Episode 18: The Wizard of Oz Effect: How Dan Anfinson Found 240 Basis Points in His P&L with AI
Guest: Dan Anfinson, COO of MH Restaurant Group & President of The Slapfish Company
Episode: 86 Reason Ep18 | Finding 240bps with AI - The Wizard of Oz Effect - Dan Anfinson from MH Restaurants
Episode Duration: 59m 05s
Published: Feb 02, 2026
Topics: Restaurant Operations, AI in Restaurants, Back-of-House Optimization, Restaurant Leadership, Labor Management, Kitchen Technology, Predictive Analytics, Restaurant Finance, Hospitality Culture
Episode Summary
What does a green dish scrubby have in common with artificial intelligence? For Dan Anfinson, COO of MH Restaurant Group, they represent the beginning and the evolution of a legendary career in hospitality.
In this episode of the 86 Reason Podcast, host Xavier Mariezcurrena sits down with Dan to explore his journey from washing dishes at age 15 to revolutionizing restaurant operations across Texas. While the conversation dives deep into the "human element" of leadership, the real game-changer is Dan's strategy for using AI to optimize restaurant back-of-house operations—finding 240 basis points in the P&L that "didn't exist before."
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From Green Scrubby to Game-Changer: The Foundation of Understanding
Dan's introduction to the restaurant industry wasn't glamorous. At 15 years old, he stood at a three-compartment sink at Rubino's Pizza, armed with what he calls "the green scrubby," learning the fundamentals of the business from the ground up.
That dishwashing station became his classroom. It taught him that the restaurant industry is fundamentally "the people business surrounded by food and beverage." It's a lesson he's carried through three decades of operations, from his early days at Claim Jumper (where he literally learned service techniques in the parking lot before being hired) to his current role overseeing multiple concepts at MH Restaurant Group.
But what makes Dan's story compelling isn't just the climb from dishwasher to C-suite operator. It's his refusal to lose sight of what matters most.
"I want my tombstone to say 'great dad' not 'kick-ass operator.'"
This philosophy—what Dan calls "The Tombstone Test"—informs every decision he makes, from how he structures his workday to how he implements technology in his restaurants.
86 the Fear: Why AI Won't Kill Hospitality
The restaurant industry has been paralyzed by a narrative: that automation and AI will replace the human touch that makes hospitality special. Dan argues this fear is not only misplaced, it's holding operators back from discovering significant margin improvement.
"The Wizard of Oz effect," as Dan calls it, is the key to getting AI right.
Just like the wizard in the classic story, the most powerful technology should work behind the curtain—invisible to the guest, yet transforming the experience they receive.
The Problem Most Operators Get Wrong
"Everyone wants to replace servers with tablets or kiosks," Dan explains. "That's where the magic happens. That's where hospitality lives. Why would you start there?"
Instead, Dan focused on the back-of-house operations—the place where inconsistency costs the most and where labor standardization delivers the highest ROI.
The Solution: Predictive Prep and Shelf Life Optimization
By partnering with platforms like PreciTaste, Dan's team built a system that:
Analyzes historical sales traffic patterns
Accounts for shelf life of prepped ingredients
Predicts exactly what to prep, when to prep it, and how much to make
Standardizes the labor line without sacrificing quality
The result? 240 basis points discovered in the P&L.
That's not a small number. For a restaurant group doing $50 million in revenue, 240 basis points equals $1.2 million in annual margin improvement.
Front-Loading the Savings: How to Use AI Without Losing the Soul
Here's where Dan's approach diverges from conventional cost-cutting strategies.
He didn't bank those 240 basis points to increase profit and walk away. Instead, he front-loaded that labor savings back into the service experience.
By optimizing back-of-house operations with AI, Dan created the financial flexibility to:
Keep more staff on the floor during peak times
Increase table turns without rushing guests
Reduce wait times and improve service quality
Invest in the human interactions that create memorable hospitality
This is the Wizard of Oz effect in action: the guest never sees the AI, but they feel the difference in the experience.
The technology enables better hospitality, not less.
The Blood Pact: Building Culture Through Commitment
Beyond the operational insights, Dan shares a deeply personal story about leadership and accountability—what he calls "The Blood Pact."
When Dan took the helm at MH Restaurant Group, he made a commitment to his team: he would show up with the same intensity and dedication he expected from them. No excuses. No half-measures.
This wasn't a metaphorical promise. It was a personal covenant that shaped how he approached leadership from day one.
The "Drive Home" Philosophy
Dan introduces a concept he learned early in his career: the drive home. When you leave work each day, how do you feel about what you contributed? Did you give your best? Did you show up fully for your team and your guests?
For Dan, this daily self-assessment is the foundation of culture. Culture isn't built in company-wide meetings or motivational posters. It's built in the small, daily decisions leaders make when no one is watching.
"You can't fake it," Dan says. "Your team knows when you're all in, and they know when you're not."
When Your Restaurant Group Needs to Optimize Back-of-House Operations
Dan's approach offers a roadmap for restaurant operators at every stage:
Early Stage (1-5 locations): Focus on standardization. Document your processes, train consistently, and build the operational foundation that technology will amplify later.
Growth Stage (6-15 locations): This is where inconsistency costs the most. If your kitchen prep varies wildly by location or shift, or if you're throwing away significant product due to poor forecasting, you're ready for predictive technology.
Scaling Stage (15+ locations or multi-concept): At this level, AI-driven back-of-house optimization isn't optional—it's essential. The margin improvement compounds across every location.
The key question to ask: Are you guessing at prep quantities, or do you have data driving your decisions?
If you're still relying on "gut feel" or historical averages that don't account for day-of-week patterns, weather, events, and seasonality, you're leaving money on the table.
About Dan Anfinson
Dan Anfinson serves as COO of MH Restaurant Group and President of The Slapfish Company, overseeing brands including First Watch (Houston market), Maggie's, and the upcoming Kirkwood concept. With over 30 years in the hospitality industry, Dan specializes in building high-performance cultures, scaling multi-unit operations, and leveraging technology to drive operational excellence without sacrificing the human touch.
Known for his "Tombstone Test" philosophy and his commitment to front-loading technology savings into better guest experiences, Dan has become a thought leader on how to implement AI in restaurants the right way.
Connect with Dan:
Company: MH Restaurant Group
LinkedIn: in/dananfinson
Your Story Deserves a Seat at the Table
Dan's journey highlights a principle that rings true across operations, technology adoption, and leadership: growth happens when you stay grounded in your values while embracing innovation. It is the willingness to keep the human element at the center while leveraging technology as an enabler that separates those who plateau from those who scale.
At Over Easy Office, we share Dan's belief that the most powerful lessons aren't found in software demos or consultant decks, but in the lived experience of operators who've been in the trenches. This is why we host the 86 Reason Podcast. We are more than a back-office solution; we are a partner dedicated to the resilience of the hospitality community, providing a space where the authentic stories of restaurant life are told.
Your experience, whether optimizing a single location or scaling a multi-concept empire—can inspire the next generation of operators.
Ready to share your story? We are looking for hospitality leaders to join us for a "moment" on the mic. If you're ready to discuss your journey, challenges, and wins, contact us today. We'd love to hear from you.