Gotab’s Pivot Playbook: How to Survive When Your Market Says “No”

Gotab’s Pivot Playbook: How to Survive When Your Market Says “No”

What do you do when you know your innovation can transform an industry, but that industry keeps telling you you’re wrong? For Gotab, the answer involved a two-year journey of persistence, adaptation, and ultimately vindication.

In a recent Category Visionaries episode, co-founder Tim McLaughlin shared the challenging path from industry skepticism to breakthrough success. His experience offers valuable lessons for founders introducing transformative technology to traditional industries.

Finding the Right Problem

Gotab’s journey began with firsthand experience of broken restaurant technology. As Tim explains, “I quickly learned just how broken restaurant technology is. It’s all closed, it’s all proprietary… Massive lock in. No portability, hardware lock in. It’s totally crazy.”

This insight led to their initial focus: eliminating transaction friction for guests. The goal was to “make it so guests don’t have to do the things they don’t want to do in restaurants, aka pay split the non fun stuff, not ordering and tasting stuff, not talking to great service staff, but taking away the not fun stuff.”

The Reality of Resistance

Despite solving a clear customer pain point, the industry pushed back hard. “It took us, frankly, about two years to finally get what we consider product market fit,” Tim recalls. From 2018 to 2020, they faced constant resistance to their QR ordering solution.

The challenge wasn’t customer adoption – it was operator skepticism. Tim notes, “Consumers may want it, but restaurant operators don’t.” The resistance stemmed from deeply held industry beliefs: “Restaurant tours frequently believe that the guests come to talk to them… the reality is a lot of guests come to talk to their friends and eat the food and drink that is offered there.”

Pivoting Through Success

Interestingly, Gotab’s pivot came not from failure but from unexpected success. When operators did adopt their solution, it created new challenges. As Tim explains, “We would actually take more orders than they’d ever taken before at the same time. So then we ended up becoming an operational tool to fulfill the… keeping the promises that we already made to the guests.”

This led to their expansion into kitchen operations and logistics – areas traditionally ignored by restaurant technology providers. The result? Their clients now achieve labor costs 25% below industry averages, proving the value of their comprehensive approach.

The Catalyst Effect

Sometimes market resistance can only be overcome by external catalysts. For Gotab, that moment came with COVID-19. Tim recalls, “All the people who told us this is the dumbest thing I ever thought I ever heard in 2019, called us back in 2020.” The pandemic “accelerated the US adoption of QR by probably three to five years, virtually overnight.”

Lessons for Founders

Gotab’s experience offers several key insights for founders facing similar challenges:

1. Early resistance doesn’t mean wrong direction
2. Success can create new problems that expand your opportunity
3. Focus on solving fundamental problems exceptionally well
4. Be ready to capitalize when market conditions shift

The journey from resistance to adoption requires maintaining conviction while remaining adaptable. As Tim reflects on their approach: “We want to look forward and kind of work our way backward into how restaurants should operate. Like, fast forward ten years, how should they operate? And then say, okay, well, how do we adapt that to how people want to or already do operate?”

For founders bringing innovation to traditional industries, Gotab’s story demonstrates that success often requires both patience and opportunism. The key is surviving long enough to see your vision validated while building the capabilities to capitalize when the market finally catches up.