Using an expert, wise decision?…
Opening a Restaurant Today Using a Expert
So here you are, after all your family and close friends have made numerous attempts to talk you out of opening a restaurant of your own. You decided to come to the experts! That was one very smart move on your part. I am aware that your family and friends have exhausted every effort to change your mind because they have the dismal perception that 90 percent of all restaurants fail within the first year. Well, if that was the fact I would agree with them and be the first to say look for a business that has a greater return on your investment. That’s right I said IF that was the fact! Well I’m here to tell you that there is hope on the horizon and there are brighter days ahead. What if I was to say that the actual figure is closer to 33 percent and that studies exist that show this number to be accurate? Remember; keep in mind that we are talking about the first year. Now if we were to jump ahead two more years, it’s closer to 90 percent. The good news is that those who are capable and willing to put in the hard work and sacrifices needed to succeed have great odds of surviving up to ten years.(based on a study from Chris Muller of the Cornell University school of Hotel Administration as found in Restaurant Success by the Numbers Second Edition- introduction/ author, Roger Fields)
Why Some Restaurants Are Not Successful
Let’s first look at some reasons why there is failure in the restaurant industry. I’ve always said that there are those who believe that because they have cooked at home for large family gatherings they are qualified to open a restaurant. Then there are the romantics, and I admit that I can almost understand them. Picture this… you’re at your favorite out of the way place that you and your favorite significant other have had many memorable moments and maybe even” the moment “. Yes everyone remembers” that moment” when they popped the question that would forever change their lives. They romanticize the food, the music, the lights, and their favorite waiter Brad who knows that two glasses of choice Pinot will set the night on fire. Yes, the romance of the business is attractive to those who see the one side of that coin. So, they want to capture those feelings in their own restaurant. But you know what they say. . .
Why Owning a Restaurant Makes Sense
Ok ,there are many reasons you can fail in this business, but that is the case in almost any business. I’m telling you that there are industries out there that do not fare as well as the restaurant industry when it comes down to return on your investment. Consider retail, for example, and how competitive that industry is. Even though the inventories are usually not perishable, they are trend or fashion driven and change with the drop of the hat…literally.
As the percentage of households earning two incomes and single parent homes continues to grow, the demand for dinning away from the home will also grow. Parents will have less time to prepare meals at home and still have time to help with homework, attend sporting events, social activities, church, and so much more. It’s just a no brainer.
I was introduced as a “foodie”. I’m also the romantic and I’ve cooked for many family gatherings. I’m very passionate and I have had my share of successes and failures as I have lived the life of a restaurateur extraordinaire. In closing, let me quote a famous restaurateur Ray Crock who said “success is being in the right place at the right time and knowing you’re there”