Might a restaurant lose money by serving too many different customer types?
Broad appeal can create narrow margins.
Restaurants often want to welcome everyone. Operationally, everyone is a difficult audience.
The hidden mechanism is demand fragmentation. Different customer groups may expect different prices, dishes, portion sizes, service speeds, and dining experiences.
Imagine a restaurant trying to serve office lunches, romantic dinners, tourist groups, families, and late-night snackers with the same kitchen. Each group adds different requirements.
A second-order effect develops when complexity spreads across the system. Menus grow, inventory expands, staff training becomes harder, and the restaurant's identity becomes less clear.
People often think restaurants lose focus because they lack ideas. Many lose focus because they try to serve too many ideas at once.
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