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.

The statistics don't lie!

Most new restaurants don't survive a year! A little insider information might be ALL that is standing between a profitable restaurant, and becoming another unfortunate statistic!

Before you spend a small fortune opening (or buying) a restaurant, I suggest you read my FREE report I've titled "The Restaurant Industry's Dirty Little Secrets. To get your free copy of this insider information click here to get the report!

There was a single, unforgetable event that made me mad enough to sit down and write this. It is my hope that another rookie restaurant owner won't lose their dream due to a lack of good information. To read more of that story click here

Today's Independent Restaurant Business Tip

for . Getting ready to open your new restaurant is a busy, frantic time. Don't wait until the last minute to get setup for Interac, ATM, and credit card processors! For some reason the banks and credit card processors aren't in as much of a hurry to open as you are. Make sure you get this process rolling so that you'll be setup for opening day. Far too many restaurants open and say, "I'm sorry, you'll have to pay cash. We have got the processors setup to accept debit or credit cards for a few more days!". Not a great first impression for your restaurant!

Testimonial

Hi Patricia
I had to email you and tell you that your insight saved me from a $40,000 mistake.
Thanks,
Sheryl Gundham