The Restaurant in the Alley: How We Make Decisions Without Even Realizing It
Imagine you’re standing in the middle of a quiet alleyway. On either side of you is a small, empty restaurant—same size, same exterior, no menu in sight. You have no real information about which one is better. So, with nothing else to go on, you go with your gut and walk into the restaurant on the left.
A few minutes later, someone else walks down the same alley. They also know nothing about either restaurant—but now they see you sitting inside the one on the left. That’s information. You must’ve had a reason for choosing it… right?
So, they go left too.
Then a third person arrives. Now there are two people sitting in the restaurant on the left. It looks like the clear winner.
By the time the tenth person shows up, the restaurant on the left is buzzing. The right side is still empty. And not one person has any idea which restaurant is actually better.
Welcome to the world of herd behavior—and its surprising role in franchise decision-making.
This scenario is more than just a quirky parable. It’s a classic illustration of how humans behave when faced with uncertainty.
When we lack information, we naturally look to others for cues. We assume the group must know something we don’t. After all, there’s safety in numbers, right?
But as this example shows, group decisions can be based on nothing more than one person’s random guess. The chain of logic gets stronger with each follower, even if the foundation is weak or nonexistent.
This pattern—called informational cascade—shows up in everything from viral social media trends to stock market bubbles. And yes, even in the way people choose which franchise to explore.
When people start thinking about business ownership, most begin in unfamiliar territory. The world of franchising is wide, complex, and filled with thousands of opportunities. That’s exciting—but also overwhelming.
So what happens?
They look for shortcuts. They look at:
- The “Top Franchise” rankings online
- Which brands are advertising the most
- What franchises their friends have heard of
- Which booths have the biggest crowds at the expo
- Who seems successful on LinkedIn
Sometimes these cues are helpful. But other times, they just reflect the same kind of herd behavior as the restaurant alley.
You end up with crowded attention around a handful of brands—not because they’re the right fit, but because they’re the most visible. Meanwhile, better opportunities may sit quietly across the alley, unnoticed and empty.
The first person in the alley went with their gut—and that’s not always wrong. Intuition can be valuable. But in the franchise world, gut alone is risky.
Your decision shouldn’t be based on who’s already inside. It should be based on:
- Your goals
- Your lifestyle priorities
- Your income needs
- Your management style
- Your comfort with risk
- Your operational preferences
- Your exit plan
A franchise that’s perfect for someone else might be totally wrong for you. Conversely, the brand no one is talking about might be your best shot at long-term success.
In the restaurant alley, the right decision would’ve required more information—like who owns the place, what’s on the menu, what reviews say, and what kind of experience each one delivers.
In franchising, that’s exactly what strategic candidates do. They don’t chase trends. They create a decision framework, ask the right questions, and investigate each opportunity with their end goal in mind.
A few questions to consider:
- Will this business give me the lifestyle I want?
- Does it match my strengths and interests?
- Is there long-term demand for the service?
- Can I scale it, automate it, or step back from it?
- What do actual franchisees say about their experience?
When you approach your franchise search this way, you break the cycle of uninformed decision-making. You stop being the next person in line who simply goes left. You become the person who chooses based on your criteria—not someone else’s.
Franchise success doesn’t come from choosing the most popular brand. It comes from choosing the right model for you.
So next time you’re standing in the alley—figuratively or literally—don’t just go with the crowd. Look deeper. Ask questions. Follow a process. And trust that the best decisions aren’t always the ones everyone else is making.
Sometimes, the empty restaurant on the right is serving the best meal in town.
About the Author
Mike Martuza is a Senior Franchise Consultant and Partner with Franchise Consulting Company and author of The Franchise Rules: The No-Nonsense Guide to Finding a Franchise That Fits." With decades of experience in entrepreneurship, coaching, and strategic business development, Mike helps aspiring business owners find the right franchise that aligns with their goals, values, and lifestyle. Contact Mike at mikemartuza@thefranchiseconsultingcompany.com.










