Lexington, KY - A local technology start-up company is slowly but surely making waves in the ambient music service sector for restaurants, retailers and other venues. MAX Music Service, Inc. (www.maxmusicservice.com) provides custom background music for your restaurant or business. It has both a national and international presence. However, while this start-up company is young, its genesis traces back to a business relationship and friendship.
In the late 1980s, Stan Warr and Chris Dengler knew each other from working together in the restaurant and hospitality industry on the West Coast. They both were involved in the nightclub business, and Dengler worked as a music DJ. Dengler went on to work as an engineer for Microsoft and Warr advanced through the ranks of the foodservice industry, with his most recent stint as senior vice president of operations for Lexington-based Applebee's franchisee organization Thomas and King, Inc., which is the nation's eighth largest franchisee organization.
Approximately two to three years ago, Dengler, the company's founder and president, conceptualized the idea for this start-up company and began working on it in Phoenix, Ariz. Earlier this year, he named Warr the chief executive officer, with the plan for the company's primary operations to be based in Lexington. Jason Fackler was named chief financial officer to round out the Lexington team, and Brian Cowardin heads up the sales effort from Phoenix. As the company grows, its presence in Lexington will grow.
The core business of the company is to provide ambient music to restaurants and other business locations. However, while the companies that dominate this enormous industry distribute their music product through satellite technology, MAX Music Service does it through the Internet. The key to their system is proprietary software that is downloaded to a restaurant's office computer. Their product, or service, is attractive in many ways:
1. It allows customers to bring the exact music to their venue and do it when they want it. The music preferences can be changed automatically throughout the day. Additionally, the volume of the music can be set to change at specified times. This frees up management to focus on the core business. If it is a restaurant chain, a client can initiate one change that can affect all stores in their system.
2. There are no setup fees.
3. Max Music changed the industry standard by not requiring long-term contracts and merely using a month-to-month approach. New customers can try them out for a free two-week trial.
4. After a client and Max Music design a playlist, the client can make changes to the custom playlist from any Internet-connected PC.
5. Technical support is free.
6. The monthly subscription fee rate is lower than the competition's.
Currently Max Music has clients in 31 states and three countries. Venues are primarily restaurants but also include resorts, spas and clothing stores. Music is important to restaurants and other venues because it refines the atmosphere that supports the concept. The time should be right for this business because it adds value to a restaurant in more than one way. It provides more flexibility and ease in the management of ambient music. Additionally, it should be a cost savings for restaurants, and in this economy, restaurants and retailers are eager to find ways to save money.
While continuing to focus on current customers, they are also in growth mode by accumulating new customers and ramping up their infrastructure to accommodate growth. This is a start-up worth watching.
MAX Music Service, Inc. is also an example of two other things worth mentioning. One is that CEO Warr used to work for Lexington-based Thomas & King (www.tandk.com) and is an example of how local, large- and medium-sized companies produce a lot of human resource talent that go on to get involved in small companies - some of which may grow into much larger companies and contribute significantly to local economic growth. The greater Lexington area benefits from "alumni" of other local companies such as Lexmark, Alltech, Fazoli's and Toyota, as well as former local companies such as Jerrico and Long John Silver's.
The second point is that the company started with an idea in someone's head and then it moved to a garage or home office and has offices in Phoenix and Lexington. There is lots of talent in this community that can innovate the region to a greater economy. However, that talent often needs infrastructure and a support system during its critical stages, and an example of such a support system is the local business incubator Awesome, Inc. (http://awesomeinc.org), which I encourage readers to visit and learn more about.