According to an article in Business Week, one out of four new restaurants is destined to fail within the first year. Over a three-year period, that number rises to three out of five restaurants. While this average failure rate is normal for new businesses across the board, it
is little consolation to those restaurant owners who become a statistic.
Priority is a key ingredient in the success of a restaurant. H.G. Parsa, an associate professor in hospitality management at Ohio State University, has determined through research and interviews that the difference between successful and failed restaurants hinges largely on the owner’s commitment to be passionate and knowledgeable about the restaurant and the owner’s willingness to invest large amounts of time and attention to the establishment. This often means that the restaurant must become the number one priority in the owner’s life.
The restaurant industry is so time consuming because there are multiple changing elements that must be continuously tweaked. Some decisions – like the location of the restaurant – are one-time choices. However, other decisions, such as menu items, prices, themes, suppliers, décor, and marketing should constantly be critiqued for improvement.