Bankrupt Restaurant Statistics On The Rise

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.

Factors That Can Lead To Becoming
Another 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 owning your own restaurant can stay a reality.

As long as you keep your focus, and make sure you are up to date on current industry tends, you should be able to avoid becoming another bankrupt restaurant statistic.

*Note: Although the recent economic downturn has increased the number of bankrupt restaurant, if you are a true entrepreneur there might never be more of a GOLDEN OPPORTUNITY to start your own restaurant. There are a lot of amazing opportunities at the moment.