Reasons why restaurant business fails

Reasons why restaurant business fails

1. Location, Location, Location
Just like when homeowners are searching for the perfect home and location, you need to follow suit when selecting your retail space. I’d even say you can’t be too picky when it comes to this make-or-break decision.
Because if you don’t look at a prospective location from all angles, especially a patron’s viewpoint, you’re liable to wind up with one or more of the following problems:
  • Poor visibility
  • Insufficient parking
  • Limited foot traffic

          2. People Problems
I’ve always said, “My business is people.” And when I counsel restauranteurs, I encourage them to embrace this same mantra.
Your team – your people – represent you on the front lines. If you’re having “people problems,” it could be due to a whole slew of reasons:
  • Ineffective hiring – Hourly vs salary ratio.
  • Being consistently understaffed.
  • Lack of focus on proper training – i.e. operations, customer service, leadership.
  • Unclear workplace culture.

          3. Poor Customer Experience
Customers come to your restaurant for more than the food. They come for an experience. And if their experience offers more negatives than positives, you could be headed for trouble.
Your customers may have a poor or average experience due to the following:
  • Disengaged staffed – not smiling, no energy, or visible lack of comradery with coworkers.
  • Unclean or disorganized restaurant or small details overlooked – bathrooms not stocked, dirty windows, or soiled menus.
  • Poor food quality – dishes take too long to prepare or delivery to table is slow.

          4. Trying to be Everything to Everyone
It’s not just a popular pop song from the 90’s! Trying to be everything to everyone is a recipe for disaster. The most successful restaurant concepts know their niche…and nail it.
If you can’t, or won’t, hone in on your specialty, you’ll encounter these issues:
  • Overcomplicated menu – too many food items, changes too often, staff unable to keep up with the new, ever-changing menu.
  • Lack of uniqueness.
  • Jack of all, but master of none.
          5. Overspending
Overspending is an enticing trap for newbies. It’s easy to think if you just spend more money on advertising or remodeling the dining room, that business will boom.
Before you make that jump, consider how else overspending can creep up on you:
  • Spending too much before opening – excessive remodels, updates, and other possible non-necessities.
  • Failing to closely watch – and reign in – cash flow.
  • Not understanding food costs.
  • Payroll growing too high.

          6. Lack of Systems
Developing systems that are customized to your operation is vital for success in those early years and beyond. Your time is limited, so establishing systems – along with checks and balances – allows you to auto-pilot select tasks.
For example, are you spending too much time on payroll, compliance, training, and HR tasks? If so, this takes time away from running a bustling restaurant. Divided attention will hinder your development.

Tags: HR Group

Comments

Post a Comment

Popular posts from this blog

About Oguta and Orashi river in Imo state

One of such wonders is hiding in  Nigeria , in Imo  state, within the rainforests of the  Niger-Delta . In Imo State, there are two angry rivers flow side-by-side without ever coming together, namely Oguta Lake and Orashi river. Water flows into it mainly from the Njaba river and to a lesser degree, the  Uju ,  Awbana  and  Urashi   rivers. It is two of these rivers that flow side-by-side, parallel to each other, without ever coming together. Oguta Lake is a lean finger lake formed by the damming of the lower Njaba river, it is the largest natural lake, it is popularly known as Ogbuide while Orashi is a river of the lower Niger River basin, and a tributary of Oguta Lake and they are both in Imo State, Southeastern Nigeria The Mystery behind Orashi and Ogbuide: 2 Igbo Rivers that cannot come together no matter how you try. However the Lake Consist of two very angry rivers, called Orashi and Ogbuide. The two rivers can never mix no matter how you try, and they also has different colour.
Read more

FOCUS ON DELTA STATE CULTURE AND TOURISM

Image
                            FOCUS ON DELTA STATE CULTURE AND TOURISM Delta or Delta State is an oil and agricultural producing state of Nigeria, situated in the region known as the South-South geo-political zone with a population of 4,098,291 (males: 2,674,306; females: 2,024,085). [3] Ngozi Okonjo-Iweala , the former Federal Minister of Finance and Coordinating of Economy and former World Bank Managing Director, is from the state. The capital city is Asaba , located at the northern end of the state, with an estimated area of 762 square kilometres (294 sq mi), while Warri is the economic nerve center of the state and also the most populated located in the southern end of the state. The state has a total land area of 16,842 square kilometres (6,503 sq mi). Delta State has scores of attractions that are simply compelling. Fascinating palaces, historic sites, monuments, birthplaces of famous people, traditional festival, crafts centres - name it - are all here. Examples
Read more

FOCUS ON ENUGU STATE CULTURE AND TOURISM

Image
FOCUS ON ENUGU STATE CULTURE AND TOURISM                COAL CITY STATE Enugu, usually referred to as Enugu State to distinguish it from the city of Enugu, is a state in southeastern Nigeria. Its capital is Enugu, from which the state – created in 1991 from the old Anambra State – derives its name. Wikipedia Founded : August 27, 1991 Area : 7,161 km² Area code : 042   Cities & Towns Other important cities and towns include Nsukka, OjiRiver, Awgu, Nkanu, Ezza, OgboduAba, Lejja, Amaokwe, Umana, Achi, Opi, lnyi and Ngwo, Nenwe and Oduma etc. [tab:Attractions] Nike Lake Resort Situated on the banks of the Nike Lake in Nike town, a short 15 minutes drive from the local airport and only 10 minutes from Enugu metropolis, Nike lake resort is an ideal spot for leisure, picnicking, weddings, private parties and banquets. The resort is managed by the famous African Sun Hotels. Iheneke Lake This is a tropical lake with maximum density during
Read more

Focus on Benue State Culture and tourism

Image
                          Focus on Benue State Culture and tourism   Benué is a state in the mid-belt region of Nigeria with a population of about 4,253,641 in 2006 census . It is inhabited predominantly by the Tiv and Idoma peoples, who speak the Tiv language and Idoma , respectively. There are other ethnic groups, including the Igede , Etulo, Abakwa, [2] Jukun , Hausa , Igbo , Akweya and Nyifon. With its capital at Makurdi , Benué is a rich agricultural region; some of the crops grown there are potatoes, cassava , soya bean , guinea corn , flax , yams , sesame , rice, and grand nuts. Benué State is named after the Benué River and was formed from the former Benue-Plateau State in 1976, along with Igala and some part of Kwara State . In 1991 some areas of Benué state (mostly Igala area), along with areas in Kwara State , were carved out to become part of the new Kogi State . Igbo people are found in the boundary areas of Ebonyi State and Enugu State in local governm
Read more

FOCUS ON AKWA IBOM CULTURE AND TOURISM

Image
FOCUS ON AKWA IBOM CULTURE AND TOURISM Akwa Ibom is a state in Nigeria . It is located in the coastal southern part of the country, lying between latitudes 4°32′N and 5°33′N, and longitudes 7°25′E and 8°25′E. The state is bordered on the east by Cross River State , on the west by Rivers State and Abia State , and on the south by the Atlantic Ocean and the southernmost tip of Cross River State. Akwa Ibom is one of Nigeria’s 36 states, with a population of over 5 million people and more than 10 million people in diaspora. It was created in 1987 from the former Cross River State and is currently the highest oil- and gas-producing state in the country. The state’s capital is Uyo , with over 500,000 inhabitants. Akwa Ibom has an airport ( Akwa Ibom International Airport ) and two major seaports on the Atlantic Ocean with a proposed construction of a world-class seaport Ibaka Seaport at Oron. The state also boasts of a 30,000-seater ultramodern sports complex . Akwa Ibom state is
Read more

Jigawa State tourism

Image
Jigawa State is one of thirty-six states that constitute Federal Republic of Nigeria. It is situated in the north-western part of the country between latitudes 11.00 ° N to 13.00 ° N and longitudes 8.00 ° E to 10.15 ° E. Kano State and Katsina State border Jigawa to the west, Bauchi State to the east and Yobe State to the northeast. To the north, Jigawa shares an international border with Zinder Region in The Republic of Niger , which is a unique opportunity for cross-border trading activities. Government readily took advantage of this by initiating and establishing a Free-Trade Zone at the Border town of Maigatari of country of Niger. Wawan Rafi Lake Wawan Rafi is situated in Kazaure and it has a scenic environment. The lake is an holiday resort that offers water sport activities such as fishing, boating etc. Golf course and other recreational activities are also taking place there. Range of Quasite Rocks Range of Quasite Rocks located at Amarya
Read more

FOCUS ON BAYELSA STATE CULTURE AND TOURISM

Image
                                             FOCUS ON BAYELSA STATE CULTURE AND TOURISM                   " The Pride Of The Nation"                                 Bayelsa is a state in southern Nigeria in the core Niger Delta region, between Delta State and Rivers State . Its capital is Yenagoa . The four main languages spoken are Izon, Nembe, Epie-Atissa, and Ogbia . Like the rest of Nigeria, English is the official language. The state was formed in 1996 from part of Rivers State and is thus one of the newest states of the Nigerian federation THE THREE MAJOR CULTURAL FESTIVALS IN BAYELSA The rich cultural heritage of Bayelsa State is expressed by variety of her festivals through which the people recreate their past and reposition their culture to the present. Virtually every community in Bayelsa State has their own unique of celebrating their cultural feast. Some of the notable ones are; LAKE EFI FISHING FESTIVAL This is a major festival that take
Read more

Tiv culture....!

Image
Marriage in Tiv land Tiv (sometimes pronounced as Tivi) is an ethno-linguistic group or nation in West Africa. They number approximately thirteen million two hundred thousand individuals in Nigeria and Cameroon. In Nigeria, most speakers are found in Benue, Nasarawa and Taraba . Tiv marriage forms can be seen through four basic phases. 1.The earliest was yamshe, marriage by exchange: a man who needed a wife located another man who had the same need.   2.They then exchanged their sisters or daughters as wives. Next, there was the kwase-ngohol / tsuen / k ô run, marriage by capture. This was divided into two. -There was, first, the forceful snatching of a wife from her husband that in Akiga ’ s words   was usually done by some “ scoundrel[s] ” who could fall on a travelling couple and take the wife and sometimes, even harass her husband. This form of marriage, by which the Tiv themselves lost many of their women during their migration,
Read more

BEST 10 PLACES TO SPEND YOUR SUMMER

Image
Top 10 Summer Destinations Winter is for working hard, summer is for playing hard. From America’s white-sand beaches to Europe’s sizzling cities, Hilton ’s 12 brands will be there to help you play your summer away. We pulled the 10 most-searched summer vacation spots, and 1 thing is clear: Visions of palm trees are dancing in your head when you’re clicking on the search bar. From the Bahamas to Dubai, with just 1 European city in between, here are the top 10 destinations for summer, according to your searches. 10. The Bahamas 2015 Hilton Hotels & Resorts While there is a risk of getting rained on during hurricane season, June generally sees mild weather, fewer crowds and significantly lower prices. While some resorts in the Out Islands close through November, New Providence and Paradise Island remain open year-round. Best for: Families looking for a taste of laid-back island living. 9. Miami
Read more

FOCUS ON EKITI STATE CULTURE AND TOURISM

Image
                                FOCUS ON EKITI STATE CULTURE AND TOURISM                                         EKITI - FOUNTAIN OF KNOWLEDGE                       Ekiti is a state in western Nigeria , declared a state on 1 October 1996 alongside five others by the military under the dictatorship of General Sani Abacha . The state, carved out of the territory of old Ondo State , covers the former twelve local government areas that made up the Ekiti Zone of old Ondo State. On creation, it had sixteen Local Government Areas (LGAs), having had an additional four carved out of the old ones. Ekiti State is one of the thirty-six states ( Federal Capital Territory (Nigeria) ) that constitute Nigeria. Ekiti State is reputed to have produced the highest number of professors in Nigeria. Several pioneers academics are from the state, including Prof. Adegoke Olubummo (One of the first Nigerian professors in the field of mathematics), Prof. Ekundayo Adeyinka Adeyemi (1st Professor of Archi
Read more