Podcast Summary

RESTAURANT STRATEGY with Chip Klose

Episode: Two Mastermind Case Studies
Date: December 8, 2025

Overview

In this episode, Chip Klose delves into the power of the P3 Mastermind group coaching program for independent restaurant owners. He presents two in-depth case studies of multi-unit operators—one from Louisiana, one from Wisconsin—to showcase the concrete business transformations achieved through structured coaching, peer support, and tactical systems. The main focus: how restaurants can drive consistent, predictable bottom-line returns, with a spotlight on actionable systems rather than quick fixes or gimmicks.

What Is a Mastermind? (00:00–04:40)

• Definition and Purpose:
  Chip defines a mastermind as a "closed room" where owners/operators can ask tough questions, expose business issues, and receive collective problem-solving without fear or ego.
  • "There has to be a room that you go to where you can ask stupid questions, where you can show warts and all what's going on in your business so that we can begin the hard work of actually fixing the problems." (03:00)
• Program Background:
  • P3 Mastermind has scaled from a single group to over 150 current members across four groups, with 350+ alumni in eight countries and 48 states.
  • Focus on teaching "the systems that all the big restaurant groups and chains have dialed in" but tailored for independent operators.

Case Study 1: Southern Family Restaurant Group (Louisiana) (04:40–13:08)

Business Snapshot

• Three locations, $8 million total annual revenue.
• 12% profit margin (~$970,000 bottom line) when joining.
• Concept: Casual, family-style, value-focused menu (chicken, pork, steak).

Core Problem

• Cost of Goods Sold (COGS) averaged 38.5%, consistently high at all locations, dragging down profits.

Solutions & Actions

1. Product Mix Analysis:
   • Ran detailed product mix reports to identify top/bottom sellers.
   • Prediction: Needed to cut 20–25% of the menu to reduce waste and increase focus.
2. Recipe Card Audit:
   • Verified all recipe cards for accuracy, seeing where highest costs were hiding—especially among best-selling items.
3. Menu Overhaul:
   • Cut 25–28% of menu items, simplifying the menu to increase 'white space' for more strategic layout and easier upselling.
   • Enabling use of call-outs for fan favorites/signatures.
4. Vendor Negotiations:
   • Leveraged $8M buying power to renegotiate pricing and switch SKUs/purveyors where possible.
5. Pricing Strategy:
   • Slight price increases and creative portion adjustments.
   • Overcame fear of alienating "value-conscious" guests.

Key Results

• COGS dropped from 38.5% to below 30%, nearly an 8–10% margin increase—about $750,000–$800,000 extra profit.
• Final bottom line reached approximately $1.8 million/year.
• No negative customer feedback on price/menu changes; sales volume actually increased due to clearer, more appealing menu and easier upsell opportunities.
• "They were scared to death that sales were going to go down. And sales actually went up. Not just because we raised the prices on some items, though that was it. But also the... how many items were on the check went up because they weren't buried in a menu that looked like a page out of the dictionary." (11:00)

Takeaways

• Biggest transformation came from banishing fear about pricing/menu changes and trusting data-driven decisions.
• "Dining out is a luxury... Not as many guests are as strictly value-conscious as you think." (10:45)
• "We have an entire business, our industry is propped up on this idea of serving people." (11:30)

Case Study 2: Midwest Upscale Pub Group (Wisconsin) (16:13–29:00)

Business Snapshot

• Three locations, $4.5 million annual revenue.
• Profits ranged from 10–14%; inconsistent across locations; all were cashflow positive.
• Concept: Upscale tavern/pub, burgers, sandwiches, salads, beers.

Owner’s Goals

• Improve consistency and margins.
• Open new locations (which has since happened).
• Increase take-home profit from existing units.

Solutions & Actions

1. Dial in Prime Costs:
   • Streamlined processes for COGS and labor, achieving consistent 18% labor across all locations.
   • Automated reporting and accountability for sales/profit targets.
2. Revenue Growth Strategy:
   • Added +$1M annual top-line revenue (25–30% YoY growth).
   • Focused on increasing check average rather than just traffic.
3. Hospitality Flow Tactics:
   • No Menus on First Approach:
     Guests seated with only beer and cocktail lists. Food menus delivered after drink order—creating a natural upsell opportunity on beverages.
     • “Server greeted with them within the first four minutes... 'I’ll be over with menus in just a minute, but I’d love to get you started with something from the bar.'" (18:37)
   • Appetizer & Side Sales:
     Systematic pitch for appetizers “for the center” and better placement of side dishes.
   • Second Beverage Scripting:
     Shifted to "this or that" instead of yes/no for refills. Example:
     • "Sir, did you want another one of these beers or did you want to switch to something else?" (22:00)
     • Timed to occur before entrees arrive for maximum upsell.
   • Dessert Simplification:
     Cut all desserts except one signature item—sold at least one to nearly every table. Simple, memorable, and highly efficient.
     • “At the end of the meal, say hey. Just so you know, we have one can’t-miss signature dessert. You have to get one on the table. If you want two though, I can bring you two.” (26:16)

Key Results

• Consistent improvements in prime cost management.
• $1M added in top-line revenue.
• Significant increase in check averages due to structured menu flow and targeted upselling.
• Higher efficiency and more confident front-of-house team.
• Dessert strategy led to increased coffee and after-dinner drink sales.

Takeaways

• Even small tweaks in the guest journey (“no menus on first approach,” scripting add-ons) can have massive financial impact.
• Fewer choices can lead to more sales—not less—when positioned confidently.
• Automation and scripting liberate staff to be more personable and effective.

Notable Quotes & Memorable Moments

• On masterminds: “You’ll only find three kinds of people in the world. Those who see, those who will never see, and those who can see when shown.” (00:38)
• On menu fear: "They just were afraid, honestly, they were afraid to mess with the menu because they've been around for so long.” (09:30)
• On guest price sensitivity: "People dine out not because they need to, but because they want to. ... Not as much as you think. Dining out is a luxury.” (10:45)
• On the power of small changes: "The craziest thing we did is we got rid of all desserts except one ... We ended up getting at least one of them on every single table.” (26:16)
• “Revenue does not necessarily cure all sins, and I believe it. But I'm not an idiot. I understand the impact that revenue growth has on bottom line profit, but not before we get prime cost in line.” (16:52)

Key Segment Timestamps

• [00:00] — What is a mastermind? Setting the stage
• [04:40] — Case study 1: Louisiana family restaurant
• [07:50] — Menu engineering and COGS reduction detailed
• [12:00] — Results and lessons learned
• [16:13] — Case study 2: Wisconsin upscale pub group
• [18:37] — Implementing beverage-first guest scripting
• [22:00] — Upselling scripts and timing
• [26:16] — The “one dessert” strategy and final results

Conclusion

This episode illustrates that seemingly small, systematic changes—when implemented with data, clarity, and coaching support—can result in transformative growth for independent restaurants. Chip’s tone remains direct, practical, and well-supported by real-world numbers and specific tactics. Owners seeking to move from “good” to “great” should focus on systematizing their operations, trusting strategic menu/pricing changes, and leveraging the power of a focused, supportive peer group.

Learn more: restaurantstrategypodcast.com/schedule