Why Do Restaurants Fail?
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Approximately 60% of restaurants fail within the first year of operation and 80% fail within the first five years.
These numbers may seem off-putting, but the remaining 20% of restaurants go on to find long-term growth and success.
Interesting. Within one block of where I live, there are several good places to eat.
- High(er) end place with good American food - been there for 20-plus years
- Sandwich shop (owned by the same guy) with huge ice cream selection - 10 years
- Argentine empanada place - 12 years (or longer)
- Mexican place - Replaced a terrible sandwich place - been there 10 years or so
- Golf themed bar and grill. Used to be an Irish "Public House". Owner retired to florida. - 3 years. Haven't been there since the re-branding.
- Cuban food - Open about 6 months. One in a chain in the SW burbs of Chicago. Used to be a bakery which closed under unknown circumstances.
- Higher-end Italian place. Great pizza, creative dishes and live music on Thursdays.
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Running a good restaurant is bloody hard work.
I've talked about my friend who was a regional manager for Burger King. Not that BK is high end anything, but most of his food skills he learned while overseeing an O Club back in his past.
I have another good friend that was literally raised in the restaurant biz. Started bussing tables, became a prep cook, then the fry guy, head of kitchen, moved to the front of the house and later managed restaurants for awhile.
One is too old now, but you couldn't forcibly throw either guy back into the job of running a restaurant.
