Come one, Come all! EIMA is THE event of the year. Get your tickets and join us on 4/27. AND don’t forget to go vote for your favorites!
The 2023 EIMA Individual Awards voting portal is officially open! ✨
Click the link below to vote for the top industry professional for five unique categories. You have until Tues., 4/18 at 11:59pm to get your votes in!!
Ten local founders and innovators sparred in gloves-off debates, “fighting” to win each round.
The fight card included challenges like: Should brands be transparent? Should the government be involved in building the metaverse? And is ESG important? Here are the knockout rounds.
Returning to the Granada Theater for its first in-person event since 2020, Digital Fight Club capped off Digital Startup Week last Thursday night. Local founders and innovators sparred with each other to debate some of the day’s most pressing tech topics—and competing to win each round.
Hundreds packed the theater to watch the debate-like event, where “fighters” duke it out verbally to cheering, hooting, and generally raucous reactions from the audience.
Let’s break the first rule of Fight Club—and talk about it how it works. For each round, two founders take to the stage to make their cases in front of a panel of judges. Only one is able to walk away a winner.
Fighters strut their smarts and verbal chops. But showmanship, charisma, and audacity can be the knockout.
During the rounds last night, fighters were given topics ranging from how transparent brands should be to who should be involved in building the metaverse. Each fighter was then given 45 seconds to make their case, followed by a 30-second rebuttal and questions from the referees.
Then the refs and audience weighed in by casting their votes for the winner.
Watch the pre-fight interviews
Taylor Shead [Photo: Michael Samples]
STEMuli founder and CEO Taylor Shead, who’s building an “educational metaverse” with her company, said no, saying that could lead to increased censorship and the likelihood of the metaverse becoming a political platform. She also noted the historical racism and exclusion of government projects in the past, adding that without government intervention, the metaverse will be more open to all.
Dan Ferguson [Photo: Michael Samples]
Groove Jones Founding Partner Dan Ferguson took the opposite stance. He argued that the way metaverse concepts are being built make them walled off “microverses,” and that a standardized set of pathways and tools provided by a regulatory body like the government could help fix that. He added that big projects like a metaverse require a great deal of funding, and with the government’s help, more could be built.
Taylor Shead, Michael Pratt, and Dan Ferguson [Photo: Michael Samples]
Taylor Shead
Taylor Shead [Photo: Michael Samples]
Bill Cochran was the most animated fighter of the evening. [Photo: Michael Samples]
Bill Cochran, creative director at LERMA, argued that less transparency can be a good thing, arguing that it’s important for companies to protect their “magic”: the things that make them unique. Also, revealing things behind the scenes may turn some customers away. Cochran added that since most brands now call themselves transparent, it’s no longer a differentiator that can help a brand stand out.
Cameron Gawley [Photo: Michael Samples]
The Runway co-founder Cameron Gawley took the side of pro-transparency. He said that with younger generations valuing transparency so highly, it’s important for brands to adopt it in order to reach more customers. By “building in public,” companies can better stay on top of trends and attract better talent.
Cameron Gawley, Michael Pratt, and Bill Cochran [Photo: Michael Samples]
Bill Cochran
Bill Cochran won Fight 2. [Photo: Michael Samples]
Brad Nichols [Photo: Michael Samples]
Brad Nichols, founder of Automatize, said yes. He noted that automation has been used throughout human history to improve productivity and efficiency—and in many cases improves people’s lives. He added that the increasing complexity of supply chains will require it, freeing up labor that can be retrained in other skilled areas.
Chris Hanebeck [Photo: Michael Samples]
Truckl founder and CEO Chris Hanebeck disagreed, pointing to supply chain issues that have plagued companies since the pandemic hit. He said that people are required to make the supply chain more resilient, since efficiencies created by automation can create volatility. Human thinking and decision making will always be needed, he said.
Chris Hanebeck, Michael Pratt, and Brad Nichols. [Photo: Michael Samples]
Chris Hanebeck
Chris Hanebeck won Fight 3. [Photo: Michael Samples]
Eddy Badrina [Photo: Michael Samples]
Eden Green CEO Eddy Badrina argued no, calling ESG “just a nice sticker.” He said it doesn’t have much to do with profitability, and that many companies use it as an empty word. At the end of the day, most consumers are looking for goods that have quality at the lowest price, with ESG not playing a large role in their decision making.
Chris Robinson [Photo: Michael Samples]
Chris Robinson, co-founder and president of Clearyst, took the opposite tack, saying that companies that prioritize ESG can have better equity returns, in addition to helping lower costs in operations, customer acquisition, and retention. He added that customers are increasingly looking for brands that align with their beliefs, and focusing on ESG can help reach a wider customer base.
Eddy Badrina, Michael Pratt, and Chris Robinson [Photo: Michael Samples]
Eddy Badrina
Eddy Badrina was voted winner of Fight 4. [Photo: Michael Samples]
Andrew Hopkins [Photo: Michael Samples]
Andrew Hopkins, president of PrivacyChain, argued that it’s more important to build first, then figure out cybersecurity later. He said that up-front costs for cybersecurity can be high, and that, at the end of the day, most companies are likely to get hacked anyway.
David Malicoat [Photo: Michael Samples]
Direct Marketing Solutions Chief Information Security Officer David Malicoat agreed that many companies will likely be hacked eventually. But he noted that the main cause of those hacks will likely be employees not taking proper cybersecurity measures. Therefore, he said, it’s important to invest in the technologies early to help prevent that.
Andrew Hopkins, Michael Pratt, and David Malicoat [Photo: Michael Samples]
David Malicoat
Here are the local leaders who kept the fights clean, while asking the hard-hitting questions on the Granada stage at Digital Fight Club 2022:
The refs, left to right: Becca O’Brien Weigman, Charan Lota, Holly Briedis, Nancy Flores, and Angela Marano. [Photo: Michael Samples]
Accenture was the anchor sponsor for this year’s Digital Fight Club. Other sponsors included SVB, Altruas, Improving, Simpli.Fi, and Medium Giant.
See more scenes from Digital Fight Club in our gallery.
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Introducing STAPLE x Fossil — our new watch collaboration designed in partnership with iconic streetwear brand STAPLE, helmed by creative icon and streetwear pioneer Jeff Staple. Inspired by iconic watches from the Fossil archives and the concept of time itself, this limited-edition collection is a nod to the history of both brands and the element of discovery for the next generation of collectors. The watch builds upon elements of the archival Fossil Sundial and Hologram watches with an egg-shaped case designed to appear as if the watch was excavated from the Earth.
The collection was first revealed in June at the second annual STAPLE DAY sponsored by NTWRK, and will now fully release on July 14 at Fossil, STAPLE and Hypebeast’s online and New York HBX storefronts. To celebrate the collaboration’s official launch, the STAPLEVERSE community was given first access to reserve a watch through three exclusive STAPLE x Fossil NFTs, made available in 97 units each to commemorate STAPLE’s founding year in 1997. The launch is also presented alongside an exclusive Hypetalk panel discussion, “TIMING IS EVERYTHING”, moderated by Jeff Staple. Featuring creative consultant Nick Wooster, artist Westside Gunn and digital artist pplpleasr, the content will be made available on Fossil channels and will discuss the concept of time and the role it plays in collecting.
“For the STAPLE x Fossil watches, we blended the heritage of both brands to create something new that’s perfect for collectors,” says Jeff Staple, Founder of STAPLE & Reed Art Department. “The design features a special sundial and hidden Pigeon hologram — a nod to the Fossil archives with a STAPLE twist that will take flight on July 14.”
“We are excited to partner with Jeff Staple, a streetwear pioneer, who shares the Fossil team’s love of product innovation,” says Melissa Lowenkron, General Manager of Fossil Brand. “Jeff’s creativity is inspiring, and our design team loved working with him to create a unique watch, digital smartwatch dials, and NFT for a new generation of Fossil fans, watch wearers and collectors.”
This co-designed timepiece collection will include three colorways in a unique design combining the Sundial and Hologram watches — two fan-favorite pieces from Fossil’s archive originally released in the early 1990s. The sundial design is a replica of our ‘90s icon, with the STAPLE Pigeon silhouette cut out in the gnomon so that the pigeon is visible in the sundial’s shadow. The piece is on a locket-style hinge, revealing a hidden hologram dial once opened alongside a stamped fish-eye STAPLE marking on the underside of the hatch. The hologram dial transitions between a pigeon in flight and the STAPLE Pigeon logo superimposed over a 3D render of the same fish-eye STAPLE marking.
Each timepiece is made with an automatic movement, stainless steel case (44mm) and unique terrazzo stone-inspired silicone case jacket and straps (22mm) created with ground silicone. The three terrazzo stone-inspired colorways are reminiscent of excavated Earth, the grind of debris in the city streets and the STAPLE iconic color combination. The STAPLE Pigeon logo is printed on the caseback with “STAPLE” embossed on the strap’s keeper. Each timepiece is encased in a limited-edition, collectible egg-shaped tin — further playing on the idea of “Fossil” and excavation — retailing for $280.
Alongside the three timepieces, STAPLE x Fossil includes two limited-edition black rPet straps, each interchangeable with 22mm straps. One features the STAPLE word logo in white, and the other pictures the pigeon logo in a repeat pattern, both retailing for $40. Additionally, three exclusive STAPLE x Fossil digital dials with the pigeon logo will become available for Gen 6 display smartwatches.
Visit Fossil.com, STAPLEpigeon.com and Hypebeast’s online and New York HBX storefronts to shop STAPLE x Fossil beginning July 14
For 22 years, American Airlines has partnered with the American Black Film Festival (ABFF) to help uplift Black filmmaker stories and connect customers to diverse representation throughout their travel journey.
The ABFF recognizes Black talent and showcases quality film and television content by and about people of color in the entertainment industry. American recently launched the American Black Film Festival channel as part of the airline’s free inflight entertainment offering.
The channel elevates the unique voices and powerful stories of the Black community while offering a deeper understanding of the Black experience.
Hear from ABFF CEO and Founder Jeff Friday as he discusses the importance of access American helps provide these filmmakers. You will also hear from independent filmmaker Nailah Jefferson about how it feels to have her film onboard American’s aircraft.
By working with organizations like the ABFF, American can connect and engage with the Black community in a more meaningful way.
Access entertainment: American offers endless entertainment options that customers can stream right to their own device at no cost. Simply enable airplane mode and connect to the AA-Inflight signal. Once connected, customers will be redirected to aainflight.com, the inflight portal.
In addition to the ABFF channel, American recently introduced a HistoryMakers channel that features interviews with some of America’s most noted Black individuals who have made significant contributions to society, as well as Peacock and Obe Fitness.
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The campaign, (see here) highlights good things that happen when you are around the Tostitos chip and dip bowl with friends. In the commercial, Levy misses out on a few milestone moments that his friends experience because he steps away from the Tostitos – from a baby’s first steps to a proposal – until finally he refuses to miss any more fun by staying close to the Tostitos chips and dip.
“I had a great time working with Tostitos last year. It’s a really fun and supportive team,” said Levy. “So, when they asked me back this year for their new campaign, it was a no brainer.”
Campaign Ensures Consumers Don’t Miss Out
Tostitos has introduced a new party game on Snapchat called “FOMO or F No!” – using chips as the cards. The new interactive Snapchat lens uses augmented reality to display a different trend on top of your chip each time you hold one up to your phone. The game will feature trends such as Frosted Tips, Switch to a Flip Phone, Pineapple on Pizza, and Face Tattoos. Consumers will then have to decide if they would fear missing out on the trend or if it’s one they were happy to skip.
Tostitos has also partnered with the MTV Movie & TV Awards to make sure no one has FOMO during their watch parties. A never- before-seen commercial will air during the show that shows MTV celebrities Josh Horowitz, Mark Long and Nia Moore making memories of their own by playing “FOMO or F No!” in the greenroom. The game will also be featured on the pre-show red carpet and the show’s social channels. Be sure to grab your Tostitos and some friends and tune in on Sunday, June 5.
Tostitos is also releasing a new No Mo’ FOMO chip kit so consumers never have to miss out on delicious flavors. This limited-edition kit includes three of Tostitos’ most-popular flavors: Hint of Spicy Queso, Hint of Guacamole and Habanero. Packaged inside an interactive box with Tostitos’ new signature sound and lighting, this limited-time offering takes any moment up a notch— and brings together all your favorite flavors in one place. Consumers have a chance to get their hands on one of these limited-edition kits by keeping an eye out for an “unboxing” video during the summer months on Tostitos’ Instagram and commenting with their favorite Tostitos flavor.
“Tostitos aims to help foster the amazing moments that happen around the Tostitos chip and dip bowl – and who better than Dan Levy to depict how we all feel if we miss something memorable when we are amongst loved ones,” said Anya Schmidt, marketing senior director, Frito-Lay North America. “From festive flavors to new games, this campaign is all about giving Tostitos fans new reasons to enjoy their time with friends – and never miss out on the good stuff.”
For more details on Don’t Miss the Good Stuff, the Snapchat game, how to get your hands on a No Mo’ FOMO chip kit, and all things Tostitos, head to www.tostitos.com or follow Tostitos on TikTok, Instagram, Facebook, Twitter and YouTube.
About Tostitos®
Tostitos is one of many Frito-Lay North America brands – the $19 billion convenient foods division of PepsiCo, Inc. (NASDAQ: PEP), which is headquartered in Purchase, NY. Learn more about Frito-Lay at the corporate website, http://www.fritolay.com/, the Snack Chat blog, http://www.snacks.com/ and on Twitter http://www.twitter.com/fritolay.
About Frito-Lay North America
Frito-Lay North America is the $19 billion convenient foods division of PepsiCo, Inc. (NASDAQ: PEP), which is headquartered in Purchase, NY. Frito-Lay snacks include Lay’s and Ruffles potato chips, Doritos tortilla chips, Cheetos snacks, Tostitos tortilla chips and branded dips, SunChips multigrain snacks and Fritos corn chips. The company operates 30+ manufacturing facilities across the U.S. and Canada, more than 200 distribution centers and services 315,000 retail customers per week through its direct-store-delivery model. Learn more about Frito-Lay at the corporate website, www.fritolay.com, on Twitter (@fritolay), on Instagram (@fritolay) and on Facebook (Frito-Lay).
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated $70 billion in net revenue in 2020, driven by a complementary beverage and convenient foods portfolio that includes Lays, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with PepsiCo Positive (pep+). pep+ is our strategic end-to-end transformation that puts sustainability at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com.
JCPenney today unveils a multipoint celebration of Juneteenth honoring Dr. Opal Lee – the “Grandmother of Juneteenth” – and affirming the company’s commitment to diversity, equity, and inclusivity—a tradition that hails back to the company’s earliest days. Founded on the principle of The Golden Rule, JCPenney continues its emphasis on serving communities and diverse, working American families. For Juneteenth, JCPenney will put that mission into action with a mix of events, products and philanthropic commitments to honor the holiday and benefit the work of Dr. Opal Lee in Fort Worth and across the country.
“We are so honored to celebrate Juneteenth with special events and a new Hope & Wonder collection that allows us to give back and help Opal Lee spread her message of freedom and unity,” says Val Harris, senior vice president, design, brand management and trend at JCPenney. “These efforts are the result of creative collaboration across many parts of the organization and JCPenney is so pleased to come together to honor this moment.”
JCPenney has announced several initiatives to mark this year’s Juneteenth. Events to commemorate Juneteenth kicked off on May 17 with a virtual event featuring Opal Lee herself called, “Walking for Freedom: A Juneteenth Discussion with Dr. Opal Lee.” The conversation reflected on the significance of Juneteenth and its designation as a federal holiday, Dr. Lee’s ongoing advocacy and community work, and the freedom journey that continues to this day. The broadcast streamed live on Facebook and YouTube and a replay can be viewed here.
On Saturday, June 18, a day before Juneteenth itself (Sunday, June 19), JCPenney will join Dr. Lee in Fort Worth, TX for Opal’s Walk for Freedom, building on a tradition she began in 2016 with 2.5-mile walks representing the 2.5 years it took Emancipation Proclamation enforcement to reach Texas. Now a nationwide event, Opal’s Walk for Freedom will be organized by community organizations in select cities across the country. JCPenney will also sponsor a “virtual” Opal’s Walk with JCPenney associates in other locations who want to join in with a self-directed 2.5-mile walk of their own.
“JCPenney’s Juneteenth Hope & Wonder Collection and national sponsorship of Opal’s Walk for Freedom speaks volumes about their commitment to diversity and inclusion,” said Dione Sims, Executive Director of Unity Unlimited, Inc. the producers of the Walk and granddaughter of Dr. Lee. “Their generous donation will go a long way in supporting our mission to educate the country about the significance of Juneteenth as a national holiday that can bring people together and start the healing of America.”
JCPenney will also mark the holiday with the launch of a new Juneteenth collection from Hope & Wonder™, a private label brand of collections designed to engage the community in a positive way and bring key cultural and seasonal moments to life. Hope & Wonder is a multifaceted private brand that leverages the Company’s national platform to raise awareness, celebrate diversity and uplift our communities. This brand empowers our associates to design and create a product that best represents the moment, play a key role in selecting our nonprofit partners and even participate as models in marketing material. JCPenney donates 100% of net profits from the four cultural moment collections to nonprofit partners; the Juneteenth collection supports Opal’s Walk for Freedom, presented by Unity Unlimited.
Introduced in January 2022, Hope & Wonder, a private brand exclusively at JCPenney, is the latest JCPenney initiative designed to make a positive impact on families and communities. In recent months, the Company has announced purpose-driven offerings and programs including the fully inclusive JCPenney Beauty, a shop-in-shop experience featuring products by Black and Brown founders with Thirteen Lune, the Young, Gifted and Black Design Challenge for HBCU students, a long-term charitable partnership with Muhammad Ali Enterprises, and Thereabouts™, an inclusive brand for kids that celebrates diversity of shapes, sizes, styles, and abilities. JCPenney will continue to be inspired by the uniqueness of its customers to create experiences and products that make a difference.
The excitement that comes from opening Frito-Lay® Variety Packs and selecting that perfect snack for the perfect occasion is unmatched. To help fans turn up every moment all summer long, Frito-Lay Variety Packs are launching “Unbox the Icons” and joining forces with three people who know a thing or two about how to reach iconic status: Mario Lopez, Martha Stewart, and Mark Morrison.
To kick off the campaign, Frito-Lay Variety Packs tapped beloved iconic actor and television host, Mario Lopez, as well as best-selling cookbook author and entrepreneur, Martha Stewart, to curate their own signature Frito-Lay Variety Pack “ICONIC Boxes” filled with their favorite things including Frito-Lay snacks to help consumers turn up every moment.
“Throughout my career and personal life, I’ve learned to savor the moments, even the ones that seem ordinary, because you never know when something can become extraordinary, giving you a memory that lasts a lifetime,” said Lopez. “Many of my favorite memories were shared over snacks, which is why I’m excited to partner with Frito-Lay Variety Packs and help create my own ‘ICONIC Box’ that will help you turn up every moment.”
“The best part about spending time with friends and families is the shared joy that comes with making memories over a delicious snack,” said Martha Stewart. “With the Frito-Lay Variety Pack ‘ICONIC Box,’ you can now snack like me to elevate your dining experience. Who says the simple things can’t be refined?”
Mario’s “ICONIC Box” will help you turn up the tunes and the heat and includes:
Martha’s “ICONIC Box” will elevate any dining experience and includes:
Now you have a chance to snack just like your favorite icon — from Mario’s hot sauce and Cheetos to Martha’s steak tartare and Ruffles. Fans can win one of the limited-edition Frito-Lay Variety Pack “ICONIC Boxes” by heading to Mario’s and Martha’s Instagram posts starting today through June 5. For a chance to win, consumers must comment with their favorite Frito-Lay snack and use #UnboxTheIcons and #Entry.
As a part of the campaign, Frito-Lay Variety Packs have also teamed up with legendary R&B singer, Mark Morrison, to reimagine his 90s hit, “Return of the Mack.” In a new television commercial released today, Morrison will “Turn Up the Snacks,” showing viewers how everyday moments with Frito-Lay Variety Packs can be taken to new heights.
“We knew there was no better way to remind fans about how Frito-Lay Variety Packs turn up every moment than by partnering with the iconic forces of Mark Morrison, Mario Lopez, and Martha Stewart,” says Leslie Vesper, Vice President of Marketing, Frito-Lay North America. “From life’s biggest celebrations to the smallest gatherings among friends, Frito-Lay Variety Packs have always been part of those moments, helping turn them from ordinary to extraordinary.”
To learn more about “Unbox The Icons” and the Instagram contest (including full terms and conditions), head to www.fritolayvarietypacks.com/unboxtheicons.
original content
Main Event's current CEO Chris Morris will be named CEO of Dave & Buster's
Coppell-based Dave & Buster’s is set to acquire Dallas-based Main Event Entertainment, which will continue to operate as a distinct brand. The combination of the family entertainment innovators is a “transformational opportunity,” the companies say.
Two local entertainment giants are combining their resources.
Coppell-based Dave & Buster’s Entertainment, a publicly traded firm, is set to acquire Dallas’ Main Event Entertainment in an all-cash deal valued at $835 million. The companies call the deal a “transformational opportunity.”
“From a strategic fit perspective, Main Event’s business model, footprint, and asset quality aligns well with Dave & Buster’s,” said Kevin Sheehan, Dave & Buster’s board chair and interim CEO, in a statement. “Ownership of both brands enables us to expand the breadth of customers we serve together, while also enabling each brand to better differentiate its offering to its core consumer.”
When the deal closes later this year, Main Event CEO Chris Morris will become the CEO of Dave & Buster’s. Before joining Main Event in 2018, Morris served as the president of California Pizza Kitchen. He has also held executive roles at North Texas-based companies On The Border Mexican Grill and the parent company of Chuck E. Cheese. While at Main Event, Morris is credited with expanding the company’s footprint by more than 30% and more than doubling its EBITDA.
Sheehan, who has held the role since last October, will return to his role as the company’s board chair.
Following the deal’s completion, Main Event will continue to operate as a distinct brand under Dave & Buster’s. Sheehan said the move will allow the two brands to expand their customer base—with Main Event focusing on family entertainment and Dave & Buster’s focusing on young adults—while saving around $20 million over the next two years through consolidating store support center services and supply chain operations.
Main Event, which is owned by Ardent Leisure Group and RedBird Capital Partners, operates 50 locations across the country, while Dave & Buster’s has 145 venues across the U.S., Puerto Rico, and Canada. In a financial filing, Dave & Buster’s said it opened five new stores in the last fiscal year and plans a “moderate pace” of new store openings this year.
“Together, we’ll be well positioned to leverage our collective experience and provide our consumers with a category-defining entertainment experience,” Morris said in a statement. “I’m looking forward to enhancing the offerings and experiences of each brand and providing even more opportunity for our team members.”
The move comes just two months after Dave & Busters left its longtime Northwest Dallas headquarters for a new 67,000 square-foot space near DFW International Airport. It also comes as the company, which trades on the Nasdaq under the ticker PLAY, is showing signs of pandemic recovery. In 2021, the nearly 14,000-person company reported $1.3 billion in revenue, just 3.7% less than the $1.35 billion it reported in 2019 and a nearly 200% increase from the $436.5 million it reported in fiscal year 2020.
“Main Event’s existing footprint works well with Dave & Buster’s current geographies and each brand has significant growth opportunities. We expect the acquisition to be accretive to growth and earnings,” Sheehan said.
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Some four-and-a-half decades after it began, it was nearly game over for the iconic Chuck E. Cheese family entertainment centers (FECs) and pizza restaurants when the COVID-19 pandemic brought parent company, CEC Entertainment, to its knees. But David McKillips, CEC’s charismatic CEO, helped it successfully emerge from bankruptcy. Now, he is guiding the company through the pandemic and reimagining the brand to position it for the next generation of fans.
Talk about timing. Coming on board in January 2020, McKillips had to make the difficult decision to temporarily shutter the company’s 775 locations in March due to the conditions imposed by the virus. CEC couldn’t withstand the impact of the closures.
“Unfortunately, we didn’t have the strength in our balance sheets to survive the pandemic,” he says. The company filed for Chapter 11 in June 2020.
It’s hard to keep a good mouse down, however. Recognizing the potency of the Chuck E. Cheese name and intellectual property, its overseers never considered abandoning the brand. Generating more than $900 million in sales in 2019, CEC’s fundamentals were sound.
“Quite frankly, the business was healthy,” says McKillips. “We really had a debt issue.”
Coming out of bankruptcy with a new line of credit in late December 2020, the CEO and his team developed strategies to operate during the pandemic. They had furloughed some folks in the corporate office and part-time employees in the field, but they decided to keep all of their full-time general managers at the stores on the payroll. The company knew as it came out of the pandemic that it would be important to maintain brand standards—the managers’ “muscle memory,” as McKillips puts it.
CEC Bakes Up a New Brand
With its dining rooms and arcades closed, the first order of business was pivoting to an off-premise food model. Chuck E. Cheese is among the largest pizza companies in the world. Unlike its competitors, however, it did not have much experience in promoting or selling its product for takeout or de-livery.
CEC signed deals with major third-party home delivery services such as Uber Eats but discovered less-than-enthusiastic demand for the chain’s existing menu items. By launching Pasqually’s Pizza & Wings, CEC was among the first national companies to pioneer the concept of a ghost kitchen. Although Pasqually’s is named after one of the Chuck E. Cheese characters, there are no other overt connections to the original brand. Sharing the same kitchen as its restaurants, it crafted a distinct pizza with more sauce, a different type of cheese, and more robust flavors. Dishes also include wings, meatball dunkers, and cheesy bread. The goal was to appeal to an older demographic than the families with young children that typically come to hang with Chuck E. Cheese and the gang.
McKillips says the company had plans to create a home delivery program, but the pandemic accelerated its rollout. The delivery-only Pasqually’s brand will continue after the threat of COVID-19 subsides. The virtual kitchen concept has been a hit, he adds, but not enough to keep the company growing.
To achieve sustainability, CEC had to figure out how to bring the Chuck E. Cheese experience back to guests amid the pandemic. What could it do to make its dining rooms and FECs safer and more appealing once they were able to reopen?
Technology is the Ticket to Success
Among the changes, the company moved to an e-ticket platform for its redemption games. CEC developed plastic, reusable cards on which customers can store their digital tickets. In addition to providing a touchless method to safely handle tickets, it is also an environmentally friendly alternative that saves the company a tremendous amount of money. Plus, it gives guests the ability to quickly redeem their earnings at the gift counter without having to deal with handfuls of paper tickets.
The sites also limited capacity, enacted social distancing measures, conducted temperature screenings, and introduced other COVID-19-era policies. The most significant initiative was a phone app that CEC was able to quickly roll out.
“We hunkered down and worked with our marketing, IT, and development teams to launch a Chuck E. Cheese loyalty and personalization program and mobile app in just three months,” McKillips says. “Now we have 650,000 users.”
The app provides a direct link to many of the brand’s most loyal end engaged customers. It also serves as a hub for a multitude of features. Users can place contactless orders at facilities (which have been enhanced with Wi-Fi, along with device charging ports and outlets at every table), schedule birthday parties, and learn about special offers. All the while, they can earn and redeem rewards points good for e-tickets, game play, and other incentives. Soon, the app will be able to track, store, and redeem e-tickets.
App users will also soon be able to access digital content, such as “Afternoon Fun Break,” a series of videos the company launched during the pandemic that features the Chuck E. Cheese characters. Also available on YouTube Kids, they include songs and other entertainment, as well as activities. The videos are part of a strategy to reach customers in the stores, at home, and online—wherever they may be.
There is plenty of pent-up demand driving customers back to Chuck E. Cheese locations, and McKillips says that sales are improving. But guests that still may not be comfortable coming in to eat pizza and play games can take Chuck E. Cheese with them. They can use the app or go online to order food—including family packs that bundle pizzas, desserts, goody bags, and activity sheets—pick it up at their nearest Chuck E. Cheese location, and enjoy it at home. The videos help round out the at-home experience.
McKillips Fell in Love with the Industry
The “Afternoon Fun Break” videos are an example of McKillips’ efforts to capitalize on the popularity of the Chuck E. Cheese character and extend the brand through original content, licensing, and entertainment. He knows a thing or two about popular costumed characters and the preschool market after a long career in parks and attractions.
McKillips says his first date was at Six Flags St. Louis. That wasn’t enough to drive him into the industry, but landing a chance job at SeaWorld Orlando during college did the trick. Despite his modest start at the park, which included cleaning up trash, McKillips fell in love with the business.
“I couldn’t believe you could work and get paid for making other people happy,” he says.
After college, he landed a full-time job at SeaWorld Parks and transferred to Pennsylvania to work at Sesame Place for several years. While there, McKillips saw the powerful draw of Elmo and Big Bird. He shifted to DC Comics and got to work with Six Flags, the theme park home of Superman, Batman, and the brand’s other superheroes. That led to a 13-year-long stint with the park chain where McKillips says he ran almost every department, including the international group and in-park revenue, overseeing food, games, and merchandise.
“I really got a 360-degree view of the themed entertainment world,” he explains.
His experience has informed his approach at CEC and the direction in which he wants to take the company.
“When I joined, we were operating as a restaurant first that served great food and offered entertainment,” McKillips says. “I came to Chuck E. Cheese knowing that we are family entertainment first. We’re changing the mentality of the company to really appreciate that entertainment drives our business.”
Even after permanently closing 54 locations in the bankruptcy’s fallout, the company still lays claim as the world’s largest FEC. It racks up 2 billion game plays every year, and gaming represents the largest percentage of its revenue.
Games and entertainment have been a core part of the company from the very beginning. Founded in 1977 by Nolan Bushnell, the video arcade pioneer who invented “Pong” and founded Atari, Chuck E. Cheese restaurants combined pizza with the nascent games. They also included an animatronic band fronted by the namesake character. The restaurants became the go-to place for children’s birthday parties.
Adding New Seasonings to the Recipe
Hosting over a half million parties every year, Chuck E. Cheese still counts these celebrations as a vital part of the business.
“We are the No. 1 birthday party destination in the country,” says McKillips. “It’s the DNA of the company.”
But the CEO wants to tinker with that DNA to increase attendance and revenue. This past May, the chain debuted “Summer of Fun,” a three-month event that included themed menu items, décor, and programming. Taking a cue from parks, it also featured a Summer Fun Pass that offered families weekly game play, e-tickets, food, and other perks throughout the season for a discounted fee. It generated about 100,000 members. Part of a new “4 Seasons of Fun” strategy, the event calendar also includes “Halloween Boo-tacular,” “Winter Winner-land,” and “Spring-tastic Celebration.”
McKillips is also tinkering with the stores themselves. As part of a brand reimagination, the company remodeled 30 locations in 2021 and plans to overhaul 350 more over the next three years. The refreshed stores emphasize interactivity. For example, instead of passively watching Chuck E. perform (the classic animatronics are being phased out), kids can dance with the big cheese when the walkaround character joins the fun every hour. They also include floor-to-ceiling video monitors, displaying content that is attuned to today’s tech-savvy tots.
“The newly remodeled locations scream entertainment,” says McKillips. The Halloween limited-time menu offered slime cupcakes with googly eyes and pizzas in the shape of pumpkins. “That’s putting entertainment in our food,” he notes.
In June, the company also opened its first signature store in Brandon, Florida. At 25,000 square feet, it is 78% bigger than existing locations and includes about 35 more games, 20% of which are small rides and interactive play experiences for young kids. There are multiple jumbo-sized video screens and an interactive dance floor to keep children active and engaged. A second signature location is set to open in Northern California in early 2022.
CEC owns a similar chain, Peter Piper Pizza, with more than 100 locations mostly in Arizona, Texas, and New Mexico. It appeals to an older demo-graphic of kids ages 8 to 14 and includes beer on its menu for parents. While it also offers games, McKillips says it is a food-first brand that has been doing well during the pandemic.
“I think Peter Piper is one of the secret weapons of this company,” he notes, adding that CEC recently purchased 10 locations from a large franchisee in the Tucson area and will open two more near San Antonio. “We think there’s opportunity to grow this brand.”
Becoming a Global Brand
There are several Peter Piper restaurants in Mexico, and Chuck E. Cheese has about 80 international locations, mostly in Latin America and the Middle East. It recently opened stores in El Salvador, Chile, and Peru and has plans to open locations in Bahrain and Romania, which will be its first entry into Europe. The company hopes to develop another 60 locations over the next five years with a focus on Southeast Asia, China, and Japan.
“Now we operate a domestic brand with an international division,” McKillips says. “My goal is that we become a global company.”
To that end, he wants to make Chuck E. Cheese a world-renowned character beyond the stores and is talking to toy companies, animation studios, apparel makers, and others. In July, the company signed a licensing partnership with the Kroger Company to bring Chuck E. Cheese-branded frozen pizza to its 2,000 grocery stores. The boxes include themed games and help drive traffic to the stores via an imprinted code that can be redeemed for e-tickets.
McKillips estimates that almost 1 billion people have enjoyed a slice with the famous mouse through the years.
“It’s a multigenerational property that has such affinity for kids, young parents, and now, their grandparents. The brand has been able to reinvent itself over the decades,” he says. “We’re ready for the next generation of Chuck E. Cheese—for today’s kids who want entertainment in a bit of a different way.”
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JCPenney recently announced they Forever 21 as the latest addition to its portfolio of national fashion brands available in 100 JCPenney stores nationwide and online at jcpenney.com. This strategic move bolsters JCPenney’s position as a national retailer for teens and young adults with a curated assortment from the iconic fashion retailer’s core women’s products, trend pieces, and exclusive collaborations.
“Forever 21’s relationship with the Generation Z customer is a perfect alignment for JCPenney, who is also committed to bringing innovation, excitement and fashion to a young consumer that understands the quickly evolving trends in fashion”
“Forever 21 and JCPenney share a mission to make the latest trends accessible to all while inspiring unique style and confidence,” said Michelle Wlazlo, executive vice president, chief merchandising officer at JCPenney. “The addition of this brand to our portfolio rounds out our Young Minded assortment and brings an exciting new element of in-the-moment fashion.”
The introduction of Forever 21 at JCPenney further establishes JCPenney as a generational shopping destination. The assortment of tops, bottoms, and dresses is rooted in West Coast style and composed of new, neutral must-haves and trending design aesthetics like lush velvet and chic floral. The launch of Forever 21 at JCPenney is being driven through a 360-marketing campaign encompassing in-store, e-commerce, social media, and direct mail promotions.
“Forever 21’s relationship with the Generation Z customer is a perfect alignment for JCPenney, who is also committed to bringing innovation, excitement and fashion to a young consumer that understands the quickly evolving trends in fashion,” said Jarrod Weber, group president lifestyle, chief brand officer – lifestyle at Authentic Brands Group, owner of Forever 21. “We are particularly pleased to bring both companies together for the launch of this creative brand and marketing opportunity.”
Shop Forever 21 on jcpenney.com and in 100 of its stores across the U.S.
About Forever 21
Forever 21 is a fashion industry leader making latest trends accessible to all while inspiring unique style and confidence. With a renewed focus on the customer experience, the brand offers high style designs and fashion basics with compelling values and a dynamic store environment. While driving innovation across e-commerce and digital to expand access and convenience, the brand continues to strengthen its positioning as today’s preferred destination for the fashionable consumer. Forever 21 is located in more than 540 locations globally and online. For more information visit Forever21.com.
For more information or to find a store location, please visit: www.forever21.com.
Follow @forever21 on Instagram, Facebook and Twitter.
About JCPenney
JCPenney proudly serves customers at more than 650 stores across the United States and Puerto Rico and at the Company’s flagship store, jcp.com. JCPenney is one of the nation’s largest retailers of apparel, home, jewelry, and beauty merchandise with a growing portfolio of private and national brands. Guided by the Golden Rule, JCPenney employs more than 50,000 associates worldwide and has served customers for over 119 years, playing a vital role in the communities it serves. For additional information, please visit jcp.com and follow JCPenney on Facebook, Instagram, and Twitter.
About Authentic Brands Group
Authentic Brands Group (ABG) is a brand development, marketing and entertainment company, which owns a portfolio of global media, entertainment and lifestyle brands. Headquartered in New York City, ABG elevates and builds the long-term value of more than 30 consumer brands and properties by partnering with best-in-class manufacturers, wholesalers and retailers. Its brands have a global retail footprint across the luxury, specialty, department store, mid-tier, mass and e-commerce channels and in more than 6,300* freestanding stores and shop-in-shops around the world.
ABG is committed to transforming brands by delivering compelling product, content, business and immersive experiences. It creates and activates original marketing strategies to drive the success of its brands across all consumer touchpoints, platforms and emerging media. ABG’s portfolio of iconic and world-renowned brands includes Marilyn Monroe®, Elvis Presley®, Muhammad Ali®, Shaquille O’Neal®, Dr. J®, Greg Norman®, Neil Lane®, Thalia®, Sports Illustrated®, Reebok®*, Eddie Bauer®, Spyder®, Volcom®, Airwalk®, Nautica®, Izod®, Forever 21®, Aéropostale®, Juicy Couture®, Vince Camuto®, Lucky Brand®, Nine West®, Jones New York®, Frederick’s of Hollywood®, Adrienne Vittadini®, Van Heusen®, Arrow®, Tretorn®, Tapout®, Prince®, Vision Street Wear®, Brooks Brothers®, Barneys New York®, Judith Leiber®, Herve Leger®, Frye®, Hickey Freeman®, Hart Schaffner Marx®, Thomasville®, Drexel® and Henredon®. *Pending acquisition in Q1 2022.
For more information, visit authenticbrands.com.
