Advice Line with Pete Maldonado and Rashid Ali of Chomps

Episode Summary

Executive Summary: Guy Raz hosts Chomps co-founders Pete Maldonado and Rashid Ali to advise three founders: a campus-based empanada business weighing expansion, a pie company seeking retail growth, and a niche fishing lifestyle brand deciding when to go full-time. The episode centers on disciplined scaling, the value of focus, and using proof points like velocity, repeat purchase, and operational readiness before expanding.

Main Topics: Protein trend and Chomps’ market position (Priority: 5/5): Pete and Rashid discuss the ongoing protein boom, framing Chomps as positioned to benefit now and later, even if consumers eventually tire of 'proteinification.' They see protein demand as structural, not a fad, especially with GLP-1 use increasing doctor-led protein guidance. Food safety recall and brand trust (Priority: 5/5): The hosts revisit Chomps’ prior recall after a possible metal contamination risk. They explain the recall was isolated, precautionary, costly, and ultimately strengthened internal controls and consumer trust by prioritizing safety over cost. Yadi’s Artisanal Empanadas: expansion strategy (Priority: 5/5): Yadi DeRees asks whether to open a second location, pursue more colleges, or return to distribution. The advice favors a commissary/distribution model, nearby expansion, and using a food truck or flexible format to offset campus seasonality. Noble Pies: retail entry and distribution discipline (Priority: 5/5): Zachary Bonder seeks help breaking into Whole Foods and Target. The advice emphasizes proving velocity, repeat rate, and buyer de-risking, while avoiding overexpansion through distribution before the business is ready. Achigan: niche brand scaling and full-time transition (Priority: 5/5): Josh Shrinko asks when to leave his day job and whether to raise money. The discussion highlights choosing the highest-growth SKU, understanding true demand, and recognizing that full-time focus may be needed before the business can scale meaningfully. Founder lessons on patience, focus, and unknowns (Priority: 4/5): In closing, Pete and Rashid reflect that ignorance, patience, and staying focused helped Chomps survive early uncertainty. They stress that success was built slowly and that overconfidence or rushing channels can create costly complexity.

Key Arguments: Chomps is benefiting from a long-term cultural shift toward higher protein intake, not just a temporary trend. A food safety incident should be handled with consumer protection first; a precautionary recall can preserve long-term trust even when costly. For Yadi’s empanadas, a flexible distribution or commissary model may better solve seasonality than relying solely on campus retail. Expanding into large retailers is less about getting listed and more about proving you can sustain velocity, repeat purchasing, and operational excellence. Retail buyers want brands that de-risk the category by adding incrementality rather than cannibalizing existing products. Chasing too many channels too early can create complexity and cost that threaten a healthy business. For niche consumer brands like Achigan, focus on the core revenue-driving product before broadening the portfolio or seeking outside capital. A founder’s readiness to go full-time depends on whether part-time is becoming riskier than full-time because the business needs constant attention.

Data Points: Chomps founding horizon: 13 years - Pete and Rashid describe Chomps as a 13-year journey and a '13-year overnight success.' Recall scope: 1 of 7 facilities - They say the metal-risk issue was isolated to one facility and one packaging line on an evening shift. Recall timing: Friday evening shift - The issue was identified on a Friday evening shift, prompting a broad precautionary recall. Yadi’s daily sales at campus location: $1,500/day initially; later $3,000/day average - Yadi said sales started around $1,500 per day and doubled after moving to a more central campus location. Yadi’s peak daily sales: $3,500/day - She reported some strong days reaching $3,500. Yadi’s annual sales estimate: ~$700,000+ - Guy estimated annualized sales based on the daily average, and Yadi agreed the business is roughly at that scale. Yadi’s operating breaks: 4 months with no revenue - She noted the college campus closes during summer and part of winter, creating a long seasonal gap. Noble Pies annual sales: $2.2 million - Zachary said the business did $2.2 million in sales across three retail stores in 2025. Noble Pies wholesale sales: $200,000 - Their first year with Fresh Direct generated about $200,000. Noble Pies production capacity: 10,000 pies per week - Zachary said the current facility can produce about 10,000 pies weekly. Noble Pies shelf life: 4 months - Pete asked about shelf life, and Zachary said the frozen pies last about four months. Achigan sales: Just under $100,000 - Josh said the brand missed the $100K annual sales mark by a small amount. Achigan full-time job: Medical distribution company - Josh said he currently owns a medical distribution business while building Achigan. Chomps growth milestone: $20 million - Rashid said he went full-time after Chomps was doing around $20 million in sales. Chomps early scale point: $400,000-$500,000 - Pete said he went full-time when the business was around that sales range. Chomps major PO example: 1.1 million sticks - Guy replayed a clip about a large purchase order from the original Chomps interview.

Pivotal Quotes: "One recall is one too many." — Rashid Ali: Explaining the company’s strict stance on food safety and why the precautionary recall was necessary. "Getting into the retailer is honestly the easiest part of the process. It's staying and performing." — Pete Maldonado: Advising Noble Pies that winning a big account is less difficult than sustaining velocity and execution after launch. "If you don't go full-time at the business, it's not going to get where you want it to go unless you have a viral moment or you have this breakthrough." — Pete Maldonado: Telling Josh from Achigan that a niche brand often needs dedicated focus to scale meaningfully.

Implications: The episode reinforces that durable brand building comes from focus, consumer trust, and proof of demand before expansion. For founders, the lesson is to choose channels carefully, use data to de-risk growth, and scale only when operations can support it.