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Dr. Richie Karaburun: So what excites me is to create something that doesn't exist and to create a company from an idea.

That's extremely exciting and, Welcome to The Modern Hotelier presented by Stayflexi. I'm your host, David.

Steve Carran: And I'm Steve Carran.

David Millili: Steve who's on the show.

Steve Carran: Yeah. David, today we have on Richie Karaburun. he is the clinical assistant professor at NYU, and he's also the director at the Tisch center of hospitality innovation hub. Welcome to the show.

Dr. Richie Karaburun: Thank you.

Steve Carran: Awesome. Awesome. Well, we're happy to have here. I'd love to get a little background about how you got involved at NYU and you know, how did, how did you get.

Dr. Richie Karaburun: Ah, that's a good question. I actually, I'm originally from Turkey and I moved to the United States about 30 years ago. And I started as a management trainee in Los Angeles and one of the tour operator. and I was in the industry for more than 25 years. Roles and managing trouble companies, seven years or about eight years ago, I was a guest lecturer in one of the NYU classes and I'd loved it so much.

And I started teaching, as part-time, what we called this adjunct professor, a ship and a. Five six years ago. Um, I've decided to pursue my PhD, uh, my doctoral degree, in marketing. And then, uh, the full-time role actually was open. I applied and now about six years, I've been a full-time professor at NYU artists center and hospitality school are predominantly teach, business development, entrepreneurship, and, um, destination marketing class.

Steve Carran: Awesome. 

David Millili: can you tell us more about the, the innovation hub and the, the incubator and, and, and what's going on there? And I've been fortunate to be involved in and two of the first pitches, but give us a little bit more insight into what goes on.

Dr. Richie Karaburun: Yeah, definitely. Thank you. First of all, David being one of our mentor, um, in, in our club. So about two years ago, this is idea father, our Dean, Dr. Nicholas. was able to, find a nice founding, so most of the schools within NYU have their own incubator in innovation hub and we didn't have one under hospitality.

So, we've actually started, we created an innovation hub, uh, experiential learning center, as well as an incubator program where I'm actually the director. Our first cohort was, um Last, full. This is open to all NYU students and our alumni as well, as long as their ideas solves the hospitality problem, because we have an hospital.

We are under hospitality school. there are two conditions. At what you have to be affiliated at NYU with a current student or a past student, or you have to have an idea that actually solves any hospitality problems. So we had great applications and I created, uh, mentors in the master's club. and, uh, David, you are part of it, all the executives, and the veterans and deals, fatality industry, venture capitalists.

So we have about 35 members of mentors and investors. co-op members. And we've started applications. So application process, we currently have two cohorts for full semester and a spring semester. So, we completed our second semester spring semester where we had great application, uh, applicants, and then our mentors in the master's club.

The winners, we generally get five or six, uh, companies or ideas or teams for each semester for our incubator program where we match them with the mentors and investors So about three months they do several meetings and the mentors like David actually, uh, give them ideas. So they are actually preparing them.

for our Pitch day. , at the end of each semester. So, those, applicants, five or six companies, they do a pitch day, similar to shark tank structure, where they have about eight minute presentations. And then again, Dean graph and Ivo completely out of it because they're our students.

So we need to be completely neutral. So our mentors and investors club members, they actually select the winners. and the winner gets $5,000 and the second and third place get 2,500. They actually learn a lot from our mentors and investors club. and this has been very successful, so we've just completed our second cohort.

Whereas we had great ideas and I know several of the masters are already talking to some of the companies from the first cohort, as well as the second cohorts. And, and then, at the end of August, I'm going to be opening, the applications for full 20, 22, which was going to be our third cohort, for the incubator program.

So we're very excited about this if finally, because we are, as he says, uh, school of professional studies, Applicability down. So then what they will be teaching them in entrepreneurship classes, they were able to actually apply and they create an, a, you know, company from an idea. And this has been very, helpful for all of our students and our mentor.

And investors, they really love the experience and they're able to actually share their industry experience with our, students. And so we are very lucky to have great mentors in a master's club under this.

Steve Carran: And you said the whole, the process takes about it's a whole semester.

Dr. Richie Karaburun: we actually, yeah, it is, it is a three month program. You know, there are some schools that have twice a year, six months program. There are some schools have three months program and including, you know, three different cohorts within a year. We do not do summer, sessions because we know the mentors in the masters are already busy and vacation times.

So we've decided to do this and twice a year, one in full semester, one in spring semester. So that actually goes very well. And we have to be mindful of our mentors in a masters club because they are doing it completely voluntarily and they're not getting, paid and they do this for the goodness of their hearts.

So we are very, very. appreciative of our mentors and a masters club. So yes, we do that at three months program. So then within three months of they are actually meeting with once or twice a week, a month. And then they actually arranged the coals and we are in contact. So they really preparing them to the final step, which is the pitch day where they actually choose the winner.

Steve Carran: David, maybe, maybe you can talk about this as well. Uh, what kind of, what goes into that mentorship of, of these, you know, of, of the.

David Millili: Yeah, I think for me, you know, I try to take it from the startups I've had and try to look. Yeah, how have they positioned their company? Do they, do they know what the competitors are? Have they built out a model to show the, how they're going to get the profitability? If they raise money, how are they going to use those funds?

And then also just making sure that it's professional. You know, it's no knock on some of the students, but some, you know, the, the, the age range is very two from the people that are participating. Some have already been in business. Some are really just in school or just, you know, haven't really had real full time.

Jobs. So I think the mentoring really just helps, you know, take that look. What have I learned from having companies run companies and going out and trying to raise capital because all these companies they're really early, early seed needing to raise capital or not. You know, that they're not, they haven't been at this.

So, for me it's been great because it's, it's always good to get. Able to help, help young people. Uh, I didn't have that when I started my company. So we had to go out and figure out and hire advisers. I didn't have any means to, to just get some free advice. So I think it's been mutually beneficial for both parties.

Steve Carran: And, and Richie, I'm sorry, I don't mean to hijack this, but you mentioned you, uh, it's hospitality companies that are involved in this. Are there any specific. Of companies inside of hospitality. Is it technology? Is it, you know, retail? what type of companies are all.

Dr. Richie Karaburun: You know, hospitality the good old days. Whenever we say hospitality, it used to be only hotels. Right. So, and now we change, right? So now in year 2022, when we talk about hospitality, that actually, Anything tourism related hotels, alternative accommodation for them, beverage hospitality, technology, you know, even alternative accommodations.

We had, ideas like camp snack. So it just really old anything. And that's what I love it. Right. Everything can be related to hospitality. And because we have a very broad definition. So, Andres companies, a drinks company, so food and beverage is a big part of it. And we have, uh, last year's winner.

Last cohorts winner was, Cantor ramen, which is actually kind of a. Uh, ramen place where you can actually have a vending machine for a ramen food. So you can get your hot ramen in 45 minutes. So this is also an is great for the, you know, hotels. It's great for the campuses. So it just really, uh, we have, anything with the go go geeks.

I'd kind of like Uber of a. Housekeeping services. So it just really very broad anywhere from the hospitality technology specifically for them beverage alternative accommodation. and we haven't had any, any types of cruise businesses or airlines. So we are really open, because it just really, it's a whole stakeholder business within hospitality is very large.

So I am really looking forward to seeing new ideas, for our next spring. It's full 2022. Uh,

David Millili: So we've had, we've had two winners so far. What do you think w when, when you look at those winners, are there some common traits? With the presentations or the go to market strategy. And what do you, what do you think personally, if you were talking to someone or a company or a founder who was looking to join and be part of the next, uh, the fall, uh, session, what would you, what type of traits do you think are common amongst winners?

Dr. Richie Karaburun: You know, you mentioned David in the beginning is professionalism, right? Um, some of our, um, uh, participants are. Right. This is just there. This is just their idea. Some they really worked on it not, some of our students are coming straight from the classes, from entrepreneurship or design thinking classes and, and prepare that some they are further along.

And then they really know the businesses Two common denominators one, it's a passion. Uh, they really believe in it. They actually did the prototypes and everything It's a little more advanced than the others and, they know the business. They actually, also, what I'm hearing from the mentors is that those two winners, they really know how to use their resources very well.

They are prepared for the meetings before the mentors, and investors meeting, they know how to network, they know how to work. And they really follow the directions, from the mentors and, and that really completes, uh, and they're committed fully rather than having just a side job or side project. So that's basically it commitment, passion, and, ability to use your resources.

I would say it's those three skillsets that they differentiate them. And at the end of. And it, those are two clear winners based on the, evaluation on the pitch days. And we have those videos as well. So we actually always, videotape that, so that people can actually see the differences in the presentations, as David says, from professionalism to actually delivering the ideas on time, which they only have eight minutes.

David Millili: Yeah. And I'll say my experience in this, the last, pitch, you know, unfortunately, um, the woman I was helping with a local hotel didn't win, but I did feel that from the first meeting to even the. she was much more, buttoned up defined. She, she had everything thought out much better from, you know, early on to when she pitched again, she didn't win, but I did think that I'll say that it maybe it was also the mentors, their second time around, but it felt like the pitches this last time were much not better, but they were more well-defined than the first round.

That was just my observing.

Dr. Richie Karaburun: No you're you're right, right. I mean, again, this is a phenomenal opportunity, right? For all our students, uh, whether they win or not, they're already winners. As soon as they are able to get into our incubator program, they are the winners to be able to talk to people like you, David, or people like, from Google or from a venture capitalist.

And this is huge opportunity. And normally many students around the country or around the world, they don't get that chance. They don't for up sophomore students to be able to talk to a venture capitalist and to be able to talk to a industry veteran like David's and this, you can get this with money.

And then you learn from the meetings, whether they are the true winners at the end of the pitch day, I always tell them they're the winners. As soon as they made it to our incubator program. That's an experience that they're never going to, able to forget whether they actually pursue, many of them, you know, I think I would say 50, 50, uh you're too early.

Right. but I really think a couple of them are not going to pursue, but the learning experience is going to stay with them. And winner's definitely pursuing not only with the money, the exposure that they get, to both mentors. And we have, uh, many masters in our mentors, in the master's club that, they are talking.

Overall, this is really working, exactly their business plan. I teach entrepreneurship class, right. But in 14 weeks we're actually teaching them how to write an, a business plan and business, canvas business model, canvas. They're applying what they learn and, and it, it actually really completes the circle.

That's what I'm really excited. And I always, I'm thankful to our Dean Dr. Graff is, I always say, this is the idea of father. This would never happen if Nicholas didn't really push the boundaries, found a funding, $1.5 million, Columbia noted our entire seventh floor of our building to a co-working space.

And I wish next time maybe we'll do a live from our incubator. This is really like, we created like a mini Regis mini. We work, um, for all of them. They can use that as an office. They can create a meeting space and, uh, so they don't have to really rent an office in New York. This is, they are overcoming.

Steve Carran: That's awesome. That is awesome. So this is a question for both of you, David. Uh, what's your favorite part about being a mentor and Richie? What's your favorite part about this whole. I'll let you go first, Richie.

Dr. Richie Karaburun: Oh, thanks. Um, you know, I, throughout my career, I was fortunate enough to work for a startup company and Israeli company. For four years, we were able to raise about $15 million. And when I left, I'll be hired. So we really did created an idea. We greet a company from an idea. So what excites me is to create something that doesn't exist and to create a company from an idea.

That's extremely exciting and, and along the way, the learning process, and I mean, I have my MBA and my PhD. I always say my four years within startup, it's equal to an MBA plus PhD, all the experiences and meeting with investors And I think most exciting thing for me to see. is The student's learning process and for them to apply what we teach them in business development classes and entrepreneurship classes and strategy classes.

and then to see the pitch day, that's just kind of like, a dream come true again, whether they, uh, they win or not, that whole experience that's really.

exciting 

David Millili: And I think for me, it's funny because we're starting this podcast, you know, I've talked to some people, I said one of the, I think the best compliment is when somebody says. That's a really good question. So, you know, you've kind of struck something with the guests, for me, you, through this process, it's been, you know, when you talk to the students and they say, they go, wow, that's a really good idea.

And then they start writing down or, oh, they say, well, I didn't think about that. Or that's an interesting angle. So for me, that's where you feel the impact because you know, that. You know, unfortunately we're the older guys on the podcast, but we've got the years of experience. So we've seen, made the mistakes, you know, and, and we know how things work.

So for me, when I hear the students say that and start taking notes, or, you know, that's where I'm saying, well, okay, I'm making an impact because this is something that my 20 plus years of experience is going to cut down a mistake, going to eliminate them from, from making a mistake that they would've made, if they hadn't had a conversation with me.

So that's, that's kinda what the cool, cool part for me.

Steve Carran: And, and I had a, I worked with a startup at college too, and I'm just thinking how valuable this would have been for me growing up. Like, I would love to have a David Millili in my. You know, maybe 15 years ago, that'd be great. So I just think it's so cool with what you're doing and I, I, I'm a huge fan.

So I look forward to having many conversations about how things are going in the future as well.

David Millili: So before we, uh, ask you to, tell us who the Tisch center hospitality innovation hub winner is, we'd like to thank you, Steve and I from The Modern Hotelier for allowing us to be part of this. So thanks you. And I look forward to, to working with, the next group of students in the fall. So with that, is there anything you'd like to share before you announce who the winner was?

You can plug away anything at NYU, anything we should know about, that's coming up with you personally, or with.

Dr. Richie Karaburun: Oh, thank you. First of all, thank you very much for this great opportunity. So trying to get as many applications as possible. So the, uh, the programs like that hopefully will get us more, applicants, from our NYU community. So thank you for the opportunity. And then, then stay tuned. There are many, many, more things are coming up and we've just completed NYU investment conference in New York.

And that's one of our biggest, event. And, um, we are actually designing a new, uh, classes and I just came from a Tel-Aviv and by your Tel Aviv and where we actually teach to the destination market. On the spot. so it's, there are a lot of exciting learning opportunities and, we are also working on metaverse, that's a new upcoming, event.

Maybe we'll just do that in metaphors, uh, next time. So I wonder how it would actually be, but I am actually trying to design a, a metaverse class within, not about metaverse a destination marketing class. In metaverse how we can enhance the learning. It's just really not a zoom class. It is, uh, you know, we're all learning, as I say, uh, by the time you stop learning, you start dying.

So we always

want to actually keep on learning. With that stay tuned with our, efforts at Miu. So this year we had great, applicants and, uh, the, the winner, is Chixa Andrea Garrido and Austin Neri are two students. They graduated from NYU. Clear winners. So, Chixa was the cocktail companies a ready to drink?

I know it's a competitive industry, but, the cocktails are made with all the natural ingredients with Mexican rum. And, during the pitch day, they were able to bring samples and I loved it. In fact, I'm going to be ordering that for my next party. And this is a low sugar, low calorie. Excellent flavors.

So they were very well-prepared and they were clear winner from all mentors and judges. And again, mentors and masters become judges, uh, during the pitch day. So the clear winner was Chixa Andre and Austin. I congratulate them and I would love to see them grow and see their products and, you know, places like whole foods and are many different retailers.

And, and I think their dream is becoming true. So, uh, congratulations to.

Steve Carran: Well,

David Millili: Yeah.

Steve Carran: congratulations. Hello, Andrea. It's nice to meet you. How are you doing today? 

Andrea Garrido: I Steve, I'm doing great. Thanks for inviting me.

Steve Carran: Absolutely. We're happy to have you welcome to the show. So to kick things off, I'd like to know a little bit more about you. So, uh,where you're from, what your background is, anything. 

Andrea Garrido: Yes. Um, I moved to the states when I was 12. I'm originally from Columbia. I was raising Orlando. And I'd been living in New York for about eight years?

Steve Carran: Wow. How was that for a chain for moving to Columbia, to Orlando, to now a New York. 

Andrea Garrido: Yes. So it was Orlando. It's it's it was a great city to, to grow. I went to UCF as undergrad. Actually, my first job out of college was being an accounting analyst for. that was, I guess my first step into the hospitality industry. as you know, Orlando is a big hospitality city revolves around hospitality.

I decided I wanted to move or my career into financial services. And in 2014 I just started selling everything and I said, I'm moving to New York. Got it. At a bank and here we are eight years later,

Steve Carran: And after you sold everything, you were able to afford like one month's rent with all that 

Andrea Garrido: everything. Yes, yes, yes. Everything for sure. Find house like,

David Millili: Yeah. 

Steve Carran: That's awesome. And then now, since you're in New York, you've started a company called . Is that. 

Andrea Garrido: yes. I started Chixa as of last year with my co-founder Austin. Not able to join guys for those is currently at work. we add in September through the NYU entrepreneurship center and we started working on this idea out of, I first kind of started having a frustration within the alcohol industry, the popularity of the drinks such as white claw truly, and seeing those beverages pick up and promote the low calories, but then you look at the back of the label and the ingredients are actually not as good for you as you think. So being such a health conscious person myself, I just started to find ways to, how could you drink healthier? And, I just remembered this old family recipe that, was used that my mom, taught me that.

waspassed on from my grandma to my mom. And then the story is essentially how this was how indigenous tribes back in the day used to drink before the conquistadors came It was a very low alcohol, beverage it's made out of pineapple skins, water unrefined sugar, ginger and spices. And, The ABV is so low it's it's about 0.5%. so we, we were able to mix it with rum just to get that 4% level and put it into a cocktail. And then you have your firsts, cultural cocktail. That's how we want to call ourselves. And, we are at 90 calories and 10 grams of.

sugar 

Steve Carran: Wow. That's awesome. And you mentioned your co-founder, was there something that stuck out about Austin that you two really clicked to kind of be co-founders or how did you, how did that. 

Andrea Garrido: I guess we both click, um, we first met through the entrepreneurial center and it was the frustration I kind of posted on his slack through the NYU entrepreneurship center. I, I'm working on this idea for a low. ready to drink cocktail with all natural ingredients based on a south American recipe.

it's known as the paci, and he's from Mexico and this is actually a very popular drink on Mexico. You can find it at any corner street. they actually sell it in a kind of like in a bag with a straw and you just drink it to refresh yourself because. It's 

Andrea Garrido: so, so he's Mexican. And, um, so he was kinda like, okay.

He understood, the product very well. And he was also frustrated with the options in the market today. And that's how we kind of bonded. And we've been working together ever since.

David Millili: And this was the second, uh, pitch from the NYU incubator incubator. Did you, were you a little intimidated by joining it? I mean, coming in with a beverage and you know, a lot of times when you think of incubators, technology or, you know, an app or something. How w how was just the whole process.

And was it intimidating when you

first joined? 

Andrea Garrido: I would say. 

Non-intimidating but it was exciting because, we have been having a bit of a hard time to find places where we can actually have the opportunity to voice out this idea and, and bring it, or like raise our boys because a lot of investors today want to invest on the next big. platform for, I don't know, and if the fees or, what's going to be the next iPhone app and, which is a beverage, that we do have a website online and we're planning to sell direct to consumer, but we're not per se a technology company.

so that's not the first thing that investors are looking for. So we are, then I wouldn't say intimidating. We were extremely excited. Or for this door that just opened and we gave it our, all, we kind of prepare our pitch presentation as Dez was with a VC and San Francisco or New York or any investor that was gonna, we presented as we were going to raise a million.

Steve Carran: Oh, 

David Millili: I've been fortunate enough to be on a BIA mentor. I was not your mentor. I was with, one of the other,companies.you guys definitely had,I think the best presentation visually and kind of the story. but, you know, I think it was a really smart move to give out samples of an alcoholic beverage and a competition.

So I would have to give you credit there. So maybe you can elaborate on who came up with that idea to give 

out the, uh, the 

Andrea Garrido: um,it was sort of, we do have an in-house chef that has helped us with the taste day scene. And, I was having brunch with him and he goes, so Andrea, like, are you, are you bringing the samples? And I just told him, well, you know, I haven't even done my first run. Like, how am I going to bring samples?

And he's like, well, as, as your lab, there are gonna probably have that open. And we asked them and yeah, they did, it was quite expensive, but, at the end of the day, Austin and I made the decision that, you know, when it's a consumer product, people want something that is tangible and that you can see it because then at the end of the day, he's like, what are you trying to sell me?

If you don't show it to me? This was kind of the thought that Austin and I had, and we were like, okay, let's do it. And all, it's a low ABB. Nobody's going to get drunk out of just a sip.

David Millili: Yeah, it was funny because all of us who were remote were like, damn, we should have went to New York. What are we doing

here? 

Andrea Garrido: We were asking how many people are attending. We were planning to get all the samples out. We, we brought even extra cops. but yeah, I'd seen the, it all worked out. We brought Jesse now samples.

Steve Carran: That's awesome. That's awesome. so have you always wanted to own your own company or have you always wanted to have, do a startup or did this just kind of, you know, the passion kind of met the career and now. 

Andrea Garrido: I would say yes, I have always wanted to own a startup. Did I ever see myself in the, in the hospitality industry? No. the idea is started like about three years ago, I was just reading about the beverage industry and I was thinking, well I enjoy working out. I enjoy having a healthy lifestyle. Uh, what is one of the basic things that we need every day water.

Okay. Like I want to maybe start a water company. So I started kind of reading about the beverage industry and that's how I. In studying it, but I didn't have a good idea until finally the light bulb hit me. You know, you sometimes try to complicate things and they're right in front of you.

I just happened to remember after reading for three years, essentially last year, I remembered my mom's recipe and the story of how this drink is, and it was okay. I have to do it. 

Steve Carran: Absolutely. And at that moment, wasn't like, I need to test out like how to make this drink and what to do it is that kind of the next step. 

Andrea Garrido: Yes. So we, I started like having this idea around August. and then I just started like taste tasting with friends. This was before I met Austin. and then I just started doing it in my kitchen. barrier decent, all very page strive. This hope you don't die sort of thing.

David Millili: Yeah, 

Andrea Garrido: Um,I will try it myself too. So, plenty of, um, have not gone blind, so plenty of tastes facing myself and, after a month, I was able to get the exact, like sugar levels that I wanted the exact level of. What I could do it to the point that, you know, this tastes, this is the good taste, and this is something that I could present to the market.

And funny enough, as I was doing a tasty scene with friends at a bar in New York, it's called, it's a restaurant bar. It's called real Balta the manager walks out and he says, what are you guys doing? And my friend goes, oh, we're trying her beverage. and he. And I try it and yeah, bring a cop. He was like, this is great.

Um, may I have a little bit and take it to my bartender? And here we are now, they have been our customers since October and, um,they are using it as a mixer because it is, it has quite a unique, different taste and. It's it's just like refreshing and it's just like a new flavor that they can add to their cocktail line.

Steve Carran: Sure sure. 

David Millili: So both you and Austin have either of you done startups before, have you ever done a startup or has 

Andrea Garrido: did one, but it did not go well. I actually did a site on, raid your manager a long, long time ago, long, long, long time. I guess back day and I had just recently moved to New York and it was just, um, an idea that I have out of obviously a frustration. but then I didn't do, you know, research. I mean, now if I do it again, I would do it a little bit different now that I know about businesses and like how you need to do the approach, your test to market, I would have done more like.

Tests within my friends would even use this because one of the things I realized was not even my friends were going inside and it was because a lot of managers don't have that many direct reports, so don't want to burn that bridge. So people are just afraid completely of Chez, going out there and, um, right.

Their managers. So, I closed the company. I had it open for like six months. I was doing like a blog into. Auto interview in order to get traction, like what, auto know are you working for, how did tests, like, cause people don't know this, but like essentially when you're interviewing for a job, it's like, you're going on a date.

Right? You want to know if they're a perfect fit for you. And if you're a perfect fit for them, sometimes you were so afraid of it to ask those questions. Just saying that, oh, I'm just having the opportunity to interview and this is it. But, I don't think you should think like that. And a lot of people early in their careers, um, have that mindset.

And that's when you made your main stakes of ending up the job that you want. so that was kind of my whole frustration. I wanted to help with that. that was the. One time that I actually did something and like create a company that a startup and that did not go well, as we know now, I have dabbling to the beverage industry and, it's something that I'm falling in love every day.

It is tough. It's not an easy route, but, I do enjoy in general just hosting people, just talking to people. So I do think that it is a fit with me. with my personality, so, and Osteen on his end, he's actually an investor for a few beverage brands. So he has never done startup route himself. So for, for him to actually take on this opportunity and, and join and be more hands-on, it's a bit different.

But, he does, has experiencing to look at brands, which is, investing. So. 

Steve Carran: Awesome. Awesome. I can imagine. Especially in the past, like couple years, I feel like the alcoholic beverage spaces even blowing up even more. It's not just beer, wine and liquor. It's your sensors, your, you know, everything else that's out there. What's been your biggest challenge so far. Has there been something that's come up where it's been really tough, but at the end it was a really great learning.

One. 

Andrea Garrido: Yeah, funny enough. I mean the biggest challenge, I think, you know, this is for any, beverage within the alcohol space will be distribution. unfortunately you need a distributor, even if you're selling online,um, The right permission. And you need to have that through a distributor. Otherwise, you know, by law, you are not allowed to sell those directly.

There's only seven states that you're actually allowed to sell, alcohol directly online without a distributor. but then, you know, those seven states, so. are not going to be your whole market. New York is not one of them. So here we are. I would say that's our biggest challenge.

Um,you know, beverage overall is it's a hard industry. And then you add the component of, making those relationships with the distributors, for them to take you on board. it's quite the challenge. So actually, be decided after our experience at the incubator that we wanted to take more ownership off our distribution.

And we did have a non-alcoholic cocktail in the lines that we were going to lounge before. I mean, after we were going to launch, uh, after we did the alcoholic route, but now we're thinking of doing the non-alcoholic first and then. Launching the alcohol, later.

Steve Carran: Gotcha. Gotcha. So that would build more brand awareness with the non-alcoholic and then the alcoholic versions are going to come in later and more fun. 

Andrea Garrido: Yes. Yes. That's, that's essentially wide we're planning to do. especially we were already at low ABV, so we're, we're heating that no, no low market basically. And we also see this as an opportunity. People are drinking at. still, there's not good mixers out there. So this is an opportunity for people to have a mixer.

This is how the bartender, I we're volatizing our drink as a mixer. so we're gonna be like a cocktail of recipes for people to do online. So it's also a way for us to engage, um, with not only. Make relationships with, peoples in the industry, but also with consumers directly that want to just drink at home, stay at home and make a fabulous cocktail.

So that's, that's what we're going to do, in the next few months. And it's definitely gonna speed our launch date.

Steve Carran: Was there a moment during this process that you were like, Maybe it was a winner or something that happened where you're like, this is it. This is what I want to do. Like, it kind of sold you on not only the industry, but the product. And you're like, this is, this is what I want to go after. 

Andrea Garrido: Yes, I would say, um, that validation I got from bad manager that just saw us doing a taste test and walking out and saying, this is so different. What is it? Obviously it's a different flavor. It tastes good, but nobody knows what's in it. It's like what's in it. 

Steve Carran: Yeah. 

Andrea Garrido: And, um,that was a big validation because it was just a complete outsider, not a friend that knows me and is willing to try it because I'm saying.

Is this actually, you're not going to die from it. Like

Steve Carran: Yeah. 

Andrea Garrido: this was just a complete outsider who decided to try it. And then he was like, Hey, let me bring my bartender. That was my moment that I was up to something and he'd get me that fuel to keep going. And, I would say. The second validation was, being able to present at the NYU hospitality and who better and being able to place first, on a CPG brand.

Like I think, you know, the other, businesses were very great and they were more technology driven, and within the hospitality industry. So for us to be in like a beverage brand and beating the consumers face, that that gives us a lot of. the push that we're continuing to, go for.

David Millili: Yeah, one of the things I liked about your presentation, and if you can share with us, your branding, maybe show us the can, and maybe just talk us through how you came up with that branding. And I just thought it was beautiful from a visual from seeing it. It was very, um, it just,it just kinda, it looked

beautiful on 

Andrea Garrido: Yeah. So this is a prototype. so we have this bird and, um, the name cheeks up, actually. So the name is, uh, it's just playing, he would words, in south America to bace skull teacher,

actually.and I. Bidding wine when people would Google Chicho to just confuse it to, more known here in the states, given that, you know, we're so close to Mexico.

so I decided to have Chixa because it does keep that essence of south America. And, we're calling it, you know, this is our, this flavor is the pineapple. So his cheats, uh, rum cocktail,

David Millili: What are the other 

two flavors? I 

Andrea Garrido: we do, we have a mango and guava, we developed three flavors. So we are using essentially flavors that are very unique.

Obviously, you know, people in states are very familiar with pineapple. This is the WABA is actually a pink lava. So that fruits it's more from south America. So we're trying to also keep. I know, bringing bold flavors, into the market, because consumers just want to try different things these days, and they're open to things that are healthy and, it just want to be that different brand that just introduces something with a new lifestyle and yeah.

David Millili: Well, once I can get it. So that's what will be in my cup, uh, when I do the podcast. So just a little heads up if you see a

podcast in a 

couple 

Andrea Garrido: Yeah, no, I'll, I'll send you samples as soon as we do our first run, which we're hoping it's going to be in August. 

Steve Carran: Awesome. Do you think this is going to be like a newer trend that we're going to see these drinks that maybe, you know, obviously you're familiar with this, but like me being from Wisconsin, probably not as much, you know, are we going to see these trends as more of like these international drinks, making their presence in the United States and kind of building up different types of drinks like this? 

Andrea Garrido: I think you will. I mean, the, the population, obviously Hispanic population, it's one of the highest growing. So I think you will. And the fact that Mexican food, you know, even if you live in Wisconsin or Kansas, everybody enjoy. Mexican food. Everybody loves good tacos. So I do think, um, you're going to see more, this within the next year is of people wanting to try new brands.

I mean, one of my big first validations with, I would say was when I had the aha moment was when I went onto YouTube. And I just typed in the paci. You see renowned chef. In the us making their in the kitchen to just, make cocktails or, so this, this is kind of what gave me that aha moment and, funding of our co-packer when I was telling him what I wanted to do was like, oh, I just made some at home the other day.

And I actually added from.

Steve Carran: That's So, fun. Do you only add rum or D can you add different 

Andrea Garrido: So, this is one other reason we decided to, launch it started with our non alcoholic launch, because you, it goes well with tequila vodka from his fiasco. So it's good flavors that makes well, they blend well with, with alcohol. And actually when you're the good thing about. This beverage that the Pacha is that once you mix it with any alcohol, you don't feel that strong alcohol flavor.

So, I mean, you might end up drinking more than you want to buy.

David Millili: that's great. 

That's 

Steve Carran: Well, the warning is here. 

We got 

it. 

David Millili: funny. I guess, you know, for us kind of in closing, you know, what's next for checks? They're like, what are you guys, when you you've given us a little, you know, a little bit of the, the idea of, you know, going for more of the, the mixer than the alcoholic beverage, but what else, where do you see it?

You know, I, I know people ask that question, where do you see yourself or your company in two, three years, but what what's next for you guys for you? And.

Andrea Garrido: So next for Aussie and I were finishing our seed round. And, um, so I'll bring four conversations guys, if you know someone and, um, we're going to do our first Ronning August. We're planning to, launch our non alcohol version to sell directly to consumers in August. And then, start a conversation with an alcohol company that we can partner up to do the wrong one, because we do see right now, I mean, if you look at all this new sensors that are putting alcohol, they're all tequila base.

And I mean, the, the one dominating the vodka space is highly. I would say tequila, on DOD. And if you guys have heard of it, but there's not a rum right now dominating that portion and there are some big rum fans out there. So we don't want to let those, feel disappointed that their demands are not being met.

So we do have, the recipe for the roam and we're planning to launch that to

David Millili: I definitely have to

connect you to 

a and beverage guy in Los Angeles. I'll do that offline. But so this is really where we're kind of at the end. We really appreciate it. We really want to congratulate you, but we also want to give you a moment to. Plug away. Tell us how we get updated. Where should we be looking to find out more information, anything you wanted to tell us that we didn't cover today?

Andrea Garrido: Well, it's. keep on the loop. We do have a site, uh, cisa.com. we do have our Instagram right now. We're, we're finishing our branding. So that's kind of. What we're going to do, actually, all of June, we're going to start doing the photo shoot and, being more active in social media. and we're going to start, handing out new recipes for cocktail.

So keep, keep you guys updated on that. Great, great cocktail menu will be send out to you guys and we'll make you part of our 

David Millili: If you'd like Steve, and I've already talked about it. You need taste testers, anything, you know, anything with alcohol in it. Steve and I have agreed that we'll we'll, we'll take it. We'll do it. We know it's going to be difficult, but we will actually help in that department. But, uh, again, congratulations.

Like I said, I really thought you guys, um, you deserve the victory as they say. I think you guys really did a great presentation. there's any way Steven, I can help in the future, please let us know. But, that is the end of this episode of The Modern Hotelier presented by Stayflexi. We thank you for joining us and we hope to see you.