A relatively new entrant into the outdoor cooking space, the team behind Tereaux brings a wealth of knowledge and industry experience to the (patio) table. Though making their PrimeTime debut this past August, Tereaux presented itself as a veteran in the space with a luxurious lineup and plan to help dealers tackle the booming outdoor entertainment category. We sat down with CEO and Co-Founder Derek Frye to dive deeper into the brand’s products and positioning.
Rob Stott: All right. We are back on the Independent Thinking podcast, coming to you from PrimeTime here in Las Vegas. Winding down. We’re getting to the end of it. It’s crazy. What a week it’s been, Mr. Frye.
Derek Frye: It has. It goes fast, but your legs feel it.
Rob Stott: Yeah. They certainly do. Derek Frye, CEO, co-founder, CEO of Tereaux.
Derek Frye: Tereaux. Yes.
Rob Stott: Am I saying that right?
Derek Frye: Yes. It is not Tereaux, as it is often mispronounced. It is definitely Tereaux.
Rob Stott: That helps with spelling. You know?
Derek Frye: Yeah. No.
Rob Stott: I had a similar experience. I went to Duquesne University for college, and everyone, it would always … You have to remind yourself it’s Duquesne, is how you spell it. Right? So just for phonetic purposes.
Derek Frye: Yes. Yes, and so Tereaux is actually a combination of Terra, which is Latin for earth, and then eaux, which is French, E-A-U-X, which is French for water.
Rob Stott: Water. Yeah.
Derek Frye: So earth and water, you’ll see that in some of our imagery. We’re built for a life outdoors, and so that’s kind the heritage and where that comes from.
Rob Stott: No. That’s awesome. An outdoor kitchen company.
Derek Frye: Yeah.
Rob Stott: Yeah. So first PrimeTime for the brand. How’s it been?
Derek Frye: Yes. It has been incredibly well. It has gone really, really well. We’re really excited to finally be able to get in front of all your dealers. The buying groups have been phenomenal. David has been wonderful. Your staff is always incredible. These shows are always a good time, and they’re always very fruitful. So yeah.
Rob Stott: So the space that Tereaux’s in, talk about it, because it … I mean, it’s been around, don’t get me wrong, but I feel like since COVID, it is an area that has absolutely boomed.
Derek Frye: Absolutely exploded. There’s a lot of players there now that probably weren’t there pre-COVID. When I left the industry in 2022 to come back into it. It’s a different market. You know what I mean?
Rob Stott: Mm-hmm.
Derek Frye: Very different market. And so that’s kind of been an interesting change, just getting adjusted to the new market. But for the most part, there’s a lot of players in it. A lot of the bigger guys probably have some inventory that they’re stocked up on, and so we kind of feel like that’s going to allow us to be nimble, make some changes, do some creative things that other people aren’t quite doing yet with some products coming down the line. And so yeah. We’re really excited about what 2025 is really going to hold for us. 2024 was really all about getting in front of dealers and starting to get showrooms, and 2025 is going to be about getting products to those dealers and getting the customers.
Rob Stott: Before we look ahead too much, I want to give you a chance. The origin story for the brand, talk about it a little bit.
Derek Frye: Yeah. So previously, I was the director of sales for ZLINE. There’s a few of us at Tereaux from there. We had a great experience there. Just felt like it was the time to go do something ourselves. And so we wanted to do something and not really compete with them, and so we went to the outdoor side of things. And so we learned a lot from that experience and the growth that they went through, and so to be able to kind of shortcut a lot of the learning curve is a big deal, especially when it comes to product quality and things like that, and working, finding the right partners, and then also your right go-to-market strategy, choosing the right dealers, choosing the right networks, and that sort of stuff.
Rob Stott: Well, it’s something, too, I think the history within the industry to be able to launch it. There’s certainly something to that. Right?
Derek Frye: Yeah.
Rob Stott: You’re not just a whole bunch of new bodies coming in and trying to do something.
Derek Frye: Yeah. Yeah. It helps. It does.
Rob Stott: Right?
Derek Frye: It does help to have some dealer connections. Yeah. Yeah. It’s funny. We just partnered with Pro-Fit, so to do … We’ll be, going to be able to offer six-foot, eight-foot custom islands to dealers as well as some really, really cool software that all the NMG people have been by to check out, which is really, really exciting.
Rob Stott: They sure have.
Derek Frye: And so, again, being innovative, finding the right partners to work with to help grow the business for the dealers. And so I wanted to be able to offer an opportunity for that appliance dealer that’s only been on the insider. I’ve talked to so many of them that have been, “Hey. I’ve done the outdoor thing, and then I didn’t do the outdoor thing. Then, I tried the outdoor thing again, and then maybe I am not going to do the outdoor thing again.” So I wanted to give them a way to really let the customer sell themselves on a full outdoor kitchen suite. And so that’s kind of what we’re able to do now, so excited.
Rob Stott: When you see that, I don’t want to call it whiffle-waffling or flip-flopping, but why do you think they aren’t having success? Is there anything that you see that kind of permeates through the decision to get out of the game?
Derek Frye: Yeah. I think to always be kind of on the leading edge of things. Sometimes, you pick manufacturing partners, and they grow and pick dealers that are right down the street from you. And so that hurts your sales, because they’re trying to grow their … For a manufacturer, it’s somewhat a double-edged sword. Right?
Rob Stott: Yeah.
Derek Frye: Because you want market space. You want showrooms. You want that sort of stuff, but we really feel like at Tereaux, if you pick the right partners and pick, and then, if your partners are committed to you, you know what I mean, and you’re committed to them, and it’s a true partnership, that’s where you really find success. And so as a dealer, as someone who is a dealer, my challenge to them would be pick the right partners. Find the partners that are willing to invest in you, because if you have a partner that’s going to invest in you in the long run, you’re both going to make out.
Rob Stott: Yeah. No. I love that advice, and then, too, dealers that are having success with you, what are they doing, or what’s that look like?
Derek Frye: Yeah. Yeah. So, I mean, they have display units. They have burn units, if you want to call them, or grill demo units, pop-up tents, things like that. That’s one of the show specials we had here, was a pop-up tent and some other things so that you can do cooking demos and things like that. We were just at a showroom in Sacramento doing a cooking demonstration, and there was another brand right next to us that’s a lot more expensive than us. So I’m not going to mention who, but we did very well standing next to them, and getting out in the community, and doing local events.
The more you can do in your community, and that’s why I like partnering with dealers, is because I’m a, really, a local community guy. I like small business. I like family-owned businesses. I like things like that. And so to me, to be able to have the customer have the best experience, at the end of the day, it goes through the dealer, because they’re local. They have representation. They can go talk to somebody if there’s an issue, as on the manufacturer side, we don’t have the return rates. You don’t have some of the shipping damages and things like that. And so for us, it just makes a ton of sense to always work through dealers. And so that’s why you always see a lot of our products are more dealer-focused than, say, some of your big-box store items and things like that.
Rob Stott: You did a little bit, but dive deeper into your product.
Derek Frye: Yeah.
Rob Stott: What type of-
Derek Frye: Yeah. So we’ve got 30-inch, 36-inch, 42-inch built-in grills, really kind of luxurious, premium, high-quality, 304 stainless steel. The grates are five-sixteenths thick. I think they weigh 53 pounds on the 36 inch.
Rob Stott: Wow. Phew.
Derek Frye: It might be the 42-inch. Don’t quote me on that, but it’s-
Rob Stott: Still heavy.
Derek Frye: Yeah. Super heavy, and you’ve got to teach the customer that you don’t just turn your grill on high and walk away.
Rob Stott: Yeah. Right. No.
Derek Frye: Because some of the grates are 650, 700 degrees, and you’re burning that steak. But yeah. No. We’ve got 30, 36-inch, 42-inch grills. We’ve got griddles, pizza, ovens, cabinets, doors, drawers. The cabinets, doors, and drawers are all going to be made here in the United States, which is cool.
Rob Stott: Yeah. Yep.
Derek Frye: We just switched that production over. Currently, the grills are made in China, and so we are actually partnering with a manufacturer to move those to Thailand in the meantime. I just ordered the prototypes for our charcoal grill, and that will be built in the United States, which is very, very cool, and very important to me, as we can bring as much manufacturing here to the United States with our product line as we can. So again, that goes back to being local.
Rob Stott: No. I love it, and the outdoor kitchen space and the built-in space, is it for everyone? Is it something that’s for every dealer, or how would you explain it to someone interested in getting into it to see if it’s right for them?
Derek Frye: Yeah. I mean, I think there’s an opportunity. There’s grill, and it, maybe it’s not the Tereaux line. It may be another brand, and that’s okay, too. There’s plenty of pie to go around for everybody. You know what I mean? I don’t need the whole pie.
Rob Stott: Be very full after that.
Derek Frye: I will eat the whole pie.
Rob Stott: Listen, I know. I would. I certainly would, too. I know what you’re talking about, man.
Derek Frye: I used to weigh 340 pounds, so I will definitely eat the whole pie. But no. There’s enough to go around. I mean, Mont Alpi’s here. Louisiana Grills is here. Broil King is here. They’re not necessarily competitors with us. They’ve got kind of different grill lines, and so I would challenge the dealer, “Hey. Know your market. Know who you’re selling to, and then go find, again, go find that partner that’s going to help you sell to that customer.”
And so I think there’s a segment on the outdoor space for … Especially if you’re in appliances or outdoor furniture, if you’re doing furniture or spas, and you’re looking to get … It makes tons of sense to do outdoor, the outdoor kitchens, and grills, and stuff like that. And so there’s an opportunity. You just got to know your segment and then find the right partners.
Rob Stott: I mean, it’s obviously more of an investment for that customer. Right?
Derek Frye: Yeah.
Rob Stott: So, it’s a higher, a more premium outdoor experience. How would you explain the different … It seems sort of basic of a question or maybe the softest of balls, softballs like you’d lob, but the difference in selling a Tereaux product versus a standard grill.
Derek Frye: Yeah. I mean, and I love using this one, because … So I was working at, I was at a, I think it was one of the other kitchen shows in … KBIS maybe, and I was talking to a dinner with a manufacturer that does a ton of grills for the big-box stores. He came to see our product, and he was looking at it. He’s like, “Why did you build it like that?” I was taken back, because I wasn’t really sure how to take it. So I asked him to clarify, and he said, “People are going to be digging that grill up 300 years from now, going, “What in the world is this thing?” I looked at him, and I said, “Well, okay. So what’s the problem, then?”
Rob Stott: Right.
Derek Frye: So we have a quality product that’s going to be built to last, that is going to endure the outdoor weather that it’s built in. You know what I mean? And so that’s the difference with consumerism a lot of the time, is it’s like, “Hey. Let’s build something that only lasts two or three years,” and then two or three years, they’re buying another one, and buying another one, and buying another one. It’s an endless cycle, right, which is great. But again, we’re not that type of manufacturer. We want to build quality products that are built to last. And so that’s why our tagline is built for a life outdoors.
Rob Stott: Yeah. No. I love it, man.
Derek Frye: Yeah, and we’ve got a lifetime warranty on our grates and things. And so we’re willing to stand behind that.
Rob Stott: Yeah. That’s incredible. To see kind of what you guys are doing, direction you’re heading, eyes on the future.
Derek Frye: Yeah.
Rob Stott: When you talk about ’25, what are you looking forward to? What’s exciting for you?
Derek Frye: Oh man. We may have to do another one, because there’s a lot of stuff coming down the pipeline that I cannot talk about right now.
Rob Stott: We can part two this.
Derek Frye: Yeah. There’s some blue ocean grilling technology that we’re really excited about, so nobody has it, that we think is going to quickly make some of the bigger boys change. And so we’re excited about that. Then, there’s some other technology that we’re looking at as far as the potential to really change the smart grill side, which will be really cool. And so again, it goes down to finding those innovative partners that are willing to work with you. And so that’s kind of what we’ve done.
As far as 2025 goes, continue to build up our base of dealers, and then, towards Q1, build up our inventory there, and then hit the road in the summer good next year. We’re going to have, definitely, a couple different new products. There’s another line of grills that’ll be coming, which I’m excited about. The American manufacturing will be closer, so we’ll have … There’s another product that I can’t tell besides the charcoal one that we’ll be coming down with-
Rob Stott: Awesome.
Derek Frye: … and some live fire stuff.
Rob Stott: Awesome.
Derek Frye: So just really, really excited about what the future holds. We’re going to constantly be innovative and always on the forefront of the needle of the industry. And so looking to try to just make lives better for people.
Rob Stott: Yeah. Cool, man. I have to imagine, too, the team of you coming together, co-founders need to stay together and see you guys working together.
Derek Frye: Yeah.
Rob Stott: Right?
Derek Frye: It’s really cool. Brian Pick is our CFO and CLO. Eric Keller is our COO, and Brian is a pretty good … I mean pretty well known in the country as far as an M&A attorney, which helps when you’re dealing with tech companies and things like that and trying to acquire businesses.
Rob Stott: Yeah. For sure.
Derek Frye: Then, Eric Keller has spent, I think, 25 or 30 years in the medical device industry as an engineer.
Rob Stott: Wow. Yeah.
Derek Frye: And so it was funny. The first checklist for quality control that he sent me was like 17 pages long, and I was like, “What is this?” He’s like, “This is just our standard form. That’s not even the long form on the medical device side.”
Rob Stott: Oh my goodness, man. Whoo. What a different industry.
Derek Frye: Yeah. Very, very different when it comes to regulations.
Rob Stott: They are thorough.
Derek Frye: Yeah. Yeah. Yeah, but again, you’re dealing with people’s lives.
Rob Stott: Yeah. I get it.
Derek Frye: I get it. I’m glad.
Rob Stott: Me, too. You know? Now that you mention it, yeah. Make that … Can it be longer?
Derek Frye: That’s exactly right.
Rob Stott: We need a longer checklist.
Derek Frye: That’s exactly right. That’s exactly right.
Rob Stott: No. That’s so good, man. Well, glad you guys are here.
Derek Frye: Yeah.
Rob Stott: Awesome to see the brand in person, and get up close, and touch the product and see it. Look forward to seeing where you all go in the future and how our dealers can take care of the brand.
Derek Frye: Yeah. No. We’re excited to be a part of Nationwide. We’re excited to be working with your dealers, and this isn’t the first time I’ve been with Nationwide individually. And so just, I know what it can do for the brand, and so really excited.
Rob Stott: Awesome. Well, appreciate the time, and get back out there, man.
Derek Frye: Awesome. Thank you so much.
Rob Stott: Have some fun. You bet.
Derek Frye: All right.
