Why Most Restaurants Fail

Deciding to open a restaurant because you make great chili and love to cook is the reason why most restaurants fail. Seriously! Everyone who has a dream to open their own restaurant needs to take heed that there is much more needed than the great taste of their chili and the love of cooking to succeed. Much, much more.

When opening your own restaurant, you must decide how much your time is worth to you and how much time you can afford to spend in your restaurant. If you are working 60 hours a week in your restaurant you will burn out and not be very productive in making it succeed. Most new restaurant operators get so caught up in being and working in their restaurant that they can't seem to think clearly about what is best for their operation. You need to step back and take an honest look at your operation and see if it is running to its fullest potential. If you have to be there, all the time, realize that you have bought yourself a job, not a business.

How about a "solid" business plan? Everyone thinks that they can make their plan up as they go along. How can you do that if you are working so many hours and are burning yourself out? How can you think clearly when you are overtired? Your plan has to be right from the beginning, before you do anything else. It should be what you base everything on. If you don't have a solid business plan your restaurant will fail.

Most budding restaurateurs want to design their menu and find their location first. Though these are important, they are not the most important facets of the business. They want to decorate and they dream of all the customers that will be lined up outside their door. They believe that by the power of the universe their restaurant will be special. Yes, it can be. If it is well thought out and it has a solid business plan to back it up, because without a business plan and some reserve capital new owners will soon find out why most restaurants fail.

Remember how important it is to have "reserve" money in the bank to carry you over until you start to make a positive cash flow? Money to pay for those set backs that you never dreamed would happen, yet always do. (Like a blown water heater or a deep fryer that just won't work)? Most new restaurant owners have limited resources, and that that is a major factor in most restaurants fail. Not enough money to carry you over until the money starts coming in.

So remember, when deciding to open your own restaurant consider everything that has to be done before you take the plunge. Start with a solid business plan first. Have your accountant and lawyer check it over for you. Know it like the back of your hand and do not deviate away from it.

Unfortunately, there aren't any college courses on "How To Start A Profitable Restaurant". (And if there are, they are probably taught by someone who's never owned a restaurant!) The statistics don't lie. Most restaurants DON'T stay open a year! I got extremely frustrated seeing unsuspecting new owners lose their dreams (and their shirts). Sometimes it's just a lack of good information that causes their businesses to fail and a great amount of personal heart break!

I have written a special email report in hopes that it might stop the growing statistics of new restaurant failure. So, before you spend your hard earned money acquiring and opening your restaurant, I urge you to read my FREE report "The Restaurant Industry's Dirty Little Secrets. Get your copy of this report today click here to get your FREE report!

There are a lot of successful restauranteurs. There is a HUGE number of well meaning, hard working rookie restaurant owners who simply aren't aware of the "insider secrets" to creating a profitable restaurant. One particular event caused me to sit down and write out this information. To read more about the event click here

Today's Independent Restaurant Business Tip

for . Make a point of scheduling a check of all lighting, (IN and OUT)! Some owner operators get so tied up inside their restaurant that they never take a stroll outside the building. I recall one marginally successful restaurant that had many lights out on their front sign for years. The owner always drove in the back alley and never walked outside at night time. You must try to keep a "critical" eye and see your restaurant as your customer does! (They aren't in the kitchen the entire time ;-))

Readers Comments

Patricia
Thanks for making this information available. It has quickly become my most trusted resource as I prepare my restaurant business plan.
Thanks
Marilee Cutton