How to Avoid the Fate of 90% of Restaurant Owners (And Stay in Business)

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Restaurant businesses aren’t known for their roaring success. Many companies struggle to make it long-term, often going bankrupt within the first four years.

But why does this happen?

That’s where this article can help. It explores how you can avoid being like 90% of restaurant owners by staying in business and absolutely dominating your industry.

Here’s what do to:  

 
Pick Your Location Wisely

Before you even buy a property (if you haven’t already), you need to think wisely about your location. Don’t choose somewhere off the beaten track or hidden away where nobody will ever find you.

Location matters more than you think when selling food. You want high traffic and visibility so that if people do feel hungry, they can go to you.

Also, be wary of nearby competitors. You don’t want successful local businesses stealing your thunder and making your life a misery.

Master Your Finances

Next, you’ll need to absolutely master your finances. You can’t approach these like an amateur. You need to know where every penny is going.

These days, restaurant merchant services are far better than in the past, so you can accept a wide range of payments at a low cost. But you still need to be careful. Even restaurants offering their customers a lot of options don’t always thrive.

Therefore, avoid overspending on luxuries before you become profitable. Keep it basic, focus on the food, and build up a regular base of customers who love what you sell.

As you’re doing this, make sure you have plenty of operating capital in the bank. You want to make sure that you give your business enough room to run because you eliminate your cash pool.

Hire The Right Staff

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Hiring the right staff is also something you need to carefully consider. Getting the right people into your business is critical.

Don’t hire family members. That’s a recipe for disaster. Instead, find keen young people and those with experience serving in the restaurant industry. Look for individuals who are going to make your customers feel special and cared for.

Invest In Marketing

Another pro tip to avoid going out of business is to invest in marketing. Even if you have a great location, you need to do more than this.

Marketing on social media is essential. People love looking at photos of delicious food on their Instagram feeds, which makes them hungry and want to dine with you.

If you can run local events, like offering pizza and fresher’s fairs, then that’s also a great idea. Again, it will encourage people to buy from you in the future.

Be Consistent 

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Finally, while it might sound boring, being consistent is king. You want to ensure that the meal you provide is the same, no matter where the customer gets it.

Being consistent is hard with food, so you’ll need to write down and share your processes with your chef. The more detailed you can be with them, the better off they’ll be, and your customers will be happy.

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