The Catalyst

How Do You Adapt When Customers Use Your Business Differently Than You Planned?


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What happens when customers love your business, but they use it differently than you expected?

In this episode of the Small Business Resiliency Series, Stuart Takehara talks with Leonard Chan, owner and founder of Midnight Oil in Downtown Long Beach, about building a bar and restaurant concept in one of the city’s most active and competitive neighborhoods.

Leonard shares how Midnight Oil came together, why he chose Downtown Long Beach, and how the business evolved into multiple immersive bar experiences under one roof. He also talks about the challenge of opening after the pandemic, changing customer habits, shorter visits, less alcohol consumption among younger guests, and the need to create community-driven events that give people more reasons to come in.

For small business owners, this conversation is a strong reminder that the original concept is only the starting point. The real work begins when customers show you how they actually want to use your business.

In This Episode:

• Why Midnight Oil chose Downtown Long Beach

• How the concept evolved into multiple bar experiences

• Opening in a post-pandemic business climate

• Creating immersive spaces that feel like different destinations

• Why customer behavior in Long Beach is different from Orange County

• How shorter visits impact staffing and reservations

• Responding to younger customers drinking less alcohol

• Using food specials, mocktails, events, and pop-ups to drive traffic

• Why community may matter more than cocktails

• Advice for aspiring bar and restaurant owners

Episode Timeline

00:00 The challenge of adapting to Long Beach customer behavior

00:53 Introduction to the Small Business Resiliency Series

01:23 How long Midnight Oil took to develop

02:27 Opening a restaurant after the pandemic

03:22 Why Downtown Long Beach felt like the right fit

04:20 Building a unique cocktail and bar concept

05:00 How the concept changed to avoid competing with nearby businesses

06:07 Leonard’s background in restaurants and bars

07:00 Creating three bar experiences under one roof

08:21 The hidden back room and immersive bar design

08:44 Why Midnight Oil evolved the back-room concept

09:53 Making one space feel like three different destinations

10:31 The biggest hurdles of opening in Long Beach

11:00 Learning that Long Beach customers move between multiple spots

12:23 Bringing people back out after the pandemic

12:45 Using collaborations, pop-ups, specials, and events

13:26 Responding to younger customers drinking less alcohol

14:31 Why Midnight Oil is becoming more community-driven

15:37 What Downtown Long Beach needs next

17:12 Advice for aspiring bar and restaurant owners

18:00 Why partners, written agreements, and support systems matter

19:03 How to visit or contact Midnight Oil

Key Takeaway

Customers will tell you what your business needs to become.

Midnight Oil’s story shows that success is not just about having a creative concept. It is about watching how people actually behave, adapting quickly, and building reasons for them to come back.

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The CatalystBy Long Beach Area Chamber of Commerce