CHAPTERS:
0:00 Cold open, PMR sponsor, and meet Dave Arena
3:45 Why Horn & Hardart? The 135-year automat story
5:20 A six-year dream and the 2022 phone call
10:05 Why the automat still works today
11:30 No money for an automat, so he started with coffee
13:45 Sears Homes, backyard ADUs, and brands vs. logos
18:50 "The public appreciates quality"
23:20 Medium roast, Folgers, and the cold brew apology
28:50 Dave started with real estate and listing photographer biz
38:45 Colleen, the COVID surge, and selling Alcove media co
WHAT YOU'LL TAKE AWAY
Test the brand before you bet big. A full automat in Center City would cost millions, so Dave asked what @hornandhardart would be doing today if it never closed and launched online coffee first. It was the lowest-risk way to learn.
Quality beats price. The old tagline was "The public appreciates quality." Dave can't outbuy the big brands, so quality runs through the blend, the packaging, and the shipping.
Learn it for free, then charge. Dave shot listings for free for about six months, then charged $50. Within a few months he was doing 20 to 30 homes a week.
Hire the task that eats your day. Scheduling was swallowing his time. Colleen offered to help, became his first hire, and made the rest of the company possible.
Be ready when the market shifts. During COVID, Alcove became a regional partner for Matterport 3D tours and shot empty commercial offices. Average order value went from about $120 to about $700.
Share ownership with the people who build it. Colleen earned equity over time, held 25% when Dave put the company up for sale, then bought him out and now owns 100%.
Make it easy to drink. Dave wanted a smooth medium roast, the best diner coffee you've ever had. The hosts compare it to why Folgers and Maxwell House became household names, and why Sean just wants a beer that tastes like beer.
A brand is a feeling, not a logo. The hosts connect Horn & Hardart to Sears and Nike: say the name, and people feel something. Dave says that's why he'd love to bring back Sears Homes as a backyard ADU business.
Know what the early years cost. Dave made about $30,000 a year for the first three years while his photographers earned more. Your spouse or partner has to be on board.
WHO THIS EPISODE IS FOR
Agents, small business owners, and anyone early in their career who wants to see how an entrepreneur starts small, tests an idea cheaply, and builds a team without waiting for a big budget.
ABOUT THE GUEST
Dave Arena is the CEO of Horn & Hardart, the 135-year-old brand that pioneered automated restaurants in Philadelphia and New York. He previously founded Alcove Media, a real estate photography and media company, and ran it for eight years before selling it. Horn & Hardart relaunched in 2023 with a direct-to-consumer coffee business built on the brand's original focus on quality.
JOIN THE CONVERSATION
If you could bring back one classic American brand, which would it be? Dave picked Sears. Tell us yours in the comments.
SPONSOR
Property Management Redefined builds long-term partnerships with property owners, with a local expert team managing your properties and tenants every day. Contact John Sacks and his team at manage@gopmr.com or 267-753-6005.
LINKS
Horn & Hardart: https://hornandhardart.com/
ABOUT BRICKS AND RISK
Bricks and Risk is a podcast about real estate, insurance, and building your business, hosted by Tim Garrity and Sean Mooney. Each episode gives you one or two nuggets you can use, with wisdom from our network of local and national experts. New to the show? Subscribe, leave a review, and share this episode with a friend. Our audience grows by word of mouth.
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