The 95/5 Rule: How a Tiny Budget for Magic Can Change Everything

Why the smartest businesses save a little for the extraordinary

Imagine running your business with military precision—every penny accounted for, every process optimized. Now imagine setting aside just 5% of your budget for pure, unadulterated magic. That’s the 95/5 Rule, one of the most powerful concepts in Will Guidara’s ‘Unreasonable Hospitality.’

The idea is simple: manage 95% of your business with discipline and care, but reserve the last 5% for extraordinary gestures that surprise and delight your guests. These moments don’t have to be expensive—a surprise dessert, a thoughtful gift, or a spontaneous adventure can create stories that guests will share for years. The key is intentionality: planning for magic, rather than leaving it to chance.

Guidara’s team at Eleven Madison Park used this principle to create unforgettable experiences, from sending families sledding to crafting personalized gifts. The return on this small investment was enormous: guests became loyal advocates, spreading the word and returning again and again. The 95/5 Rule isn’t just for restaurants. Any business can apply it—hotels, tech companies, healthcare providers, even schools. The secret is to empower your team to spot opportunities, budget for spontaneity, and celebrate the impact of these moments.

In a world where most companies compete on price or efficiency, the 95/5 Rule offers a different path—one where relationships, memories, and loyalty are the true currency. By saving a little for the extraordinary, you can turn ordinary transactions into lifelong stories. That’s the magic of unreasonable hospitality.