53 Brutally Honest Reasons Why So Many Restaurants Fail

Why So Many Restaurants Fail

Why do restaurants fail? Why do so many restaurants close? Why are so many restaurants on sale?

Whether you are thinking of starting a new restaurant and want to avoid the most common pitfalls or simply curious about the industry, below you have 53 reasons that are usually to blame for restaurant failures:

  1. Lack of experience in the industry
  2. Too lazy to learn (stubborn)
  3. Bad management (failing at being the boss)
  4. Employees (stealing, misbehaving, arriving late, etc.)
  5. Flimsy customer service
  6. Lack of attention to detail (dirty cutlery)
  7. Low food quality and presentation
  8. Inappropriate pricing strategy (versus quality)
  9. Not enough start-up capital (too optimistic in projections)
  10. Wrong concept
  11. Wrong location
  12. Boring promotion
  13. Lack of inventory management
  14. Unoriginal ideas
  15. Inconsistent quality of food
  16. Dirty toilets (a big no no!)
  17. Unsuitable clothing of employees (also kitchen staff)
  18. Way too many tables and chairs (very uncomfortable!)
  19. Inconsistent opening times
  20. Lack of support from family and or friends
  21. No friendly communication, instead a constant frown
  22. Conflicts among business partners
  23. Disputes with investors
  24. Staff with dirty fingers nails
  25. No attempt to create USPs (Unique Selling Propositions)
  26. Failing to motivate employees
  27. Overambitious menu
  28. Overpriced food and drinks
  29. Absentee owners (or owners that don’t work on site)
  30. Failing to listen to customer feedback or suggestions
  31. No website
  32. No social media presence
  33. Inappropriate music
  34. Uncomfortable lighting; Too dark or bright
  35. No distinct offering
  36. Dirty windows
  37. Lack of training (employees are simply expected to just work)
  38. Inappropriate decoration (paintings on the wall or table setting)
  39. Lack of emotional appeal (table cloths, flowers, plants, colors, serviettes)
  40. Failing to be nice to guests
  41. No formal recipes to control costs, waste and effective cooking
  42. Lack of a business plan
  43. Insufficient market analysis
  44. Unable to deal with critical incidents
  45. No coherent marketing plan
  46. Unwilling to change, adapt or be flexible
  47. Trying to be everything to everybody
  48. Using marketing gimmicks to drive sales (e.g. Groupon)
  49. Using Twitter or Facebook to spam
  50. Failing to build up a customer database
  51. Inappropriate opening/closing times
  52. Sources of noise
  53. Lack of passion and dedication

Have you seen a restaurant fail recently? Got something to add to the list? Share your thoughts and comments below.

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