The restaurant business industry has experienced a great revolution through technological advancement and modernization. The strategies have evolved, notably- marketing tactics, economic problems, consumer behavior, location, interior designs, market competition, menu prices, rise in labor cost, etc. The past few decades’ dramatic revolutions have emboldened numerous restaurant owners to either adapt to the dynamics or shut down their businesses.
According to the National Restaurant Association in the U.S, the estimated ‘average’ restaurant failure rate in the first operational year is 30%. To put it simply, one out of three restaurants won’t make it. But this does not mean that you give up the idea of becoming a successful restaurant owner. In this article, I will talk about tried and tested practices from flourishing restaurant businesses and will list down the causes of failure so that you can prevent them from occurring. Happy reading!
Develop a defined concept
According to Statista, the total number of restaurants in the U.S are 660,755. That’s huge! Among all the restaurants, a few prominent names are leading the industry. Why would people visit your place? And most importantly, what are you offering to your target audience that would captivate their attention? A ‘defined,’ detailed, strong, and ambitious restaurant concept is the underlying element in making your restaurant a success, the first step to the ladder of success.
As Pele highlighted the concept of success, “Success is no accident. It is hard work, perseverance, learning, studying, sacrifice, and most of all, love of what you are doing or learning to do.”
Colin Powell stated, “Success results from perfection, hard work, learning from failure, loyalty, and persistence.”
But what will motivate you daily to work hard and reach your objective? Your restaurant concept, its distinctive identity. Once you have discovered that, the entire process will not become smooth, but this will provide you a reason to make your restaurant successful every day. As John C. Maxwell said, “Your daily agenda determine the secret of your success.”
Find a suitable location
Location is as important as water to trees. To grow and progress as a famous and authentic restaurant in the industry, finding a location that aligns with your target audience and helps you attain visibility in the market is imperative. You must have been to a popular restaurant; did you notice that it was accessible and easy to find with a parking facility?
Once you understand your target market, it will assist you in meeting your purpose’s requirements, such as the place’s demographics, area traffic, and competition in the neighborhood. Consider conducting in-depth research before deciding on a location.
Invest substantially in marketing
The term substantially is not mainly used here in the economic context but in terms of utilizing every strategic marketing tool that can boost your visibility. From a personal experience, you opened an excellent restaurant focusing the high-income earners. With colossal investment, much noise, expensive chefs, laborers, and menu, things went well initially, but the increasing graph went down. And the reason was bad management and poor marketing.
Today, advertising strategies have evolved, and it’s fundamental to keep up with them to remain prominent in the market. For instance, digital marketing has turned the tables.
Locate the networking site that has the potential to generate profit to then engage with customers there. Moreover, you can create authentic and catchy content to highlight the great details about your business. This practice has enabled multiple restaurants to gain prominence and achieve 80% of new customers by good reviews on the site.
Maintain originality, quality, and consistency in your food
No matter how good your interior is, your staff, or your excellent location, if your food has not left an everlasting impression on your customer, you will never increase the line on the graph. Your food and menu make you the brand! Preparing your food according to your intended audience is imperative and making it as delicious as possible. Because every time the customer comes back, they anticipate eating the same flavor. Most restaurants have compromised on their flavor and food quality for cost-cutting, resulting in disappointing guests. To avoid this mistake, make sure the raw materials and every other component included in the preparation of food is what you can afford even in the long run.
These were some important reasons; however, I’m listing additional factors that significantly contribute to the restaurant’s success.
- Esteeming your employees
- Resolve consumer complaints quickly
- A wise investment
- Get A Catchy Logo
- Create a focused website
- Emphasize systems of organization and operation
Multiple restaurants closed because of several significant errors, including:
- Poor location
- Inappropriate pricing
- Inadequate marketing
- Lack of organization
- Lack of experience
I hope this article will be of great help to you. Best wishes!About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.