The restaurant industry is brutal. So brutal in fact, that 60% of restaurants fail within the first year. Making it past the first year mark is no reason to celebrate though, since 80% of restaurants end up failing by their 5th year.
If you plan on owning a restaurant, you can’t take restaurant failure stories with a grain of salt. The restaurant failure rate is too substantial for that.
So how do you avoid running a failing restaurant?
One way is by arming yourself with information on not only why restaurants fail, but also why restaurants succeed .
If you are a restaurant owner looking to survive the up-hill battle, read on to learn the 7 reasons most restaurants fail and what you can do to avoid them.
Why Restaurants Fail
A restaurant’s failure can be a result of one mistake or a combination of many mistakes that go on for too long. The factors that affect whether or not a restaurant ends up failing are too many to count.
Below we dig into the 7 most common reasons why restaurants fail and what you can do right now to avoid them.