In partnership with

Most of the agency books on your shelf are mistaken about what you're running.

They'll tell you an agency is a professional services firm. A consultancy. A production house. A shop. Pick your metaphor, and they'll give you an operating model to match. Project management. Utilization rates. Capacity planning. Velocity. Output per head. All the vocabulary of a factory is applied to a business that produces almost nothing that a machine can replicate.

I ran an agency for 14 years. I thought I was running a consultancy for the first eight of them. By year nine, I figured out I was running a restaurant.

Once you see it, you can't unsee it.

The factory model is why your best clients leave

Think about what the factory model rewards. Throughput. Efficiency. Standardization. Reduce variance. Get the work out the door. Hit the margin. Next.

Now think about what happens to a client on their third engagement with you. The onboarding is faster because you already know their brand. The discovery is shorter because you already know their stakeholders. The work is cleaner because you already know what they'll object to. All of this is good. All of this is efficient. All of this is what your ops team asked for.

And somewhere between engagement three and five, your best client starts to feel like a transaction rather than a relationship. They can't tell you why. They'll never put it in an email. They'll just take longer to answer. They'll start talking to other agencies. Eventually, they'll leave, and they'll blame "budget" or "a change in direction," and both of you will pretend that's the whole story.

It isn't the whole story. The whole story is that your factory got really good at producing their work and really bad at producing their experience. Those are two different products. Most agencies only build a system for the first one.

What a restaurant actually does

Here’s a test: go to a restaurant you love, then pay attention to what's happening beyond the food.

Staff greeted you by name or at least pretended to recognize you. Someone remembered that you don't drink on weeknights. Another noticed your glass was half empty before you did. Someone paced the courses so you didn't feel rushed but also didn't feel forgotten. Someone handled the one thing that went wrong (the wrong appetizer, the table that was too cold) before you had to escalate it. Someone sent something small to the table you didn't order because they'd heard you mention a birthday to your partner. Someone walked you out.

None of that is the food. All of it is the experience. And every bit of it costs time, attention, and staff who know what they're doing.

Now, try to imagine a restaurant that was great at the food but bad at everything else. Imagine the best cacio e pepe of your life served by a host who didn't look up when you walked in and a server who brought the check before dessert. You would not go back. You'd tell three friends the food was great, but the vibe was off. They wouldn't go either.

Agencies are in this business whether they admit it or not. The work is the food. Everything else is the experience. And the experience is what people remember when they decide whether to hire you again or tell their peer to call you instead.

The hospitality shift changes everything downstream

Once you accept that you're running a hospitality business, a bunch of things that used to be hard get easier.

Pricing gets easier.
You stop benchmarking against other agencies' hourly rates and start pricing the outcome and the experience together. Restaurants don't price by weight. They price the whole evening. Your best clients already understand this. They're not paying you to make the thing. They're paying you to take the problem off their desk and hand it back solved. That's worth more than the sum of your hours, and you know it.

Proposals get easier.
You stop writing scope documents that read like a parts list and start writing proposals that read like a menu. Three options, not one. Varying levels of involvement. Clear tradeoffs. The goal is not to persuade. The goal is to let the client choose the version of themselves they want to be on this project.

Account management gets easier.
You stop thinking of it as administrative overhead and start thinking of it as the whole job. The person sitting with the client is not a cost center. They're the maitre d'. They're the reason the client wants to come back. If your account manager is a junior person you're using to protect your senior people's time, you have inverted the value stack of your own business.

Kickoffs and wrap-ups get easier.
A factory hands things over. A restaurant welcomes and sees you off. The first meeting of an engagement is not a contract review. It's an arrival. The last meeting of an engagement is not a final delivery. It's a send-off. If you can't tell the difference, your best clients can, and they're deciding based on it.

What this actually looks like at your agency

I am not suggesting you put mints on your invoices or send handwritten cards on every client's birthday, though neither of those is a bad idea.

I'm telling you to audit your last five engagements the way a good restaurant GM audits a Saturday service.

Where did the client have to wait? Where did they have to ask twice? Where did they have to escalate? Where did the handoff between people feel like a handoff instead of a continuation? Where did the work get done correctly, but the client still felt unseen?

Every one of those is a hospitality failure, not a production failure. Your PM software will not catch any of them. Your utilization report will not catch any of them. Your Net Promoter survey might catch one of them, but only after the client has already decided to leave.

Catch them in advance. That's the actual job.

The part most agencies can't hear

There is a version of this article that ends with "Invest in your client experience" and gets nodded at and filed, and nothing changes.

This is not that version.

Here is the part that is hard to hear. If you are the founder, have built your agency around the work you love doing, and have outsourced the experience of being your client to whoever had capacity that quarter, your agency has an invisible ceiling, and you are sitting right under it. You'll hit it every year. You'll blame the market. You'll blame the pipeline. You'll blame the economy.

It's not the market. It's that you're running a restaurant where you, the chef, disappeared into the kitchen eight years ago, and the dining room has been running itself ever since. The food is still great. Nobody is complaining about the food.

They just stopped coming back.

The craft and care version

Every principle I work from at Agency Focus points at this. Intentionality over efficiency. Presence. Make the invisible visible. Finish with pride. Serve people, not projects.

None of those words makes sense inside a factory. All of them are already part of how a good restaurant runs on a Tuesday night.

Your agency is already a hospitality business. It always has been. The only question is whether you're running it like one on purpose.

Start this week. Pick one engagement that's in flight right now. Not your hardest client. Not your easiest. A middle one. Ask yourself what a great maitre d' would do for this client today that nobody on your team is doing.

Then do that thing.

That's the whole job.

Become An AI Expert In Just 5 Minutes

If you’re a decision maker at your company, you need to be on the bleeding edge of, well, everything. But before you go signing up for seminars, conferences, lunch ‘n learns, and all that jazz, just know there’s a far better (and simpler) way: Subscribing to The Deep View.

This daily newsletter condenses everything you need to know about the latest and greatest AI developments into a 5-minute read. Squeeze it into your morning coffee break and before you know it, you’ll be an expert too.

Subscribe right here. It’s totally free, wildly informative, and trusted by 600,000+ readers at Google, Meta, Microsoft, and beyond.

Reply

Avatar

or to participate

Keep Reading