Advice Line with Pete Maldonado and Rashid Ali of Chomps

How I Built ThisHow I Built ThisFeb 19, 202651 min

Food entrepreneurs Pete Maldonado and Rashid Ali of Chomps take the advisor seats to tackle the messy realities of scaling food businesses. They cut through common misconceptions about retail partnerships and distribution, emphasizing that velocity and customer retention matter more than just getting shelf space, while addressing the strategic tension between self-distribution control and rapid scaling.

Key takeaways

  • Retailers care more about product velocity than brand recognition—prove you'll bring new customers rather than just replacing existing sales.
  • Self-distribution keeps you lean and maintains control, but limits how fast you can scale compared to third-party distributors.
  • Consider brick-and-mortar expansion only after maximizing your current location's potential through extended hours or additional revenue streams.
  • Breaking into major retailers like Whole Foods requires building momentum through smaller regional chains first rather than cold applications.
  • Elevating street food into premium positioning requires consistent quality standards and fresh ingredients to justify higher price points.

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Best moment

13:22· 40stactical advice

Strong campus sales but stuck on next move: second location or distribution?

13:22 / 14:02

or more a year in sales. Correct. Wow. Amazing. Okay. So before we dive in further, what is your question for us? We're wondering at what point do we

do we think about a second location, brick and mortar, since right now, technically, while I have this location, it's not really ours. Do I move into other colleges and really duplicate what we have into other schools? Do I go back to distribution?

So is that that sort of, like, Road? And what do we do? Alright. So sales are strong at this location on the SUNY New Paltz campus. You're wondering whether you should open a second location or focus on distribution or a combination. But, Pete, Rashid, I wanna bring you guys in. Thoughts or questions for Yadi?

So he's gotta figure out, okay, I'm gonna put them in and they're gonna bring new customers to this set that were never shopping here before and grow the category.

at 27:33

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