The success of Walk-On’s and Smalls Sliders has been cultivated by their private equity relationship

Restaurant founder Brandon Landry said the brands’ relationship with 10 Point Capital has been instrumental in achieving the next phase of growth

There’s been plenty of press of late (including here) about Walk-On’s Sports Bistreaux and Smalls Sliders, and for good reason. Walk-On’s finished 2023 with 80 locations and more than $300 million in sales – a 12% year-over-year jump, according to Technomic data.

Smalls Sliders, meanwhile, has more than 300 units open or under development across 24 states, six of which are sold out for future expansion.

Both concepts are the brainchild of Brandon Landry, a former walk-on basketball player at Louisiana State University who started Walk-On’s in 2003 and Smalls in 2019. Both have their own chief executive officers guiding their respective growth – Chris Porcelli for Walk-On’s and Maria Rivera for Smalls. Both have also been fueled by their capital partner of four years, Atlanta-based 10 Point Capital.

During Nation’s Restaurant News’ Investment Summit last week in Nashville, Landry, Rivera, and 10 Point Capital managing partner Morven Groves discussed how the three entities formed a relationship, what that relationship entails, and what’s next.

To understand what’s next, however, is to understand Landry’s initial idea all those years ago.

“I played seven minutes during my senior year. If you know anything about basketball, that’s not a whole hell of a lot,” he said. “I figured I’m probably going to have to find another way to make a living.”

He recruited a teammate of his – Jack Warner, another walk on – and came up with a business plan for their entrepreneurship class. They got a C.

“We said, ‘Let’s keep trying, never give up,’” he said. The two went to six banks and were denied at all of them. Bank number seven, however, turned out to be lucky and they received the funding needed to open their first location.

“It was supposed to only be one location, and here we are two decades later, and we almost have 100 spots around 15 states. It’s been a crazy ride,” Landry said.

In retrospect, he added, it was a bit surprising they were able to find a bank that backed them – two 21-year-olds wanting to jump in a risky business and to do so with a 10,000-square-foot concept and an enormous menu featuring made-from-scratch items.

“We didn’t dip our toe in the water. We did a triple flip in to the lake,” Landry said. “Looking back, ignorance is bliss. You don’t know what you don’t know. We learned a lot of things that we did wrong, and you throw it against a wall – some of it will stick, some of it will fall straight to the ground.”

Landry said their grit – and inability to take “no” for an answer – came from their experience on the LSU basketball team.  

“I was the 13^th guy out of 13 guys on the bench, but my contribution to the team was just as important. Even though we had no restaurant experience, those bankers saw in us that walk-on mindset. We were there for the team and we would treat everybody the same,” he said.

They “probably didn’t have the best unit economics,” Landry added, but their early investors prioritized the culture first, which got Walk-On’s through those first few years. Eventually the brand grew to about 10 restaurants and caught the attention of future NFL Hall of Famer quarterback Drew Brees, who invested in 2014 and remains involved. By then, it was full speed ahead, and Landry knew he needed help.

“I needed experts at our table who have been there, done that. It takes a different skillset to get it to the next point,” he said.

He interviewed several private equity groups and found compatibility with Groves and the 10 Point Capital Team.

“What we look for are brands that could be dominant, national brands. Food is a huge piece for us and the amount of time we spent talking about food quality (with Landry), it was dear to our heart. The other piece was the culture, and there was something super special about their culture,” Groves said.

The 10 Point team and Landry and his team spent a few years in conversations before any investment agreement was made. Landry added that such “courtship” is important to know for certain that the partnership is going to be a good fit.

Smalls enters the picture

Before the partnership was solidified, however, Landry had a sort of epiphany around 2018. Walk-On’s had cheeseburger sliders on the menu that were selling really well and he though a concept with just cheeseburger sliders in a small box with no indoor dining and “really cool branding” could be successful. The first Smalls opened in 2019.

“Here we are now, and this thing is on fire,” Landry said.

In 2020, Landry and 10 Point came to the conclusion that this brand – then just two units – could be something special, but they needed to invest in the right people to make that happen. That’s when Maria Rivera entered the picture. 10 Point was instrumental in bringing the former president of Krispy Kreme on board to oversee the fledgling brand’s growth. Rivera has since filled out much of her leadership team while signing hundreds of development agreements.

“I wasn’t going to take the call because of the drastically different businesses (between Krispy Kreme and Smalls),” Rivera said. Then she met Groves and was intrigued by her energy and enthusiasm. She also tried the cheeseburger sliders and learned the unit economics and fell in love with both.

“I am so glad I am here. Having the privilege and the opportunity to be not just a CEO, but an opportunity to build something from a blank sheet of paper … it’s an opportunity that doesn’t come around twice,” she said

Rivera said she has worked closely with 10 Point to create processes and procedures to scale and to continuously – and patiently – refine the young brand.

“Now this concept is a brand, and it changes the conversation. It’s working, and so we need to be even more disciplined. It requires collaboration and that’s what 10 Point has given us,” she said. “To select the right partners, the right franchisees, to scale the brand correctly and not get ahead of ourselves, that’s a privileged position. If you rush, you will damage it.”

Handing off control

With Walk-On’s and Smalls now running on all cylinders, Landy has comfortably taken on the roles of founder and chairman, stepping out of the day-to-day duties. 10 Point, he said, has helped him transition to this point, helping to call the shots and make strategic decisions for his “babies.”

“You have to have a certain personality to take on private equity,” Landry said. “I love partners. I know what I’m good at, and more importantly, I know what I’m not good at. I think founding a concept and coming up with the original ideas and getting it to a certain point, it takes a certain skill-set. Scaling takes a completely different skill-set.”

The teams that get you to a certain point, he adds, don’t always get you to the next point, and it’s important for founders to understand their capacity and take constructive criticism.

“Everyone’s goal has to be the same and your goals have to be aligned. Do we want to keep doing what we’ve done and be a really good regional brand for years to come, or do we want to be the best? I want to be the best. Is it easy? Absolutely not. But if everyone’s aligned on the end goal, it’s easier,” Landry said.

A big part of the alignment came when Walk-On’s and Smalls relocated their headquarters to 10 Points’ hometown of Atlanta. This change made it easier for the brands, for Landry, and for 10 Point to focus on what’s next.

“I wouldn’t be sitting here having the opportunities I’ve had without great partners,” he said. “I’d much rather be the founder who has the best brands out there because I got the hell out of the way.”

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