About Paul Brown
Paul Brown, co-founder and CEO of Inspire Brands, has been active in discussions about the franchise business model, consumer behavior, and the role of technology in the restaurant industry. In May 2024, he hosted an "Open For Opportunity" roundtable at Inspire Brands headquarters alongside International Franchise Association President Matt Haller, where he described franchising as a "uniquely American business model" that allows entrepreneurs to start and grow businesses. Brown also praised Atlanta as a "phenomenal place to headquarter and grow a business," citing its talent pool and business-friendly political environment.
In interviews and appearances throughout 2024, Brown discussed consumer spending patterns, noting that the company sees different behaviors among lower-income households, particularly those earning below $45,000, who are increasingly seeking value. He highlighted the restaurant industry's shift from analog to digital marketing, stating that in 2019, 80% of Inspire's marketing spend was on linear TV, while by 2023 it had shifted to roughly two-thirds digital and one-third linear. Brown also addressed the company's growth strategy, including expansion in India and Latin America, and noted that Inspire has no exposure in China. He emphasized that the restaurant industry is "the last really large industry" to be fundamentally transformed by technology, and that Inspire has adopted OKRs (Objectives and Key Results) to improve prioritization and transparency across its highly matrixed organization.
Source: AI-verified profile updated from Paul Brown's recent appearances.
Browse all interviews →
Transcript (25 segments)
J
Jim Cramer0:09
You need to keep up with the biggest privately held companies. Inspire Brands, the household name that owns a bunch of companies. They have more than 32,600 locations in 57 global markets. On top of that, there has been speculation they have been coming public later this year or 2025. Even if it stays private, we can learn from this phenomenal outfit. So let's check in with the co-founder and CEO of Inspire Brands to get a better read on the restaurant business. Welcome.
P
Paul Brown0:54
Great to be here.
J
Jim Cramer0:55
As a restaurant tour, you inspire me. In six years, and it all works. But how did you get the idea? How did you get these particular businesses? And tell us how you're number one and everything.
P
Paul Brown1:08
Inspire Brands is a global restaurant platform. What makes us different is we are tightly integrated around a shared responsibility. It looks more like a model you might be familiar with in the hotel sector other than the restaurant.
J
Jim Cramer1:31
I will tell you something that is amazing. I always thought that Dunkin' was pretty good, but there were so many areas of the country that did not have it. What have you done with that chain since you took it over?
P
Paul Brown1:47
Dunkin' is on fire. Up 30%. @JIMCRAMER, you know how hard it is to do? Part of it is we have replaced all the coffee equipment and beverage equipment and made some great investments to allow us to build up the iced. A franchisee in Rhode Island got the bright idea of pouring coffee over ice and everybody liked it, so we went with it.
J
Jim Cramer2:19
That's remarkable. There is some people don't realize. Drive-ins, you pioneered.
P
Paul Brown2:31
Sonic, we felt that brand was perfectly set up for order ahead. The app has the ability to order ahead and bring the food out to you. Of course, we didn't know COVID would come along, and we exploded during that time. It has been a great business. Sales are up 24% year-over-year.
J
Jim Cramer2:54
People may say, wait a second, almost 32,000 restaurants, you are tapped out. But you are putting out projections indicating you are nowhere near tapped out on any of these brands.
P
Paul Brown3:03
That is the great thing about having a portfolio. We have white space if you look at where we are. They are still fairly concentrated in this part of the country.
J
Jim Cramer3:24
I find what you are doing is remarkable. Are you ever home?
P
Paul Brown3:28
It is all about building the relationships with great licensees. Bringing one of our brands to a licensee that may have had another brand, and it has helped us build up.
J
Jim Cramer3:37
Has some great synergy. One thing I have been most impressed with is you have the Buffalo Wild Wings, including one in Philadelphia, where I think we could use an additional. How is that going to work? The takeout?
P
Paul Brown3:54
We have over a million-dollar takeout business in all of our restaurants. 800 square feet to 1,100 square feet. We just see a huge amount of growth in that. We will have 160 open by the end of the year. Our third one opening in Manhattan in a few weeks, and in April you will have one in Philadelphia. We have 500 commitments plus from franchisees to build more for 18 months.
J
Jim Cramer4:29
That is incredible. I am not going to mention Sonic, but I will mention that when I was not doing as well as I am now, Arby's was my go-to.
P
Paul Brown4:51
We think there are more opportunities for people to try the food. We have something coming later this year that'll give people an opportunity to really try Arby's in a way they haven't, and I know they will love it.
J
Jim Cramer5:07
Okay, I can't leave JJ out. Baskin-Robbins, 7,700 of those. These are incredible numbers that you are putting out. There really is more room for ice cream? More room for sandwiches?
P
Paul Brown5:23
Absolutely. Baskin-Robbins, two-thirds outside the United States. We have almost 1,000 in India.
J
Jim Cramer5:31
You said something that was riveting. You said we don't want to be in China so much, we want to be in a growth market. India. You are not hostage to the thinking that has enthralled so many Americans for so long.
P
Paul Brown5:50
You have to go to China the right way. We have no exposure in China, but we love India and so many of the other markets. Latin America. So many growth opportunities.
J
Jim Cramer5:57
You can look at it in two different ways. What are you thinking?
P
Paul Brown6:02
We see about 75% of Americans every year of our last quarter, given the breadth of our brand. We do see that we have been pleasantly surprised. There are differences based upon income level, but that is the beautiful thing about having a broad, diverse brand with multiple price points.
J
Jim Cramer6:21
These weight loss drugs, I mean they are just a factor, right? People are going to eat what they want.
P
Paul Brown6:28
We haven't seen any impact. We have just focused on having great food at a great price.
J
Jim Cramer6:33
I have to congratulate you. I am incredibly impressed. Sir, thank you so much. Paul Brown, co-founder and CEO of Inspire Brands. If you ever want to be an entrepreneur and really own something, this may be a great place to get started. Certainly, we will be right back.
