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How to Avoid Restaurant Failure?

As a potential restaurant owner, one of the biggest obstacles you will have is getting your restaurant to survive the first 12 months. Starting up a restaurant is a mammoth task as there is a very high failure rate for restaurants. There are many mistakes that new restaurant owners will make which could lead to their restaurant failing. A massive 60% of restaurants do not survive their first year and 80% will not be open in 5 years’ time. Here are a few tips on how to avoid restaurant failure.

How to Avoid Restaurant Failure?


Many people who start up a restaurant do not have experience of working in a restaurant or running a restaurant which gives them the false impression that running a restaurant is simple. Many restaurant owners do not understand the demands and responsibility of running a business which will lead to their restaurant becoming unsuccessful. Before starting up a restaurant, it is essential that you understand all of the different tasks you will have to complete in order for your restaurant to be successful. These include: obtaining the correct licences, finding a reliable supplier and finding an effective and affordable location. This shows that you will have to do a large amount of research before deciding to start up a restaurant as you will have to ensure that you have all the funds and resources available to you. For example, you should have a substantial amount of personal funds ready to invest into your restaurant because your restaurant will not generate enough profit to survive the first year.

Bad Staff Management

If you do not have the management and leadership skills to ensure that your staff are fulfilling their job roles effectively, your restaurant will struggle to succeed. This is because if you cannot manage your staff, it will lead to them not fulfilling their job roles which will decrease the efficiency of your business and reduce the quality of your customer service. Effective staff management does not just require ensuring that your staff do their jobs. This is because it also requires you to ensure that your employees are happy and motivated. If your employees are not happy, it will create a bad atmosphere in your working environment which will lead to your employees becoming unmotivated. This will have a negative impact on the service that your employees will offer your customers which could deter customers which will lead to your sales struggling. It is suggested that the best staff managers are the people who have experience of working under managers as they will have acquired skills and methods from their previous managers.

Old Accounts

Many Restaurant owners make the mistake of not updating their accounts regularly. As a Restaurant owner, you will have a very busy lifestyle but you must ensure that you always have time to look at your financial figures and manage your accounts. This is because if you do not regularly update your accounts, you will not know how much your restaurant is paying for certain materials e.g. supplies. This could lead to you not budgeting your money properly which may result in your restaurant having no money in their accounts. This will lead to your restaurant going into debt and failing. Without updated accounts, your restaurant is guaranteed to fail.

Poor Customer Service

If you offer your customers a poor service and experience, they are very unlikely to return to your restaurant. This means that if you offer poor customer service, your restaurant will find it very hard to generate sales and to receive repeat purchases. It is important that you ensure that your staff are sufficiently trained to handle customers effectively as this will satisfy the customer’s needs and will encourage them to visit your restaurant on a more regular basis. If your customer has a bad experience at your restaurant, they may choose to publish their review on a review website such as TrustPilot. This will hinder your sales substantially because potential customers will see the bad review which will deter them from visiting your restaurant. This shows that bad customer service will be one of the major reasons for your restaurant failing.

Poor quality of food or meal preparation

As a Restaurant, it is pretty obvious that it is essential for your food to be of a high quality. If your food is below standard, your customer’s needs will not be met which will lead to them leaving your restaurant unsatisfied and will dramatically reduce the chance of them repeat purchasing. This proves that without high quality food, your restaurant will severely struggle. However, the main cause for poor quality food is a insufficient meal preparation method. If your meals are not prepared correctly by your kitchen staff, it will lead to your meals losing flavour and quality which will lead to the customers being served a low quality meal. When restaurants become busy, your kitchen staff may decide to cut corners when preparing meals. However, it is essential to ensure that your chefs prepare each meal correctly because if your customers realise the quality of your food is decreasing, It will lead to them losing their loyalty and eating at another restaurant. As a restaurant owner, it is crucial that you implement a strict meal preparation method with your kitchen staff to ensure that your meals do not lose quality. Meal preparation is key to your restaurant’s success.


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