Startup acquisition!

I was interested in watching a particular movie on Prime video.

Do you know why?

The only reason was that it was about starting a business & scaling it up like crazy. Moreover, it was a true story.

As usual, I checked the IMDb rating [not that I am a fan of imdb]. But I trust the Rotten Tomatoes rating. The film had got 80% on RT. So, let’s go, I told myself.

Finally, I watched it.

It was about a fast-food chain.

Two brothers had started a fast-food restaurant in the USA.

The idea was to deliver the food fast. The term “fast-food” was probably coined originally from this idea. The founders didn’t want the customers to wait for food after ordering.

Hamburger, Fast food - a set of hamburger, french fries & drink!
Food box vector created by macrovector –

The brothers meticulously planned and they started. But they had some problems and they couldn’t deliver as planned. Hence, they closed it temporarily.

They re-worked their delivery mechanism. They went into greater detail. And visualized their staff working seamlessly in the kitchen.

They ensured that the activities of their staff were complementary to each other. It was like a symphony. A rhythm. You can’t miss a beat.

Everyone did their part well. Ensured quality and speed.

They called their system a speedy system. Altogether it was a big success.

They first had it at one location. Once they mastered the art, they opened in four other locations including franchisees.

Meanwhile, there was a salesman who was trying to sell them milkshake machines.

By now, I am sure that you know the name of the film. 🙂

You know the rest of the story as well. Don’t you?

I was shocked to hear the story. The brothers [The Founders] who started the food chain had to eventually give it [not sell it] to the milkshake machine salesman. The film says the founders didn’t even get their royalty. Isn’t that too bad?

The take over [do you call that acquisition?] of the fast-food chain by the milkshake machine salesman was not by any means ethical.

Recently, a business conglomerate [they sell from shoes to fresh vegetables to white goods to petrochemicals] in India used this method to take over a “BIG” retail chain. Notwithstanding the fact that the BIG retail chain originally had an agreement to sell its business to a global “amazing” business conglomerate. Sad story.

“You are not a fast-food restaurant. You are a real estate company. And you are not in the food business. Instead, you are in the real estate business.”

That was a dialogue from the film. Not verbatim, though. The financial consultant tells this to the milkshake machine salesman.

I wish the fast-food chain founders had retained their stake and continued to innovate, grow and scale it up at a pace that was comfortable to them. They had not borrowed funds nor did they take any VC funding. But still, they were taken over.

[Dine-in is not available due to the pandemic. :)]

  1. Undoubtedly, Ethics & Values are important in business.
  2. Equally important is Speed.
  3. What’s more important is growth, if the potential exists, that is.
  4. But the pace of growth should be comfortable for the founders.
  5. External influence/control should be thwarted early at any cost.
  6. Businesses should get good legal support while growing up.

Which acquisition did you come across lately?

Happy Selling!

#b2c #startups #acquisition #kkrocks