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SAN FRANCISCO (AP) — Jonathan Kaplan made it easy for consumers to
shoot cheesy home movies when he founded the company behind the
Flip Video camcorder. Now, he’s hoping to popularize something
cheesier – and gooier – by starting a chain of grilled cheese
restaurants that combine fast food with high tech.
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Kaplan’s latest creation, The Melt, opens its first location
Tuesday in San Francisco’s SoMa neighborhood. Plans are in the
works for two more restaurants in San Francisco and one in nearby
Palo Alto by Thanksgiving. With financial backing from a
venture-capital heavyweight, Sequoia Capital, Kaplan hopes to open
25 to 50 restaurants within the next year and about 500 across the
country within five years.
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No matter how much people like grilled cheese, Kaplan’s plan is
audacious, considering the state of the economy. Still, he believes
building this kind of business makes sense, particularly during a
time of uncertainty.
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“Economically, it’s a good time right now because people want
comfort food,” he says, seated on a stool at one of the bar-height
tables at his bright white-and-orange-hued eatery.
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Kaplan was flipping around the idea for The Melt even before the
creation of the Flip Video, which the company he co-founded, Pure
Digital, began selling in 2007. About 10 years ago, Kaplan says, he
started researching grilled cheese to see if it could become the
main food attraction for a national chain. As part of his research,
he solicited customers’ opinions about the sandwich at the giant
Mall of America in Bloomington, Minn. He was buoyed by their
responses.
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Kaplan was convinced a grilled cheese chain could succeed, but
there was one big sticking point: How do you make the sandwiches
consistent when you have hourly employees – who aren’t professional
chefs – behind the counter?
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Not sure how to solve this problem at the time, he put his plan on
the back burner. In the meantime, he started Pure Digital. The
company’s Flip Video, a simple, low-cost, pocket-sized video
camera, paved the way for an entire market. In 2009, Cisco Systems
Inc. bought Pure Digital for $590 million as part of an effort to
branch out from its core business of making computer networking
equipment. Kaplan became general manager of Cisco’s consumer
products division.
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But Kaplan left Cisco in February. Two months later, Cisco
discontinued Flip Video and shut down Pure Digital as it gave up in
part on its goals for the consumer market. Kaplan decided it was
time to give grilled cheese a go.
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With a small group of advisers – including chef and restaurateur
Michael Mina – Kaplan approached Swedish home appliance maker
Electrolux about making a special contraption that would create
uniform grilled cheese sandwiches. They came up with a machine that
combines two induction burners, a microwave and non-stick pads,
which allow the bread to toast while the cheese melts – without
squishing the sandwich as a panini press might do.
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Not surprisingly, given Kaplan’s background, technology also comes
into play in the way visitors can order their meals. If you don’t
want to wait in line, you can order on a smartphone using The
Melt’s website. After placing an order, you receive a QR code – a
cousin to the traditional bar code, but with more data encoded in a
smaller space. You bring that to a code reader in the restaurant
for scanning, and an employee then gathers up your
order.
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When The Melt has more locations up and running, customers will be
able to choose where to redeem their codes, Kaplan says.
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He believes the technology in use at The Melt will improve the
customer experience, “rather than technology that is just there for
marketing reasons or technology for technology’s sake.”
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Besides the traditional grilled cheese sandwich and tomato soup,
The Melt’s menu, at launch, features such variations as aged
Gruyere on white wheat and smoked Gouda on eight-grain bread. Soup
options include spicy black bean and creamy wild mushroom. Prices
run $3.95 or $5.95 for a cup or bowl of soup, respectively, $5.95
for a sandwich. The restaurant offers soup and sandwich combos for
$8.95.
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In a sampling of some sandwiches, the cheese was flavorful and
gooey, while the bread was somewhat crisp and airy. Soups,
meanwhile, tasted rich, but not too thick.
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NPD Group restaurant analyst Bonnie Riggs says Kaplan’s idea sounds
interesting, but she warns that the restaurant industry overall has
just gone through “the most prolonged period of weakness we’ve ever
experienced” with eight straight quarters of declining customer
traffic.
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Kaplan, however, is confident that hungry consumers will catch on
to The Melt.
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“Grilled cheese makes people happy,” he says.
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