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There is a stat that gets thrown around a lot in family business research, and it is kind of brutal once it actually sinks in. Something like 70 percent of family firms do not make it past the founder into the second generation. Not because the business itself was bad. Not because the market shifted. A lot of the time it is because the founder simply could not hand it over, and nobody around them knew how to make that happen either. That is the part people underestimate. Succession sounds like a paperwork problem, write a plan, name a successor, done. In practice it is closer to a slow motion identity crisis, and that is exactly what the research keeps circling back to.

You would think the math here is simple. Fewer menu items should mean fewer ingredients to track and fewer things that can go wrong. And yet anyone who has eaten at a small neighborhood spot has probably heard "sorry, we are out of that" more than once, while the place down the street with a menu the size of a small novel somehow never misses a beat. That contradiction is basically the whole story, and it turns out the answer has less to do with menu size and a lot more to do with what is actually happening behind the kitchen door.

Inflation slows down, everyone breathes a sigh of relief, and then you go to the grocery store and the same cart still costs the same painful amount it did last year. What's weird about this is that it's not a mistake or some kind of price gouging conspiracy. It's basically how the whole system is built to behave.

A look at what happens when companies take the strategies that made them successful at home and try to replicate them in markets with completely different expectations, habits, and rules.

And Why Retailers Love It

Building on my earlier post about why businesses selling identical products can have completely different outcomes, this article explores a more specific question.