A restaurant's 'off night' isn't about being too busy, but about every customer arriving at once. This simultaneous demand overwhelms production lines (bar, kitchen), forcing rushed work and leading to a drop in quality. It's a peak throughput problem, not a total throughput one.

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Overwhelmed entrepreneurs can clarify priorities by categorizing every issue as either a supply or demand constraint. A demand constraint is needing more leads and sales. A supply constraint is being unable to fulfill existing orders. This binary focus clarifies the company's single most important priority.

The margins of a single restaurant are too thin to justify the operational complexity and stress. Profitability and a sustainable business model emerge only when you scale to multiple locations, allowing you to amortize fixed costs and achieve operational efficiencies.

Industries widely considered "terrible businesses," like restaurants, often signal opportunity. The high failure rate is usually due to a low barrier to entry and a lack of business acumen among participants. A disciplined, business-first approach in such an environment can create a massive and durable competitive advantage.

The conventional wisdom that you must sacrifice one of quality, price, or speed is flawed. High-performance teams reject this trade-off, understanding that improving quality is the primary lever. Higher quality reduces rework and defects, which naturally leads to lower long-term costs and faster delivery, creating a virtuous cycle.

Startups with lukewarm demand must have a perfect go-to-market process. In contrast, when you find intense demand where customers are pulling the product from you, the rest of your "factory" (pipeline, sales, delivery) can be messy and still function, allowing you to iterate and improve.

Chipotle made its popular quesadilla a digital-only menu item because it slowed down the physical service line. This highlights a critical business principle: a great marketing or product innovation that compromises the core operational efficiency of the business is ultimately a value-destructive idea and must be modified or rejected.

When at equilibrium, you must choose what to sacrifice for growth: profit or reputation. Increasing demand first strains your team, damaging quality and reputation. Increasing supply first costs money and hurts short-term profit but builds capacity, protecting reputation and enabling sustainable growth.

Business growth isn't linear. Scaling up introduces novel challenges in complexity, cost, and logistics that were non-existent at a smaller size. For example, doubling manufacturing capacity creates new shipping and specialized hiring problems that leadership must anticipate and solve.

A salesperson may focus on tactical issues like a poor CRM, but the root cause of their challenges is often a more fundamental business problem, such as production capacity. Solving the perceived problem (getting a better CRM) could be useless and even exacerbate the real issue by overwhelming the production line.

Applying the Theory of Constraints, a startup's growth is limited by a single bottleneck in its factory (pipeline, sales, or delivery). Improving onboarding is useless if you have one sales call a month. All focus must be on solving that single constraint to make progress.

Clustered Demand, Not High Volume, Causes Service Failures in Restaurants | RiffOn