4 Ways to Prevent Common Restaurant Fails

how to prevent common restaurant fails succeed restaurateur startup

In the United States, there are more than a million restaurants. The restaurant industry is always profitable, but owning a restaurant is a huge responsibility. Why do so many restaurants go out of business? 

Want to avoid the common restaurant fails during your first year of business?

Here are 5 ways to prevent restaurant failure.

1. Not Paying Attention to Competition

As stated previously, there are over a million restaurants in the United States.

You have some seriously heavy competition! This is why it’s integral to do market research and ensure you stay ahead of the competition.

Let’s take the modern age, for example. Your customers may not always want to sit down and eat a meal. They want their food to go. Ensure you offer to go orders.

Optimize your restaurants for food delivery services such as Uber Eats so your customers don’t have to drive to your physical location.

2. Not Enough Startup Costs

The average cost of opening a restaurant is $275,000.

Do you have that much money stashed away for your restaurant? Likely not. Many restaurant owners don’t walk into their business with this much money; they take out a loan or a business credit card and get sucked into debt.

Even if you don’t have almost $300k, that’s fine. But you should have at least $30k to spend on basic supplies, and take out a small loan if it’s necessary.

3. Not Enough Marketing

Many restaurants rely on word-of-mouth marketing and other old-school promotional tactics. While these are still effective, they’re becoming replaced by digital forms of marketing.

Invest in local SEO and optimize your restaurant for local search products such as Google Maps. Ensure your restaurant shows up on websites such as Yelp and you have stunning reviews.

4. Health Violations and Bad or Expired Food

48 million Americans get sick from a foodborne illness every year.

And it’s likely they’re getting sick from restaurants with bad and expired food. Always check your inventory and ensure your food is safe to eat. Throw out any food that’s past its prime.

Pay attention to the way you store your food. Your ingredients and food need proper freezing temperatures and refrigeration. If your systems are not cold enough, you’ll likely need commercial refrigeration repair.

You should uphold proper storage all the time, but especially when the health inspector comes through. The storage and time the food has been in your possession are key factors a health inspector will look for.

They will also look for other factors such as hygiene, silverware handling, chemical use, and equipment safety and cleanliness.

If Your Restaurant Fails Then You Fail

Is it your dream to own a restaurant? While you can achieve success as a restaurant owner, there are many restaurant fails that can destroy your business.

Identify these common restaurant management failures and do what you can to prevent them.

Are you thinking restaurant ownership isn’t for you? We offer advice on all types of businesses outside of being a restaurateur or food service business. Continue reading our blog for more company inspiration!

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