Restaurant Unstoppable Podcast – Episode 1236

Guest: Jim Hallers, Founder & Managing Partner of Citizens Grill and Tailgators
Host: Eric Cacciatore
Date: December 1, 2025

Overview

In this in-depth episode, host Eric Cacciatore sits down with Jim Hallers, a tech-guru-turned-restaurateur who has helmed eight bars and restaurants with revenues topping $23 million annually. Jim dives into his transition from a 30-year tech career to building his own hospitality empire, offering a rare blend of operational insight, financial acumen, technology strategy, and wisdom about growth and partnership pitfalls. The candid conversation explores everything from profitability, POS selection, and partnership structures to menu engineering, market positioning, and the future of the restaurant industry.

Key Discussion Points & Insights

Jim’s Restaurant Portfolio and Business Model

[05:19 – 08:57]

• Current Concepts:
  • Four Tailgaters Pub & Grill sports bars (varying from 59 to 250 seats)
  • Citizens Grill (Americana, 300+ seats)
  • Good Charlie’s Oyster Bar and Seafood Kitchen (approx. 200 seats)
  • Multiple dive bars—all with distinct personalities.
• Profitability: Aiming for 10% net profit overall; some concepts have seen up to 20%, others have lost money. Sports bars hover around 10%; seafood aiming for 15%.
• Growth: Started as a side project; now manages eight restaurants and bars.

“You always have one problem child and you always have a couple superstars.”
— Jim, on the financial mix of managing multiple concepts [07:34]

Mindset, Motivation & the Work Ethic of a Restaurateur

[09:15 – 14:16]

• Success mantra: “There’s 100 things you’re supposed to do today and you’re most successful when you actually do all 100 of them…Reason people fail is they look at the list and say, I’ll only do 70 today.” [09:15]
• Jim’s passion lies in the business side and in building vibrant community spaces—neighborhood bars and repeat customers.
• Early years were a grind: investing every penny, driven by both necessity and love for the business.

“I got into this business to do one sports bar on the side… I certainly didn’t want to be in the restaurant business.”
— Jim [12:29]

Path from Technology to the Restaurant Industry

[13:39 – 25:27]

• Raised with entrepreneurial influences; entered tech during the PC boom.
• Built financial and accounting systems for businesses in the 1980s-90s.
• Early exposure to bars/nightclubs (parents owned a bar; early tech work for high-volume nightclubs in Houston).
• Pivoted fully into hospitality in 2009; cashed out tech investments (notably Apple, Google, Amazon stock) to do so, noting the long-term “ouch” of missing out on those stocks’ rise but never regretting the move.

“I’ve joked that I got into restaurants and bars so the buck stops here. There’s nobody to blame but me for every success and every failure.”
— Jim [13:39]

First Restaurant Openings & Growth Strategy

[32:15 – 66:34]

• Opened first Tailgaters in 2009, leveraging the recession to lock in favorable rent with a developer partner.
• Used personal savings, credit cards, and minimal bank financing (banks rarely lend to unproven food & beverage operators).
• Smart social media: Early adopter strategy, used “connectors” to rapidly build Facebook followers and word-of-mouth [45:03].
• Rapid expansion: From one to four locations in under two years, fueled by demand and adaptable operational models.
• Lessons learned about partnerships: Early pitfalls with problematic business partners; advice is to avoid operating partners where possible and instead attract silent investors.

“I wrote in my LLC operating agreement that we won’t drink in our place… It really doesn’t matter what you write in your operating agreement.”
— Jim, on the limits of legal protections in bad partnerships [63:14]

Partnership Structures, ACA, and Investor Strategies

[68:44 – 79:26]

• In response to the Affordable Care Act, Jim engineered ownership so that no entity has a >50% owner, avoiding “common control” and requirements for health insurance in small entities.
• Smartly rotates investors across multiple LLCs, keeps each entity’s ownership and risk siloed.
• “Investors are okay. Investors are not partners…You don’t have operational say so whatsoever.”

— Jim [67:04]

Scaling, Managing Teams, and Dunbar’s Number

[74:23 – 78:41]

• Noted group size challenges: Teams of ~40–50 work best. Once growing past key “group size” thresholds (50, 150, etc.), communication and cohesion challenges arise, requiring more formal systems and layers in management.
• Key inflection points at 1, 3, and 10 units in growth journey.

Transformative Moments & Upgrading the Org Chart

[99:00 – 124:22]

• Major shift in 2016: partnership breakup, lessons on buy-sell agreements, and importance of clear, flexible exit strategies.
• Organizational structure today: Each location is a standalone LLC with separate investors. Jim as Managing Partner oversees everything, with GMs, three managers per large location, and top-tier line cooks favored over full-fledged “chefs” for consistency and cost control.

“What I need are the absolute best line cooks I can find… not chefs bored after six months.” — Jim [123:01]

Tech Stack, POS, and Accounting

[119:28 – 164:46 continuous, particularly [119:28–153:59]]

• All entities operate on QuickBooks for core accounting due to standalone structure.
• Outsources much of bookkeeping—recently transitioned to a bookkeeping service ($450 per location/month).
• POS evolution:
  • Formerly Micros, then SmartTab for bars, now mix of Toast (2 units) and SpotOn (4 units) for restaurants
  • Chooses POS partners based on credit card processing fees and willingness to negotiate rates.
  • Uses multiple POS to keep leverage in credit card fee negotiations.
• Staffing and scheduling tools: Switched from ScheduleFly to 7Shifts; uses Workstream for recruitment.
• BEER tracking: Uses tap monitoring system USBeerSaver for draught beer variance/loss prevention.

“What are you really paying for with a POS? What you agree to pay for credit processing is tens of thousands [of dollars annually].”
— Jim [150:10]

Mergers, Acquisitions, and Real Estate

[95:10 – 106:19, various]

• Bought and rescued multiple failed restaurant/bar concepts on favorable terms (“no money down, profit-share with the exiting owner”).
• Favors ownership of land where possible to build equity, but remains opportunistic with leases.
• Savvy in negotiating with shopping center developers—emphasizes the value restaurants bring to centers and the critical importance of sufficient parking.

Insurance, Risk, and Industry Challenges

[168:14 – 174:44]

• Expresses alarm over rising liquor liability insurance costs—now $85K/year for some locations (with zero claims over 15 years).
• Notes a trend in Texas of smaller bar operators going without insurance due to unaffordable rates, despite risks and lease requirements.
• Advocates for dram shop reform and reasonable limits on liability.

Emerging Trends & The Future

[177:09 – end]

• Declining alcohol mix, rising demand for premium non-alcoholic/functional beverages (e.g., specialty water menus).
• Regulatory and demographic forces are rapidly reshaping the marketplace.
• Generational shift: Younger consumers demanding more transparency and wellness focus, but indulgence trends still strong.

Notable Quotes & Moments (with Timestamps)

• Work Ethic:
  “You’re most successful when you actually do all 100 of them [tasks]… Reason people fail is they look at the list and say, I’ll only do 70 today.” — Jim [09:15]

• About Partnerships:
  “Just don’t have partners… Investors are okay. Investors are not partners. There’s a big difference.” — Jim [63:14–67:04]

• On POS/Tech:
  “You're loyal to the rate, not the POS… credit card rates are tens of thousands; it's the real cost.” — Jim [149:40, 150:10]

• Silos and Risk:
  “All my LLCs stand alone… nothing you want, no liability; if one blows up, it ain’t taking anything else with it.” — Jim [125:44]

• On Learning from Losses:
  “When something doesn’t make enough money, keep tweaking it, keep changing it. Do not just keep doing the same thing over and over.” — Jim [120:57]

• Texas Restaurant Association:
  “I've been the squeaky wheel for years in the organization: the big guys don’t give a sh*t about independents.” — Jim [197:05]

Timestamps for Important Segments

| Topic | Timestamp Range | |--------------------------------------------|---------------------| | Opening, business overview | 04:45–09:01 | | Operational model & profitability | 07:27–08:57 | | Success mantra & motivation | 09:15–10:59 | | Tech background and early business lessons | 13:39–25:27 | | Partnerships—pitfalls and advice | 63:14–67:04 | | ACA, Partnership structuring | 68:44–79:26 | | Growth pain points & Dunbar’s Number | 74:23–78:41 | | Major pivot, 2016 partnership drama | 99:00–106:19 | | Tech stack, POS & accounting choices | 119:28–153:59 | | Insurance costs and risk | 168:14–174:44 | | Industry & consumer trends, the future | 177:09–end |

Memorable Moments

• The “What if…” Investment Story: Jim’s candid regret and calculated risk in cashing out early Apple, Amazon, and Google shares to open his first bar [32:15–33:04].
• “Bar rescue” strategies: Negotiating owner-friendly deals to take over failing bars/restaurants, then transforming them into successful units [55:02–88:10].
• POS Deep Dive: Real, unfiltered breakdown on why he splits between Toast and SpotOn, how to negotiate, and the single biggest tech expense being hidden in processing fees—not in software [139:33–151:17].
• Organization & Scaling: How every LLC is deliberately structured with siloed ownership to minimize risk—a critical lesson for multi-unit operators [119:28–126:14].
• Industry Context: Sobering perspective on how rising costs (insurance, labor, food) may soon make it impossible for small operators to survive—unless structural reform or new models emerge [196:06–197:11].

Key Takeaways

• Have Crystal Clear Partnership Agreements: Or better yet, don’t have operating partners at all. Investors should not have operational control.
• Control What You Can: From negotiating credit card processing and insurance to emphasizing parking, every detail matters.
• Adapt Quickly and Decisively: Don’t let underperforming locations linger—tweak, rebrand, or exit as needed.
• Embrace Technology—but Stay in Control: Use tech tools to gain leverage, but don’t rely blindly; read the fine print and don’t chase “shiny objects.”
• Support and Join Industry Associations: Be active in advocacy at both the local and state level to fight for small operator interests.
• Flexible, Disciplined Team Management: Structure teams to align with optimal group sizes; as you scale, prioritize communication, systems, and incentives.

Connect with Jim Hallers

• Facebook: Jim Hallers
• LinkedIn: [Not frequently updated, but available]
• Join the Restaurant Unstoppable Community for a live Q&A event: restaurantunstoppable.com/cwe

This episode is essential listening for anyone aspiring to scale in the restaurant industry, facing partnership or tech choices, or navigating the rising tides of cost and risk. Jim’s hybrid background and frank advice are a north star for operators committed to being truly unstoppable.