MHG Annual letter

Melange Hospitality Group

January 2025

Dear Carlo and Angela Alcé,

I've decided that with the launch of Melange Hospitality Group (MHG), I want to write an annual letter to recap our vision, market assessment, and future plans. These letters will serve one simple purpose: to inform all parties involved how MHG works and what has transpired over the year in pursuit of our corporate purpose—to spread joy and community to as many people as possible.

### The Origins of Melange

September 2024 marks the inaugural year of Melange Hospitality Group. Dad, you actually used the word "melange" to describe the jambalaya on your first restaurant's menu. From the minute I heard it, I knew it would be the name of my restaurant group. For us, Melange carries two meanings:

First, mixing is one of the fundamental actions in cooking. Whether incorporating spices or preparing ingredients, mixing creates flavor and enjoyable dishes for others. Second, we believe there's a certain mix of elements that create a great experience for guests: service, ambiance, and a great meal.

### Personal Connection to Hospitality

I've had this dream for over ten years, rooted in my love for restaurants and hospitality. I vividly remember watching Kobe and Shaq dominate the Western Conference while enjoying my grandma's mac and cheese, greens, yams, and brisket with homemade rolls and lemonade. Food is a universal binder for community—from weddings to first dates. I actually met my wife on the street heading to lunch between interviews for our restaurant, and I proposed in the very coffee shop we frequented during my breaks.

### Core Values

While our procedures will evolve with the market, our core values remain constant. Like streets in a neighborhood that stay unchanged while houses may be renovated, these five principles guide everything we do:

1. **Service to guests**: We are here to provide great hospitality.

2. **Excellence in reputation**: We execute at a high level and create special moments.

3. **High character and integrity**: We are personally responsible for positive actions, attitude, and behavior.

4. **Quality**: Everything we produce must be our best, from ingredients to store design.

5. **Hard work and constant individual improvement (Kaizen)**

### Vision for the Future

Over the next 20-30 years, Melange Hospitality Group will become a 100-location restaurant group spanning multiple states and concepts in quick service, fast casual, and full service. These will include original concepts, franchise locations, and non-MHG franchise acquisitions.

Our long-term goals include:

- Creating an environment where managers enjoy financial freedom and work-life balance.

- Becoming an employer of choice where team members grow personally and professionally.

- Supporting our communities through initiatives like feeding the homeless.

- Providing second chances through employment.

- Sharing knowledge through consulting and media.

- Achieving listing on the Dow Jones.

- Reaching $100 million in top-line revenue.

Current Status and Near-Term Plans

We are approximately 45 days from opening our first restaurant, Beignet Spot, of which MHG owns 25% of the franchise company. I believe this stake will see significant valuation growth in the next five years, enabling accelerated expansion.

Market Outlook

I consider myself a "pessimistic optimist"—confident in long-term industry growth while acknowledging inevitable challenges. Our strategy focuses on four key areas:

1. **Finances**: Addressing increased labor costs through enhanced training and service quality.

2. **Marketing**: Humanizing our brand through storytelling and community connection.

3. **Operations**: Implementing streamlined systems and single-thread leadership.

4. **Management**: Investing heavily in leadership development and offering ownership opportunities.

2025 Objectives

- Open another restaurant location.

- Secure an investment partner for franchising.

- Complete Beignet Spot operations systems.

- Open our first franchise store.

Mom and Dad, I hope this letter provides insight into my vision for Melange Hospitality Group and the future of hospitality. More importantly, I hope the work we do makes you proud.

With love and gratitude,

**Fabrice Pascal Alcé**