Why Restaurants Fail: Don’t Make These Mistakes with Yours!



Most businesses are pretty nerve-wracking enterprises. But opening and managing a restaurant is surely up there among the most nerve-wracking business pursuits around. You need to have nerves of steel, quick thinking, and show-stopping creativity to make it here.

You’ve no doubt seen a restaurant appear somewhere in your town only to see it disappear within a few months. This happens at an alarming rate. It’s never a pretty sight. So much work goes into opening a restaurant. Seeing it fail is something you must avoid. So we’re going to take a quick look at the reasons so many restaurants fail. Avoid these fatal errors.



Bad Location

Most restaurant customers go to a given restaurant because they happened to be walking by while they were feeling hungry. Sure, there are some big names out there that people automatically head towards, but I’m guessing your restaurant won’t be in the same tier of McDonald’s for a while yet.

You need to ensure that your restaurant is in a good location. The mistake a lot of business owners make is that they set up shop too far away from the competition. They think it’s best to stay as far away as possible so as to give nearby people no choice. Big mistake! There’s a reason restaurants are often so close to each other.

Customer Service Fails

I’ve been to my fair share of restaurants in which the people who served me were, well, jerks!



If a first-time customer has a bad experience at your place, they’ll be put off forever. If the food takes too long to serve, they won’t be happy. If it takes too long for you to get the billing process over and done with, they won’t be happy. If the staff look like they’d rather be anywhere else in the world – and give off the same attitude – customers won’t be happy. Great customer service is essential.

Misunderstanding Food Costs

This is an easier trap to fall into that you might think. If your menu isn’t properly priced, then you’re going to start having money problems pretty quickly!



There is something of a golden rule when it comes to food pricing. Many say that the cost you incurred making a particular dish should be 30% of the cost to the customer. Of course, if you’re spending a lot to make the food, then you’re going to be pricing things way too high. You need to find a good balance. For example, you need to find reasonably priced but high-quality meat imports.

Failing at Digital Marketing

Surely every business owner knows by now that you need to engage in digital marketing to make it in the modern business world? Well, not everyone seems to have gotten the message yet. In fact, this is a particularly big problem in the restaurant industry!



Sure, you might have a website and may be using SEO tactics. But do you have social media accounts? For a long time, restaurant businesses were falling behind here. These days, most restaurants have social media accounts. Be sure to join the crowd and make your voice heard!

The Food Sucks

Obviously. Don’t let that happen.


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