FREE AT LAST! How One Restaurant Owner Broke Free from Frustration

Running a restaurant is no easy task. For Daniel Herrero, taking over his family's 48-year-old restaurant business in Panama meant inheriting four restaurants, a bakery, and a commissary — and all the chaos that came with them. It’s a familiar story for many restaurant owners, one of hard work, long hours and personal sacrifice. In this episode of the restaurant podcast, The Restaurant Prosperity Formula, Herrero shares his journey and shows that even when you're knee-deep in problems, there's a path to success — if you're willing to make bold decisions.

From airlines to restaurants: A life-changing shift

Herrero didn’t start in the restaurant industry. After studying in the US and Spain, he spent over a decade working for Copa Airlines. But in 2018, his father decided he was done with the restaurant business and gave Herrero a choice: either take over or the family business would be sold.

This wasn’t a small decision. The restaurants were successful by old-school standards — with long hours, little structure and a whole lot of trust. Herrero describes how, in his first week, he asked his father for KPIs (key performance indicators), only to get a puzzled look and a vague answer about food costs. Coming from a corporate background, where everything was measured, the lack of systems and structure in the restaurant business was shocking.

“I couldn’t believe it,” Herrero recalls. “They were still using fax machines to get orders from the restaurants. It felt like stepping back in time.”

The rough realities of a family business

The problems Herrero inherited were more than just outdated systems. The restaurant's food costs were sky-high, with one location hitting an alarming 56%. Worse still, long-time staff — many of whom had worked for the family for decades — were taking advantage of the lack of oversight. Herrero quickly realized the gravity of the situation.

“We had everything from theft to alcohol problems to sexual harassment issues,” he said. “It was a mess, and the people responsible were like family to my father. Convincing him to make changes was tough.”

But Herrero’s biggest challenge wasn’t just fixing the restaurant’s numbers; it was balancing the demands of the business with his personal life. The restaurant was consuming him. He missed his son’s first steps, first words, and countless other moments because he was always working.

“I was there physically, but I wasn’t really there,” Herrero explained. “I’d be with my kids at the park, but I’d be on the phone, dealing with restaurant issues.”

Hitting a breaking point

By 2020, Herrero had made some improvements. Food costs were down, but not where they needed to be. Then, the pandemic hit. Panama implemented some of the strictest lockdown measures in the world, and Herrero’s business, like many others, was devastated. At its peak, his restaurants employed 220 people. With sales plummeting, he had to let many of them go.

As restrictions eased, the business started to recover, but the pressure was too much. After suffering two anxiety attacks, Herrero decided he was done. He told his father he wanted out.

“It was one of the hardest conversations I’ve ever had,” he said. “I’d never seen my father cry before, but he did that day. He asked me to give it one last shot.”

A Last-ditch effort: Enter David Scott Peters

Desperate for a solution, Herrero found David Scott Peters and his Restaurant Prosperity Formula. He attended Peters’ two-day seminar for restaurant owners that gave him a new perspective on how to run a restaurant.

“David was like the Tony Robbins of restaurants,” Herrero said, laughing. “He talked about how restaurant owners needed to work on their business, not in it. That hit me hard. I had been in survival mode for so long, I couldn’t see a way out.”

At the seminar, Herrero learned about the importance of systems — from weekly inventories to waste trackers to recipe costing cards. He also realized he couldn’t do it alone. He needed to delegate.

Implementing change and seeing results

Back in Panama, Herrero began putting the systems he’d learned into place. He implemented a waste tracker and improved the restaurant's daily checklists. Within months, food costs dropped, and the restaurant began operating more efficiently.

But perhaps the most significant change was hiring an “implementor” — someone to help him run the business.

“I didn’t think I needed help,” Herrero admitted. “But I was wrong. Hiring my operations manager was the best decision I ever made.”

Together, they streamlined the kitchen, trained staff on multiple roles to increase flexibility, and cut down on labor. Herrero reduced his team from 220 to 160 employees, while maintaining (and in some cases, improving) service quality.

“We became more efficient,” Herrero said. “I was able to pay my remaining staff more because they had developed new skills, and we weren’t wasting money on unnecessary labor.”

The power of systems

The transformation wasn’t just about reducing labor or costs — it was about creating a sustainable business model that allowed Herrero to reclaim his life.

Herrero no longer spends 14 to 16 hours a day at the restaurant. He has time for his family, and he's even planning to expand the business, with two new locations in the works.

“This process gave me my life back,” Herrero said. “I fell in love with the business again, but more importantly, I’m present for my family. That’s priceless.”

Takeaway: Systems create freedom

Herrero’s story is a powerful reminder of what’s possible when you embrace systems in your restaurant. Whether you’re running a family business or starting from scratch, the key to success isn’t just working harder — it’s working smarter. Systems give you the freedom to step back and truly run your business, instead of letting it run you.

So, if you’re feeling overwhelmed or stuck in the daily grind, take a page from Herrero’s playbook. Invest in systems, find the right people, and most importantly, remember that success means having the freedom to live life on your own terms.

Click the podcast player above to listen in, or you can watch the video on YouTube, click here to download the latest episode.