Doing a Double Take

David Gow's message: From humble beginnings, our company has grown up

David Gow
Apr 1, 2019, 11:06 am
Gow Media

Last week the son of a good friend came up to our office. It had been a couple of years since I had seen him, so I still envisioned that he would be an 18-year-old high-school kid. But when he walked in the room, I did a double-take, as he was now a mature young man. The kid had grown up, and he was standing before me ready to talk business.

In some ways, the story illustrates Gow Media. Sometimes I come across people who will ask me: "How is 1560-The-Game doing?" We are not that young kid anymore. We have matured from a sports radio venture to a multi-platform media company. And we too stand before you ready to talk business.

Here's my update, with the following highlights:

  • ESPN 97.5 FM: Dominant sports ratings.
  • CultureMap: A large wave of growth.
  • SportsMap: New content and record traffic.
  • SB Nation Radio: Elimination of a competitor.
  • The Team: New faces in leadership roles.

ESPN 97.5

A year ago, we secured the No. 1 sports ratings position. This past quarter, we dominated. In the latest Nielsen book, we have the top four sports shows in the city, and five of the top six. The top four: (No. 1) John and Lance; (No. 2) The Blitz; (No. 3) The Usual Suspects; and (No. 4) The Charlie Pallilo Show. In morning and afternoon drive times, our ratings share was higher than our two competitors combined. And more good news: this quarter the Houston Press announced "The Best Radio Station" in Houston. The winner: ESPN 97.5FM.

CultureMap

Last week, more than 1,000 people in Houston turned out for our Tastemakers event, which sold out for the second year in a row. It is an amazing sight to see hundreds of folks line up early at the door. The turnout embodied the growth of Culturemap.com, where online traffic is soaring. Our Houston editorial team of Steven Devadanam, Eric Sandler, Ken Hoffman and others is on a roll. For that matter, the same is true of our teams statewide. We are experiencing double-digit growth year-over-year, yielding a very large and loyal following.

SportsMap

Our deep pool of sports experts has led to record traffic levels. One fun feature: we get to try new combinations such as videos featuring Raheel with AJ and Granato; Lance paired with AJ; Faour and Pallilo. Other must-see videos include Charlie Pallilo and Joel Blank (aka "one-take-Jake"). And we continue to get great written contributions from Barry Laminack, Joshua Jordan, Jermaine Every, Cody Stoots, Jerry Bo and, of course, SportsMap editor Fred Faour.

InnovationMap

Due to the collective efforts of many, Houston is experiencing a great wave of innovation. And now the city has a media outlet to tell the stories. Launched late last year, and backed by blue-chip sponsors, InnovationMap is off to a great start.

When we were planning the site, we were continually asked: who would be the editor? We found a good answer: Natalie Harms, whose fingerprints are all over the site. Last week Natalie was honored by AAF Houston, given the "Rising Star" award.

SB Nation Radio

In this business where we provide sports shows and updates for other stations across the country, we have faced a very competitive landscape the past four years. Finally, in January one of our competitors, NBC Sports Radio, withdrew from the market — enabling new growth and increasing our reach. Our SB Nation Radio Network is now heard on 600 radio stations across the country.

The Team

This has been an exciting season of growth for our people also.In the past quarter, we promoted Josh Jordan to assistant editor of SportsMap; Tyler Scott became assistant programming director. And, most notably, we tapped AJ Hoffman to become program director for 97.5 FM.

Most everyone knows Fred and AJ as leading show hosts, but they are proving to be far more. As Editor of SportsMap for the past 18 months, Fred has been a catalyst for our growth and success online. With AJ, we are tapping into his natural programming instincts and leadership. I have enjoyed watching their talents extend beyond the show and into management.

Let's give sage Ken Hoffman the last word. Some may recall that Ken was with us for a short while in the early 1560-The-Game days. Two years ago he returned to write for CultureMap -- so he has some perspective, having seen both our youth and maturity. The other day he wandered into my office. Looking at Gow Media, it appears Ken had done a double-take. He declared: "I have something to tell you. You have the best group of people and talent now. You really do. This is different than before. You are a real grown-up company now."

SportsMap Emails
Are Awesome

Listen Live

WHAT-A-CHANGE

Ken Hoffman digs into the juiciest questions after Whataburger's surprising sale

Photo via: Whataburger/Facebook

This article originally appeared on CultureMap.


The headline induced heart palpations in drive-thru burger fans across Texas and neighboring states … "Texas-based Whataburger sells to new owner amid expansion plans." While that sounds unsettling, the real concern is:

What does this mean to Whataburger's everyday (sometimes twice-a-day) customer in Texas?

In the immediate future — like tomorrow, next week, next year — probably very little. But in the long run, all bets are off. Most likely, there will be significant changes at your local Whataburger over the next three to five years.

Whataburger is now owned by a private equity company (Chicago's BDT Capital Partners), which may not know a Chop House Cheddar Burger from a Whatacatch Sandwich — and doesn't understand that when you're stuck in morning traffic on I-45, nothing beats a Honey Butter Chicken Biscuit.

That investment company bought Whataburger for only one reason: to make money. Shocking, that's what investment companies do. They are not fast food philanthropists. They're financial killers who want to see a return on their investment.

What's next?

So don't be surprised if they take Whataburger national. That's my big takeaway. It may mean Whataburger may have less Texas on its menu in the future.

The new owners are buying a very successful or stagnant company, depending on how you crunch the numbers. According to QSR Magazine, the bible of the fast food industry, Whataburger is only the No. 22 fast food chain in the U.S. — with total sales of $2.2 billion for its 821 restaurants across 10 states.

But, more important, Whataburger has the second highest sales per store, $2.7 million. That beats the average McDonald's, Taco Bell, Burger King, Wendy's, etc. — the whole bunch of national biggies. Only Chick-fil-A has higher sales per store, a printing press $4 million.

What a deal?

If Whataburger is so successful on a per-store basis, why did the owners sell? Two factors, one probably, one definitely. In Godfather terms, the investment company probably made them an offer they couldn't refuse. While Whataburger has phenomenal sales per unit, it was growing at a very slow rate — only 15 new restaurants in 2017. That same year, Chick-fil-A opened 140 new restaurants. Taco Bell opened 168 new units. Domino's expanded by 216 locations. Popeyes popped the lid on 147 places.

Continue reading on CultureMap to learn about how the rising price of beef could impact burger chains.

SportsMap Emails
Are Awesome