Know Yourself and Create Restaurant Success In Any Market

In this essential episode for restaurant entrepreneurship, Matthew Mabel addresses the unprecedented flat market challenging restaurant business owners today. Restaurant operators face a critical decision point: identify which of three operational groups they belong to and take decisive action. Matthew breaks down the characteristics of Winners (growing guest counts and revenue beyond menu price increases), Stable Companies (maintaining profitability through operational excellence), and Floundering Companies (experiencing declines despite price adjustments). Using real-world data from the State Fair of Texas, which saw a 20% attendance drop, Matthew illustrates how broader economic trends impact the restaurant industry and consumer confidence. This episode delivers actionable business strategy for multi-unit independent restaurant entrepreneurs ready to stand out, innovate, and achieve exceptional success regardless of market conditions. Whether you're looking to grow profit, optimize sales, or expand your restaurant business, this episode provides the clarity and direction needed to thrive in today's challenging entrepreneurship landscape.

Key Topics Covered

• Understanding the current flat market and its unique challenges for restaurant operators
• The three groups of restaurant companies: Winners, Stable, and Floundering
• What Winners are doing differently: cleaning up operations, picking low-hanging fruit, and honing guest relationships
• How Stable Companies maintain profitability through operational excellence and guest experience focus
• Why Floundering Companies struggle and what's holding them back from taking action
• Real-world example: State Fair of Texas attendance decline as a market indicator
• The importance of identifying which group your restaurant belongs to
• Why taking action now is critical rather than waiting for market conditions to improve

Links Mentioned

• https://surrender.biz/the-view-from-the-outside-your-restaurant-gaining-helpful-new-perspectives/ - The View From The Outside Your Restaurant Gaining Helpful New Perspectives
• https://surrender.biz/how-to-take-action-and-power-to-boost-guest-count - How To Take Action And Power To Boost Guest Count

Resources Mentioned

• Website: www.surrender.biz
• Free initial consultation available
• Restaurant Success Podcast website: RestaurantSuccessPodcast.com

Connect with Matthew Mabel

Matthew works with owners of successful, independent, multi-unit restaurants to improve:

• Profit growth
• Sales optimization
• Guest count increase
• Unit expansion
• Employee engagement
• Brand loyalty

How to Support the Show

• Subscribe to the Restaurant Success Podcast and Newsletter
• Rate and review the show
• Visit www.surrender.biz for additional resources

Transcript

Hello, and welcome to the Restaurant Success Podcast. I'm Matthew Mabel, veteran restaurant advisor, coach, consultant, and speaker devoted to multi-unit independent restaurant unit, profit and revenue growth, internal harmony and ownership freedom and flexibility.

This is your weekly entree of the advice, strategy and tactics that I currently provide to my best clients.

Today, we're going to talk about something that's been on every restaurant owner's mind lately: this unusually long flat-market we're experiencing and what it means for your business.

More importantly, I'm going to help you figure out which of three groups of operators you belong to, because once you know that, you'll have a clear path to action.

We'll look at what the winners are doing differently, why some companies are staying stable, and what's holding others back.

And, I'll share a recent real-world example that really drives home what's happening in our industry right now.

Those of us with decades of industry experience have become accustomed to up-markets with a few down-markets layered in.

But none of us is accustomed to a flat market lasting "this" long.

A flat market taunts you. It's begging you, or even forcing you, to be willing to change so you can stand out and become an exceptional success.

If you haven't felt that wakeup call yet, I can hear that alarm on your phone going off. Over, and over again.

Let me give you a perfect example of what I'm talking about.

Even this year's State Fair of Texas, here in Dallas, showed the effects of lower consumer confidence and lower income group spending. Attendance fell twenty percent this year, to two million visitors compared to two point four million visitors in twenty twenty four.

I actually knew that even before the numbers were released.

I visited the fair with my daughter on a Tuesday night when it felt suspiciously quiet.

And, restaurants I work with that typically suffer erosion during the State Fair did "not" feel that erosion this year.

That tells you something significant is happening in the market.

I'm hearing from a lot of restaurant owners who are finally seeing the clear picture that a flat-market may not change anytime soon, and they realize that they have to take charge of their own situation.

So, let me break this down for you.

Right now, I see three groups of organizations. The winners, the stable companies, and the floundering companies. 

First, the Winners.

These are successful groups slowly building guest count with revenue increasing over and above their menu price increase, up to eight to nine percent higher.

Stable companies are those that remain flat, or are just experiencing revenue increases at about the level of their menu price increases. Say, one to two percent higher.

And then there's group three, the Floundering Companies. These are companies that are struggling, significantly down in the single digits even though they have kept up with menu price increases.

Now, let's talk about what the Winners have done. They've done two things. First, they have cleaned up all their bad habits, picking their own low-hanging fruit through systems, education and training, and perfecting service. They also have honed their relationships with their guests through their offerings and marketing.

The Stable Companies are standing still in a gale-force wind. They started with healthy profits and are maintaining those profits. They have long-standing traditions of excellent operations and delivering uniqueness to their guests. They focus on guest experience and every line of their P and L to make the most of what they have.

But the Floundering Companies worry me the most, because they accept high single-digit declines without being in enough action to reverse them. Some of these companies just act scared. Others seem flummoxed, feeling it risky to innovate, even though standing still creates more risk.

Here's the bottom line: To make the most out of today's flat market, you have to know which group you reside in. Know that, and it will drive a clear path to action.

I can't tell you that consumer confidence will change any time soon.

It might get better, but you can't live on "it might," so get into action now.

Let me tell you about how we might work together. I work with owners of successful, independent, multi-unit restaurants to grow their profit, sales, guest count, and unit count. My unique approach bonds employees and guests to restaurant brands and allows owners to enjoy the freedom and flexibility they have earned.

To schedule a call with me to discuss how to achieve your biggest goals, follow the link in the show notes. The initial consultation is complimentary, and we can discuss which big moves might be right for your operation.

Thanks for listening. If you haven't already subscribed to the Restaurant Success Podcast and Newsletter podcast, please do so, and rate and review the show. Find more information in the show notes at Restaurant Success Podcast dot com.

Also find tons of information you can use in print, audio and video form at my website, www dot surrender dot biz. Thanks again and see you next time.