We’ve all heard the staggering statistic that 90% of restaurants fail in their first year. Fortunately for aspiring culinary entrepreneurs, this is just a nasty rumor. The reality of the situation, as determined by smart people who conduct legitimate studies complete with qualitative and quantitative data, is that just 29.6% of restaurants go under in that same period. Under capitalization, or not having enough money, is usually cited as the main reason. The reality is that there are several reasons as to why culinary start-ups shutter their windows during their first years of operation including location selection, quality of life considerations and the changing food habits of consumers.
As in any real estate transaction, the age old adage of “location, location, location” holds true in selecting a location for a successful restaurant. Not only is it important to situate your restaurant in a place where your targeted customers eat, you need to consider the drive-by numbers as well as the ingress and egress of your proposed location.
Another key to success is determining a quality of life balance between owning and operating your dream restaurant and maintaining healthy relationships with your family and friends. Undertaking any new business will require lots of time and lots of help, especially in the restaurant business. Be sure you have the support you need before embarking on this grand adventure because you’re going to need it.
“Cutting the mustard” in today’s hopeful economy requires that successful restaurateurs understand their markets more than ever and meet the desires of consumers by offering locally grown, fresh menu offerings, understated décor and quality service. Need more? Contact ShareKitchen.org for more information on how to launch and grow your business with our Kitchen Incubator program. Be happy on the inside. Eat well. Be well.