10 Reasons why Restaurants Fail

1 The Concept might not be what the neighborhood needs

No clear idea of what their restaurant stand for. What’s your USP?

A USP (Unique Selling Proposition), what differentiate your restaurant from the competition?

2 No Business Plan

I have every number in my head, I don’t need a BP

This is the main factor, the head of the owner(s) for failure.

3 No Marketing Plan

I work with the WOM (Word Of Mouth) only.

Unfortunately the WOM takes too long to work; you’ll be way out of business before the WOM starts to kick in.

4 No Staff Training Program

I hire the best people always, they don’t need training.

why would I spend time and money to train people for them to leave for the competition. If you do not train your staff you are bound to have a team out of wack. Training is one of the most important step to add to your tools of success. Without a properly trained staff you run the chance of chaos.

5 No Data Base build up program

I know my guests, who they are. I have people coming to me 2, 3 times a week, they love my restaurant. With the increase competition you need to pull your guests by the sleeve to come to your offering. The best way is through email, to stay in constant view of your guests.

6 No Concept of their Potential Customers

I know all my customers, I don’t need to know who lives around me. Without a clear understand of your market, you are walking with a blind in front of your eyes.

7 No Restaurant Culture

What culture? I don’t grow my own vegetables. A Culture has been gaining momentum in small businesses as well as large ones. Inform your self, regarding Culture.

8 Lack of Prioritization

My staff knows how to handle the guest better than I. They understand their needs better than I could ever do. Take that bandana off from your eyes, take the lead your team needs direction for the rod to success.

9 Have not done the basic: SWOT

I am not afraid of the competition. My food is the best of all the neighborhood. Take the test Strength, Weaknesses, Opportunity, Threats.

10 My staff doesn’t need any reward.

They make enough tips the way it is, right now. Your staff is the most important part of your business, a well trained staff will do wonder for your bottomline.

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