Restaurants have a notoriously high failure rate — the National Restaurant Association places this number close to 60% within the first three years of operations. There’s no denying that it is increasingly challenging to run a successful restaurant, but why is the restaurant industry so difficult? What factors contribute to the failure of so many promising establishments? We researched what you can look out for in order to keep yourself from becoming another statistic:
Business Acumen and Financial Management
While being a capable chef certainly is an excellent quality for a manager, it is not necessarily sufficient to run an entire restaurant. There are many things that you can do to in order to compensate for a lack of business experience.
There are many aspects to your choice of location that could affect your business — neighborhood, accessibility to foot traffic, public transit and parking being the most important. There are definitely no hard rules regarding what to choose as your location and restaurateur experiences differ greatly depending on country, city and sheer luck; however, there are some factors that could tip the scales in your favor.
Customer service is the number one element affecting the success of a restaurant. Customer service is much more than being courteous — it is about displaying genuine interest and communicating; providing the required help to customers, respecting their time and showing that you care about their concerns are key to maintaining a good relationship with customers and encouraging repeat business.
Meeting and Exceeding Expectations
A guest’s level of satisfaction with their restaurant experience is directly related to whether the experiences matches their expectations. Nowadays customers have an enormous amount of information and references on which they can base these expectations.
A key element that may affect the success or failure of your restaurant is the stability of your staff. Stability in every sense — the stability of the kitchen staff and their ability to steadily deliver what is required, as well as the stability of the management and front of house teams.
While external factors may play a role in the success or failure of your restaurant, there are many things you can do to help yourself. Often having a passion for the business is not enough to run a successful restaurant; pairing passion with the right mix of a dedicated team, well informed management who understand the industry and an offering that matches the expectations set for your customers, is one recipe to helping your restaurant flourish.
For detailed tips on how to ensure your restaurant’s success, download our full version…