I Found the Best Burger Place in America, Then I Killed It

Post by afterburner » Fri, Nov 16, 2018, 8:34 PM UTC

munificent wrote: post #178

narrator wrote: post #22

There's an easy solution to having too much business : raise prices. I think this is one of A16Z's big insights into most businesses[1]: they don't charge enough. If you look at the best restaurants in America like the French Laundry in Napa, they charge astronomical ridiculous prices and they still have reservations for months ahead of time. The oldest restaurant in Paris requires you put down a 400 euro deposit jus…

This is a classic humans are rational actors and spherical volumes in empty space economic answer, which entirely misses the point. The restaurants we love, we love for the entire experience, and price is part of that experience. Even for people who can happily afford the higher price, it still results in a different experience. The people around you in the restaurant will be different. Your perception of the value o…

Post by radlad » Fri, Nov 16, 2018, 8:37 PM UTC

afterburner wrote: post #191

munificent wrote: post #178

Earlier quoted context omitted.

This is a classic humans are rational actors and spherical volumes in empty space economic answer, which entirely misses the point. The restaurants we love, we love for the entire experience, and price is part of that experience. Even for people who can happily afford the higher price, it still results in a different experience. The people around you in the restaurant will be different. Your perception of the value o…

The customers you made money from when you're starting out don't have to be the same customers you make money from when your restaurant hits the big time.

Post by afterburner » Fri, Nov 16, 2018, 8:39 PM UTC

hedvig wrote: post #87

peterwwillis wrote: post #20

Earlier quoted context omitted.

Shake Shack began as a hot dog stand, but a hot dog stand created for a park being developed by a successful NYC restaurateur who owned a hospitality management company. If you're the sole developer of a new downtown park, and you own the only hotdog stand in that park, and you have lots of resources, it's going to be a success. When later there's the opportunity to develop the park further, you may pony up the cash…

Supply side economics dominates. There is no such thing as authentic demand.

Post by tanderson92 » Fri, Nov 16, 2018, 8:40 PM UTC

tptacek wrote: post #189

mabbo wrote: post #184

Earlier quoted context omitted.

> To the commenters saying Stanich should simply raise its prices: there's a price ceiling for that burger. It's not a fancy chef burger; If you have a five hour lineup for a burger, you need to raise your prices at least a little bit. You'll make more money overall, and your customers will be happy.

You can do that to a point, but if what you're serving is simply a well-executed diner burger, then, like I said, there's a ceiling. You can't charge $30 for that. Or, you can, but you'll create more problems than you'll solve. This guy ate at 330 different burger restaurants. He has a finely-tuned metric for what a good burger is (his #3 is also a neighborhood place he grew up with). He's set up to appreciate what S…

Post by andrewljohnson » Fri, Nov 16, 2018, 8:41 PM UTC