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Josh Kopel | Award Winning Restaurant Consultant

Tobin Ellis: Your Labor Problem Is a Design Problem

What if your biggest profit leak is hiding behind the bar, in the engine your guests never see?

Tobin Ellis spent 30 years behind the stick before he started designing bars for a living. As founder of Studio Barmagic, he’s redesigned everything from NFL stadiums to five-diamond resorts, once lifting a landmark hotel bar’s revenue 131% in a single quarter.

In this conversation, we get into why your labor problem is really a design problem, why the money is made during peak volume instead of slow Tuesdays, and why he builds every bar for the bartender first, the guest second, and the investor last.

If your margins are thin and your weekends are leaving money on the table, this one shows you where to look.

That’s Tobin Ellis. To learn more about his work designing high-performance bars and to grab his book, Bar Design Essentials, visit barmagic.com.

The Playbook Takeaways

  1. Your labor problem is often a design problem. Tobin’s core argument is that understaffing and slow service frequently trace back to how the bar is built, not to who is working it — the physical layout dictates how much labor the job actually requires.
  2. The money is made at peak volume, not on slow Tuesdays. Design decisions should be judged against your busiest hours. A bar that functions on a quiet weeknight but breaks down on a Saturday is leaving the weekend on the table.
  3. Build for the bartender first, the guest second, the investor last. Tobin’s ordering is deliberate: the person working the station determines throughput, throughput determines the guest experience, and the guest experience determines the return.

Want the systems behind ideas like these? Join the free 5-day masterclass at Restaurant Business School.

Keep going: restaurant profitability · technology for restaurants · restaurant consulting

_________________________________________________________

Free 5-Day Restaurant Marketing Masterclass – This is a live training where you’ll learn the exact campaigns Josh has built and tested in real restaurants to attract new guests, increase visit frequency, and generate sales on demand. Save your spot at restaurantbusinessschool.com

About the Author: Josh Kopel is a Michelin-awarded restaurateur, host of the Full Comp podcast, and coach to independent restaurant owners. More about Josh · Learn with Josh

80% of Your Customers Have No Idea What to Order. That’s Your Biggest Revenue Opportunity.

Expert Summary

Every restaurant owner I meet wants more customers. But your biggest revenue opportunity is not outside your four walls. It’s inside them. 80% of the people sitting in your restaurant right now are first-timers who have no idea what to order, no relationship with your brand, and no reason to come back. Internal marketing is the system that changes all three of those things. From enrolling guests into a house account at the table to building a loyalty program rooted in status instead of discounts, these are the tools that turn a one-time visitor into a lifelong customer. Credit card companies figured this out decades ago. It’s time restaurants did too.

Every restaurant owner I talk to wants more customers. More butts in seats. More first-time visitors walking through the door. And I get it. New customers feel like progress.

But here’s what I’ve learned after running my own restaurants and consulting with hundreds of clients: your biggest revenue opportunity is not outside your four walls. It’s inside them.

80% of the people sitting in your restaurant every single day are first-timers. They have no idea what to order. They don’t know how to engage with you. They don’t know how you fit into their life. And when they leave, most of them disappear forever. Not because they didn’t like you. Because you gave them no reason to remember you, no way to stay connected, and no mechanism to come back.

That’s the problem internal marketing solves. Internal marketing is everything you do inside your four walls to increase the value of every customer who already showed up. It’s how you guide their experience, capture their information, and build a relationship that lasts longer than one meal.

The Difference Between Internal and External Marketing

External marketing is about awareness. It’s social media, SEO, press, partnerships. It gets strangers to notice you exist. That’s important, but it’s expensive and unpredictable.

Internal marketing is about conversion and frequency. It takes the person who’s already in your restaurant, already spending money, already having an experience, and turns them into a repeat customer. It costs almost nothing. And the ROI compounds on every single guest, every single day.

Think about it this way. If everyone who came to your restaurant once a month came in twice a month, you’d be rich. You’d be Scrooge McDucking it. You wouldn’t be worrying about Instagram algorithms or Yelp reviews or foot traffic.

Internal marketing is how you get to twice a month.

The problem is most restaurant owners spend 90% of their energy on getting new people through the door and almost none on keeping the people who already walked in. That ratio needs to flip.

Why Your Loyalty Program Isn’t Working

Let’s start with the biggest broken tool in most restaurants: the loyalty program.

Here’s what loyalty looks like at most restaurants. A server walks up and says, “Hey, if you sign up for our mailing list, I’ll give you a free piece of pie.” And the customer thinks, well, you want my name, my email, my phone number, my birthday, and all I get is a single dessert? I feel like a tramp trading my personal information for a piece of pie.

That’s because we’re treating it as a transaction. Sign up, get a freebie. It’s not compelling. It doesn’t make anyone feel seen or special. And your staff won’t ask because they know the pitch is weak. They’re embarrassed by it.

The result is a mailing list that barely grows, a loyalty program nobody uses, and a missed opportunity to build a direct relationship with the people who are already spending money with you.

So who’s figured this out? Not restaurants. Credit card companies.

The Credit Card Playbook: Status Over Discounts

All credit card companies do the same thing for a living. They loan you money at high interest. All restaurants do the same thing. They sell food and beverage at a markup. Both are commodities. But you’re an Amex person or a Chase person, and it says something about who you are.

How do they create that differentiation? Not through points and point redemption. Through status and access to the inaccessible.

People don’t want discounts. They don’t want freebies. They want to feel seen. They want to feel special. They want to feel like they’re part of something. And they want access to things that nobody else can get.

We are the kings and queens of that. We can offer all of it. Can you offer priority reservations on Valentine’s Day or Mother’s Day? Can you have a secret menu that is only available to loyalty members? For those of you flipping your menu seasonally, why not do a preview two hours on a Thursday, from five to seven, with a couple of mini cocktails, so your best customers see the new menu a week before it releases? They’re talking about it on social media. They’re telling their friends. They feel like insiders.

Based on our margins, we can offer incredible perceived value for a very low associated cost. That’s the play. Stop trying to buy loyalty with discounts. Earn it with status and access.

The House Account: The Best Enrollment Script in the Business

Here’s the problem. Your team will not ask people for their personal information because they don’t have anything of value to offer. The free pie pitch is dead. You need something better.

The best tool I’ve built for this is the house account. Here’s how it works.

When you drop the check, you say: “Hey Jason, did you want the money you spent today to go towards your points on your house account?”

Jason says, “What’s a house account? I don’t have a house account.”

You say, “We’ve got this loyalty program. It gets you access to all of these off-menu items and off-calendar events we throw for our best customers. We can’t do it for everybody, so we just do it for the best customers on our mailing list. If it’s something you’re interested in, all I need is your phone number and I can sign you up today.”

Jason gives you his phone number. An hour later, a text message goes out: “We’d love to give you something special on your birthday. Click here to complete your profile.” He enters his first name, last name, email address, and birthday.

You just converted a seated customer into a mailing list member through status and access, not through a transaction. Zero acquisition cost. High perceived value. And now you can market to that person forever.

Why the Birthday Anchor Works

There’s a reason we anchor the follow-up to birthdays. Everyone has a birthday. With the exception of dead people, it’s the one thing that is universally shared. And everyone wants to feel special on their birthday.

When you anchor the enrollment to a birthday gift, you accomplish two things. First, you give them a specific reason to complete their profile. “We can’t send you this gift without your information.” It’s logical. It’s not pushy. It’s service.

Second, you set the expectation that every time you reach out, you’ll be surprising and delighting them with things that no one else can get. That’s the tone for the entire relationship. Not “here’s a coupon.” Not “we’re running a special.” It’s “we have something for you that nobody else gets.”

That expectation changes how people interact with your emails. They open them first because they’re excited. They know you’re going to offer something of inherent value. That’s the difference between a 5% open rate and a 40% open rate.

The Bar Model: VIP Lists That Print Money

The house account works beautifully in full-service restaurants, but it works even better in bar models. When somebody sits down and opens a tab, you say: “I’m going to open a tab for you. Are you on the VIP list? Do you have a house account? Because all of these dollars you spend tonight can go towards points.”

It crushes. It absolutely crushes. Because bar customers are high frequency. They come back weekly, sometimes multiple times a week. And every time they sit down, the enrollment opportunity resets. You’re not asking them to sign up for something they’ll never use. You’re asking them to get credit for money they’re already spending.

The psychology is different from a restaurant enrollment. Bar customers are in a social mood. They’re open. They’re spending freely. And the idea that they could be getting status and access on top of what they’re already doing? That’s a no-brainer.

Once they’re on your list, bar customers become your most engaged audience. They open your emails about happy hour specials, about guest bartender nights, about limited releases. They become the core of your owned audience. And owned audience is the entire game.

Building an Owned Audience from Your Existing Traffic

Think back to the first 90 days you were open. You were busier than you’d ever been. Momentum was high. People were excited. Now let me ask you this: do you have the name, phone number, email address, and birthday of every person who walked through your door during that period?

Of course you don’t. None of us did. And that’s the tragedy. Because those people wanted to love you. They showed up during the honeymoon phase. And you let them walk out without any way to bring them back.

The best time to start building your list was the day you opened. The second best time is today.

Internal marketing starts with capturing every guest who walks through your door. Not with a fishbowl and a business card drawing. Not with a QR code on the table that nobody scans. With a human being looking another human being in the eye and saying, “Did you want this to go towards your house account?”

That’s the enrollment moment. It happens at the check drop, when the customer has just had their experience, when they’re feeling good about the meal, when they’re most receptive to deepening the relationship. The timing is intentional. Everything about this system is intentional.

The Memory Problem: Why Frequency Beats Acquisition

How often do you think about your favorite restaurant? Never. You love them. You’d go back in a heartbeat. But they don’t cross your mind because life is busy and your brain is full.

People don’t have a loyalty problem. They have a memory problem. And what you’re there to do is remind them of how you fit into their lives. Remind them of the one thing you do that nobody else does. Remind them that you exist.

That’s what the mailing list is for. Not to spam people with promotions. To stay top of mind with the people who already love you. Every email you send should reinforce one message: here’s what we’re best in the world at, here’s what you can get from us that you can’t get from anyone else, and here’s why this month is the month to come back.

One great reason per month. Not five mediocre ones. When you offer a lot of things, people go, “That all sounds really good,” and then they delete the email because it’s overwhelming. Instead of offering three options, offer three reasons to do one thing. And that one thing should be your absolute best offer rooted in what you already know works.

If everyone on your mailing list came in once because the offer was so good, you’d be set. That’s the math. One great offer. Every month. To an audience you own.

Advocacy at the Table: The Language That Changes Everything

The final piece of internal marketing is the most human one. It’s what your team says when they’re standing in front of a guest.

Your staff can’t sell. Or they won’t sell. Or they’re afraid to sell. And the reason is simple: sales feels dirty. Nobody wants to feel like that greasy car salesman pushing the extended warranty.

But here’s the reframe. What you call upselling, I call advocacy. And advocacy isn’t selling. It’s service. When 80% of your customers are first-timers who don’t know what to order, guiding them toward the best version of their experience isn’t a sales pitch. It’s the highest form of hospitality you can offer.

When your server says, “Most guests start with our cheese curds while they look at the menu,” that’s not upselling. That’s helping someone who has incomplete information make a better decision. Give your team permission to guide rather than list, and give them permission to accept “no” without guilt. That’s the difference between advocacy and salesmanship.

Internal marketing is this entire ecosystem working together. The advocacy at the table creates a better experience. The better experience creates a receptive customer. The receptive customer enrolls in the house account. The house account becomes a mailing list. The mailing list drives frequency. And frequency is where the real money lives.

Your 7-Day Internal Marketing Action Plan

Day 1: Audit your current capture rate. How many of your seated customers are you converting into mailing list members today? If you don’t know the number, it’s probably close to zero. That’s your baseline.

Day 2: Build your house account script. Write the exact language your team will use at check drop. “Did you want the money you spent today to go towards your house account?” Roleplay it. Make it natural. Make it feel like service, not a sales pitch.

Day 3: Set up the automated follow-up. When a phone number comes in, an automated text should go out within an hour asking them to complete their profile for a birthday gift. If you don’t have a system for this, get one today. This is non-negotiable infrastructure.

Day 4: Design your status and access benefits. What can you offer loyalty members that nobody else gets? Secret menu items, early access to seasonal menus, priority reservations on holidays, off-calendar tastings. Write down five things that cost you almost nothing but feel exclusive.

Day 5: Train your team. Teach advocacy, not salesmanship. Show them the language of guiding rather than listing. Show them the house account script. Roleplay it until it feels natural. The goal is that every single check drop includes the house account question.

Day 6: Plan your first loyalty-only activation. Give your mailing list one great reason to come in this month. Not a discount. An experience they can’t get anywhere else. A menu preview. A chef’s table night. A secret menu item. Make them feel like insiders.

Day 7: Track your numbers. How many house account sign-ups did you get this week? What’s your enrollment rate as a percentage of total covers? That number is the leading indicator of everything that follows. If it’s growing, your internal marketing engine is working.

None of this costs money. All of it makes money. The customers are already in your restaurant. The only question is whether they leave as strangers or as members of your community. Money likes speed. Start today.

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Frequently Asked Questions

What is internal marketing for restaurants?

Internal marketing is everything you do inside your four walls to increase the value of every customer who already showed up. It includes guiding their experience through advocacy, capturing their information through house account enrollment, and building a relationship through status-based loyalty programs. The goal is to turn a one-time visitor into a repeat customer without spending a dime on advertising.

How does the house account enrollment script work?

When dropping the check, ask: “Did you want the money you spent today to go towards your points on your house account?” When they ask what that is, explain it’s a loyalty program with access to off-menu items and exclusive events for your best customers. All you need is a phone number. An hour later, an automated text goes out asking them to complete their profile for a birthday gift. You’ve converted a seated customer into a mailing list member through status, not a transaction.

Why should restaurants model their loyalty programs after credit card companies?

Credit card companies and restaurants are both commodities. They all do the same thing. But you’re an Amex person or a Chase person because those brands create differentiation through status and access to the inaccessible. Restaurants can do the same thing: secret menus, priority holiday reservations, early access to seasonal releases, off-calendar tastings. People don’t want discounts. They want to feel seen and special. Status costs you almost nothing and creates loyalty that discounts never will.

How do I get my staff to actually enroll customers in the loyalty program?

Give them something worth offering. The reason your team won’t ask for personal information is that they have nothing of value to offer in return. A free piece of pie isn’t enough. But access to off-menu items, exclusive events, and VIP treatment? That’s a pitch worth making. Train them on the exact language, roleplay it until it’s natural, and track enrollment numbers so there’s accountability.

What’s more important for revenue: new customer acquisition or customer frequency?

Customer frequency. If everyone who came to your restaurant once a month came in twice a month, you’d be rich. People don’t have a loyalty problem. They have a memory problem. Internal marketing solves the memory problem by building an owned audience you can reach directly. One great offer per month to an engaged mailing list will generate more revenue than any social media campaign or advertising spend.

Helen Johannesen: Ownership Isn’t the Win You Think

What if owning a restaurant isn’t the win you think it is, but a risk most people misunderstand?

Helen Johannesen didn’t just step into ownership, she sacrificed for it. Walking away from financial stability and taking a major pay cut, she bet on herself and a single restaurant that could have gone either way. Today, she’s a partner behind one of LA’s most respected hospitality groups and the force behind a wine brand built on trust, not intimidation.

In this conversation, we unpack what ownership really demands, and why it’s not a universal path. Helen breaks down the illusion of revenue versus profit, why equity isn’t the right incentive for most teams, and how she built a wine program that rejects exclusivity in favor of access. 

If you’re chasing ownership—or questioning it—this episode will force a reset.

To explore her selections and join the club, visit helenswines.com.

The Playbook Takeaways

  1. Ownership is a risk most people misunderstand, not a finish line. Helen walked away from financial stability and took a major pay cut to buy in. She’s explicit that ownership is not a universal path — it’s a trade, and the trade isn’t right for everyone.
  2. Revenue is not profit, and confusing the two is the trap. A restaurant can post impressive top-line numbers and still fail to pay its owner. Helen treats the gap between the two as the thing operators most consistently misread about their own businesses.
  3. Equity is the wrong incentive for most teams. Rather than defaulting to ownership stakes as a retention tool, Helen argues most team members are better served by other structures — equity only motivates people positioned to benefit from it.

Want the systems behind ideas like these? Join the free 5-day masterclass at Restaurant Business School.

Keep going: restaurant profitability · restaurant business plan · restaurant consulting

_________________________________________________________

Free 5-Day Restaurant Marketing Masterclass – This is a live training where you’ll learn the exact campaigns Josh has built and tested in real restaurants to attract new guests, increase visit frequency, and generate sales on demand. Save your spot at restaurantbusinessschool.com

About the Author: Josh Kopel is a Michelin-awarded restaurateur, host of the Full Comp podcast, and coach to independent restaurant owners. More about Josh · Learn with Josh

Brendan and Bianca Shah: Collaborate, Don’t Compete

What if the smartest thing you can do with your single biggest advantage is hand it to the competition?

Brendan and Bianca Shah run Chado Tea Room and the wholesale arm, International Tea Importers, the family business their father Devan built into one of the engines of America’s specialty tea culture. When he died in 2016, the two of them inherited a company that lived entirely in his head and rebuilt it from first principles.

In this conversation, we get into why selling their best tea to direct competitors grew the entire category and made the brand their real moat, how the wholesale and retail sides power a single flywheel, and why paring a 300-tea catalog down to its essentials is what unlocks growth.

If you’re competing on product alone, this shows you what it looks like to build something nobody can copy.

That’s Brendan and Bianca Shah. To learn more about Chado Tea Room, visit chadotea.com.

The Playbook Takeaways

  1. Selling to your competitors can grow the whole category. Handing their best tea to direct competitors expanded the specialty tea market — and made the brand, not the product, the real moat.
  2. Get the business out of one person’s head. When their father Devan died in 2016, the company existed almost entirely in his memory. Rebuilding it from first principles is what made it operable by someone else.
  3. Cutting the catalog unlocked growth. Paring a 300-tea list down to its essentials is what freed the business to scale instead of just getting bigger.

Want the systems behind ideas like these? I’ve turned six years of Full Comp interviews into a free 5-day masterclass on building a restaurant marketing system that actually makes you money. Join the free masterclass →

Keep going: Restaurant Marketing Strategies That Actually Work · How to Build a Restaurant Business Plan · What a Restaurant Consultant Actually Does

_________________________________________________________

Free 5-Day Restaurant Marketing Masterclass – This is a live training where you’ll learn the exact campaigns Josh has built and tested in real restaurants to attract new guests, increase visit frequency, and generate sales on demand. Save your spot at restaurantbusinessschool.com


About the Author: Josh Kopel is a Michelin-awarded restaurateur, restaurant consultant, and host of the Full Comp podcast — the voice of the restaurant industry. He has helped hundreds of restaurant owners build profitable, scalable businesses. Explore free restaurant resources →

You Don’t Sell Food and Beverage. You Sell Seats. And That Changes Everything.

Expert Summary

What industry most closely parallels the restaurant business? It’s not retail. It’s not theater. It’s the airline industry. Delta sells seats on a plane. Your restaurant works the same way. Before you can optimize anything, you need to answer one question: are you in the manufacturing business or the experience business? A deli with servers is solving the wrong problem. At South City, during peak lunch, speed IS the hospitality. At Preux & Proper, every second was choreographed for a $125 experience. Most restaurants are confused about which one they are, and that confusion is killing their profitability.

What industry most closely parallels the restaurant business? It’s not retail. It’s not theater. It’s the airline industry.

What does Delta sell? Not hospitality. Not travel. Not convenience. Delta sells seats on a plane. And they’ve become best in the world at getting you on and off that plane as efficiently as possible.

Your restaurant works the same way. How much more money would you make off one more bar stool? One more table? Not on a Tuesday when you’re half full – but when you’re busier than you can handle and it’s 7:30 on a Saturday night. That’s your highest-margin inventory, and you’re almost certainly not maximizing it.

We think of inventory as food and beverage. We need to think about tables and chairs. You do not sell food and beverage. You sell a seat at a table for a defined period of time.

Once you internalize that truth, every strategic decision in your business becomes clearer. Your menu, your pricing, your service model, your staffing – all of it flows from understanding what you’re actually selling.

The Question That Changes Your Entire Strategy

Before you can optimize anything in your restaurant, you need to answer one question: what business are you actually in?

There are fundamentally two types of restaurant businesses. You’re either in the manufacturing business or the experience business. Most restaurants are confused about which one they are. And that confusion is the root cause of most of their problems.

There’s a deli down the street from me that I talk about all the time. They have servers that take care of every table – and I put “take care of” in air quotes because they do a terrible job. They have servers because they think they’re in the experience business. But I don’t go to that deli for the experience. I go for the Reuben. That’s why I go.

If they wanted to offer me an exceptional experience based on why I actually use them, they would put a tablet on the table. They would let me order on my phone. I shouldn’t have to wait because they’re deeply understaffed, because nobody wants to work there, because they can’t make enough money – because they think they’re in the experience business when they’re actually in the manufacturing business.

Most fast casual and quick service concepts are manufacturing businesses pretending to be experience businesses, and it’s killing their throughput.

Manufacturing Business: When Speed IS the Hospitality

At my fast casual fried chicken concept, South City, we had what LA Weekly rated the best fried chicken sandwich in the city. But when it took 20 minutes to get it into someone’s hands, the best sandwich in the world tasted like garbage.

Why? Because it ruined their lunch hour. They had 60 minutes. It took 15 minutes to get there and 15 to get back. That left 30 minutes – and 20 of those were spent waiting. By the time they got the sandwich, they were frustrated, rushed, and couldn’t enjoy it.

So during our peak lunch window – 11:30 to 1:30 – we pushed everyone to kiosks. Not because we didn’t value hospitality. Because during that manufacturing window, speed IS the hospitality. Any other time, you could order from a person. But during peak, the kiosk made you faster, which made your lunch better.

That’s a manufacturing business operating with manufacturing logic. The product is the draw. The speed is the service. Every second of delay is a hidden expense that degrades the customer experience.

If you’re in the manufacturing business, here’s what matters: throughput. How many people can you serve per hour? How quickly can you get the product into their hands? How do you eliminate every friction point between the customer wanting to order and the customer eating?

Your menu should be simple. Your ordering process should be frictionless. Your kitchen should be optimized for speed. Every element of your operation should be designed to move people through as efficiently as possible – not because you don’t care about them, but because speed is what they came for.

Experience Business: Choreographing Every Second

I took my wife to Katana in Los Angeles for one of our wedding anniversaries. It’s a sushi concept on Sunset Boulevard that’s been around forever. We had an absolutely amazing experience. Here’s what it looked like.

We walk in. They say, “Happy anniversary.” They seat us. They ask if we want the wine list. We said water is fine. Flat, sparkling, or tap? Tap. Salt of the earth people. The server walks up, walks us through the menu, tells us the chef would prefer they take the entire order at once and then course it out. So we do.

They coursed it out perfectly. At the conclusion, they pre-bussed the table. Offered dessert. We passed. They asked if we wanted refills on water. We said no. So they removed the empty water glasses. Brought the check. I paid. They removed the check. And eventually we got up.

The reason we got up was that it was just me and my wife sitting at an empty table with a candle on it. The entire experience took 45 minutes.

It wasn’t rushed. It was perfect. Every course arrived at the right moment. The table was cleared naturally. The check appeared seamlessly. When we were sitting at an empty table with just a candle, we knew it was time to go. And they knew that.

That’s an experience business operating with experience logic. The product matters, but it’s the choreography that creates the value. Every second is intentional. The pace is controlled. The customer feels taken care of without feeling managed.

The Danger of Mixing Business Models

The biggest strategic mistake I see in restaurants is operating one business model while thinking you’re in the other.

When the deli puts servers on the floor, they’re adding the overhead and complexity of an experience business to a manufacturing operation. Now they need more staff. They need a higher price point to cover that staff. But their customers came for a Reuben, not an experience. So the higher prices feel unjustified, the service is mediocre because they can’t afford great servers at that margin, and everyone loses.

The reverse is equally dangerous. When an experience restaurant tries to maximize throughput like a manufacturing business – rushing tables, cutting corners on service, compressing the dining experience – they destroy the very thing that justifies their pricing. The customer came for the experience. If you take that away, all they see is an overpriced meal.

At Preux & Proper, with a per-customer average of about $125, the experience had to justify that number. Everything from the greeting to the coursing to the closing sequence was choreographed. We weren’t trying to turn tables fast. We were trying to make every minute so valuable that $125 felt like a steal.

But at South City during lunch, trying to create a “dining experience” would have been insane. People had 30 minutes to eat. They wanted the best fried chicken sandwich in LA, and they wanted it now. The manufacturing model – kiosks, speed, efficiency – was the right answer for that customer at that time.

Your Business Model Can Change by Daypart

Here’s a sophistication most restaurants miss. You don’t have to be one thing all day. Your business model can shift based on the daypart and the customer’s intent.

At South City, during the peak lunch window from 11:30 to 1:30, we were a manufacturing business. Kiosks. Speed. Throughput. Every second counted because people were on the clock.

Outside of that window, you could order from a person. The pace was more relaxed. The intent was different – people weren’t racing against a lunch hour. They were enjoying a meal.

At my Hollywood bar, we pulled the stools away from the bar at 9 PM on weekends. During the week, they lived there permanently. But on a Saturday night, seated bar guests made it harder for standing customers to order. Standing customers with cash in hand were higher-velocity revenue. The stools were literally slowing down our highest-margin hours.

Same business. Different model for different times. The bar was an experience business on a Wednesday evening and a manufacturing business on a Saturday night. And we optimized accordingly.

Product Market Fit: Do They Know and Not Care, or Do They Not Know?

When it comes to awareness, you’re trying to solve for one of two things. Do you have a product market fit issue, or is it actually an awareness issue? Does everybody know but nobody cares? Or does nobody know, but if they knew, they would care?

Chef Brad Wise’s Rare Society started as a boilermaker bar that lost money consistently for two years. Then he figured out he had a product market fit issue. The concept didn’t match what the market wanted. Once that was solved, it became about awareness. There are now Rare Society locations up and down the West Coast – all built off the back of what was originally a failed concept.

If your business model doesn’t match what the market wants, no amount of marketing will fix it. Marketing amplifies what already works. It doesn’t fix what’s broken. Before you spend a dollar on awareness, make sure you’re selling the right thing to the right people in the right way.

Easy Street in Studio City, California started in a parking lot with a tent. A single-unit burger joint owned and operated by two people without a huge management team. They generate $400,000 a month at a 34% margin from that single unit. Why? Because the product market fit is perfect. The business model is clear. And the execution is focused.

The Blended Model: How Three Revenue Streams Create 20% Margins

One of the things I talk about with every client is hitting a 15 to 20% net margin. And people always ask, “How do you do it if we never talk about cost controls?”

The answer is a blended average. You work at 10 to 12% in-house, but then you supplement that with 30% margins on events, catering, and gift cards. That blended average puts you right at 20%.

Think about what you don’t carry with catering and events compared to in-house dining. You’re not paying for the full theater of a restaurant experience during those transactions. The margin structure is fundamentally different. And when you stack that on top of your existing infrastructure – same kitchen, same staff, same fixed overhead – the incremental cost is minimal.

My restaurants existed only to promote my catering and events business. Because that’s where the money was. That’s where the volume was. That’s where the margin was. The dining room was the marketing engine. The events and catering were the profit engine.

Sodici Pizza in Brownsville, Texas started as a single restaurant doing $1.4 million a year open four days a week. When we maximized the in-house profitability, there wasn’t another dollar to get. So Dante launched a catering operation. Today he sits on a $2.5 million operation pushing 25% net profit – a single-unit restaurant plus a catering arm.

That’s a business model that’s been intentionally designed. In-house dining runs the brand. Events and catering run the profit. Both are necessary. Neither works alone.

Your 7-Day Business Model Clarity Plan

Day 1: Answer the question. Are you in the manufacturing business or the experience business? If people come to you for speed and convenience, you’re manufacturing. If they come for the ambiance, service, and occasion, you’re experience. Be honest about which one you actually are, not which one you wish you were.

Day 2: Audit your operations against your model. If you’re manufacturing, are you optimized for speed? If you’re experience, are you choreographing every moment? Write down every place your operations fight your actual business model.

Day 3: Evaluate by daypart. Does your lunch customer want the same thing as your dinner customer? Should your service model, your menu, or your pricing change between dayparts? Most restaurants run one model all day when they should be running two.

Day 4: Check your product market fit. Does everybody know about you but nobody cares? Or does nobody know? If the former, you have a product market fit issue that marketing can’t fix. If the latter, you have an awareness issue that’s relatively easy to solve.

Day 5: Calculate your blended margin. What percentage of your revenue comes from in-house dining vs events, catering, and gift cards? If in-house is running at 10 to 12%, what does your total margin look like when B2B revenue at 30% represents 20% of total revenue? 30%? That number changes everything.

Day 6: Identify what your restaurant is best in the world at. Not what you do. What you do better than anyone else. That’s your category of one. Every strategic decision should reinforce that position. Everything else is a distraction.

Day 7: Align everything. Menu, pricing, service model, staffing, marketing – all of it should flow from your business model. If anything is fighting your model, fix it this week. Clarity creates speed, and money likes speed. Start today.

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Frequently Asked Questions

How do I know if my restaurant is a manufacturing or experience business?

Ask why your customers come to you. If they come for speed, convenience, and a specific product, you’re in the manufacturing business and should optimize for throughput. If they come for the ambiance, service, and occasion, you’re in the experience business and should choreograph every second. Most fast casual and quick service concepts are manufacturing businesses pretending to be experience businesses, and it’s killing their throughput.

Can my restaurant be both manufacturing and experience at different times?

Absolutely. At South City, during peak lunch from 11:30 to 1:30, we pushed everyone to kiosks because speed was the hospitality. Outside that window, you could order from a person. At a Hollywood bar, bar stools came out at 9 PM on weekends because standing customers were higher-velocity revenue. Your business model can and should shift based on the daypart and the customer’s intent.

What’s the difference between a product market fit issue and an awareness issue?

A product market fit issue means everybody knows about you but nobody cares. An awareness issue means nobody knows, but if they knew, they would care. Rare Society lost money for two years as a boilermaker bar before figuring out the concept didn’t match the market. Once the product market fit was fixed, awareness solved everything. Marketing amplifies what works. It doesn’t fix what’s broken.

How do restaurants achieve 15 to 20% net margins?

Through a blended average. In-house dining typically runs at 10 to 12% margins. Events and catering run at 30%. Gift cards carry even higher margins due to breakage. When you blend these revenue streams, your overall margin rises to 15 to 20% without cutting a single cost. The dining room is your marketing engine. Events and catering are your profit engine.

What does it mean to sell seats instead of food?

The airline industry is the closest parallel to the restaurant business. Delta sells seats on a plane and optimizes getting you on and off as efficiently as possible. Your restaurant sells seats at tables for defined periods of time. Food and beverage are the mechanism, but seats are the actual inventory. Understanding this changes how you think about pricing, flow, and capacity utilization.

Jeremy Lett: The Product Failed, Not You

What if the real thing holding your restaurant back is your refusal to trust your own taste?

Jeremy Lett spent 26 years at Bloomin’ Brands building food for Outback, Carrabba’s, Fleming’s, and Bonefish before taking over innovation at Cracker Barrel, a 650-unit institution he joined right as the brand was weathering its biggest public firestorm in decades.

In this conversation, we get into why a great menu grows through subtraction, how to separate a product failing from you failing, and why your taste, earned over thousands of reps, is the one competency no spreadsheet can replace.

If you’re sitting on a concept people respect but won’t repeat, this one will show you where to cut and what to trust.

To learn more about his work leading culinary innovation and product development at Cracker Barrel, visit crackerbarrel.com.

The Playbook Takeaways

  1. A great menu grows through subtraction. Jeremy’s argument is that menus get stronger when you cut items, not when you keep bolting new ones on.
  2. Separate the product failing from you failing. A dish that doesn’t land is a result about the product, not a verdict on your judgment as an operator.
  3. Your taste is a real competency. Taste earned over thousands of reps is the one input no spreadsheet can replace — use it when the numbers are ambiguous.

Want the systems behind ideas like these? I’ve turned six years of Full Comp interviews into a free 5-day masterclass on building a restaurant marketing system that actually makes you money. Join the free masterclass →

Keep going: Restaurant Concepts and Menu Ideas That Are Working Now · How to Improve Your Restaurant Profit Margin · What a Restaurant Consultant Actually Does

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Free 5-Day Restaurant Marketing Masterclass – This is a live training where you’ll learn the exact campaigns Josh has built and tested in real restaurants to attract new guests, increase visit frequency, and generate sales on demand. Save your spot at restaurantbusinessschool.com


About the Author: Josh Kopel is a Michelin-awarded restaurateur, restaurant consultant, and host of the Full Comp podcast — the voice of the restaurant industry. He has helped hundreds of restaurant owners build profitable, scalable businesses. Explore free restaurant resources →

Seth Gerber: Your Restaurant Is a Factory

What if you can’t actually manage your people, and every hour you spend trying is the reason your restaurant won’t scale?

Seth Gerber co-owns MIDA, a six-restaurant Italian group out of Boston, and was a 2024 James Beard semifinalist for Best Restaurateur. He came up through Hillstone, earned his sommelier pin and an MBA, and treats outlearning everyone in the room as his only real edge.

In this conversation, we get into why you manage the structure people work in and never the people themselves, why the cinematic version of risk that bets it all on one move is a fantasy that quietly ruins operators, and why the best restaurateurs grow slower than their egos want them to.

If you’re grinding inside your business and still feel like the bottleneck, this one tells you where the real problem is.

To learn more about MIDA and their growing collection of neighborhood Italian restaurants, visit midarestaurant.com.

The Playbook Takeaways

  1. Manage the structure, not the people. Gerber’s core argument is that you shape the systems and structure your team works inside — you never try to manage the individuals themselves.
  2. The all-in bet is a fantasy. The cinematic version of risk that wagers everything on one dramatic move is what quietly ruins operators; durable growth comes from refusing to make it.
  3. Grow slower than your ego wants. The best restaurateurs deliberately expand more slowly than their ambition pushes them to — disciplined pace beats speed.

Want the systems behind ideas like these? I’ve turned six years of Full Comp interviews into a free 5-day masterclass on building a restaurant marketing system that actually makes you money. Join the free masterclass →

Keep going: The Complete Restaurant Consulting Guide Restaurant Business Plan Guide Restaurant Profitability Playbook

_________________________________________________________

Free 5-Day Restaurant Marketing Masterclass – This is a live training where you’ll learn the exact campaigns Josh has built and tested in real restaurants to attract new guests, increase visit frequency, and generate sales on demand. Save your spot at restaurantbusinessschool.com

About the Author: Josh Kopel is a Michelin-awarded restaurateur, restaurant consultant, and host of the Full Comp podcast — the voice of the restaurant industry. He has helped hundreds of restaurant owners build profitable, scalable businesses. Explore free restaurant resources →

Your Event Clients Don’t Want a Deal. They Want to Not Get Fired. Here’s How to Close Them.

Expert Summary

The people who professionally book catering and events are very nervous people. They’re not looking for you to give them a deal. More than anything, they’re looking to not get fired. Their performance review is going to be influenced by how the event goes – and that outcome depends on someone who is not them. What you’re selling isn’t food and beverage. It’s confidence. If you reply to an inquiry within one minute, you are 391% more likely to close that client. Here’s the complete system for closing event business – from understanding the buyer to stopping their prospecting process to the hand-raising email that turns your B2C list into B2B gold.

To sell anything effectively, you need to understand the people you’re selling to. And the people who professionally book catering and events are very nervous people.

Think about it. Imagine you’re setting up a holiday party for everybody at your company, and your overall performance review is going to be influenced by how it goes. The final sentiment at the close of the year is going to be rooted in the performance of someone that is not you – the restaurant or caterer you chose.

These people are not looking for you to give them a deal. They’re not trying to save money. More than anything, they’re looking to not get fired.

People only book for one of two use cases. Either they’re booking for people who give them money, or for people they’re directly related to. They don’t want to disappoint their boss, just like they don’t want to disappoint their mother-in-law.

What you’re selling isn’t food and beverage. It’s not events and catering. What you’re selling is confidence. And confidence comes from making the buyer feel like everything is handled, everything is going to be perfect, and they’re going to look great for choosing you.

Stop Waiting for the Phone to Ring

Here’s where most restaurants fail with catering and events. They wait for inbound inquiries. They put a “Private Events” tab on their website and hope someone fills out the form. Hoping for someone to fix your problems for you is not a great strategy.

I want you to think in terms of leverage. What are high-leverage activities you can do that will guarantee you more money? And the answer is outbound. Cold calling and cold emailing people who are more than likely going to do the thing you’re trying to sell them into.

Companies are going to order catering. They’re going to throw holiday parties. They’re going to host client dinners. The only question is whether they do it with you or with someone else. B2B is a more predictable sales cycle. You’re not trying to sell people something they don’t want. You’re trying to convince them to do something they’re already going to do – just do it with you.

I had a client in Miami who runs a fine dining restaurant. She reaches out and says, “We need to sell $500,000 worth of events by the end of the year.” And it’s September. Challenge accepted.

For her to sell $500,000 in events at her tier, she needed roughly 100 events at $5,000 each. We subtracted her current events and fence-sitters. That left 75 new events needed. At a 5% close rate, she’d need to reach 1,500 businesses. Based on the timeline, we had roughly 30 business days. So she committed to 50 calls a day.

She sold $500,000 in events in about 20 business days. Not 30. Twenty. Because her targeting got better. Her close rate improved. Her pitch improved. She iterated over time. She actually stopped before reaching 1,500 businesses because she was already at capacity.

Speed Kills the Competition: Why One Minute Changes Everything

Here’s a question. When somebody reaches out to book on your website, how quickly do you get back to them? 24 hours? 48 hours?

The goal is one hour. But here’s the real statistic. If you reply to somebody within one minute of them filling out a form, you are 391% more likely to close that client.

One of the first things we do with all of our clients is replace the forms on their website with automation-backed forms. When somebody fills out a form, it immediately replies via text: “Hey, this is Josh. I want to let you know we got your inquiry and we’re working on it now. I’m going to follow up with you in less than five minutes with a couple of follow-up questions.”

Then four minutes later, an automated email goes out with specific questions we could have asked on the form but didn’t. Why didn’t we ask them on the form? Because we’re trying to engage in an authentic way.

Here’s what I figured out about my own business. When people reach out with an inquiry, they don’t want to book an event with you specifically. They just want to book an event. Period. Your goal is to stop their prospecting process. Make the inquiry they send you the last one they make, because you seem like you’re on top of it.

This works especially well in our industry because most restaurants aren’t aware of these automations. So it feels like a high level of service without tech getting in the way.

The Hand-Raising Email: Turn Your B2C List Into B2B Gold

Here’s a strategy that has generated massive results for my clients. How many people on your mailing list own businesses or work for businesses that could host a private event? How many of them work for companies that do catering all the time?

You don’t know. You can’t sort your list that way. So we use something called a hand-raising email to pull the B2B prospects out of your B2C list.

Instead of saying “Did you know we do corporate catering?” – which is talking about yourself with no benefit – we give it away. Here’s how it works.

We send an email to the entire list: “We are so excited about our new private events program. We’ve upgraded it this year, and to celebrate, we’re going to give away a complimentary holiday party to someone on this list for up to 250 people. To enter, reply with your name, business name, business website, total number of people, and the person who’ll be managing the event.”

Then we get a flood of responses. And I don’t know how this is possible, but it seems like every single time, the winner is the person with the fewest number of employees.

Then I send out a bulk message to everyone: “Congratulations to Lulu, she won, and we’re so happy to serve her. For those of you that didn’t win, I want you to feel like winners too. I’m going to be reaching out directly.”

Then I reach out to each person individually. “Hey Adam, you lost, but you’re not a loser. You’re a winner to me. And you still have this holiday party that you need to book for 150 people on December 19. I’d love to host it for you. Why don’t we connect, and I’ll go through all the things we can do. I assure you, I can plus up the event to the point where you feel like a winner too.”

It works. It works really well. Because they already opened your emails. They already know, like, and trust you. They already told you they have an event to plan. Now you’re just going to plan it together.

Who to Target: The Law Firm Lesson

I worked at a law firm for about six months until I got fired. I’ve been fired from literally every job I’ve ever had, which is why I was forced into entrepreneurship at 24 years old. But when I worked for that law firm, the only thing I was qualified to do was order lunch for them.

Here’s what I found. Number one, they wanted variety. Number two, they had no budget – because they were always billing it back to the client.

So when I started South City fried chicken and began building our corporate catering strategy, I went straight to law firms. Then accounting firms. Then economics firms. Any large office where I knew they were billing catering back to clients.

Most law firms cater. They cater all the time. They can’t stop catering because they don’t have a budget – they bill it back. When I worked at that law firm, they ordered catering five days a week, and all they cared about was that it was delicious.

Today, we use targeting systems to create prospecting lists based on proximity, industry, headcount, and then rank them by their perceived capacity to pay. If you just started by making 20 calls a day, five days a week, you’d be making hundreds of calls a month. And it would directly translate to more money in your pocket.

The Offer That Makes Them Feel Like a Fool to Say No

There’s a trick to offer creation that I learned from Alex Hormozi’s work on million-dollar offers. You offer a binary choice where one option is so good that the person would feel like a fool if they didn’t take you up on it. That’s how good your offer has to be.

For event proposals, this means your presentation needs to make the buyer feel like everything is handled before they’ve even committed. When you respond in under a minute, when your follow-up is personalized and specific, when your proposal demonstrates that you understand exactly what they need – you’re not just offering a venue. You’re offering certainty.

Remember what these buyers want. They want to not get fired. They want to look great for choosing you. They want zero surprises. Your proposal, your communication speed, your follow-up system – all of it should reinforce one message: we’ve got this handled, and you’re going to look great.

When you pair that confidence with a best-in-class proposal that shows exactly what the experience will look like, the buyer’s decision becomes easy. They stop prospecting. They stop comparing. They book with you because the risk of choosing someone else feels higher than the risk of choosing you.

Making Event Revenue Recurring: The Annual Compounding Effect

Here’s the thing about private events and catering that most restaurant owners don’t realize. They’re annual occurring revenue when you do them the right way. If somebody has their holiday party with you and you don’t screw it up, why would they experiment? It becomes part of their tradition. It becomes part of their routine. It compounds over time.

The same applies to regular corporate catering. Law firms I’ve worked with order catering five days a week. Once you’re their vendor, switching is friction they don’t need. The key is not screwing up the first one and following up consistently.

My events and catering business went from $250,000 in inbound revenue to $1.6 million in under three years. And it only grew from there. The reason it grew was compounding – every year, the repeat clients came back, and the outbound engine kept adding new ones on top.

The Dundee Dell in Omaha, Nebraska – literally the oldest bar in Omaha – saw private events skyrocket by over 100% compared to the previous two years after implementing these strategies. Marquise Steakhouse in Milton, Ontario increased the average price of their private events by 50% and doubled their event bookings.

These aren’t flukes. These are the predictable results of having best-in-class assets, an outbound system, and the discipline to make the calls.

Your 7-Day Event Closing Action Plan

Day 1: Set up automated response. Replace the forms on your website with automation-backed forms that send an immediate text response and a follow-up email within five minutes. If you reply within one minute, you’re 391% more likely to close. Make your response the reason they stop shopping.

Day 2: Reach out to every past client. Contact every past event and catering client you’ve ever had. Invite them in for lunch or dinner. Say, “We appreciate you. Curious to know – do you have anything coming up on the horizon?” They already know, like, and trust you. Bridge the gap and restart the conversation.

Day 3: Build your targeting list. Identify law firms, accounting firms, and large offices within your delivery radius. Focus on businesses that bill catering back to clients. Create a list of at least 100 prospects to start.

Day 4: Draft your hand-raising email. Write an email to your existing mailing list offering a complimentary event to one lucky winner. This pulls B2B prospects out of your B2C list without any hard selling. You’ll know exactly who has events to plan.

Day 5: Start making calls. Commit to 20 outbound calls per day. That’s hundreds of calls per month. Track your leading indicators – calls made, emails sent – not just revenue. The math works when you work the math.

Day 6: Audit your response speed. Time how long it takes your team to respond to an inbound event inquiry right now. If it’s more than an hour, fix it. The inquiry they make with you should be the last one they make.

Day 7: Do the math. Calculate what your business looks like with a blended margin. If in-house runs at 10 to 12% and events and catering run at 30%, what does your total margin look like when B2B represents 20% of your revenue? 30%? 40%? That number is your north star.

How much does all of this cost? Not a dime. It costs time and intention. And the ROI is the fastest money you’ll ever make in the restaurant business. Money likes speed. Start today.

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★★★★★ Rated 5/5 by 1,000+ restaurant owners

Frequently Asked Questions

What are corporate event bookers really looking for when they choose a venue?

They’re looking to not get fired. Their performance review will be influenced by how the event goes, and the outcome depends on you – someone who is not them. They’re not looking for a deal. They’re looking for confidence that everything will be handled perfectly and they’ll look great for choosing you. Sell certainty, not food.

How fast should I respond to event inquiries?

Within one minute if possible, and no more than one hour at the absolute maximum. Data shows that responding within one minute makes you 391% more likely to close the client. Use automation-backed forms that send an immediate text and a follow-up email within five minutes. The goal is to stop their prospecting process and make your response the last inquiry they need.

What is a hand-raising email and how does it work for event sales?

A hand-raising email pulls B2B prospects out of your B2C mailing list. You offer a complimentary event to one lucky winner and ask people to reply with their name, business, headcount, and event date. Everyone who responds has just told you they have an event to plan. Then you reach out individually to the non-winners and offer to host their events. It works because they already know, like, and trust you.

Who should I target for outbound catering and event sales?

Start with law firms, accounting firms, and large offices near your restaurant – businesses that bill catering back to clients and therefore have no real budget ceiling. Law firms in particular cater constantly, often five days a week. Build prospecting lists based on proximity, industry, and headcount, then rank by their perceived capacity to pay. Twenty calls a day translates directly to more money.

How do I make event revenue recurring instead of one-time?

Private events are annual occurring revenue when you execute them well. If a company has their holiday party with you and you don’t screw it up, it becomes tradition. They won’t experiment. The same applies to regular corporate catering – once you’re the vendor, switching is friction nobody needs. The key is nailing the first event and following up consistently throughout the year.

Harry Posner & Natalie Dial: Put Staff Before Guests

What if the conventional wisdom about putting customers first is the very reason your restaurant keeps losing good people?

Harry Posner and Natalie Dial walked away from careers in medicine to open Tomat, a Michelin-recognized, seasonally driven restaurant in Westchester, Los Angeles. Neither came from the industry. Both came with the analytical frameworks most operators spend years trying to build.

In this conversation, we get into why they deliberately ranked employees above customers before opening day, how diversifying revenue across breakfast, lunch, dinner, events, and a rooftop gave them financial staying power when the calendar went quiet, and why the “wrong” location turned out to be one of the smartest market plays in recent LA dining.

If you think the customer is always right, this episode will change your mind.

To learn more about Tomat, visit tomat.la.

The Playbook Takeaways

  1. Rank staff above guests. Posner and Dial deliberately put employees ahead of customers before opening day — protecting your people is what keeps good talent, which in turn serves guests better.
  2. Diversify revenue across dayparts. Spreading income across breakfast, lunch, dinner, events, and a rooftop gave them financial staying power when the calendar went quiet.
  3. The “wrong” location can be the smart play. Their unconventional Westchester, Los Angeles location turned out to be one of the smartest market plays in recent LA dining.

Want the systems behind ideas like these? I’ve turned six years of Full Comp interviews into a free 5-day masterclass on building a restaurant marketing system that actually makes you money. Join the free masterclass →

Keep going: Restaurant Profitability Playbook Restaurant Marketing Strategies That Work The Complete Restaurant Consulting Guide

_________________________________________________________

Free 5-Day Restaurant Marketing Masterclass – This is a live training where you’ll learn the exact campaigns Josh has built and tested in real restaurants to attract new guests, increase visit frequency, and generate sales on demand. Save your spot at restaurantbusinessschool.com

About the Author: Josh Kopel is a Michelin-awarded restaurateur, restaurant consultant, and host of the Full Comp podcast — the voice of the restaurant industry. He has helped hundreds of restaurant owners build profitable, scalable businesses. Explore free restaurant resources →

Philippe Massoud: Built to Last 19 Years

What if the reason your restaurant isn’t built to last is because you designed it to survive instead of dominate?

Philippe Massoud opened ilili in November 2007, a 10,000 square foot Lebanese restaurant in New York City, nearly $7 million in debt, in the middle of a financial crisis, with critics questioning whether anyone wanted Lebanese fine dining at that scale. Nineteen years later, the restaurant is still breaking records.

In this conversation, we get into why going smaller and safer is often the riskiest move an operator can make, how Philippe grew revenue 30% annually for five consecutive years after weathering the financial crisis, and why running a restaurant with two guests in mind changes everything.

If you’re building something real in a market that keeps getting harder, this episode is the one to hear.

To learn more about ilili, visit ililirestaurants.com.

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Free 5-Day Restaurant Marketing Masterclass – This is a live training where you’ll learn the exact campaigns Josh has built and tested in real restaurants to attract new guests, increase visit frequency, and generate sales on demand. Save your spot at restaurantbusinessschool.com

Stop Trying to Fix Tuesday. There’s $15,000 a Week Hiding in Your Weekends.

Expert Summary

How much time and effort have you put into initiatives that ended up doing nothing for your business? That Tuesday promo that was totally going to turn around the week? When you ask someone to come in on a Tuesday, you’re not just asking them to patronize your restaurant. You’re asking them to get off the couch, put on pants, get in their car, and drive to a place they don’t want to go. You’re trying to alter behavior. And altering behavior is incredibly expensive. Instead, focus on influencing behavior – people who are already out on a Saturday are easy to redirect. Sodici Pizza does $1.4 million a year open four days a week. There’s likely $5,000 to $15,000 a week sitting in your under-capitalized Fridays, Saturdays, and Sundays.

How much time and effort have you put into initiatives that ended up doing nothing for your business? That Tuesday promo that was totally going to turn around the week? That late-night happy hour that just never took off?

Here’s why that stuff doesn’t work. When you ask someone to come in on a Tuesday, you’re not just asking them to patronize your restaurant. You’re asking them to get off the couch, put on pants, get in their car, and drive to a place they don’t want to go to eat food they didn’t want to eat when they’d rather be doing something else.

You’re trying to alter behavior. And altering behavior is incredibly expensive.

Instead, focus on influencing behavior. People who are already out on a Saturday are easy to redirect. “You’re already out – why don’t you spend some time with me?” That’s a fundamentally different proposition. High margin. Low overhead.

All of you have untapped capacity. All of you. I assure you, there’s an extra $5,000, $10,000, $15,000 a week sitting in under-capitalized revenue on Fridays, Saturdays, and Sundays. And you’re out here running a two-for-one deal on the night nobody wants to leave their house.

Altering Behavior vs. Influencing Behavior: The Most Expensive Mistake in the Restaurant Business

This is the distinction that changed how I think about every dollar I spend on marketing. There are two fundamentally different things you can do with a customer’s behavior: you can try to alter it, or you can try to influence it.

Altering behavior means convincing someone to do something they wouldn’t otherwise do. Come in on Tuesday. Try a cuisine they’ve never had. Drive 30 minutes out of their way. Every single one of those asks is fighting against gravity. It’s expensive, it’s inefficient, and the results are almost always disappointing.

Influencing behavior means redirecting someone who’s already in motion. They’re already out on Saturday night. They’re already looking for something to do. They’re already in spending mode. All you have to do is give them a reason to spend that time and money with you instead of someone else.

The cost difference between these two approaches is staggering. Altering behavior requires heavy discounting, massive marketing spend, and constant effort just to get a handful of people through the door on a night they don’t want to be there. Influencing behavior requires a great offer and a little bit of attention during hours when demand already exists.

Every restaurant owner I work with spends too much time trying to alter behavior and not enough time trying to influence it. Flip that ratio and watch what happens to your revenue.

The Math That Should Change Your Strategy Today

Let me ask you a question. What would happen to your business if everyone who came to your restaurant once a month came in twice a month?

You’d be rich. You’d be Scrooge McDucking it. You wouldn’t be worrying about Tuesday. You wouldn’t be worrying about anything.

Now let me ask another question. What’s easier – getting a stranger to come in on a Tuesday, or getting someone who already loves you to come back one more time this month on a Friday or Saturday when they’re already out?

The answer is obvious. And yet we spend all of our energy on the hard thing and almost none on the easy thing.

In Los Angeles, when it drizzles, revenue drops by two-thirds. I never cared. I made all the money I needed on Friday, Saturday, and Sunday. Tuesday and Wednesday were surplus – just extra profit. If those days did nothing, I was still fine. Because my entire strategy was built around maximizing the days when people actually wanted to be there.

That’s the mindset shift. Stop treating slow days as a problem to solve. Start treating peak days as an opportunity to maximize.

The Sodici Pizza Model: $1.4 Million on Four Days a Week

Sodici Pizza in Brownsville, Texas does $1.4 million a year at an 18% margin. It’s open four days a week. Do the math on what a quarter million in take-home means in Brownsville, Texas. And the owner, Dante, isn’t involved in day-to-day operations.

Dante didn’t get there by trying to fill seven days. He got there by maximizing the days that mattered. When we worked together to maximize the profitability of the restaurant, there just wasn’t another dollar to get from in-house dining. So instead of adding more days or more hours, he launched a catering operation. Same kitchen. Same team. Manufacturing business. High margin.

Today, Dante sits on a $2.5 million operation pushing an average net profit of 25% – a single-unit restaurant plus a catering arm. The restaurant runs four days a week with no mandatory day-to-day involvement from the owner.

That’s the goal. A wildly profitable business that you don’t have to run, that someone else is able to run for you. And it’s achievable. If it’s achievable in Brownsville, Texas, you can totally crush it too.

The lesson isn’t that you should close three days a week. The lesson is that Dante made more money by being brilliant four days a week than most restaurants make being mediocre seven days a week. Compressed focus beats scattered effort every single time.

On-Peak Promotions That Don’t Require Discounting

Here’s where most restaurant owners go wrong with promotions. They discount. Discounting is the last bastion of a desperate brand. You don’t need to discount. You need to create experiences that bring people in at full margin during the hours when they’re already inclined to spend money.

At Preux & Proper, with a per-customer average of about $125, even customers who had the best dinner of their lives weren’t coming back soon. They’d either saved up for the experience or they had options and wouldn’t repeat the same one. So I had to figure out what else I could sell them.

We launched a flights and bytes concept for happy hour. You could come in before dinner or late night after, enjoy a curated experience at a lower price point with flat margins. It wasn’t a discount. It was a different experience at a different price – less for less. The customer got something fun, I got full margin, and it drove people to the shoulders around my peak hours.

One of my clients, Tarja from Dogville, runs a casual burger concept. We created a burger flight paired with rotating complimentary beers, offered only from 4 to 6 PM on Fridays, Saturdays, and Sundays. People were already out. It was a cool, fun thing to do. On-peak volume scaled by 36%.

Notice what we didn’t do. We didn’t run this on Tuesday. We didn’t discount. We didn’t beg people to come in. We offered something exciting during hours when they were already in motion, at a price point that made both of us money.

The Pre-Loaded Year: Stop Making It Up as You Go

One of my biggest frustrations as a restaurateur was that we’d be years into the business, and it’s March, and we’re trying to figure out what we’re going to do in April. But I’ve owned this bar for six years. We already know what’s going to work.

Annual planning should be a greatest hits album. You’re not trying new things. You’re running the plays that have already proven themselves.

Here’s what a great year looks like. It’s one concept a month across 12 months. Two annual events – signature things that you are known for, that you are famous for citywide. Four quarterly activations – co-branding exercises, chef collaborations, brand partnerships. And six LTOs – limited-time offers that are deviations on your most successful items.

The most effective LTOs are typically a combination of your best-selling items in a way that’s really exciting. I’ve got a client called The Cove. Their best-selling sandwich for lunch is a Reuben, and their best-selling entree for dinner on weekends is prime rib. So we came up with a prime rib Reuben concept. People drove in for hours to eat it. Of course they did. It sounds delicious, and it falls in line with what people are already buying.

At Preux & Proper, we did Fat Tuesday as a week-long annual event. Then Sleigh Bells on Spring – it looked like Instagram threw up all over my 6,000-square-foot, two-story restaurant. We spent $20,000 on decorations. Tiny customized menu for the entire month with several activations. Those were things you had to come see me for.

For quarterlies, we did chef collaborations. July is typically a terrible month in Los Angeles, so we ran a barbecue pop-up. And here’s the key – we only ran it on the weekends. Not Monday through Thursday. Because I’m trying to drive traffic when people are already out, not when they don’t want to come in.

The Offer Creation Framework: Give Them One Great Reason

The fallacy is that if you send an email offering five things to do, people will scroll through, pick the one that resonates, and come in. That’s not what the data shows. When you offer a lot of things, people go, “That all sounds really good,” and then they delete the email because it’s overwhelming.

Instead of offering three options, offer three reasons to do one thing. And that one thing needs to be rooted in something that appeals to your audience and is your absolute best offer.

I’ve got a buddy who owns seven different concepts in Los Angeles with a mailing list of 30,000. He was mapping out all these complicated multi-offer campaigns. I said, bro, you’ve got a list of 30,000. All you need to do is give them one reason to come in this month. One great reason. Because if they all came in because the reason was so good, you’d be set.

What we’re trying to do is get to step two before we’ve completed step one. Step one is just getting everybody in once. One great offer does that.

There’s a trick to offer creation that I learned from Alex Hormozi’s work. You offer a binary choice where one option is so good that the person would feel like a fool if they didn’t take you up on it. That’s how good your offer has to be. That’s what you should be doing with every guest, every email, every campaign. Make an offer so good they can’t pass it up.

Why National Events and LTOs Should Last a Week, Not a Day

When you host your anniversary or a national food day event, the typical approach is to limit it to one service or one day. But think about your own life. You have a family. You have a career. You’re busy. One day is hard to hit.

At South City, for National Fried Chicken Day, the special didn’t run on that day. It lasted an entire week. The reason was simple – I wanted to give everyone an opportunity to get it, because people are busy.

What we did was get a lot of attention through press and social media. We had an offer that was easily redeemable and possessed scarcity, high perceived value, and urgency, with the ability to redeem it over a long enough window that busy people could actually participate.

The goal of the press hit wasn’t to get people to come in that day. The goal was to send them to a website where they could fully read the offer, redeem it, and then come into the restaurant on their own schedule within that week. That’s how you should be using press and attention – to make a best-in-class offer, and then the rest takes care of itself.

Your 7-Day Peak Revenue Maximization Plan

Day 1: Pull your POS data. Look at the last six months. What percentage of your total weekly revenue comes from Friday, Saturday, and Sunday? If it’s more than 60%, your peak days are where the money lives. Stop trying to fix the other days.

Day 2: Calculate your under-capitalized peak revenue. What would happen if you added one more turn to your Fridays, Saturdays, and Sundays? What if your per-customer average went up $3 on those days? That number will dwarf anything you could build on a slow night.

Day 3: Design one on-peak promotion. Not a discount. A less-for-less experience that gives people a reason to come in during shoulder hours at full margin. Think flights and bytes. Think burger flights. Think curated experiences, not coupons.

Day 4: Build your pre-loaded year. Map the next 12 months. Two annual signature events. Four quarterly activations. Six LTOs based on your best sellers. One great reason per month for your entire mailing list.

Day 5: Extend your next event to a full week. Whatever activation you have coming up, don’t limit it to one night. Give people seven days to participate. Busy people need flexibility, and a week-long window dramatically increases redemption.

Day 6: Audit your Tuesday spend. Add up every dollar you spend on Tuesday and Wednesday – labor, utilities, marketing, food waste from low volume. Compare that to the profit those days actually generate. Most owners are shocked by how little those days contribute.

Day 7: Redirect that energy to the weekend. Whatever time, money, and attention you’ve been putting into slow days, redirect it to your peak days. Staff better. Promote harder. Create scarcity. Make your weekend revenue the foundation of your entire business.

Make your weekly money on the weekend, and let Tuesday take care of itself. Money likes speed. Start today.

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Frequently Asked Questions

Why don’t Tuesday promotions work for restaurants?

Because you’re trying to alter behavior instead of influence it. When you ask someone to come in on a Tuesday, you’re asking them to get off the couch, put on pants, get in their car, and drive somewhere they don’t want to go. That’s incredibly expensive to accomplish. People who are already out on a Saturday are easy to redirect. Focus your energy on influencing behavior during peak hours when customers are already in spending mode.

How much under-capitalized revenue is hiding in my weekends?

Most restaurants have $5,000 to $15,000 per week in under-capitalized revenue sitting in their Fridays, Saturdays, and Sundays. This comes from sub-optimal turn times, inefficient back-end settings in reservation and delivery systems, capacity that isn’t being used, and the absence of on-peak promotions that drive volume during shoulder hours.

What are on-peak promotions and how do they avoid discounting?

On-peak promotions are less-for-less experiences offered during shoulder hours at full margin. At Preux & Proper, a flights and bytes concept before and after dinner gave customers a curated experience at a lower price point without discounting the core dining experience. A client’s burger flight paired with rotating beers from 4 to 6 PM on weekends scaled on-peak volume by 36%. The key is offering a different experience at a different price, not discounting your existing one.

Can a restaurant really succeed being open only four days a week?

Absolutely. Sodici Pizza in Brownsville, Texas does $1.4 million a year at 18% margins open four days a week. The owner isn’t involved in day-to-day operations and has expanded to a $2.5 million total operation with a catering arm. The lesson is that compressed focus on peak days beats scattered effort across seven days. You make more money being brilliant four days than being mediocre seven.

What is the pre-loaded year strategy for restaurant marketing?

The pre-loaded year maps one concept per month across 12 months: two annual signature events, four quarterly activations like chef collaborations, and six LTOs based on your best sellers. Instead of figuring out what to do month by month, you plan the entire year in advance using what you already know works. Annual planning should be a greatest hits album. Give your mailing list one great reason to come in each month instead of five mediocre ones.

Michael White & Bruce Bronster: Price Less, Win More

What if the reason your margins are tight has nothing to do with efficiency and everything to do with strategy?

Chef Michael White held five simultaneous Michelin stars under the Altamarea Group before co-founding BBianco Hospitality Group with hospitality attorney Bruce Bronster in 2020. Together, they run a restaurant company that deliberately prices below the competition and still gets guests back three and four times a week because of it.

In this conversation, we get into why their three C’s, cuisine, consistency, and conviviality, are the real operating system behind a loyal guest base, how volume answers margin problems that efficiency never can, and why knowing your lane inside a close partnership is the thing that keeps the business from falling apart.

If you’re still chasing 20% margins and losing guests in the process, this one lands where it counts.

That’s Chef Michael White and Bruce Bronster. To learn more about BBianco Hospitality Group, visit bbiancohospitality.com.

The Playbook Takeaways

  1. Volume answers margin problems that efficiency never can. BBianco deliberately prices below the competition and wins because guests come back three and four times a week.
  2. The three C’s are the operating system. Cuisine, consistency, and conviviality — not discounts — are what build a loyal guest base.
  3. Know your lane inside a close partnership. White runs the cuisine, Bronster runs the business — clear lanes are what keep the company from falling apart.

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About the Author: Josh Kopel is a Michelin-awarded restaurateur, restaurant consultant, and host of the Full Comp podcast — the voice of the restaurant industry. He has helped hundreds of restaurant owners build profitable, scalable businesses. Explore free restaurant resources →

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