Restaurant Myth

Guaranteed Failure: The Biggest Restaurant Myth

If you own a restaurant or are planning on starting one, you can probably recite this statistic by heart: “Ninety to ninety-five percent of new restaurants fail during the first year.”

While this nasty little restaurant myth has been making the rounds since the first time the Julius Caesars ordered carryout—okay, maybe not that long—it’s been a while since anyone did a study on these statistics. When Ohio State University actually did a longitudinal study on this issue between 1996 and 1999, they found that 67 to 81% of restaurants closed sometime during the first two years. The cream will rise to the top and the rest…well, you know.

That means that nearly 20% of restaurants survived those treacherous early years. Why does debunking this restaurant myth make so much difference? Because we program ourselves to do what we believe. If we believe we’re supposed to fail, we will. If we believe we can succeed, we will usually do that, too.

Far too many restaurant owners believe the failed restaurant myth hype and stoically accept market declines when they should be revising their menus, taking a serious look at their décor and their atmosphere, and beating the bushes for more business.

As a restaurant owner, don’t be fooled into thinking that success is a mostly-miss proposition and that your fate lies in the stars. While the odds still aren’t in your favor, they’re probably much better than you ever suspected. So if your new restaurant is struggling, forget about the failed restaurant myth and "fight" to turn things around.

There’s a 19% chance I’ll still be coming in your doors to eat two years from now.

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!

Readers Comments

Your book opened up many areas for thought. I appreciate your honesty. Your passion and experience was evident and am sure it will serve me well in the future.
Thanks,
Cindy McB.