It’s Friday night. The lights are dimmed, the tables are set, and the smell of your signature dish wafts through the air. But as you stand there, surveying your restaurant, a knot tightens in your stomach. You’ve worked so hard—too hard—yet the seats remain far from full. Every glance at those empty chairs feels like a punch to the gut, a reminder that despite all your efforts, something isn’t working.
Maybe you’ve already started cutting back on staff, making smaller orders, or skimping on ingredients. You’ve watched as other restaurant owners have quietly closed their doors. You wonder if you’re next.
But hold on. Before you throw in the towel, I’m going to give you some advice—one simple thing you can do to turn it all around. It’s not a magic wand, but it is something powerful. And the best part? It starts today.
The 10 Percent Rule: A Game-Changer in the Restaurant Industry
Years ago, when I owned a chain of restaurants across seven states, I was standing where you are now. Some locations thrived, others struggled, and I found myself asking: Why? We did a survey, asking more than 1,000 customers about their experiences, and one thing blew my mind: 10 percent of our customers were first-timers. Every single day, no matter what, 10 percent of the people walking through our doors had never been there before. Think about that. Even in my worst-performing locations, every single day, 10 percent of the people who came through the door had no idea what happened yesterday. They weren’t comparing the food to a bad experience last week. They weren’t disappointed because their favorite dish was taken off the menu. They were fresh. They were hopeful.
What does that mean for you? It means every day, you’ve got a shot. Even if only 50 people come through your door, five of them are new. Those five have no clue about the stress or the struggle you’re going through. They don’t know that you’ve been cutting back or that you’re at the end of your rope. They just know that they’re here for a meal. And that’s your chance. Those five could be the customers who save your business—if you treat them right.
Turning 10 Percent into $70K: The Path Forward
Here’s the reality: according to ToastPOS.com, the average restaurant in the U.S. needs to gross $70,000 a month just to break even. Let’s do the math. If your restaurant is seeing 500 customers a week, each spending around $10, you’re making $5,000 a week—$21,666.67 a month. That’s not even close to what you need. But if you know that 10 percent of your customers are new every single day, you’ve got a steady stream of fresh faces walking in. That’s 50 new customers each week. Assuming the average customer visits once a month and you can turn those new customers into repeat visitors, you could be on your way to $70,000 a month within 14 weeks.
Does it sound daunting? Sure. But let me tell you something: it’s possible, I’ve done it and I’ve coached other operators on how to do it. And here’s why. According to customer service expert Carrie Luxem, “Every customer is an opportunity to build a relationship. Treat them right, and you create a customer for life.” That’s your mission for the next 14 weeks. Forget about the ones who’ve already left. Focus on the new ones. Give them an experience they won’t forget, and they’ll be back.
The Cost of Not Focusing on the Experience
I know what some of you are thinking: “I can’t afford to focus on the experience right now.” But let me tell you, you can’t afford not to. I’ve seen it happen time and time again. Restaurants start slashing prices, cutting staff, lowering quality, thinking they’re saving themselves when in reality, they’re sealing their own fate. This is what I call the “Death Spiral of Price Entrenchment.” You lower prices to compete, which forces you to cut costs. But as soon as the quality drops, your customers notice. And as they leave, you lower your prices even more. It’s a vicious cycle, and it never ends well.
You need to stop thinking about price and start thinking about value. Not just monetary value, but experiential value. Chris LoCurto says, “Great customer service doesn’t mean the customer is always right; it means the customer is always honored.” Those 10% of new customers aren’t looking for the cheapest meal in town—they’re looking for an experience. Give them something to talk about. Give them a reason to come back, a reason to tell their friends.
Marketing Comes After Operations
Here’s the corollary to the 10 Percent Rule—you can’t start marketing until your operations are perfect. Throwing money into ads and promotions without fixing your service, your food, and your atmosphere is like putting a band-aid on a bullet wound. You’re only going to make things worse. Marketing starts when the experience is flawless. When those 10 percent of new customers walk in and get blown away, that’s when you start telling the world.
And look, there are plenty of ways to get to 70K faster. You could add premium items to your menu, host events, or increase the average spend per customer. But for now, let’s focus on the basics. Start with those 10% of new customers. Treat them like royalty. Wow them.
And if you’re looking for even more ways to turn your business around, well, there’s a shameless plug coming your way: get my book, Drafting a Dream—I’ve got all the tools you need in there.
Final Thoughts: It’s Up to You
Fourteen weeks. That’s all I’m asking for. Fourteen weeks of focus, commitment, and dedication. If you can’t do that, then you should put your restaurant up for sale today. But if you’re ready to fight—if you’re ready to turn things around—then start now. Tomorrow morning, go into your restaurant and look at it with fresh eyes. Because 10 percent of your customers will be seeing it for the first time. They don’t know what happened yesterday. They only know what happens today.
Give them something worth remembering.
John Felico, author of DRAFTING A DREAM, is a serial entrepreneur, acclaimed advisor, expert, and restaurant owner with over forty years of experience in the culinary industry. He launched his first business, selling sausages behind Kennedy Airport, when he was only seventeen. Ten years later, he opened a Dominic’s of New York food truck outside a Lowes store in Virginia. Over the next two decades, he grew the business to 175 locations and developed licensing deals to place its products in supermarkets and sports venues around the country. After creating additional concepts, including The Olde Glory Coffee Company and Staks Subs, Felico opened Auggie’s Draft Room, a self-serve tap house located in St. Augustine, Florida. Today, as Auggie’s continues to flourish, Felico works as an advisor to restauranteurs and start-ups throughout the United States. You can learn more at http://www.johnfelico.com.
