Top 5 Reasons Why Restaurants Fail

Did you know that up to 80 percent of restaurants fail in the first five years?

Here is what NOT to do if you want to be part of the percentage that succeeds.

Bad Location

I know, you have heard this a million times. But there is a reason why people emphasize on location. A good location with a lot of foot and car traffic is crucial to a business' success, having your restaurant is a busy area will not only get people to try your food out but it will also act as free advertising to gets eyes on your brand, allowing you to be known and eventually trusted.

Poor Working Conditions

An employees happiness greatly effects their efficiency at work. By creating a good working environment you allow them to work at full efficiency and give your customers the service that they deserve. Bad service is the easiest way to lose customers and losing customers is the easiest way to go out of business. So it is a very simple equation, happy employees = happy customer and happy customers = a business that succeeds. Richard Branson once said "If the person who's working for your company is not given the right tools, is not looked after, is not appreciated, they're not gonna do things with a smile and therefore the customer will be treated in a way where often they won't want to come back for more". So always remember that your employees will only treat your customers are well as they are treated.

Being a Passive Owner

Being a restaurant owner doesn't mean you can simply hire people then sit back and relax while receiving a cheque every month. It is much more complicated than that. Your restaurant needs you, nobody will look after your restaurant as well as you can. You need to be there making sure that everyone is doing their job. Even if you have a manager, you need to be the person who manages the manager this is the mistake that many restaurant owners make and this is how many of them go out of business.

Staying Old School

Many restaurants give "sticking to their roots" as an excuse for not innovating and not making use of new technology. In reality, you can stick to your roots and keep up with the times simultaneously. It is 2017, I don't want to go through the hassle dialling a number and calling just to order some food, I want to order my food with the clicks of a few buttons and no human interaction is involved. And there is no excuse to not have an online ordering system, with CloudWaitress you can create a professional website for as low as $9. To put that into perspective you would literally get a full return on your investment if one customer (that you wouldn't get otherwise) ordered two burgers.

Poor Quality of Food

You must always remember, most people come to your restaurant for one reason and one reason only. The food. If you have bad or sub-par food nothing else matters. Your food MUST either be better or more unique than the competition, finding a way to differentiate your self from the competition is a quick way to get an edge, this could be in the way you present your food, in the way your restaurant is designed or countless other ways. Always think about what customers would choose you over the competitors.

Top 5 Reasons Why Restaurants Fail
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