The Real Cost of Business: What Independent Operators Must Do to Win
by Doug Radkey
On stage at BRE 2025 in Denver, Co.
We need to get much more comfortable having uncomfortable conversations about the reality of being a hospitality operator these days.
On a recent trip to Denver, I had the privilege of joining Ashley Bray, Chef Adrianne Calvo, and Lauren Barash on stage at The Hospitality Show and Bar & Restaurant Expo for a conversation that every operator needs to have.
The topic and panel title was “The Real Cost of Business: Economic Pressures & Policy Shocks for Independent Operators.”
This session wasn’t theory. It wasn’t sugar-coated optimism.
This session was raw, real, and filled with straight talk about what’s actually happening across the hospitality landscape right now.
And it was exactly the kind of conversation this industry needs more of, because let’s be honest: today’s operators aren’t just fighting one battle.
They’re fighting them all.
The Stacked Deck: What’s Hitting Operators Right Now
It’s no secret. Tariffs are up. Labor costs are up. Packaging and product costs are up. Rent is up.
And consumer spending? It’s currently on some shaky ground.
Margins continue to be thin for most operators, and while these operators are navigating inflation, interest rate hikes, and volatile supply chains, they’re also facing the human tolls: fatigue, burnout, and turnover at every level.
But here’s the thing: this industry is not broken. It may be bruised, and it may be tired. But it’s resilient.
The bigger problem? It’s too reactive. And reactivity is what often kills profitability.
Hospitality is built on anticipation, such as reading the room before the guest even realizes what they want. But too many owners have lost that skill.
Instead of leading, they fight fires. Rather than anticipate, they react.
To win in this era, you need a playbook supported by clarity, not chaos.
Back to the Fundamentals of Hospitality
Let’s start here, because it’s something I said on the panel. I’m going to keep saying it: Operators need to get back to the fundamentals of hospitality.
Hospitality is not a product, it’s a performance. It’s a feeling. Hospitality is how people are made to feel when they walk through your door.
This is a people-first business. This is a people-over-profits business.
That’s your anchor.
When operators start chasing trends instead of refining fundamentals, they lose sight of what this business is really about:connection.
The businesses that are navigating the challenges and winning right now aren’t necessarily the ones spending the most or cutting the deepest. They’re the ones doubling down on service, culture, and consistency.
Operators confronting today’s challenges successfully have strategic playbooks, onboarding systems, the right tech stack, SOPs, and leadership frameworks in place. Their well-developed systems turn daily operations into muscle memory.
That’s the foundation.
Lead with Strategy and Anticipation
One of the most powerful themes from our conversation was about mindset.
Operators who win in this climate are those who lead with strategy, not emotion.
They’re also the operators who anticipate challenges instead of just react to them.
It’s not strategic to wait for your accountant’s monthly report to tell you where you stand. By then, it’s too late.
You need to have real-time visibility into your numbers, your labor productivity, your inventory, and your guest behaviors.
That’s how you lead with anticipation rather than panic.
The right strategy doesn’t live on a whiteboard, it lives in your systems. It lives in your team meetings. It lives in the mindset you reinforce daily.
If your business only moves when you do, you don’t have a strategy, you have stress-induced operations.
Data is the New Cash
Here’s a truth that every operator should be repeating: Data is just as valuable as cash.
In a volatile market, your ability to make decisions quickly—based on evidence, not instinct—is your competitive edge.
You should know your key metrics at all times:
- Guest frequency.
- Average spend per guest.
- Labor efficiency.
- Food, beverage, and prime costs.
- Revenue and profit per square foot.
- Marketing conversion.
If you can’t track these easily, it’s time to upgrade your tech stack.
Technology shouldn’t stress you out, it should simplify your life. The tech you trust to help you run your business should help you see clearly.
It’s simple: When you understand your data, you control your business instead of being controlled by it.
Menus Built with Intention
Another powerful part of our discussion was about menus. During times of uncertainty, your menu is both your marketing strategy and your financial engine.
Here’s the shift: You need to develop your menu strategically. Focus on what sells, what tells your story, what aligns with your guest, and what aligns with your financial obligations.
Every menu item should have a purpose. Every ingredient should do double duty.
Have a menu of 12 to 15 items that are high-impact items.
Use storytelling to create perceived value. Guests don’t just buy what’s cheapest, they buy what feels meaningful to them.
That’s how you maintain profitability without discounting yourself into irrelevance.
As I said during the panel, “Focus on the guest experience first,” and “sales are a vanity metric. Profit tells your story.”
Perception of Value Without Discounts
Discounting can become a slippery slope. It’s a tactic that has closed more restaurants than it has saved.
You don’t need to lower your price to drive traffic or raise perceived value. Instead of discounting, you need to improve your storytelling.
Bundle thoughtfully. Offer curated experiences. Create tiered packages. Add personalization.
A guest who feels understood will spend more, and return more often.
Discounts train guests to expect less from you; experiences train them to expect more of you.
That’s the difference between a transactional business and a memorable brand.
Build Around People, Processes, and Profit
It always comes back to this: Your people, your processes, and your profit.
If any one of those three is off-balance, your business becomes fragile.
Strong operators know how to hire for values, not just skill. They know how to train through systems, not emotion. They know how to communicate relentlessly and delegate with trust.
That’s not “soft leadership,” that’s a non-negotiable to win in this industry.
It’s also the reason some independent operators are scaling to multiple venues while others are still trapped in the trenches. The old adage remains: Work on your business, not in it.
Culture: Your Ultimate Competitive Advantage
Labor is expensive. Recruiting is hard. Retention is harder.
But the best operators aren’t competing on wage alone, they’re competing on culture.
If your business doesn’t feel purposeful to your team, you’ll never build staff loyalty.
You need to make your staff experience more than a paycheck. Your staff experience is just as important as your guest experience.
Show them the vision. Create career paths. Celebrate wins. Encourage ownership thinking.
And here’s something I say often: You don’t need a “family.” You need a champion team; people who want to win together.
Create stay interviews, not just exit interviews. Find out why your team loves working for you, and document their feedback. Build engagement before burnout.
When people feel seen and supported, they become your greatest marketing engine. In fact, they become your brand ambassadors.
Leadership in a Time of Pressure
Leadership today requires a new kind of stamina.
Stop trying to control people; empower them. Don’t bark orders in the kitchen or on the floor; build alignment. In an age where stress levels are high and margins are thin, empathy is not weakness, it’s strategy.
The best leaders know when to listen, when to decide, and when to step aside. They know that delegation isn’t a loss of control, it’s the gaining of stabilization and scale.
If you want to build a high-performing culture, communication and accountability must be daily habits, not quarterly goals.
Clarity is the Currency of the Future
When you strip everything back—the data, the menus, the systems, the tech—what this conversation in Denver really came down to was one word: clarity.
Clarity around who you are, and what you offer. Clarity around your numbers, your guests, your team, and your future.
Without clarity, you drift. With it, you build momentum.
The operators who have clarity are playing offense.
They’re not waiting for the next trend, policy, or economic shift to tell them what to do. They’re already five moves ahead.
Intentionality in Every Decision
Another phrase highlighted during the panel was “being intentional.”
Intentionality is everything.
Every decision you make, from menu design to hiring to marketing, should serve a clear purpose.
Don’t do things because “that’s what everyone else does,” or “this is how we’ve always done it.” Those mindsets keeps you average.
You need to differentiate.
Every single touchpoint should feel deliberate. Each and every staff and guest interaction should reflect your values. Every operational decision should move you closer to your vision.
Operators who just chase volume lose vision; operators who chase clarity create longevity.
The Operator’s Wellness: You Matter Too
Here’s something I made sure to say on stage, and something I’ll keep repeating until it sticks:
You, as the operator, matter too.
You can’t lead effectively when you’re depleted, and you can’t make smart decisions when you’re burnt out. Make time for yourself.
The energy of an independent business starts with its owner and operator. If your energy is chaos, your team feels it. If your energy is grounded, they follow.
Hospitality demands everything from us, but it doesn’t have to take everything from you.
Remember, structure, boundaries, and recovery are leadership traits, not weaknesses.
From Chaos to Clarity
When you zoom out, the message from our session in Denver was simple:
The independent operators who continue to win move from chaos to clarity.
They have systems and strategy.
They anticipate rather than feel anxious.
Their costs are controlled, not cut.
They understand that technology isn’t replacing hospitality, it’s refining it.
Their numbers are balanced with narrative.
They know their financials before their accountant does.
They lead from clarity, not fear.
The 45-Minute Reality Check
We covered all of this, and more, in just 45 minutes. It was so impactful.
Because conversations like this aren’t just about sharing ideas, they’re about sparking a mindset shift across the industry.
This business is tough. It always has been.
However, when you step back, create structure, and move forward with intention, it becomes something incredible.
We’ve survived prohibition, recessions, and a global pandemic. We’ll survive this era too.
But not by chance, by design.
The Final Challenge
I’ll leave you with you with two questions. First, are you running your business from clarity, or from chaos?
Because the truth is, your numbers won’t lie. Your systems won’t lie. Your team won’t lie.
If you’re still chasing hours instead of strategy, still reacting instead of leading, still trying to outwork the problems instead of out-thinking them, you’re not ready for what’s coming next.
But if you’re ready to anticipate, adapt, and lead with clarity, then your future isn’t just secure, it’s scalable. The operators who build systems and culture today will be the ones setting the standard tomorrow.
The second question is, which type of operator will you be?
Image: KRG Hospitality
