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This is one of those things that always gets repeated, but I have some strong doubts about how successful it could be. You are deliberately slowing your revenue
by saosebastiao 8y ago
This is one of those things that always gets repeated, but I have some strong doubts about how successful it could be. You are deliberately slowing your revenue stream by limiting your throughput, and losing customers due to the long line deterrence. Popularity may get you in the news, but it doesn't pay the bills by itself...you need to actually sell stuff to do that.
I have doubts that it would even work as a way to get your name on the map. If you have a new restaurant, your arrivals are going to be so slow that if you even tried to limit your speed to the point where you build a line out the door, your customers are going to see right through it. Initial 1-star reviews for things like taking too long to get your food to the customers would be far more damaging to your business than the benefit of having a line out the door as some sort of quality signal.
If it were possible to know the opportunity costs of the strategy, it would make for an interesting optimization problem. As it stands, I can't help but think it's purely a losing strategy. The restaurant industry is counterintuitive for almost everybody...shitty restaurants can stick around forever, and extremely popular restaurants regularly go out of business. Cash flow is King. If you are sacrificing cash flow in exchange for popularity, you may succeed in becoming popular, but good luck sticking around and making money.
- owens99 8y agoI wonder the same thing. But I watch and see the super successful places start by doing this. So either they care more about fame than about profits, or it works. Of course, for some places this absolutely won't work. If the product isn't unique, it won't work. People will just leave the line and go to another place. So I assume the key metric would be what % of people wait vs. leave the line.