Restaurant Failure Statistics (Ouch!)

The Cold Hard Truth!

Many restaurant owners sometimes feel a little bit overwhelmed when they hear the statement that 90% of restaurant businesses fail in the first year in which they are in operation. With that said, they still charge on hoping that they will be the lucky 10% who make it and have a successful career as restaurateurs. Even though this 90% statistic tends to permeate the restaurant business as being a fact, it is good to know that this statistic, as far as restaurant failure statistics goes is false.

What Is the Truth About the Failure of Restaurants?

restaurant failure statisticsThere have been quite a few studies completed which focus on the statistical background of restaurant failure. The results have been beneficial and prompt restaurant owners to believe that the 90% myth is simply that.

One of the more recent studies conducted produced results showing that the failure rate of new restaurants was between 67% and 81% over the first two years. Although this covers just one area, it provides a glimmer of hope for business owners and provides them with faith that the 90% failure rate is perhaps one of the inaccurate restaurant failure statistics these days.

Where Can Restaurant Owners Find Out More About Restaurant Failure Statistics?

For those current restaurant owners who wish to learn more about failure statistics, there are a few places on the internet your can surf around to. You can read more of my thoughts about restaurant statistics on this website entitled restaurant statistics.

The Internet is a wonderful resource to consult in order to find out facts relating to restaurant ownership and successful business tips. However, I suggest you look at your local area and work out the stats for yourself. How many restaurants have you seen open in the last 2 years? How many are still going? And one more question: Who would want to report extremely high statistics of restaurant failures? Could it be the current restaurant owners who are trying to dissuade their future potential competitors?