Tag: b2b sales

The unforeseen impact of tariffs on the restaurant industry

One of our potential customers was at an offsite last week. He had indicated to me that by the end of the week, he would know whether or not we would have a green light for our data analysis project. Although he promised to call me this coming week, I couldn’t wait. I figured I’d text him on Friday at the end of the day so I didn’t have to think about it all weekend.

He responded immediately saying that the executive team was in ‘all hands on deck’ mode because of the announcement on Friday that the US would be implementing tariffs on February 4th. The concern about how the tariffs would impact their business may actually accelerate our path to a project and commercial agreement. Turns out that the sudden implementation of tariffs creates a great deal of uncertainty.

It got me to thinking how the tariffs may impact the restaurant industry. The most obvious, direct impact will be that ingredients imported from Mexico and Canada will become significantly more expensive. But it turns out that tariffs can also disrupt global supply chains. Demand for products from Mexico, for example, may shift to other countries that are not subject to tariffs. Sudden demand from countries with limited supply or bottlenecked import channels will likely cause shortages and delays.

Restaurants will inevitably have to adjust purchasing, menu design and prices accordingly.

I’m curious to hear from restaurant companies that are thinking about this. It’s something that High Margin is looking at very closely.

Weighing the benefits and drawbacks of a bootstrap strategy

I incorporated High Margin 7 weeks ago and so much has already happened. It has been 7 weeks of non-stop hustle, of deep soul searching and self-reflection, of hope and resilience.

“This time, I’m going to bootstrap it,” I told myself. All the pieces are in place.

We have:

  • A great idea for a solution that can show immediate value and impact.
  • A team of smart, hard-working individuals ready to roll up their sleeves and work for the promise of future compensation and of being a part of building something great.
  • Enterprise customers interested in what we have to offer.

What could possibly go wrong?

It takes so much more to achieve that one spark that ignites the fire that can become a new, successful business.

It always takes longer than you think. Always.

I thought that if I explain to potential customers with full transparency that we can really help them, but that we don’t have the luxury of a 6-month sales cycle, they would understand.

The truth is, not having a runway is a “we” problem. What we have to offer is good. Really good. It will solve many pain points for restaurants. But that doesn’t mean restaurant companies will shift priorities and find budgets to work with us, no matter how much they like us and what we have to offer.

Very early on, we had three solid deals and it has been my goal to close at least one of them. One deal would be enough of a basis to build a long-term sustainable business. Three deals would be ah-maz-ing. I mean… we’re going to have a KILLER 2025 amazing.

I gave myself until January 31st.

With 4 days left, the deal status is:

  1. We’re committed, but we might have to do it later, not right now.
  2. Happy to give it a try. We will pay you as soon as we see value.
  3. I’ll let you know by the end of the month.

I’m thinking it’s time to raise a pre-seed round.  The feedback around our product vision is very positive and it would take little time to stand up a first version to get a few case studies under our belts.

These 3 deals are likely to turn into long-term successful partnerships. Is it worth the risk of running out of air just to avoid taking any outside capital? The answer is clearly no. It’s time to raise some money.