Why Restaurants Fail

There are several reasons why restaurants fail. Like any business venture, it is a risk you must choose to take, but it doesn’t have to end in failure. The general population is under the impression that the restaurant failure rate is very high. Unfortunately they are right!

One of the primary reasons why restaurants fail is simply poor management. Often restaurant owners do not possess prior experience in the industry and struggle to handle the heavy workload associated with owning a restaurant. This combined with financial and staff management can add up to be quite a burden. There are times when the staff may be part of the problem. In a booming economy staff may be in high turnover and many of them inexperienced. In some instances this could lead to customer dissatisfaction.

Proper maintenance is absolutely essential for success. There is no room for compromise when cleanliness is the issue. We’ve all heard stories about restaurants being shut down because of one unsavory incident or another. It is a common occurrence and a valid reason why restaurants fail. Cleanliness is vital to your customer experience and health.

Location plays a role in why restaurants fail as well. The zoning restrictions and local laws may require your restaurant to be in a specified location. Depending on your target consumer demographic, this may end up working against you. Finances are known for playing a major role in business break downs. Once caught in the downward spiral of spending more than is profited, it can be very difficult to get out. Advisors and consultants are always a good place to start if you need management assistance. Covering all aspects will add security and boost your levels of success. The failure rate is high but the success rate is higher. Effective management will broaden your path to success.

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 . Many owners obsess with coming up with the perfect restaurant name. Unless you are politically incorrect or crude your name is not going to make or break your restaurant. However, there have been many operations open, order glasses, uniforms, menus and promotional items only to receive a nasty "cease and desist" order from a lawyer. Make sure you research your restaurant name. It is surprising how many restaurants are forced into the costly procedure of changing their name in the first few months. This costly mistake can cripple your operation. Get your lawyer to check and register your name!

Readers Comments

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