 Hello and welcome to the Launchpad. This is an offshoot of the Startup of Storefront podcast where we talk to the founders of companies that are just getting started and whose stories we find compelling. Today we talk with Emily Schilt, founder of Pop-Up Grocer. The name says it all. It's the Here Today Gone Tomorrow grocery store with the most perfectly curated selection of small batch locally sourced items. Today we talk with Emily about her plans in a post-Covid world, why she considers Pop-Up Grocer to be a media company, and we find out her most important criteria for selecting a brand to feature in her stores. So before we go into the episode, we have one little final announcement. This is our final episode of the year, and I'd like to take a moment and thank you all for continuing to support this podcast. Whether it's in leaving a review on iTunes, subscribing to our YouTube channel, or sharing these episodes with your friends, your support means the world to us. We are not alone in saying that this year has presented unpredictable challenges and hardships, but it has also given just as many reasons to hope, to be inspired, and to recognize the resilience around us. Season three of the podcast will begin on January 12th, and we've already got a few episodes lined up that we can't wait to share with you. So until then, happy holidays, and here's to a happy and prosperous new year. Now, on to the episode. Welcome to the podcast, everyone. On today's show, we have Emily, the founder of Pop-Up Grocer. Thanks so much for joining Emily. Tell everyone a little bit about what your company does. Sure thing. Thank you for having me. Pop-Up Grocer is a traveling showcase of the newest and most interesting products, largely in food and beverage, but really everything that grocery covers. So pet, home, body care as well. And we open for 30 days at a time in various cities across the country. Most recently and currently we're open here in Williamsburg, but we've been to LA, we've been to Austin, and we had a couple in Manhattan as well. So each time we introduce around 150 brands and just over 400 products. So what made you want to start the company? What was the thing that you saw like, okay, there's an opportunity here. Was it, was it maybe you just wanted something unique as it related to retail or maybe just the easy way to help brands or new companies? What was the seed that made you want to launch it? Yeah, I was probably just bored. That's good. No, in all seriousness, I've been doing a lot of traveling. I've been in Europe specifically in the UK. I've just spent a summer in London and I just realized this behavior that I had of traveling and using the grocery store to really gain insight into cultural trends and really just feel inspired using it as more of like a museum where I would admire the packaging and creativity and the innovation that go into the various products I was observing. And so when I got back home, I was just like, hmm, why doesn't a place it's built specifically for this behavior exist? And I'm at home of New York specifically, which is like home of the best of the best of everything. Why don't we really truly have a grocery store that I admire and that motivates me? So I was working as a brand marketing consultant for small food companies. And at the same time, I understood how difficult it was for them to gain awareness and exposure in the early stage of their business because grocery stores are also just incredibly crowded. So I saw the opportunity to marry both my selfish interests and having better grocery store that I need to shop in and one that I could really use for my enjoyment and pleasure with the need that I saw these brands have. And then what was your first step? I assume I assume these pop-ups, it's for a short time, like it's literally a pop-up or is it something that you sign multi-year leases and then basically you're just rotating the products inside? Yeah, you're getting to what we will be, I believe. So yeah, we literally just exist for 30 days at a time. We come in and we get there quickly. And then how much time do you spend? So I'm just thinking about this, like if you asked my brand to let's be on it or in the store, how much time is there spent between the company wanting you to say this, introduce this? Like how much education is it before you're actually open and do they even send their own representatives? Or what is that like? So we fully train our staff and educate them on the products that we and we do not standardly allow for brand representation within the store. I pretty firmly believe that at least the people that we're targeting are pretty independent consumers, and that's something that they really like. They're very respectful, you know, they're using their phone simultaneously while while they're shopping. At the same time, they want that education and contextual reference available to them if they want to access it. So that's of course, you know, why we arm our staff with everything that they need to know. But no, we don't really ask that of the brands to be so intimately involved in that process. Got it. In terms of some of the companies you've highlighted, you've mentioned, like, is there a specific category you go down? Is it wellness? Is it how do you find these companies? Walk us through a little bit about the things that you decide to really focus on. Yeah. So we use three criteria to select the brands that we feature. The first is really the most important, and that is, is the brand doing something interesting? Is what they're creating truly novel and distinguished? Is there an interesting founding story? Is there a sustainability component? That's like, we really see ourselves as much more focused on creativity and innovation than health and wellness. However, health and wellness kind of comes out of that because fortunately, where most of the innovation is happening is in that space and sustainability. So the majority of our products, if they're food and beverage, which the large majority are, are vegan, they're gluten-free. And then our home and body section is also very environmentally eco-friendly. And how's it been going? I mean, what has it been like? And we'll talk about COVID later, but what was the traction? Were you like, this is it? People love it. They really come here and it's an experience. And I'm able to also make a good amount of revenue. How's it been going from your side? We're still here. So it's going pretty well. Yeah, I mean, we opened our first iteration of the concept in April of last year. It was just 10 days long. And I realize that people came that actually like a lot of people came. We did a substantial amount in sales. Our brands were really happy. We had a ton of buyers come through, which was really unexpected. So a bunch of our brands got into some interesting. We're able to make some really valuable connections for partnerships, such as with the MLB. So I really realized that I was on to something and we opened another one in September of 2019 in Manhattan. And that's when we sort of kicked off the 30-day model. So yeah, I mean, to date, we've opened five stores. We're profitable. We're completely self, you know, the business funds itself. And we've been able to increase awareness for, you know, more than 500 brands to date. A large majority of them are women-owned. A good percentage of them are founded by people's color. So we feel like we're in a good spot. What's the hard part? Is the hard part finding the locations that are available for a short time and negotiating this with landlords? Or is the hard part sourcing a lot of these products? The hard part is the business model. So it's everything that you just mentioned, but it's really, yeah, I mean, it's a lot of work to create what is a fully functioning and beautiful store just to close it down 30 days later. It's very operationally intense. So that's why I'm excited about making it now forever. But the real estate aspect specifically has been surprisingly pretty easy. I mean, unfortunately, in New York for a long time now, there's been really great amount of vacancies. That's only going to continue in cities that aren't in New York, where I think that was somewhat unique in that the rents are just so high here. But, you know, now we're going to see that really everywhere. So we're in a good position to be able to come in and fill those vacancies at least for some period of time where they otherwise may not be. I like it. So you've done five. You've seen success. And now it's all about scaling the business. And so I just think about Fred Siegel here in LA where, you know, they bring in different vendors in every sector. So whether it's clothing, whether it's sneakers, whatever it might be, they have a rotating list of new brands that they're trying to promote in a really big way. I mean, they've gone as far as put a tour bus inside the building to give this like rocker type. I'm at a concert outside feel, which was insane. But, you know, they did it. And they did it for 40 days or something like that was like a month long. So one of the things we're doing, and maybe we can talk a little bit about real estate and where we think it's moving, but one of the things we're currently doing is obviously the podcast is called startup to storefront. We had a farm cup coffee is the name of this coffee shop. And they have this beautiful old World War two vehicle that they purchased in Europe. They brought it over retrofated it, put a coffee shop inside. Problem is the vehicle can't support the weight of everything inside. And so it's been all around LA and it's like basically one month running one month in the shop. And because the vehicle is so unique, there's only one person in LA who can actually fix the vehicle. And so it doesn't lead to a good business, but they called me and they're like, Hey, what do we want to sell sunny sunnies the name of the vehicle? What do you think we should do? And I said, let's put sunny inside a building. How cool would that be? Right? It's like retail to a whole nother level. You're putting a food truck inside the building and it's, it's their brand. It's such an iconic vehicle. And so we're moving forward with doing that, which is great COVID hits. It's kind of perfect because at the end of the day, this vehicle is basically a box and it's all closed off. And so it's already a shell. There's no air coming in or out, which is what the health department is concerned about now. So it's a win. And then in the back of it, we're building a podcast studio. So we'll have a formal studio for guests like yourself to come in, get your coffee in the front. You're going to go through this fake menu door. It's a menu, but it doubles as a door. And then you're boom, you're inside the studio and like super cool. At the same time, in a post COVID environment, we'll have events where people can essentially like touch and feel the products, taste the products that are in the, on the podcast, on a rotating basis. And so we're not going to sell anything though, because the whole ethos of our podcast is really inspire entrepreneurship through truth. And then ultimately it's similar to what you're doing, help the brands. How do we help these small companies or, and sometimes we have big companies, but how do we help people connect in a different way with that brand? For us, it's like founder story. And so we hope to have events where we can do that. At the same time, I'm a real estate developer. And it's, it's also a litmus test of what the market's going to do, right? What does real estate become? How have things shifted? How do we get introduced to new products besides digital advertising on Instagram or influencers? Or right? Like what does the future look like? And so that's what that's what we're doing. And I wanted to talk to you because I, you know, what you're doing is something similar. And it's like, this is interesting. It's a really interesting, I think that's great. And I mean, as far as you're not selling things, you're not selling anything in your space, but your space is serving as marketing for what you're writing. And that I think is the future of physical spaces. I mean, our business will charge the brands of fee to participate. And that's their address to us. And that's how we make our money. We would not be able to survive off of very slim margin on a $3 bag of chips that we sell in 30 days. So while I think it's important that we sell things within our space, just because I think that gives a greater sense of ownership over the experience, you go home, it's kind of like Christmas, you're like sharing the things that you've got. And it also extends the experience beyond just what's what happens within our four walls. Anyway, I can totally relate to and think it's a great idea as far as what you're doing. And I think that creating that experience really is the future. And so like we too are interested in programming and tastings and classes within our space. And that is something that we did. Yeah, pre COVID, even within our pop ups. I'm looking forward to having that return because yes, of course, you can translate some of that online. But I really think that the future of physical spaces is so much about the importance of the humanity of it and the importance of human connection, which is really what you can't, the only thing that you can't get online now. Yeah, that's so true. I wanted to ask you something as it relates to how has it been going for the brands? And so, you know, what happens? Are you guys, are you also thinking about becoming like a media company? I don't know if you do reviews on the products or if you guys have a YouTube channel where you promote them. So basically, it's not just, Hey, come check out this product on this day, but we're creating content so that it lives forever as it relates to the product. How much, how much time do you spend thinking about like the media side of it? Yeah, I mean, I really do consider us a media company, actually. Okay. Yeah, we advertise for these brands through our physical spaces, but also through our Instagram, through our newsletter, through the media, you know, whenever we get PR opportunities, we've got like our class of brands in the back of our minds that we're speaking to. So yeah, so that is very much how I think about us and how I think about growing the business. You're kind of like a launchpad for these brands in some way. And then in terms of COVID, how has COVID affected everything you're doing? What has been the, what have you been leaning into during this crazy time? What a question. I mean, we're surviving, which I think is a lot more than a lot of physicists can say. So I feel really grateful. I mean, people are still buying groceries, people are still spending money, you know, up to $10 on something. And a lot of the things that we're bringing to them are really, have the ability to bring joy, but are still very accessible. So I feel really fortunate that I'm not like slinging luxury handbags. Seems like a very challenging business to be in right now. But we've had to make adjustments for sure within our spaces, of course, reducing the number of people inside. And thus we operate a line outside, which is cool. I can't finally get to like live up to being the supreme of grocery store. And of course, all of the health and safety precautions inside, they've implemented private appointments, which has been really interesting, and quite popular. And that's allowed us to further personalize the experience that people tell us, like what their dietary restrictions are, for example, like flavors that they like or flavors that they don't like. Lots of people out there who hate cinnamon. And so that way when they come, we can be fully armed with recommendations. And people tend to spend a lot more as a result. So we've actually doubled our basket size amidst COVID. Because I think people are just more invested and engaged in the experience too. And really happy to have something to do to put on their calendar. Walls isn't taken away from us except a premium grocery shopping experience. So yeah. That's a really good point. I had to consider that. But yeah, there's a tremendous amount of people that it's like, how do you get introduced to products when you can't go shopping, right? You're kind of left in an online environment, which is an algorithm that might not be at all suited to what you're actually looking for. Totally. Or even as things are opening up and you can go shopping, I don't think you feel the freedom to linger. Don't feel totally safe. Yeah, for sure. Do you see yourself raising capital at some point too, just to really scale? Yes, sir. That's been on my to-do list for time now. Yeah, I mean, you know, like I said, we're, we're profitable, we're cash flow positive, but to do some of the things and to hire the human resources that are necessary. I've raised some money. And we've also introduced e-com. So we sell these curated boxes that are a selection of the items that we have in store. And that's been great. But in order to operationalize and scale that, I also need some cash. So yeah, stay tuned or send wrecks. Yeah, for sure. Fund raising is never easy, but it's an obvious thing to do in terms of growth. It's just kind of, it's short-term pain is the way I've put it. It's like short-term pain for a long-term gain. And so you just have to like working out, like going to the gym isn't, I don't really enjoy it. I like playing tennis instead. However, when I'm at the gym, I'm always like, look, this is just short-term gain. This is good. It's like a candy bar. I think the most painful part for me is just why I can't get started. I don't know, there's some sort of psychological block because I'm a doer. It's probably imposter syndrome. Have you dealt with imposter syndrome? Yeah, it also just feels so like nebulous. So like, I don't know, I'm having a hard time sort of breaking it down into something that feels real. Yeah, it's imposter syndrome. I'm going to go ahead and label it for you. So what's happening in imposter syndrome is basically you're in a room and you're kind of like, you're just overthinking everything. And so your monkey brain is just firing and nothing's happening. I've been in that room for three months at a time at some periods, like on different startups. And basically at some point, you realize this weird thing where you in that room does nothing for the world or for you or for your employees or for anyone around you. And so really, what you're really doing is selfish. And as soon as someone calls a human selfish, they don't want it. No one wants to be selfish. And so you're kind of like, oh, I got to get out of this room because the world needs me. And so it's this moment of like, that's, it took me three months to get there. So I just regurgitated to you in about 10 seconds. But that's, that was my moment of being so selfish right now. And that was it. Yeah, cool. I like that point of view. We talk about everything on the podcast with these founders that sometimes they're in really dark places. And so we'll jump into what that's like and coping mechanisms and obviously being in COVID too. It's like, everyone needs someone to talk to more than ever, right? Mental counseling via Zoom, all that stuff. You're like, my anxiety is about raising and raising in the winter. I'm just like living in the winter is probably not a good combination. So maybe I should start increasing my therapy visitation rate. Yeah, yeah. Yeah, no, I was, I used to live in Boston and I would always just get like a seasonal depression for sure. The good news about raising money generally is most investors are kind of off November to January. And so it's really just a good time to refine the deck and get, you know, get the story right, get the, get the presentation correct and then hit the ground running mid January. Listen, anything you want to share, anything that you're excited about in 2021? I know it's kind of a weird question given COVID. We're all kind of waiting for the day that we're actually open, but anything you can tease that you're working on? Yeah, I mean, I guess I did tease. We're definitely opening in the spring, you know, the winter is too uncertain. Experiencing said seasonal depression at large. And so, yeah, so we'll next open, I believe in Chicago. Oh, nice. I'm excited. And then, yeah, I mean, I'm very hopeful to open our flagship next year in New York at some point, probably in the summer or, you know, fastly plans, but at some point. So, so, yeah, no, I mean, I think I'm sort of grateful for COVID for that reason as well. It's just made me a bit more forward thinking and as poise me for excitement around what's ahead. I love that. Yeah, that's really smart. Tell everyone where they can find you. Tell them everyone, all the socials and the website. Yes, you can find popupgrocer online popupgrocer.co, all the comms have now been taken. And on Instagram at popup.grocer. Thank you so much for coming on the podcast. I appreciate it. Thank you for having me, Diego.