Physical Business Value

Austin Rief, co-founder of Morning Brew, shares his perspective on the value of physical businesses despite his success in digital media. He believes that while digital businesses like newsletters can be straightforward, physical experiences offer unique opportunities for customer engagement and retention.

Key Points:

• Physical Business Appeal:

  • Creates unique ways to keep customers engaged
  • Harder to hook people compared to newsletters
  • Offers different challenges than digital content

• Business Model Innovation:

  • Example of Bingo Loco/Bongo Bingo:
    • Transforms traditional bingo into club-like experience
    • Generates significant revenue ($20M/year pre-COVID)
    • Uses off-peak nights at venues
    • Combines entertainment with drinking
    • High margins due to low operational costs

• Customer Retention Strategies:

  • Uses games (like bingo) to keep people at venues
  • Creates environment for extended stays
  • Encourages continuous drink purchases
  • Incorporates performers and entertainment

• Physical Business Success Factors:

  • Need unique hook to get people in
  • Must create compelling reason for return visits
  • Should maximize time spent at venue
  • Focus on additional revenue streams (e.g., alcohol sales)

• Value of Experiential Businesses:

  • People seeking alternatives to traditional bars
  • Growing demand for interactive entertainment
  • Opportunity to transform familiar activities
  • Can create high-margin revenue models

• Learning from Physical Businesses:

  • Studies different venue concepts for inspiration
  • Observes how businesses maintain customer engagement
  • Analyzes successful revenue models
  • Looks for opportunities to innovate traditional concepts