Restaurant Unstoppable Episode 1165: Scott Lawton, Co-Founder, Former CEO & Chairman at Bartaco

Date: March 10, 2025
Host: Eric Cacciatore
Guest: Scott Lawton, Co-Founder, former CEO, and Chairman at Bartaco

Episode Overview

This episode dives into the lessons, philosophies, and operational strategies behind Bartaco's dynamic growth, as told by Scott Lawton, its co-founder and now chairman. The conversation explores personal reflection, leadership, data-driven innovation, brand building, scaling challenges, equitable practices, and the current and future landscape of hospitality—making this a must-listen for any aspiring or established restaurateur.

Main Themes

• The value of introspection and radical transparency in leadership
• Innovating business and service models for long-term sustainability
• Building scalable, lifestyle-driven brands versus traditional chains
• Leveraging technology and data while protecting ownership and independence
• Navigating organizational growth, equity, and partnership structures
• The evolving labor market, legislative hurdles, and future-proofing hospitality

Key Discussion Points & Insights

1. Leadership Philosophy: Introspection & Transparency

• Scott’s Success Mantra:
  "Be introspective. Emotional intelligence still matters. And talk straight and require that the people that work with you." (03:49, Scott Lawton)

• On Organizational Culture:
  Lawton stresses humility, learning from mistakes, and a non-punitive environment—“sniffing our pits”—for self-assessment. He likens Bartaco’s team to a professional sports team, not a family, with learning moments made collective and constructive.
  [00:00, 05:19, 06:17]

• Notable Quote:
  "Don't correct the person, correct the process… mistakes are opportunities. Mistakes are ways to get better."
  (05:10–06:17, Lawton)

2. Growth Metrics & Operational Structure

• Bartaco at a Glance in 2025:

  • 34 locations (soon to be 35)
  • $5.2M–$5.5M annual unit volume (AUV)
  • Prime costs mid-50s (%)
  • Store-level EBITDA in the 30+% range
    (07:10–10:47)

• Strategy: Prioritizing value and guest frequency over short-term margin gains, intentionally steering clear of aggressive price hikes to preserve guest loyalty.
  "We really, really wanted to make sure that we were staying engaged with our customers and offering them value and driving frequency over profit, short term profit." (09:48, Lawton)

3. Service Model Evolution

• Server-Leader Model:
  Reimagined service structure: eliminating traditional server roles, favoring a zone-based, hospitality-first “service leader” who floats, reads the room, and provides personalized guest interactions while tech handles ordering/logistics.
  [41:58–43:16]

  "When you don't have to take the orders, it frees you up to do those things." (43:02, Lawton)

• Legislative Hurdles: The difficulty of standardizing labor/tip models across markets; advocacy for adaptable structures and shared equity.
  [43:25–45:22]

4. Origin Story & Career Trajectory

• Scott’s Restaurant Journey:

  • Early days grinding in the trenches—Tribeca Grill, Buckhead Life, Marriott Group—learning cost controls, negotiation, and scaling basics.
    [12:28–16:21]
  • Key early lesson: “If the restaurant is what you love, then you need to get great at it.”
    (13:01, advice from Scott's father)

• Rising Through Ranks: From purchasing and metrics (the “linen report”) to digitally tracked KPIs, Lawton’s data-driven approach laid foundations for Bartaco’s innovation.
  (20:27–22:05, 22:14–22:53)

5. Technology, Data & Protecting Ownership

• Tech Stack & Data Strategy:

  • Emphasis on integrated, POS-agnostic, and processor-agnostic, cloud-based solutions that preserve data and customer ownership.
  • Challenges: Data silos, technology consolidation by large conglomerates, and risks of becoming beholden to outside tech giants.
    (24:03–33:17)
  • “If AI is really the biggest technological thing to ever happen in our lifetimes, the fuel that it runs on is data.”
    (23:13, Lawton)

• Bartaco’s Tech Investments:

  • Early adopter of customer data platforms (Wisely), moving to OLO, and piloting proprietary UX for better data utilization across guest touchpoints (e.g., NFC, surveys, loyalty tokens).
    (34:34–41:30)
  • Gamified training via One Huddle—making information sticky, leveraging analytics to spot and nurture talent.
    (35:15–36:55)

6. Equity, Scaling, and Partnership

• Negotiating Equity:

  • Lawton’s jump to Barcelona/Bartaco was predicated on direct negotiation for higher salary and Class C shares—“stake in the upside” model.
    (47:24–53:28)

• Lessons Learned:

  • Be diligent: “A lot of people promise shares... and people become disillusioned. So you have to be careful.” (52:14, Lawton)
  • Equity needs to be earned, clear benchmarks and guardrails are crucial. Not everyone has an “ownership mentality.”
    (54:14–54:49)

7. Building a Brand vs. a Chain

• Defining a Lifestyle Brand:

  • Bartaco is positioned as a “lifestyle brand” not a chain—“We started with, what do we want this place to feel like?” Bartaco's approach: inspire a coastal, beachy, health-driven vibe, appealing to psychographics, not just demographics.
    (58:07–60:55)

• Quote:
  "Sears is a chain, and Lululemon is a brand."
  (58:11, Lawton)

• Customer Experience Ethos:

  • The details, from menu choices (no queso, focus on coastal lightness) to use of chopsticks, are dictated by the brand’s emotional destination, not category expectations.
    (65:29–66:23)

8. Scaling, Exits, & Organizational Structure

• Organizational Evolution Post-Acquisition:

  • Lawton’s journey saw Bartaco change hands (Del Frisco’s, El Caterton, Uncle Julio’s), illuminating the need for cultural fit in mergers and the unique challenges when parent company culture clashes with acquired brand DNA.
    (87:48–91:14)

• Support Structure:

  • Building a modern, digitized, “support center” (not “corporate”), emphasizing paperless processes, direct lines of operational communication, and data-centric decision-making.
    (93:45–96:50)
  • Key hires (e.g. Anthony as President), and empowering on-the-ground leadership (regional directors, VPs of Ops).

  "You don't want to play that telephone game because things get lost in the message. So the tighter you can keep it, the longer you can keep it. I recommend that." (99:31, Lawton)

9. GM-Driven Loyalty & Guest Intelligence

• Philosophy:

  • Real loyalty is built around strong on-site leadership (GMs), not by shallow discount-driven loyalty programs. GMs enable the guest experience through presence, attention to detail, and empowerment via data.
    (101:25–103:32)

  "We don't sell tacos. We don't sell margaritas. We sell fun. We sell life. We sell a vibe." (102:32, Lawton)

10. Restaurants as Social Fabric

• Industry as a Stepping Stone:

  • The restaurant’s role in coaching young people, instilling tangible values and social skills, and providing first-job experiences that shape lives.
    (75:56–77:35)

  "The most common job that people have had in the US is restaurants. ...We have such an opportunity with young people to get them started... These are all skills that will carry them through the rest of their lives." (76:55, Lawton)

Memorable Quotes

• On Humility & Growth:
  "I'm better because I'm not the most important person in the room anymore." (104:54, Lawton)

• On Brand:
  "We started with, what do we want this place to feel like? We didn't know it was gonna be tacos." (59:18, Lawton)

• On Partnership:
  "If you're giving somebody a piece of your business, there's an expectation... you need to find the right DNA with people that really appreciate what that is." (55:25, Lawton)

• On Tech Independence:
  "If you have it [data] carefully kept and well organized and not siloed, those will be the first ones to really benefit." (24:05, Lawton)

Timestamps for Key Segments

• Introspection & Team Learning: 00:00–06:17
• Bartaco Today & Economics: 07:10–10:47
• Evolution of Service Model: 41:58–43:16
• Equity/Partnership Structures: 47:24–54:49
• Brand vs. Chain Discussion: 58:07–61:34
• Acquisitions & Organizational Rebuild: 87:48–96:50
• GM-driven Loyalty: 101:25–103:32

Resources, Tools, & Companies Mentioned

• Technology: OLO, Wisely, One Dine, One Huddle, Micros, Craftable, Great Plains (accounting), Seven Shifts
• Books: Power and Progress (re: technology and industry consolidation)
• Restaurant Brands: Bartaco, Barcelona Wine Bar, Urban Outfitters/Anthropologie (brand analogy), Angie’s, Havana Hot Chicken
• Peers to Follow: Jack Gibbons (Front Burner), Ford Fry, Rich from Mecha

Actionable Takeaways

• Prioritize Introspection: Make honest, open feedback a team cornerstone.
• Invest in Tech (Wisely): Seek platforms that allow for true customer-data ownership and integration.
• Build a Brand, Not a Chain: Focus on the sensory and emotional experience, not just the menu.
• Equitable Partnerships: Create clear, structured equity models tied to performance and longevity.
• Futureproof for Laws & Labor: Be ready for legislative changes and workforce expectations—protect your people, and your business will thrive.

Closing Thought

Hospitality businesses succeed when they tie together introspective leadership, innovative service, scalable and data-driven systems, and a unified sense of purpose. Bartaco’s journey, as told by Scott Lawton, is an inspiring blueprint for building not just restaurants, but enduring lifestyle brands and transformative teams.

Connect with Scott Lawton:
Find Scott on LinkedIn (search “Scott Lawton, Bartaco”).
Bartaco: Website

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