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John Felico: 5 Things I Wish Someone Told Me Before I Became a Restaurateur

An Interview With Martita Mestey

While the quality of your food is important, it’s not more important than the consistency of your food. Even if your food is always delicious, if it’s prepared differently every time a customer comes in or whenever a different cook is on staff, you will lose customers. Consistency creates comfort for your customers. Nothing builds loyalty like knowing they can expect the same great experience every time. You would never consider a McDonald’s hamburger high quality, yet, they’ve sold more hamburgers then their next 10 competitors combined.

As a part of our series about “5 Things I Wish Someone Told Me Before I Became a Restaurateur”, I had the distinct pleasure of interviewing John Felico.

John Felico, author of DRAFTING A DREAM, is a serial entrepreneur, acclaimed advisor, expert, and restaurant owner with over forty years of experience in the culinary industry. He launched his first business, selling sausages behind Kennedy Airport, when he was only seventeen. Ten years later, he opened a Dominic’s of New York food truck outside a Lowes store in Virginia. Over the next two decades, he grew the business to 175 locations, and developed licensing deals to place its products in supermarkets and sports venues around the country. After creating additional concepts, including The Olde Glory Coffee Company and Staks Subs, Felico opened Auggie’s Draft Room, a self-serve tap house located in St. Augustine, Florida. Today, as Auggie’s continues to flourish, Felico works as an advisor to restauranteurs and start-ups throughout the United States. You can learn more at www.johnfelico.com.

Thank you so much for doing this with us! Our readers would love to ‘get to know’ you a bit. Can you share with our readers a story about what inspired you to become a restaurateur?

Thank you for allowing me to share a bit of my journey with you. I wish I could tell you about a single, awe-inspiring moment that set my life on this path, but the truth is much simpler. I grew up in a culture of entrepreneurship, with food trucks as the family business. So, instead of a lightning bolt of inspiration, it was more like a steady diet of hustle and hot dogs. Since food was what I knew, it only made sense that my entrepreneurial journey would lead me straight into the restaurant industry.

Do you have a specific type of food that you focus on? What was it that first drew you to cooking that type of food? Can you share a story about that with us?

I don’t really focus on a specific type of food because, honestly, it’s never been about the food for me. What I’ve always had a knack for is matching up a location with the right concept and figuring out what type of food it should focus on. Believe it or not, the food part is usually the easiest — unless you’re talking about a super sophisticated, complicated menu, I can replicate just about any restaurant menu.

This gives me the flexibility to match my menu to the customers walking outside my door. When it comes to deciding what type of food we want to focus on, I look at who’s really nailing it in the market and take inspiration from that. I believe in learning from the best — seeing what’s working well, and then putting my own spin on it to make it unique and localized. After all, if someone’s already found a great formula, there’s no need to reinvent the wheel; instead, it’s about enhancing it and making it your own.

Can you share the funniest or most interesting story that happened to you since you became a restaurateur? What was the lesson or take away you took out of that story?

A few years back, my wife Diane and I thought we’d cracked the code to early retirement. We sold everything, packed up, and moved to Florida, thinking we’d enjoy the good life. But within three months of retirement, I was looking at spaces to open a new restaurant. We were going to open a new restaurant from the ground up again.

Fast forward to the grand opening of Auggie’s Draft Room, and there’s Diane, who’s spent the last 20 years working in an office — now suddenly working the floor on opening night. The place was packed when a woman tapped Diane on the shoulder and said, “There’s a problem in the ladies room.” Diane, without hesitation, put on some gloves, grabbed some paper towels and cleaner, and headed toward the restroom. The woman looked at Diane and said, “That’s not going to be enough”

I was right behind Diane as she opened the door–she froze halfway into the bathroom. I quickly directed my now PTSD-stricken wife out of the room and went in alone to deal with the carnage.

The lesson we learned? To be a successful entrepreneur, sometimes you’ve got to clean the poop off the ceiling, lots of it — literally.

Can you tell us a story about the hard times that you faced when you first started your journey? How did you overcome this obstacle?

The hardest lesson I had to learn was to trust my own instincts. For a long time, I would listen to others and follow their advice, thinking they were smarter or more experienced than me. But the reality is, you can only be the smartest person in the room if you first recognize that you’re not. You need to listen to everyone, take in their perspectives, and then use that knowledge to formulate the best strategy. I didn’t always do that — I didn’t trust my instincts enough to shape my own path. Instead, I often relied too much on the opinions of others who I assumed knew better.

In your experience, what is the key to creating a dish that customers are crazy about?

Growing up, my father ran an Italian Sausage and Pepper trailer, making the rounds at Italian festivals in the summer and parking on the streets of New York during lunch to serve up that sausage. He always told me that the recipe came from my grandfather. Is that true? I don’t know — my father was known for his hyperbole — but I’m going with it. That same Italian Sausage is still on the menu at my newest concept, and it’s been a hit.

The key to creating a dish that customers are crazy about? It’s about more than just the recipe — it’s the story behind it, the tradition, and the care you put into making it. People can taste when something is made with passion and history. That’s what keeps them coming back.

Personally, what is the ‘perfect meal for you’?

The perfect meal isn’t just about the type of food. If I cooked ten dishes you love and nailed each one, you’d probably have a hard time picking your favorite. But if I changed the experience surrounding each meal, that’s when you’d really be able to choose the perfect one. You could have the exact same dish at a romantic dinner with someone you love or at a loud, smelly Super Bowl party. One of those meals would be perfect, while the other… not so much.

Where does your inspiration for creating come from? Is there something that you turn to for a daily creativity boost?

I’d love to say that what inspires me is just the drive to be successful, and while that’s definitely part of it, it doesn’t quite capture what really pushes me. For me, building a successful restaurant — or even turning around a failing one — is like solving a complex puzzle that only I can figure out. Sometimes all the pieces are laid out for me, other times I have to fabricate the pieces, and occasionally I find that a piece can’t be made at all, so I have to find a way around it. It’s more than just success; it’s the challenge of figuring out that puzzle that really drives me.

And honestly, it doesn’t stop at my own establishments. Every time I walk into a restaurant, I can’t help but analyze it from top to bottom. As you can imagine, I’m probably not the best company when we go out to dinner!

Are you working on any new or exciting projects now? What impact do you think this will have?

Developing my newest concept, Auggie’s Draft Room, from scratch was an invigorating experience. While this type of work comes naturally to me, working closely with my son-in-law Corey, who was new to this process, gave me a fresh perspective on why so many restaurant operators struggle. It became clear to me just how overwhelming the process can be for those without extensive experience — the countless adjustments, procedures, and detailed checklists that need to be meticulously executed to ensure success.

This experience reaffirmed something I’ve long understood: there’s a significant need in this industry for the kind of knowledge I’ve accumulated over the years. I’m now more committed than ever to sharing this expertise. To that end, I’m focusing on two key projects. First, I’m expanding my consulting work, offering guidance to individuals and organizations who are either developing new restaurant concepts or looking for innovative solutions for their existing businesses.

Secondly, I’m thrilled to announce that I’ve written a book titled DRAFTING A DREAM, which will be published in October. The book offers an unfiltered look at what it really takes to turn a restaurant concept into a thriving business. It’s not just a guide — it’s a playbook filled with real-world stories, hard-earned lessons, and practical strategies that anyone in the restaurant industry can relate to. Whether you’re dreaming of opening your first place or looking to overcome challenges in your current venture, this book will provide the insights and tools you need to make it happen.

What advice would you give to other restaurateurs to thrive and avoid burnout?

Burnout often stems from stress, which usually comes from not having control over your business. DRAFTING A DREAM gives you the tools to take complete control over your restaurant. One of the reasons I wrote DRAFTING A DREAM is to give restauranteurs the tools they need to take complete control of their businesses. Although my book has not been published yet, my daughter Rebecca read the manuscript. Here’s how she was able to put the advice to work.

When my wife and I opened Auggie’s Draft Room, the plan was for Rebecca and our son-in-law Corey to eventually take over operations. That happened this year. Rebecca runs the back office while Corey manages the restaurant operations. When the numbers came out for June, our food cost was 36% — 8% higher than usual. To put that in perspective, we grossed $180K in June, and running 8 points higher on food cost equated to $14,400 in lost profit.

High food cost is a complex issue, with many factors contributing to it — often like death by a thousand cuts. The only way to fix it is to evaluate every food cost control point and put a plan in place to address each one. Rebecca and Corey pulled out my manscript, went to the section “Controlling Your Controllable Cost,” and followed it step by step. By the time the July numbers came out, our food cost was back under 30%.

What are your “5 Things I Wish Someone Told Me When I First Started as a Restaurateur” and why?

  1. It Starts Today:

I’m about to share something that everyone needs to know — I wish I had this information earlier in my career. About 20 years ago, our company conducted a massive survey of over 1,000 customers at multiple locations across several states. We asked one question that produced a result that changed the way I approach growing a restaurant: “Have you ever been to this restaurant before?” The answer? 1 in 10 said it was their first time. Think about the power of this knowledge — every day, 10% of your customers are new. They don’t know how things were yesterday; they only know the food and service you’re giving them today. Think about how quickly you can change your business if you woke up today and Wowed those new customers?

2. Mind On Your Money:

I wish someone had sat me down when I first started and taught me how to properly calculate my controllable costs. Recently, I was working with a restaurant owner who had been open for 8 months and was struggling. When I asked him to send me his Profit and Loss statements, he admitted he didn’t know how to create one. After gathering the information needed, I found out he was running a 60% food cost (which should be between 28%-32%) and 40% labor cost (which should be under 22%). He was already losing money before even paying his rent or utilities. Unfortunately, this scenario is far more common than you might think.

3. Consistency Over Quality:

While the quality of your food is important, it’s not more important than the consistency of your food. Even if your food is always delicious, if it’s prepared differently every time a customer comes in or whenever a different cook is on staff, you will lose customers. Consistency creates comfort for your customers. Nothing builds loyalty like knowing they can expect the same great experience every time. You would never consider a McDonald’s hamburger high quality, yet, they’ve sold more hamburgers then their next 10 competitors combined.

4. Compound Marketing:

I may have made that term up, but it refers to the power of word-of-mouth marketing. Word-of-mouth is even more important today because of social media. However, it can only become important once you understand the power of Compound Marketing.

Let’s say you’re a fantastic operator, and you give everyone who comes into your restaurant the perfect experience. They tell someone, and when that person comes in, they get the same great experience, so they tell someone, and so on. To help illustrate the concept of compound marketing, think of your customers as a thin sheet of paper. Every time you fold the paper in half, it’s the equivalent of one customer telling another about your restaurant. At the beginning, it’s slow — one customer tells one more, then two tell two, and so on. By the time you reach your 10th fold, the paper is about 4 inches thick.

Now, how many times do you think you need to fold that paper to make it thick enough to reach the Moon? Only 42 times. And if you fold it a 43rd time, it could go to the Moon and back. That’s the power of compound marketing.

But here’s the catch — customers are 10 times more likely to tell their friends about a negative experience than they are to share a positive one. So, think about how compound marketing can work against you if you’re delivering a negative experience. There are specific marketing programs you can implement to create a positive compound marketing effect, and I break them down in my book.

5. Don’t Let Your Dream Cloud Your Judgment:

If you are about to get into this industry, there will be a time when you think you have the perfect concept with the perfect menu and the perfect name. You may even have your finances lined up. You’re ready to start the next chapter of your life as a restaurant owner — the dream you’ve had most of your life. The next step is finding the perfect location, but this is much harder than one might think.

What I’m about to say is easier said than done: you must be patient and wait for the right location. And if the right location never materializes, you shouldn’t open your restaurant. I know you think your new concept is amazing, but unless you’re a very experienced operator with a little bit of luck, believe me when I say that your awesome concept is not awesome enough to overcome a subpar location. Trust me — I’ve tried and failed a dozen times.

What’s the one dish people have to try if they visit your establishment?

When you build a menu for your establishment, it’s crucial that you love every item on it. As the last line of defense, you’re responsible for making sure everything is prepared correctly. If you don’t love your menu, there may be items that slip through the cracks simply because you never eat them. That’s what makes this question tough to answer because I love every item I create, but in order of deliciousness, my top three favorites are: 1. Our Italian Sausage Sub, 2. Our Crispy Chicken Bacon Ranch Quesadilla, and 3. Our SmokeHouse Burger.

You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.

You may regret asking me this question because I’m about to get on my soapbox.

The fact that we allow our children to graduate high school financially illiterate is a disgrace. Think about it: when our children graduate, they don’t know how to balance a checkbook. They know nothing about mortgages, insurance, or car loans. They have no idea about the power of compound interest or what a 401K or IRA is. This lack of knowledge sets them up for a lifetime of financial struggle, stress, and missed opportunities.

Imagine if we could change that. Imagine if every student graduated with a solid understanding of personal finance. They would know how to budget, how to save, and how to invest. They would understand the importance of living within their means and the dangers of debt. They would enter adulthood with the tools they need to build a stable financial future, rather than being thrown into the deep end of the financial world with no preparation.

Financial literacy is a basic life skill, and it’s time we started treating it as such. If I could inspire a movement, it would be to ensure that every young person leaves school equipped with the financial knowledge they need to succeed in life. Because when we empower individuals with the tools to manage their finances, we’re not just helping them — we’re creating a stronger, more prosperous society for us all.

Thank you so much for these insights. This was very inspirational!


John Felico: 5 Things I Wish Someone Told Me Before I Became a Restaurateur was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.