking any payment on the cafes,
we quickly launched an app. So you'd have to prepay pre-order via the app or the web application of
the app, basically, or Postmates, which we've been with for a long time. So those are the real
two options. We're not taking any payment because we're not letting anybody come inside the cafes.
So that's been kind of hard for us to pivot into that.
But now we're kind of used to it.
But it's still, of course, not the same, right?
Someone who casually wants to walk into a cafe, maybe they don't want to download the
app.
I mean, we see a lot of older customers that don't know the iTunes password to download
apps.
And it's like...
My dad shows up, he's done.
Yeah.
You're just going to leave, you know?
So you're removing the most easily and accessible and the most common way of ordering,
which is like at a register with a human being, which right then and there makes everything
a little bit more difficult, but we're doing our best to kind of navigate.
Luckily, again, like you said, coffee is something that people have a part of their daily lives
to begin with.
So once things were kind of starting to get back to normal and people were out again or
ordering via Postmates again, this is a habit that thank God carried over from before until now. So
it's been really nice for us in that regard. Can you talk to us about your collaborations?
Your collaborations that you do are so genius. And it's essentially like having a billboard on
your coffee cup, which is so smart.
Everyone's Instagramming that.
I want to know more about that and how you came to the idea.
So a long time ago, I used to work in real estate and we had a parking lot.
And we used to always buy these little tickets that you would stamp, like,
thanks for coming to the parking lot.
And you get your ticket, you get it validated, you hand it back.
Well, this company came along and they're like, here are free tickets. And advertising like an hbo movie you know so i'm like this is amazing these guys are giving us tickets they get advertising out of it it's a
win-win for everybody so we don't have to buy these tickets anymore um so partner i mean partner
with them they gave us tickets years ago and that kind of always stuck in my head when i launched
alfred i really wanted to do something unique on the coffee cups as well. So coffee sleeves were fun. I brought a local artist, actually local to Dallas,
where I had lived to design some fun sleeves with mustaches on them. That was cool.
But I still always had in the back of my head the idea of monetizing these sleeves,
or at least creating something cool with brands that we believe in, with local designers and such.
So we were continuing to design our own sleeves for a while with my friend who was the artist.
And then we were approached by Kelly Wurstler, the designer, whose team was like, hey, we want
to design some sleeves for you guys. And I was like, all right, this is the moment I've been
waiting for. She did it. It was huge for us. It was a big moment, but it kind of gave me the
confidence and the wind behind me to be like,
all right, it's time to start finding brands now. Or brands started coming to us and we developed
this into a part of our monthly routine now. It's always we're partnering with a different brand
every month. Great advertising for them. Great way for us to connect with our audience. And I
think it's been a really differentiating factor for Alfred. And Kylie is on the sleeve right now, right?
Kylie is on the sleeve right now. Kylie Skin and Kylie Cosmetics. So that is the June partner.
That's pretty sick.
There's a lot of young people that listen to this show and a lot of them probably had dreams of
opening a brick and mortar store. And obviously with COVID now we have people questioning it. But
going back to the early days of Alfred, when you were starting and did it start with just one
location? Just want to make sure. Yeah, it was just supposed to be one.
Okay. So when you first start, like what was the process of drumming that business up? Because
there's people sitting there now, they have an idea and they're like, okay, I'm thinking about
like, what do you think the key elements for success are? And if you're, if you're going to
go into that vein? Yeah. So I think something to keep in mind is that no one has all the answers, right? So I was not an architect. I was not a plumber. I was
not a good salesperson. My skills were like, I was good at design, I thought, and I'm good at math.
And I was like, those are the things that I have for sure. Everything else was daunting for me,
right? Even things that might seem simple, like where do you order your dry goods from?
Where do you order napkins from?
Where do you order sugar packets from?
Stressing me out like crazy,
despite all the other things I learned in my life,
like those little things were driving me nuts.
So understanding that,
and the flip side of that is that there's experts out there
that could help you with these kinds of things, right?
You can hire an architect.
You can hire a contractor, or you can build it yourself. There's the walls that you think experts out there that could help you with these kinds of things, right? You can hire an architect, you can hire a contractor, or you can build it yourself.
It's there's the walls that you think that are there, you know, cost aside are not so dramatic.
Like if you can sit with your architect and figure out what they're doing and give them advice,
and they might be like, wow, that's a smart idea, Josh. I didn't think of it that way.
It's, you know, it's not rocket science, a lot of this stuff. So don't be off-putted by all the obstacles and really spend time with all the people that help
you when you're relying on their specialties to give input, to maybe be able to take some of those
items yourself going forward. And it's all a learning process. But of course, at the end of
the day, if you're going to do something, you got to decide and you just got to do it because
dragging your feet will cost you much more time, much more headache,
and much more anxiety.
What do you think a mistake is for, say, someone's got a follow in your footsteps,
and maybe they don't do copy, but they have a similar business model.
What do you see as mistakes young entrepreneurs have made when they're getting into this line
of work?
One big mistake that I often see is bringing on partners that you aren't necessarily fit
to be partners with.
That is a major struggle that a lot of restaurants,
a lot of businesses in general have, right?
It's like, this guy's a good chef.
I am a good front of house operator.
Let's do partnership 50-50 and open a restaurant together.
But what do you really know about this person?
When push comes to shove, do you have each other's back?
Is this person going to disappear for a month and tell you?
Are they going to, I don't know, do something that really offends you. And it's a very difficult process. So you got to be very careful of partners and partnership. When the pie is zero, right? And it's like, we're just starting this idea. Who cares if you get 50% or 10%, 5% of the pie of zero, it's still zero, right? But once this thing starts building up, if it's a success or it's a failure,
there's going to be fingers being pointed. So you have to have that mutual respect with the person and be really careful who you partner with because there's a great chance it's going to do really
well. There's also a great chance it might not. I have a rule of thumb that I'll do the rest of
my life that I learned the hard way is I'll never, ever do a 50-50 partnership again. I'll either do
49% and not be in the driver's seat and let someone else be in the driver's seat and say, I'm passive and I'll help where I can. Absolutely.
Or I'll be in the driver's seat and say, okay, the decision's mine and I got to be able to make it.
50-50, a lot of people don't think. It sounds good when you say we're doing something together,
50-50, but you don't realize that you can't do anything unless both people are on the exact
same page at all times, fully agreeing. So I'd rather be like, hey, I'm passive and trusting
somebody else or they're passive trusting me.
What do you think makes a good partner, Josh?
I think someone, number one,
you have to be able to respect the person
and respect their background.
And I think having either very similar skill set as you
or distinctly opposite,
so you can rely on each other.
I think it gets tricky when there isn't,
definitely when there isn't that kind of respect
between the two of you.
And it's like, I've done more work.
I deserve this.
You've done more work.
But it takes a lot of time to get to know someone who could be your partner.
And it really takes, I think, the success or the struggle to finally understand that,
which you don't really get to until the business is more blossomed.
So it's hard.
It's a huge risk.
But of course, it could pay off also because you could be two places places at once per se. So just take it with a grain of salt. Yeah. So when you were starting
out, did you, was this, and this may, it's a personal question, but was it like completely
self-funded? Did you bring on outside capital? If you did, what was that process like on both
sides? It was like, okay, you were shelling out your own capital or you brought on a money partner,
done it both ways. I just wanted to get your take on like, imagine you're speaking to a 22 year old
college graduate. They have an idea. They're getting ready to jump in. How would you take
care of the financing? So I started it myself and I built Alfred, the one on Melrose Place,
the original on a strictly Home Depot budget, all Home Depot, baby. I mean, from the tile to
the wallpaper. I love that. Maybe not the hardwood floors, but I wanted real hardwood. I got it from
Portland, like reclaimed and it was probably cheaper than Home Depot at that point
because nobody wanted them.
But yeah, I took my time, self-funded,
did not hire a contractor,
hired just subs or some day laborers
to kind of put it together,
which I've had to amend over time
because it doesn't really stand up
to the trials of a busy coffee shop
that's been around
for so long so we've had to change a lot of the things over time or mask them or cover them or
redo them but yeah i did it all on my own the first one there was no time i mean obviously now
it's been a success but like what were some of the challenges like and if you were saying like
what did you have to experience to go through that i mean it's it sounds a lot easier than i'm sure
it was to just do it on your own budget.
Yeah.
I mean, it took forever, first of all.
It took about a year and a half to open the location.
And that path of that 18 months was filled with a ton of self-doubt.
From what am I doing?
Why am I opening a coffee shop?
This thing is going to make no money at best.
To is this location terrible?
To who wants coffee from me when there's other places that are
probably be cheaper because I'm going to cost me a fortune just to make a cup of coffee.
I mean, there's there's questions all along the way from that to like, do I want this espresso
machine that's cheap, but my breakdown in a couple years is more expensive one that,
you know, will be around for the next 1015 years? Will I be around? So a lot of those kind of
questions caused me to drag my feet, really build this thing. It should have taken maybe four or five months, taken a year and a
half. So that was not fun. How have you leveraged social media and Instagram to build your brand?
Because I know you guys have a beautiful aesthetic going on.
It was a big emphasis for us early on. So when we started, Instagram was just starting to take off.
Facebook was already like, eh yeah it was just kind of there
Twitter obviously there's not there's no real sharing of images there so Instagram was a medium
that that really I connected with because I'm a very visual person I'm still a very visual person
seemed like a great move for us to kind of to build that following to put little call outs inside the
original cafe of like follow us on Instagram post a picture and we'll give you a free drink I don't
know what we used to do all kinds of nonsense. But it was something really
embraced. We wanted to have a nice aesthetic. Also, we started doing like takeovers with like
a lot of local I'm going to say celebrities, but like local bloggers and such really tapped into
that market. Anything we could do anybody who we could connect with to get into their to get into
their psyche and like their followers psyche. So huge emphasis. It's always
been an emphasis for us. This is how we communicate with our customers, how we will continue to
communicate with our customers. And of course you see Instagram now is that's, that's it. That is
what it's all about. And I think we're early adopters of it. If you've been keeping up with
the theme of this show lately in the theme of the world lately, there's a lot of stress, anxiety,
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Okay, let's get back to the show.
Talk to our audience about your new beer.
Because coffee to beer, how did you get there?
And where did you see sort of white space to create this beer?
So I had been toying with the idea of starting a beer company for a while,
while I was in the Alfred mix.
As fun as it is to open new locations,
it's also really difficult and really expensive.
From finding a location to building it out to staffing it.
I mean, that takes a long time, right?
So I thought, wow, it would be really great
if I could just like create a beverage
and really focus on sales and marketing.
I think we're good at
and just get into grocery stores.
It catches on like fire.
They'll keep buying more.
We'll keep producing more.
And then we'll all be super rich
from this beer company.
Simplify it, of course.
So I've been toying with the idea. I finally kind of took the leap um raised some funds from friends and friends and
family um decided to launch a mexican style beer company mexican style given that it's made in
california but tastes like you know like your pacifico medello kind of same level of abv four
and a half percent alcohol volume and really drinkable approachable hired a branding agency for the first time by the
name of land in austin really wanted to create a look and a feel that was timeless that was
authentic that you might be like this guy josh found this brand like and unearthed it somewhere
instead of like oh this is clearly brand new so put it all together, made a fire liquid. And we launched about,
I think a little over a year ago, April, 2019, pretty iconic. It's been really nice for us.
It's not as easy as people like it. And it spreads like a wildfire. It's more, it's more difficult
than opening cafes. It's not that easy, of course. But, but that's what kind of helped me get there
was just, just minimize the work that had to be done and convince myself that, that easy, of course. But that's what kind of helped me get there was just minimize the work that had to be
done and convince myself that I could do it.
Otherwise, again, probably would drag my feet and never do it.
I think that's like anything else though, right?
Like if you would have known how difficult everything, like any of us, you like never
do anything, but we all convince ourselves, hey, there's no big deal.
Like just do this thing and it'll just take off like wildfire in a few years.
I'll be worth hundreds of millions of dollars.
Yeah, it's worked that way. Easy. Well, but back to what you're saying before, right? What is even more saturated
than coffee? I mean, beer, right? And beer is like this or declining seltzers like going up,
but like beer, like who was starting a beer company in 2019? Well, I I'm like, well,
people will still still drink beer. Now they will always drink beer. They will always drink alcohol.
And especially what they are drinking in the beer category is Mexican beers and really light,
approachable, fun beers, maybe low-calorie beers. So again, the market was there for me. It's a
billion-dollar market just in California, just in Southern California. So if I could tap into
that market, I don't have to convince anybody like it's not a hard kombucha.
It's nothing new that they need to learn about.
I mean, it's literally the simplest beverage that everyone gets to know first, probably beer.
My personal opinion on stuff like this is people spend way too much time on ideas and they go and think their idea is like the best.
You know, you talk to people and they go, well, here's my idea.
Sign an NDA.
It's this best idea in the world.
I'm like, the idea is great, but it doesn't necessarily mean anything. What I think means a lot more
is the brand you create around that idea. It could be the best product, the best version ever,
but if it doesn't have a good brand, there's no way it's going to be noticed. It's not going to
be distinguished. There's too much information out there. It's not going to stand out. So I think
young people, entrepreneurs, anybody in general should spend way, way more time on thinking about
their brand and how their brand stands out as opposed to their great idea. Yeah. And being ready to pivot a
little bit because what you might think is great and you're in the mix of the brand stuff, then
you go out in the market and people identify to something else. So you just got to be also ready
to kind of change it up with your messaging a little bit, or you might launch a 12 ounce can
and people want 16 ounce can, you don't know. So definitely the emphasis on brand, though, is really important, especially today's age
with Instagram, with people that are much more up to speed in terms of aesthetic.
And they're much smarter, quite honestly.
You essentially did what you did with coffee to beer.
Because if you think of what the alcoholic beverage equivalent is to coffee, it's probably beer,
right? Like you said, you're not trying to convince someone to try something new.
That was the same experience with coffee. You don't need to convince anyone about coffee.
If you're launching a matcha store, and I know I want to get into the tea room,
but if you're launching just a matcha store, you maybe have to educate people more than you would with coffee. Exactly. So the work was done for me in terms of customers knowing what they're
getting their hands on. So then you get to go much faster in terms of brand and lifestyle,
which is what I'm good at. Talk to us about the tea room. The tea room is so cute. You guys,
if you're in LA and you're in West Hollywood, get your coffee at Alfred's, walk across the street,
stand in front of the tea room.
It'll fit your feed's aesthetic.
It's perfect.
And you can get a little, they have the, my little sister loves your, what's the tea with the balls?
Boba.
Yes.
She loves that.
The best.
Yeah, the tea with the balls.
The best.
Tell us about the tea room.
So while we were opening, I think probably a fourth offer location a few years ago, matcha came into our lives.
Matcha came into our cafes.
We started selling a lot of matcha beverages.
It slowly creeped into second behind an iced latte.
It was like an iced matcha.
So that movement was for real.
Add to that all the teas that we sold, like hot teas, iced teas.
I saw a real opening in the market to create a standalone tea shop. I had really high hopes for
the standalone tea shop. But the problem was, how do you get people in the door for a tea shop when
there's a coffee shop, especially when there's my main coffee shop across the street, which is where
I wanted to open the tea shop. So I put some time into it, decided I wanted to create a... People
think tea, they think dainty, they think pink think pink they think uh tea party so brought the idea of pink into my life for the location added layered
plants in there to give a little bit of green created this really cool looking cafe that was
very different than the coffee shop which was more black and white a little more masculine so i
figured if people at least come
for a photo, once they realize like all the other great offerings that we have. Oh yeah,
I forgot to mention Bola, of course, added that in there. I figured they'd come check it out and
they'd never want to go to another tea shop again. So we opened that tea shop,
did really well for us, got approached by a company in Japan that wanted to take it to Japan,
which seemed ironic to us because you think of like the home of tea and it's, you probably think of Japan, especially matcha. That's,
that's where matcha is from. And then here's a Japanese company that wants a few month old LA
tea company and to open it in Japan, which was just funny and cool. So, uh, made that deal happen.
We have several locations across Japan, which is fun for us. Wow. Yeah, I had a moment
a few years ago. Also, I'm like, this is the future of Alfred is a tea concept. And then I'm
like, wait, but people love coffee the most. It's forever. So what we're doing now going forward,
all of our new locations will be a hybrid location. So no longer Alfred Coffee or Alfred
Tea Room, just Alfred with the best of both worlds under one roof. Simple. That is the future.
Speaking of the future, so how do you navigate everything that's going on right now? Like,
I'm sure there's been projects that you're kind of like, okay, we were doing this. Now,
are we doing this as get hold? Like how, how are you navigating everything? And like,
do you think when we all get back to normal that it's going to be how it was,
or do you have to accommodate for that? Kind of pretending everything's going to
go back to normal. So I can at least keep sane, number one. So I can also
keep focused on all the ideas that we have. Otherwise, I can't battle an unknown, to be
honest with you. And I also can't imagine a world where things don't go back to normal eventually.
I don't know if it's two months or eight months or a year. But for better or worse, this is our
business. People like our business. We have an amazing team. Just kind of keeping a lot of irons in the fire.
It's important for me because that allows us to kind of adapt a lot more, right?
So for Alfred, we're working on a ready-to-drink beverage.
Let's say this thing goes on for another eight, nine months.
The cafes are never going to get back to normal for eight, nine months.
So if we could launch this ready-to-drink beverage, go into grocery, diversify the company
a little bit and build some revenue using the Alfred name, using the Alfred trust and loyalty that we have and generating grocery income with Alfred, which is obviously booming in light of all the stuff that's going on in the shutdowns.
That would be nice for us.
So it's always important for me to have multiple things brewing, so to speak and be prepared especially now that i've
learned that things can go south very quickly very quickly it's just kind of solidified that
stance more okay i have to ask this what is josh's specific alfred order like what's your exact order
when you go into alfred's what what are you give us like so, so, so micro specific.
It's an iced oat milk cappuccino.
Okay.
So it's just less milk than a latte.
I'm really into oat milk these days.
I told you earlier, I'm crazy and I changed my mind a lot.
So I changed my go-to drink a lot.
This is probably the longest I've had a go-to drink,
which has been like four or five months.
So any cafe I walk into right now or walk up to, guaranteed, that's what I'm ordering.
Sometimes I like a little bit of foam on there too, which is kind of counterintuitive because
it's an ice drink with ice and they have to make hot foam and put it on top, but it kind
of mixes away anyways.
But that's my beverage.
Less milk, icy cold because it's scorching these days and just keeps me going.
Anything for food?
I'm really into perfect bars. It's like this crazy obsession that I have. And I've been obsessed for like two
years. So those like refrigerated. Yeah. And I only like peanut butter. I'm sorry. It's just
the best. I don't know. I'm like addicted to perfect bar. I can't see one without eating it.
Second favorite is probably the chocolate chip one. And then the rest are all third place to me.
And the sauce that you have with the burrito, there's this
sauce, you guys, just so you know this, after I gave birth, I made Michael order your burritos
to the hospital. You should bottle that sauce. That's what you got to do.
And the sauce. Yeah. Can you bottle the sauce? The sauce, it's like this green,
I don't even know what it is. It's, what is it? It's like cilantro crema. So we get our burritos
from this company, amazing company called the rooster
And she makes the best burritos in town. We've partnered with her from day one
She crushes it notice how you asked me what my favorite food from alfred is and I didn't mention the burritos
It's because i've mentally completely blocked them out of my mind
I cannot stand thinking about them because they are so good and once I I opened that you know
Once that dam opens up, it's like a onslaught of burritos. They are so good. And once I opened that, you know, once that dam opens up, it's like a onslaught
of burritos. They are so good. There's nothing better than a hungover Alfred's burrito.
Michael eats like one every single morning and his weight doesn't move.
I don't know about that much, but I eat them. I eat them a lot. And I'm, I'm, I'm actually ashamed
of how many I eat. That's good. The black sauce that they have, the darker one is like, like the
Baja fresh, same color sauce that they have.
It's very similar, which is like my all-time childhood growing up favorite salsa.
Yeah, it's delicious.
As a guy that's so into aesthetics and brand, when you see other people, and it could be in any category.
It could be fashion.
When you see something, what is something you identify like, wow, that person did it right?
And what's something when you see it, that's cringy like what what do you look
for in a good brand i look for discipline it's it's my favorite thing so i think in a lot of
ways it's it's what i mentioned before that it's like alfred is full of personality it's kind of
crazy again we're a coffee shop so we're kind of allowed to be like that but if i look at a fashion
brand i like discipline of like,
of like,
and consistency,
like,
you know,
the captions are always the same.
The images are always presented the same way.
The personality is always the same.
The way they,
you know,
respond to people on social media,
they don't respond to people on social media,
like these kinds of things.
And like season to season,
like you see the,
the clothes and it's like,
they stick true to what they are.
They're not chasing this trend or chasing that trend. I it's it's a loaded answer but like you know a
brand like apc that you just look at and it's like it's been the same for 30 years and i'm like
wow i could never do that so i really envy it that it's just been so focused you know it hasn't
really changed much other than just updating styles and such. That is such a good answer.
Oh, I love...
It's hard to do.
Have you ever met Sean Neff?
And if you haven't, you should meet him.
You guys would like each other.
I don't believe so.
Okay, he's like a branding guru.
You have to look him up.
And he was on the podcast
and we asked him sort of the same question
and something about branding.
And he said that he walks down the aisles
at supermarkets and like Target and Walmart
and he sees where categories need an update.
So he was walking down the toothpaste aisle
and he saw toothpaste was so outdated
and boring and gross
and you would never want it on your vanity.
And so he created a toothpaste
with Kendall Jenner called Moon.
And it's this beautiful toothpaste,
but he has a very similar mentality to you
when it comes to branding.
I feel like you guys would really hit it off.
Amazing, yeah.
Absolutely.
I got to hit him up.
Yeah.
I think that you're so right about discipline.
There's so many brands and they start like,
oh, wow, that's really good.
And then all of a sudden,
a new trend comes along
or something that's popular comes along
and they completely scrap their whole brand to capture that trend. And I feel like they're constantly chasing something.
And then the brand becomes something that's not identifiable anymore. What does this even stand
for? And I think a lot of people with everything going on could learn a lot by staying disciplined
with the brand, no matter what trend. Yeah. And then you feel crazy. You're like,
am I missing out on this? And then you got to just remind yourself, like, it'll be fine.
Just stick to what you do.
Yeah, it's a hard thought to kind of see
so many things, people flocking into a direction
and then makes you kind of question your own movements.
A lot of people I think are going to come out
of this whole quarantine experience as entrepreneurs.
I think a lot of people are probably starting
to work on their own ideas
and thinking about working for themselves instead of someone else. as entrepreneurs. I think a lot of people are probably starting to work on their own ideas and
thinking about working for themselves instead of someone else. If you could leave our audience with
a couple of tips on how to be a badass entrepreneur, we would love that.
Yeah. I mean, you're saying that, and I have a friend who's starting a sandwich business,
another friend who's starting a barbecue sandwich business, another friend, a cousin who started a
hot sauce business, another friend who started an ice cream business,
probably within the last six weeks, maybe two months. And I see all of this. And a couple of
them, I reached out to me and it's like, what do you suggest? And I'm like, just start small.
Don't worry about commercial kitchen. Don't worry about farmer's market yet. Don't worry.
Definitely don't worry about Bristol farms yet. Just worry about fulfilling this week's orders,
get the feedback from your friends and family. And then the next step will be opening it up to
non friends and family. The next step will be the farmer's market. But just take your time.
Because you know, you tend to focus or latch on to like the big success stories, right? This person
started in their backyard, and now they have 20 restaurants. And you're like, okay, I got to get
to 20 restaurants. Well, that person took like 15 years to get there.
So take it easy, worry about this month and do what you're doing and don't get too caught
up.
Don't, you don't need so much information on the next step yet, you know, because it
naturally will come to you.
Maybe you run into a person who likes your product.
It was like, Hey, I have this kitchen.
Why don't you take over this, you know, twice a week to make your sauce, so on and so forth.
So simple and small is great. Another one is, is try to learn as much as you can about the different elements
that go into your business, right? You're going to rely on a lot of different specialists from
attorneys to chefs or co-packers, whatever it might be, but pay attention to what they're doing.
Learn from them also. Don't be so wholly dependent on other people because a lot of it is not so
specialized and it's just a lot of it is not so specialized.
And it's just a lot of common sense too that maybe you're better at.
It is your business.
So you can't just give away the keys to a certain part of it to somebody else.
Tony Robbins, Michael, what's that quote?
He says, you overestimate what you can do in a month and you underestimate what you
can do in 10 years.
Yeah, it's true.
It's similar.
What is a book, a a resource or a podcast that you
can recommend to our audience to round this out something that has brought you a lot of value
i think in consideration of the last few months and there's just like so much work right so i kind
of i like to liken it to there's like normal work and there's like this heavy 100 pound covid
backpack work and it's like you have to get through all of the work, but like, pretend like you don't
have that a hundred pound backpack on you because nobody's going to give you any sympathy.
That's just how it is having a business right now.
So for me, any kind of distraction I can have is like the opposite of, of serious.
So for me, one podcast that, that, that really gets me through is, is the Bill Simmons podcast.
And like Ryan Russillo, who's
often his guest, his podcast, just let's talk about mindless sports all day long. Let's talk
about old NBA drafts. Just keep my mind off of anything else. So when I go for that walk,
or I'm driving, or I'm even in the shower listening to a podcast, I just want to
go to Fantasyland 2008. Who was the first pick in the draft? Who should it have been?
I love that.
And a lot of uplifting television. I'm really into Friday Night Lights right now, which is just
all about family, football, and loyalty. And it's just like escape. So I'm really big into
a couple of elements like that, that I could just pay attention to or doze off on,
but it's only going to take me to happy places. That's where I'm at.
You sound like me and Real Housewives.
My wife watches all the time and I actually like it now. It's crazy. I can't believe that I like it.
You get sucked in. You get drawn in. You're like-
Michael knows all about each one of them.
Who is that new character? I think she's from Texas or British.
Oh yeah. Sutton.
Sutton. At first I'm like, I don't like Sutton. And then they're so mean to like, you know, they're like so mean to her and she like spoke her mind and I'm like, you know
what? I got her. She got a little bit braggy in the beginning, bragging about how much money her
handbag was worth. And it was a turnoff, but she is growing on me. I will say that. Yeah. And
they're so mean to her. She came in really hot and turned me off. And then now I'm like, she's cool.
Yeah. I mean, it she's cool. Yeah.
I mean, it'd be a weird thing.
Imagine you go into a show like that and it's an established cast for years.
You're like, should I stand out?
I don't want the network to cancel me.
I want the girls to like me.
And you're just like, I got to stand out, you know?
I'm just yelling at the screen.
There was a scene with her husband, Denise Richards' husband.
I'm like, just stop talking.
I know.
Get up.
Michael and I were like that too.
Just go.
This is going to, this may get me in trouble. But, you know, I've observed it on these shows.
Like women are tough, man.
Like they like us men.
We don't experience when you go into a group of guys like, you know, you're either like
kind of like hang out or you don't like there's no we don't get torn down for dinner.
It's scary.
Yeah, it's scary.
I don't know how you guys do it.
Josh, where can everyone find you?
Your new beer company, the coffee company, the tea?
Give us your Instagram. Pimp yourself out.
So Alfred is at Alfred. Alfred Tea Room is at Alfred Tea. My Instagram is at Josh from Alfred.
And then Calidad Beer is at Calidad. So you can find us there. And our website for Calidad Beer
just won an award recently for the beer industry. So Cali.beer.com,
check it out. It's a beautiful website. We're going to link it all out. Thank you, brother.
I got to stop eating your burritos or else I'm going to explode. No, don't stop. You look great.
Thank you, brother. Thank you so much, Josh. That was awesome. People are going to love that.
Of course. I really appreciate it. Thank you so much, guys.
As always, to win cheeky pink skinny confidential stickers, just tell us your favorite part of this
episode on my latest Instagram and someone from the team will drop into a bunch of your inboxes
and send you guys some stickers. Also, make sure you've rated and reviewed the podcast. We are
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All right.
With that, we will see you on Tuesday.