Two prominent names in Reno’s vibrant food scene, Rounds Bakery and Old Granite Street Eatery, have announced a significant merger, creating a new entity known as Life Tastes Good Co. This $10 million union brings together the strengths of both establishments, paving the way for expansion and innovation in a challenging industry landscape.
For the four co-owners of the newly formed company, this merger represents a strategic move driven by both necessity and opportunity. The team behind Old Granite Street Eatery and Rue Bourbon, under the Stanley Restaurant Group, had prior ambitions to broaden their footprint with two additional locations. However, the unforeseen arrival of the COVID-19 pandemic dramatically altered the restaurant landscape, necessitating a swift re-evaluation of their plans.
“Downtown, ninety percent of Old Granite Street Eatery’s business came from the office crowd,” explained Kaya Stanley, a co-owner of Life Tastes Good. “With the shift to remote work, that downtown location faced significant challenges.”
Government-mandated restrictions aimed at curbing the spread of the virus, which included closures and reduced capacity for dining establishments, further compounded the difficulties. Both Stanley Restaurant Group and Rounds Bakery’s parent company, Sterling Group Nevada, were forced to adapt rapidly, implementing strategies like curbside pickup to sustain operations at their existing locations.
Synergy in Crisis: Shared Initiatives Spark Partnership
Interestingly, both Rounds Bakery and Old Granite Street Eatery independently launched similar community support initiatives during the pandemic, aiming to provide meals for first responders. Rounds Bakery initiated “Rounds For Heroes” for breakfast provisions, while Old Granite Street Eatery launched “Feed Our Heroes” for dinner service. These parallel programs became the unexpected catalyst for their partnership, demonstrating a shared commitment to community and a similar approach to business agility.
“They were doing Rounds For Heroes in the morning, and we were doing Feed Our Heroes in the evening. We started to see how aligned our thinking was, and our ability to adapt quickly. We recognized the potential synergies and complementary skill sets we could bring together,” Stanley noted.
Rounds Bakery Expansion on the Horizon with New Locations
Anton Novak, formerly an owner of Rounds Bakery alongside partner Sean Cary, echoed Stanley’s optimistic outlook on the merger.
“Stanley Restaurant Group brings a wealth of experience, access to new revenue streams, and a fresh perspective to our family of brands,” Novak stated. “We are very optimistic about our future together.”
Life Tastes Good is now poised for significant expansion, redirecting the Stanley Restaurant Group’s original plans for two new restaurants towards the growth of Rounds Bakery. One of these new locations will be at The Outlets at Legends in Sparks, a site initially intended for a second Old Granite Street restaurant. This location will transform into a Rounds Bakery café, drawing inspiration from the successful Boudin Bakery model found at San Francisco’s Fisherman’s Wharf.
“Customers will be able to watch us bake bread, grab a coffee at the café, and relax while enjoying a ‘not-a-Cronut’,” Stanley elaborated.
The “not-a-Cronut” reference alludes to a past trademark dispute between Rounds Bakery and New York pastry chef Dominique Ansel concerning the term “Cronut.” A cease-and-desist letter in 2014 prompted Rounds Bakery’s witty response and the viral #notacronut hashtag.
The Legends location, situated next to Grimaldi’s, will also feature local beer, wine, craft cocktails, and a food menu. The anticipated opening for Rounds Bakery at the Legends is slated for January or February 2021.
The second new location is planned for downtown Reno and will function primarily as the company’s expanded wholesale bakery and warehouse to support its market operations. While this downtown site will offer a pickup window, current plans do not include seating. The downtown Reno location is expected to open in March 2021.
“Paralysis Not an Option”: Adapting Business Models Amidst Challenges
Beyond the two new Rounds Bakery locations, Life Tastes Good is set to amplify successful business strategies previously explored by both Rounds and the Stanley Group.
In response to initial COVID-19 restrictions, Old Granite Street Eatery quickly established an essential market offering groceries and pre-packaged meals alongside curbside pickup. Rounds Bakery had already found success operating 11 market locations within Tesla’s Gigafactory, providing food services prior to the pandemic.
The newly merged company aims to capitalize on the growing demand for pre-packaged food and expand its market concept. Plans are underway to approach businesses like ski resorts that have closed traditional cafeterias, proposing grab-and-go market solutions. Stanley emphasized that their pre-packaged food offerings will prioritize quality and freshness, distinguishing themselves from typical vending machine or gas station fare.
“We’re talking about high-quality food that tastes great, with a shorter shelf life and no preservatives,” Stanley stated. “It’s unlike much of what you find in gas stations, although we will have a presence in select gas stations.”
Expanding Revenue Streams Through Private Labeling
Life Tastes Good will also venture into private labeling for other restaurants, cafes, and food businesses, creating additional revenue streams during a period of continued industry disruption.
“Several coffee shops have already provided us with their recipes, which we are producing and pre-packaging for them. Our goal is to develop a business model that supports businesses through these challenging times. The impact of COVID-19 on food operations has been unpredictable, especially for smaller, independent businesses less equipped to handle such shifts,” Stanley explained.
Further Market Expansion on the Horizon
Life Tastes Good intends to establish more market locations, further distributing their baked goods and pre-packaged food items. Stanley likened their vision to the Amazon Go smart market model, which is particularly appealing in the current climate where concerns about pandemic safety persist.
“Due to COVID, people are understandably cautious about dining in restaurants and having their food handled by others,” Stanley observed. “Even with vaccine availability, some behavioral changes will be lasting, and many will remain apprehensive for an extended period. We are positioning ourselves for this ‘new normal’.”
Addressing potential concerns about managing a partnership with four owners, Stanley affirmed that the collaboration is progressing “exceptionally well.”
She highlighted the diverse expertise each owner brings to the table. Stanley’s legal background, her husband Kevin’s operational experience, Cary’s marketing and brand management skills, and Novak’s overarching vision as CEO-like figure, create a balanced and robust leadership team.
Kevin Stanley emphasized the urgency of the merger and the pursuit of innovative business models in the face of the pandemic’s ongoing impact.
“The pandemic has undoubtedly impacted the food industry, but inaction is not an option,” Kevin Stanley asserted. “Just as we pivoted to launch an essential market when Nevada’s governor mandated restaurant closures, we recognize that COVID-19 has generated new consumer needs, and our combined strengths are ideally suited to meet them.”
