Restaurantnews.com had an interesting story on the 10 reasons a startup restaurant fails.
We at One Fat Frog want to see everyone succeed when opening a restaurant. Here’s some of the great tips.
1. “Failing to plan is planning to fail.” Steven Covey further states in his bestselling book, The 7 Secrets of Highly Successful People, “if you don’t know where you are going, you are unlikely to get anywhere.”
2. Under-capitalization. This can be the result of poor planning or unexpected cost. A good rule of thumb is to be capitalized with at least 20% more than your projected startup cost or a cash reserve equal to one year’s rent.
3. Owner/manager experience. So many times a new independent restaurant startup owner will assume that because they have been successful in corporate management or other types of business ownership that the same management principle will apply. The restaurant business is unique into itself. An inexperienced restaurant entrepreneur will likely not be aware of what they don’t know. Unfortunately, this lack of knowledge can lead to irreversible mistakes.
4. Hiring of a GM whose restaurant management experience does not commiserate with your restaurant concept. For example, management experience in a fast food or fast casual restaurant does not necessarily qualify that person to effectively manage a fine dining restaurant. A potential GM who has experience with franchise style operating systems will normally be a good prospect.
5. Hiring management and staff without checking former work references. Obviously, an applicant can put whatever they want on an application. The valid work history of an applicant is vitally important to making a good hire. As with any business, the success or failure of the business will be directly related to the company’s employees.
To read the rest, check it out here: http://www.restaurantnews.com/top-10-mistakes-for-a-startup-restaurant/
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