The ultimate goal of strategic decision‐making is to realize sustainable profits. To achieve this objective, managers must devise ways to create and capture value. Apart from actions to reduce production costs, to lower consumer transaction costs or to devise new products or services, the most promising strategy is to in‐ crease product demand by horizontal differentiation, i.e. by making the product sufficiently different from similar products offered by the competition. Using a large sample of restaurants from Croatia, a popular holiday destination in South‐ ern Europe, we show that adoption of either a “celebrity strategy” or a “wine strat‐ egy” is associated with significantly higher revenues. Since they require substantial investment in social capital or access to financial capital both strategies are diffi‐ cult, if not impossible to imitate.