Bankrupt Restaurants

There are many ways restaurant owners can avoid becoming just another bankrupt restaurant statistic.

Here's and interesting statistic: Most restaurant bankruptcies occur by the second year of business operations.

Financial incompetence is the number one factor leading to bankrupt restaurants. Having a sound business plan in place and having access to sufficient funds are necessary for the survival of a restaurant. Therefore, revising and keeping a close tab on your business plan along with carefully managing your cash flow may help keep your business from becoming a bankrupt restaurant.

It is very important for restaurant owners and managers to acknowledge if there are any problems with their business. Avoiding or denying there is a problem, big or small, can be detrimental on your success as a restaurant owner or manager. Taking care of problems as they arise can put you on target for success.

Pretending that problems don’t exist can lead to becoming a bankrupt restaurant statistic.

Three additional factors that contribute to bankrupt restaurants include lack of management, lack of employee training, and lack of employee supervision. Therefore communication is key to a thriving restaurant. Communication among management and employees is an important part of keeping your restaurant on track. Another step towards a thriving restaurant is implementing an ongoing retraining program so employees become refreshed with the knowledge of how things should be done.

Being open to feedback from employees and customers can also help keep your business from becoming a bankrupt restaurant. If either customers or employees have concerns or complaints, listen and acknowledge them. This will prove you’re not just out for success for yourself, but you care about them and their well-being. Therefore, your employees and your customers are happy, and your dream of having your own restaurant can stay a reality.

Most new restaurants close their doors within the first year. That is a horrific statistic. Too many hard working individuals are losing their money, and their dreams, due to a lack of specific information.

If you are thinking about opening your own restaurant, or struggling to make your current restaurant profitable, please read this FREE report: "The Restaurant Industry's Dirty Little Secrets.

One particular restaurant failure caused me to write down this information. I knew there was just one or two things I could have told those rookie owners that would have made a difference. Unfortunately, I didn't get the chance. To read more about that incident, click here

Today's Independent Restaurant Business Tip

for . Schedule everything and write it down! First time owners generally try to do things by the seat of their pants. The best way to get your restaurant up to the highest efficiency is to write all duties, deliveries, ordering times and job descriptions down. Then post them where everyone can see them. Don't forget to include scheduling for outside maintenance, window cleaning, grease company pickup, trash pickup and staff meetings!

Testimonial

Hi Patricia
I felt compelled to email you and thank you for your insights. I was unaware of many of the issues that you addressed. I have a new enthusiasm for my coffee/vegan shop and now see a better direction and a path to profits.
Very much appreciate
T. Lui