Around 60 percent of new restaurants fail within the first year, and most of the time, the location is to blame.
Around 60 percent of new restaurants fail within the first year. And nearly 80 percent are shuttered before their fifth birthday.
Often, the number one reason is simply location — and the general lack of self-awareness that you have no business actually being in that location.
Unfortunately, that hip new part of town with cool shops and lots of foot traffic also comes with a price tag. And while it might be nice to sell meatballs right in the heart of everything, those meatballs better be spectacular. Because the landlord doesn’t care if it’s your grandmother’s recipe. The landlord cares about rent. Specifically: that you pay it.
Poor reviews on sites like Yelp and Facebook can speed a new establishments demise as well. Even one unhappy customer’s report can reach potentially millions of people within hours. So called ‘soft openings‘ can be impossible once word gets out on social media.
Opening too soon because of capitol issues can also be a problem. Cash can be tight and mangers often rush to open before staff is ready for the crush of clamoring patrons.
If you’re not a risk taker, you should get the hell out of business.
— Ray Kroc