Oct 27, 2025

Notes from “Middle Earth”
Playa Caracol, Panamá 

“Oh, yeah, I only go there on the weekends when they are busy.”

(Can’t read the full email – click here for the online version.)

We sensed there was a problem when diners across the room, who had arrived 30 minutes after us, received their meal. And we hadn’t…yet.

We knew the service would be slow. We had been several times before, over the past 6 months. One did not go because you expected to be in and out in a jiffy.

For those of us who reside in the area, this establishment is renowned for its unhurried pace. From the measured pace of the staff when walking to and from a table or to the kitchen, to the deliberations taken in coming up with the bill, one wonders if their training was from watching sloths move.

You might wonder why we would even consider going given its reputation.

It all started with a gym membership.

From our neighbor, we had learned that the developer had gone ahead and installed excellent equipment in the gym at the nearby hotel. Furthermore, for us owners in the community, we could obtain a monthly membership for $60. To sweeten the deal, they would give each member 25% back – in the form of a coupon valid at the restaurant on site. 

The thing is, although we knew service could be slow, from our prior experiences, we knew that the food was actually quite good and the bar decent. Besides, mid-week – there wasn’t any other place to dine, so we took the plunge. 

We had a coupon burning a hole in our pocket.

Nonetheless, when patrons at other tables began to get their food, having arrived long after us and our waiter being nowhere in sight, we suspected the worst. It was evident that our order hadn’t even been entered into the system. 

Indeed, it was perplexing that no one had bothered to even ask if we wanted another drink. It was as if some of the staff had begun to think that there was a problem, but no one wanted to own the situation. 

I’m not sure what happened but we decided to leave, nonetheless. I had, after all, enquired what had become of our meal and suffered further wait time of 10-15 minutes with no answer.

In the end, a manager was found. He even spoke English. He was contrite and apologetic. Offered to get the order in and promised it wouldn’t take more than 20 minutes. We had, however, already been there for well over an hour. We were not in the mood to stick around. We politely but firmly told him we were leaving and that he could take care of our drinks. 

When we regaled the story to our neighbor, he replied that he only went there on the weekend. When there was enough business to guarantee a chef in the kitchen. That he’d get some service. 

What is there to learn from this?

The first is the idea of selling with a bonus. The gym and restaurant are owned and managed by the same outfit. Instead of selling memberships for $45 they sold them for $60 – giving them an extra $15 immediate profit. 

Then, they gifted users that $15 back in the form of a coupon to used at their restaurant – valid for food only. $15 of food that at retail has a cost of at most $5. 

When patrons use the coupon, it is highly likely they will order drinks. Maybe even invite a friend or colleague to join them. Beverages are almost always sold at high margins so this can easily offset the loss of $5 of food cost.

This strategy works well especially when you have other businesses and/or services you can sell. 

It works even better if the other service or product is good. If that business can entice you to not only buy much more than the original coupon but also come back and buy more often. 

You hijack this strategy when the service at the corollary business is bad. Not only do you ensure the non-return of the customer, but you can be sure they will tell everyone they know about the experience. This in turn hurts your ability to attract new customers. 

Some of you may be thinking that you know all this. That this may be true of some businesses but not yours. My answer to you is this. Trust that your staff or team is good but make sure you verify that they truly are. A little “secret shopping” is advisable. 

Want more ideas on how to uncover profit and revenue boosts for your business or clients? The best place to start is my low-cost, Do-It-Yourself Business Academy. 

Until next week, 

Stay healthy and focus on profit! 

 - Hugh 
The “Profit Accelerator” Expert

P.S: Tiny, consistent wins—1–2% changes—can compound into 50–100% more profit in a year. Our team built a tool to unlock those gains. If you’re curious about how this can transform your coaching business, click here to explore further.

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